La Rosa Holdings Corp. Reports First Half 2026 Results Highlighted by 10% Gross Profit Growth and 42% Improvement in Operating Loss

Rhea-AI Summary

La Rosa Holdings (NASDAQ: LRHC) reported first half 2026 revenue of $28.6 million versus $34.9 million in 2025, while gross profit rose 9.9% to $3.7 million and gross margin expanded about 329 basis points to 13.0%. Operating expenses fell 25% to $7.9 million, narrowing operating loss 41.6% to $4.2 million. Net loss improved 9.4% to $15.6 million.

For Q2 2026, revenue was $15.1 million versus $20.2 million, but gross margin increased to 11.5% from 9.2% and operating loss narrowed to $1.7 million. The company reported $10.3 million of restricted digital assets and a commercial brokerage revenue increase of 95.4% in the first half.

Positive

• First half 2026 gross profit up 9.9% to $3.7 million
• First half gross margin expanded ~329 bps to 13.0%
• First half operating expenses reduced 25% to $7.9 million
• First half operating loss narrowed 41.6% to $4.2 million
• Commercial brokerage revenue up 95.4% to about $479,000
• Q2 2026 operating expenses down 21.2% to $3.4 million

Negative

• First half 2026 revenue declined to $28.6m from $34.9m
• Q2 2026 revenue fell to $15.1m from $20.2m
• First half net loss remains high at $15.6 million
• Total liabilities increased to $28.8m from $13.3m
• Total stockholders’ deficit widened to $7.8m from $1.8m
• Notes payable current and noncurrent rose to $21.6m from $7.3m

News Explained

At June 30, cash was $2,282,397 while common shares were 2,025,470, up from 20,963 at December 31.

On August 24, 2026, La Rosa Holdings reported second-quarter 2026 results for the period ended June 30, 2026.

Common shares issued and outstanding were 2,025,470 at June 30, 2026, versus 20,963 at December 31, 2025.

If that increase reflects additional share issuance, it would reduce an existing holder’s percentage ownership absent offsetting changes under the supplied dilution definition.

The June 30 cash balance equals 227.8 days of the last reported operating cash use.

Sources and calculations

• La Rosa Holdings first-half 2026 results release (2026-08-24)
• Dilution definition (2026-07-17)
• La Rosa Holdings second-quarter 2026 fundamentals (2026Q2)

• Cash and equivalents vs quarterly operating cash outflow, in days of cash use $2,282,397 / ($901,553 / 90) = [object Object]

Market Reaction – LRHC

-4.02% $0.57 17.0x vol

15m delay

-4.02% Vs previous close

$0.57 Last Price

$0.56 $0.62 Day Range

$1.86M Market Cap

17.0x Rel. Volume

Following this news, LRHC has declined 4.02%, reflecting a moderate negative market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $0.57. Trading volume is exceptionally heavy at 17.0x the average, suggesting significant selling pressure.

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Market Context

Current risk data classified LRHC’s short signal as low. That context frames the report’s improved m...

Analysis

Current risk data classified LRHC’s short signal as low. That context frames the report’s improved margins and operating loss against declining revenue and continuing net losses; subsequent filings and execution of strategic initiatives remained relevant risks.

Key Figures

Q2 revenue: $15.1 million Q2 gross margin: 11.5% Q2 operating loss: $1.7 million +5 more

8 metrics

Q2 revenue $15.1 million Q2 2026 vs. $20.2 million in Q2 2025

Q2 gross margin 11.5% Q2 2026 vs. 9.2% in Q2 2025

Q2 operating loss $1.7 million Q2 2026 vs. $2.5 million in Q2 2025

Q2 net loss $2.2 million Q2 2026 vs. $78.5 million net income in Q2 2025

First-half gross profit $3.7 million First half 2026 vs. $3.4 million in the prior-year period

First-half operating loss $4.2 million First half 2026 vs. $7.1 million in the prior-year period

Commercial brokerage revenue 95.4% increase to approximately $479,000 First half 2026 vs. approximately $245,000 in the prior-year period

Restricted digital assets $10.3 million Balance sheet as of June 30, 2026 vs. no holdings in the prior-year period

Historical Context

5 past events · Latest: Aug 10 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 10	Strategic alternatives update	Neutral	-13.2%	Board review of alternatives, terminated LOI, and reported restored Nasdaq filing compliance
Aug 03	Q1 earnings report	Negative	-16.3%	Revenue declined while financing-related losses contributed to a substantial common-stockholder loss
Jun 05	Fiscal 2025 results	Negative	-4.5%	Revenue growth was accompanied by going-concern uncertainty and disclosed internal-control weaknesses
May 22	Nasdaq deficiency notice	Negative	+0.8%	Company received a notice concerning delayed quarterly and annual regulatory filings
May 14	Proposed transaction update	Neutral	+0.0%	Parties continued diligence and negotiations under a non-binding acquisition letter

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent earnings and strategic updates were generally followed by negative or flat 24-hour reactions despite reported operating improvements or strategic initiatives.

Key Terms

basis points, stock-based compensation, noncontrolling interest, convertible preferred stock

4 terms

basis points financial

"Gross margin expanded approximately 329 basis points to 13.0%"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

stock-based compensation financial

"stock-based compensation expense declined 85.6% to approximately $73,000"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

View in glossary

noncontrolling interest financial

"Loss on disposition of non-controlling interest in subsidiary"

The portion of a business owned by investors other than the controlling owner when one company has control of another; it represents outside shareholders’ share of the subsidiary’s assets and profits. For investors, it matters because those outside claims reduce the amount of profit and net assets attributable to the parent owner — similar to saying part of a pizza belongs to someone else — and thus affects earnings, book value and valuation.

convertible preferred stock financial

"Series B Convertible Preferred Stock issued and outstanding"

Convertible preferred stock is a special class of company shares that pays priority, usually fixed, payments to holders and can be exchanged later for a set number of common shares. It matters to investors because it combines steady income and added protection with the chance to share in a company’s upside; think of it as a hybrid between a bond that pays regularly and an option to convert into growth-oriented stock, where the conversion rules influence both potential gains and how much common shareholders’ ownership may be reduced.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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First half 2026 gross margin expands approximately 329 basis points to 13.0% as operating expenses decline 25%

First half 2026 net loss improved 9.4% to $15.6 million, compared with a net loss of $17.2 million in the prior-year period.

Commercial Brokerage revenue increased 95% during the first half of 2026

CELEBRATION, Fla., Aug. 24, 2026 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a real estate and PropTech company, today provided a business update and reported financial results for the second quarter ended June 30, 2026.

Q2 2026 Financial Highlights

• Total revenue was $15.1 million, compared with $20.2 million in the second quarter of 2025.
• Gross profit was $1.7 million, compared with $1.9 million in the prior-year quarter, a decrease of 6.5%.
• Gross margin expanded to 11.5% from 9.2%, an improvement of approximately 235 basis points.
• Total operating expenses decreased 21.2% to $3.4 million, compared with $4.3 million in the second quarter of 2025.
• Operating loss narrowed 32.2% to $1.7 million, compared with $2.5 million in the prior-year quarter, an improvement of approximately $793,000.
• Sales and marketing expense decreased 69.0% to approximately $188,000, while stock-based compensation expense declined 85.6% to approximately $73,000.
• Net loss was $2.2 million, compared with net income of $78.5 million in the second quarter of 2025. The prior-year result included significant non-operating gains, including an approximately $82.3 million gain on the settlement of incremental warrants.
• Reported $10.3 million in restricted digital assets on the balance sheet as of June 30, 2026, compared to no digital asset holdings in the prior-year period.
  
  

First Half 2026 Financial Highlights

• Total revenue was $28.6 million, compared with $34.9 million for the first six months of 2025.
• Gross profit increased 9.9% to $3.7 million, compared with $3.4 million in the prior-year period.
• Gross margin expanded approximately 329 basis points to 13.0%, compared with 9.7% for the first six months of 2025.
• Total operating expenses decreased 25.0% to $7.9 million, compared with $10.5 million in the prior-year period.
• Operating loss narrowed 41.6% to $4.2 million, compared with $7.1 million in the first half of 2025, representing an improvement of approximately $3.0 million.
• Net loss improved 9.4% to $15.6 million, compared with a net loss of $17.2 million in the prior-year period.
• Commercial Real Estate Brokerage revenue increased 95.4% to approximately $479,000, compared with approximately $245,000 in the prior-year period.
• Title Settlement and Insurance revenue increased 10.9% to approximately $173,000, compared with approximately $156,000 in the first half of 2025.
  
  

Joe La Rosa, CEO of La Rosa, commented, “We believe that first-half results reflect continued progress in improving the Company’s operating performance and financial efficiency. Our reported revenue was impacted by the February sale of our 51% interest in LR Kissimmee. The divestiture was a strategic decision to exit a non-core operation that represented approximately 10% of our agent base but was not generating positive cash flow, allowing us to eliminate unproductive expenses and redirect capital toward higher-return opportunities without materially impacting our core agent growth or regional footprint.”

“More importantly, we are seeing meaningful improvement in the underlying business. Compared with the first six months of 2025, gross profit increased nearly 10% and gross margin expanded approximately 329 basis points to 13.0%, while operating expenses declined 25% and operating loss narrowed approximately 42% during the first six months of 2026.Net loss also improved 9.4% to $15.6 million, compared with $17.2 million in the prior-year period. We believe these results demonstrate that the steps we have taken to streamline the business and improve operating efficiency are beginning to translate into stronger financial performance.”

“At the same time, we are actively evaluating a range of strategic opportunities that could accelerate this progress. These include potential transformational transactions, tuck-in acquisitions, additional partnerships and further divestitures of non-core or underperforming assets. We have identified a pipeline of opportunities at various stages of evaluation and intend to remain disciplined in pursuing those that we believe can improve profitability, strengthen our operating platform and create long-term value for our shareholders,” concluded Mr. La Rosa.

There can be no assurance that any of potential transactions contemplated by the Company and discussed in this press release will be consummated or, if consummated, will achieve the anticipated benefits.

About La Rosa Holdings Corp.

La Rosa Holdings Corp. (Nasdaq: LRHC) intends to transform the real estate industry by providing agents with flexible compensation options, including a revenue-sharing model or a fee-based structure with 100% commission. Powered by its proprietary technology platform, La Rosa aims to equip agents and franchisees with the tools they need to deliver exceptional service.

The Company offers both residential and commercial real estate brokerage services, as well as technology-driven products and support for its agents and franchise partners. Its business model includes internal services for agents and external offerings for the public, spanning real estate brokerage, franchising, education and coaching, and property management.

La Rosa operates 23 corporate-owned brokerage offices across Florida, California, Texas, Georgia, and Puerto Rico. La Rosa also started its expansion into Europe, beginning with Spain. Additionally, the Company has five franchised offices and branches and three affiliated brokerage locations in the U.S. and Puerto Rico. The Company also operates a full-service escrow settlement and title company in Florida.

For more information, please visit: https://www.larosaholdings.com.

Stay connected with La Rosa, sign up for news alerts here: larosaholdings.com/email-alerts.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the Company’s current expectations that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business, its strategic plans and pipeline of potential transactions, its ability to improve profitability and operating efficiency, and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to continue as a going concern, its ability to maintain compliance with Nasdaq listing requirements, the Company’s ability to achieve profitable operations, customer acceptance of new services, the demand for the Company’s services and the Company’s customers' economic condition, the impact of competitive services and pricing, general economic conditions, the Company’s material weaknesses in internal control over financial reporting, the effect of National Association of Realtors' landmark settlement on the Company’s business operations, and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission (the "SEC”). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2026, and other reports and documents that we file from time to time with the SEC. Forward-looking statements contained in this press release are made only as of the date of this press release, and La Rosa does not undertake any responsibility to update any forward-looking statements in this release, except as may be required by applicable law. References and links to websites have been provided as a convenience, and the information contained on such websites has not been incorporated by reference into this press release.

For more information, contact: info@larosaholdings.com

Investor Relations Contact:
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
Email: LRHC@crescendo-ir.com

(Tables follow)

La Rosa Holdings Corp. and Subsidiaries Condensed Consolidated Balance Sheets
​	​	June 30, 2026		​	​	December 31, 2025		​
​	​	(unaudited)		​	​	​	​	​
Assets	​	​	​	​	​	​	​	​
Current assets:	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	2,282,397	​	​	$	3,086,770	​
Restricted cash	​	​	2,335,717	​	​	​	1,758,531	​
Digital assets, restricted	​	​	10,311,342	​	​	​	—	​
Accounts receivable, net of allowance for credit losses of $669,883 and $179,643, respectively	​	​	1,136,063	​	​	​	1,252,452	​
Notes receivable	​	​	322,267	​	​	​	—	​
Other current assets	​	​	—	​	​	​	15,601	​
Total current assets	​	​	16,387,786	​	​	​	6,113,354	​
​	​	​	​	​	​	​	​	​
Noncurrent assets:	​	​	​	​	​	​	​	​
Restricted cash, net of current	​	​	57,275	​	​	​	58,972	​
Property and equipment, net	​	​	3,276	​	​	​	6,094	​
Right-of-use asset, net	​	​	1,032,940	​	​	​	963,991	​
Intangible assets, net	​	​	2,969,975	​	​	​	4,425,042	​
Goodwill	​	​	528,545	​	​	​	1,831,197	​
Other long-term assets	​	​	40,120	​	​	​	44,867	​
Total noncurrent assets	​	​	4,632,131	​	​	​	7,330,163	​
Total assets	​	$	21,019,917	​	​	$	13,443,517	​
Liabilities, Series X Preferred Stock Subject to Redemption and Stockholders’ Deficit	​	​	​	​	​	​	​	​
Current liabilities:	​	​	​	​	​	​	​	​
Accounts payable	​	$	2,996,924	​	​	$	2,895,861	​
Accrued expenses	​	​	320,790	​	​	​	83,876	​
Contract liabilities	​	​	227,951	​	​	​	171,100	​
Security deposits and escrow payable	​	​	2,331,953	​	​	​	1,758,531	​
Line of credit	​	​	147,477	​	​	​	—	​
Accrued acquisition cash consideration	​	​	—	​	​	​	30,000	​
Notes payable, current	​	​	5,613,470	​	​	​	148,757	​
Lease liability, current	​	​	496,072	​	​	​	486,481	​
Total current liabilities	​	​	12,134,637	​	​	​	5,574,606	​
​	​	​	​	​	​	​	​	​
Noncurrent liabilities:	​	​	​	​	​	​	​	​
Note payable, net of current	​	​	16,026,760	​	​	​	7,143,803	​
Security deposits and escrow payable	​	​	57,275	​	​	​	58,972	​
Lease liability, noncurrent	​	​	578,533	​	​	​	514,388	​
Total noncurrent liabilities	​	​	16,662,568	​	​	​	7,717,163	​
Total liabilities	​	​	28,797,205	​	​	​	13,291,769	​
​	​	​	​	​	​	​	​	​
Commitments and contingencies (Note 6)	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​
Series X Preferred Stock Subject to Redemption:	​	​	​	​	​	​	​	​
Preferred stock - $0.0001 par value; 50,000,000 shares authorized; 1,800 and 2,000 Series X shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	​	​	—	​	​	​	2,000,000	​
Stockholders’ Deficit:	​	​	​	​	​	​	​	​
Preferred stock - $0.0001 par value; 50,000,000 shares authorized; 216 and 6,000 Series B Convertible Preferred Stock issued and outstanding at June 30, 2026 and December 31, 2025	​	​	1	​	​	​	1	​
Preferred stock - $0.0001 par value; 50,000,000 shares authorized; 100 and 0 Series C Convertible Preferred Stock issued and outstanding at June 30, 2026 and December 31, 2025, respectively	​	​	—	​	​	​	—	​
Preferred stock - $0.0001 par value; 50,000,000 shares authorized; 500 and 0 Series D Convertible Preferred Stock issued and outstanding at June 30, 2026 and December 31, 2025, respectively	​	​	—	​	​	​	—	​
Common stock - $0.0001 par value; 2,000,000,000 shares authorized; 2,025,470 and 20,963 issued and outstanding at June 30, 2026 and December 31, 2025, respectively	​	​	203	​	​	​	1	​
Additional paid-in capital	​	​	64,235,530	​	​	​	51,010,523	​
Accumulated deficit	​	​	(72,732,011	)	​	​	(57,099,883	)
Total stockholders' deficit – La Rosa Holdings Corp. stockholders	​	​	(8,496,277	)	​	​	(6,089,358	)
Noncontrolling interest in subsidiaries	​	​	718,989	​	​	​	4,241,106	​
Total stockholders' deficit	​	​	(7,777,288	)	​	​	(1,848,252	)
Total liabilities, Series X Subject to Redemption and stockholders deficit	​	$	21,019,917	​	​	$	13,443,517	​

La Rosa Holdings Corp. and Subsidiaries Condensed Consolidated Statements of Operations (unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
Revenue	$	15,051,716			$	20,232,097			$	28,627,322			$	34,867,871
			​				​				​				​
Cost of revenue		13,320,274				18,379,869				24,902,453				31,477,975
			​				​				​				​
Gross profit		1,731,442				1,852,228				3,724,869				3,389,896
			​				​				​				​
Operating expenses:			​				​				​				​
Sales and marketing		187,946				606,298				597,224				1,169,447
General and administrative		3,140,494				3,201,053				7,112,148				6,928,578
Stock-based compensation — general and administrative		72,885				507,457				182,610				2,422,308
Total operating expenses		3,401,325				4,314,808				7,891,982				10,520,333
			​				​				​				​
Loss from operations		(1,669,883	)			(2,462,580	)			(4,167,113	)			(7,130,437	)
Other income (expense)			​				​				​				​
Interest expense, net		(436	)			(182,807	)			(6,215	)			(207,148	)
Gain on extinguishment of debt		—				4,113,000				—				3,961,075
Amortization of debt discount		—				—				—				(63,160	)
Change in fair value of derivative liability		—				—				—				899,874
Gain (Loss) on issuance of senior secured convertible note		14,332				—				(10,487,380	)			(128,836,250	)
Change in fair value of convertible note and warrants		(354,000	)			(5,315,000	)			(535,902	)			31,830,000
Gain on settlement of incremental warrants		—				82,299,000				—				82,299,000
Fair value of settlement of contract based equity issuances		(145,412	)			—				(206,508	)			—
Loss on disposition of non-controlling interest in subsidiary		—				—				(217,657	)			—
Other income (expense), net		—				11,491				—				11,265
Loss (income) from operations before provision for income taxes		(2,155,399	)			78,463,104				(15,620,775	)			(17,235,781	)
Provision for income taxes		—				—				—				—
Net (loss) income		(2,155,399	)			78,463,104				(15,620,775	)			(17,235,781	)
Less: Net income attributable to noncontrolling interests in subsidiaries		21,760				43,246				11,353				60,940
Net (loss) income after noncontrolling interest in subsidiaries		(2,177,159	)			78,419,858				(15,632,128	)			(17,296,721	)
Less: Deemed dividend		128,031				89,031				2,785,611				275,264
Net (loss) income attributable to common stockholders	$	(2,305,190	)		$	78,330,827			$	(18,417,739	)		$	(17,571,985	)
			​				​				​				​
(Loss) Income per share of common stock attributable to common stockholders			​				​				​				​
Basic	$	(1.66	)		$	11,510.78			$	(22.73	)		$	(3,200.14	)
Diluted	$	(1.66	)		$	1,525.16			$	(22.73	)		$	(3,200.14	)
			​				​				​				​
Weighted average shares used in computing net loss per share of common stock attributable to common stockholders			​				​				​				​
Basic		1,390,250				6,805				810,198				5,491
Diluted		1,390,250				51,359				810,198				5,491

FAQ

How did La Rosa Holdings (NASDAQ: LRHC) perform financially in the first half of 2026?

La Rosa reported first half 2026 revenue of $28.6 million and a net loss of $15.6 million. According to La Rosa, gross profit increased 9.9% to $3.7 million and gross margin expanded about 329 basis points to 13.0%, while operating loss narrowed 41.6% to $4.2 million.

What were La Rosa Holdings’ Q2 2026 results compared with Q2 2025 for LRHC?

For Q2 2026, La Rosa posted revenue of $15.1 million versus $20.2 million in Q2 2025. According to La Rosa, gross margin improved to 11.5% from 9.2%, operating expenses fell 21.2% to $3.4 million, and operating loss narrowed to $1.7 million from $2.5 million.

Did La Rosa Holdings improve profitability metrics despite lower revenue in 2026?

Yes, La Rosa showed better profitability metrics despite revenue declines. According to La Rosa, first half 2026 gross margin rose to 13.0%, operating expenses dropped 25% to $7.9 million, and operating loss decreased 41.6% to $4.2 million, while net loss improved 9.4% year over year.

How did La Rosa Holdings’ commercial brokerage and title revenues change in the first half of 2026?

La Rosa’s commercial real estate brokerage revenue increased 95.4% to about $479,000 in the first half of 2026. According to La Rosa, title settlement and insurance revenue also grew 10.9% to approximately $173,000 compared with the first half of 2025, supporting diversification within its service lines.

What balance sheet changes did La Rosa Holdings (LRHC) report as of June 30, 2026?

La Rosa reported total assets of $21.0 million and total liabilities of $28.8 million as of June 30, 2026. According to La Rosa, stockholders’ deficit widened to $7.8 million, notes payable rose sharply to $21.6 million, and restricted digital assets reached $10.3 million.

How did non-operating items affect La Rosa Holdings’ Q2 2025 and Q2 2026 net results?

Q2 2025 net income of $78.5 million was largely driven by non-operating gains. According to La Rosa, this included an approximately $82.3 million gain on settlement of incremental warrants, whereas Q2 2026 showed a net loss of $2.2 million without similar large one-time gains.

What strategic actions impacted La Rosa Holdings’ 2026 revenue and cost structure?

La Rosa’s 2026 revenue was affected by the February sale of its 51% interest in LR Kissimmee. According to La Rosa, this divestiture removed a non-core, non-cash-flow-positive operation and helped eliminate unproductive expenses while not materially affecting its core agent growth or regional footprint.