La Rosa Holdings Sells Majority Stake in LR Kissimmee Realty LLC for $0.5 Million, Eliminates Non-Core Expense
Rhea-AI Summary
La Rosa Holdings (NASDAQ: LRHC) sold its 51% ownership in LR Kissimmee Realty LLC for $0.5 million, divesting a non-core office that represented about 10% of its agent base. The company also signed a one-year Trademark & Brand Licensing Agreement retaining brand and tech access for LR Kissimmee and expects to redeploy capital toward core brokerage growth, technology development, ancillary services, and profitability-driven operations.
Positive
- Sold 51% stake for $0.5 million, improving near-term liquidity
- Divestiture removes a non-cash-flowing office representing ~10% of agent base
- One-year Trademark & Brand Licensing Agreement preserves brand presence and platform revenue
Negative
- Transaction implies total enterprise value of ~$1.0 million for the office, signaling low valuation for that asset
- Loss of majority ownership reduces direct operational control in the Kissimmee market
News Market Reaction
On the day this news was published, LRHC declined 8.90%, reflecting a notable negative market reaction. Argus tracked a peak move of +14.5% during that session. Argus tracked a trough of -17.8% from its starting point during tracking. Our momentum scanner triggered 19 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $76K from the company's valuation, bringing the market cap to $781,241 at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
LRHC was down 4.58% while peers showed mixed moves (e.g., OMH up 9.16%, GBR down 5.94%). This points to a stock-specific reaction rather than a broad sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 09 | Debt elimination | Positive | -3.2% | Converted <b>$5.5M</b> convertible debenture to equity, simplifying capital structure. |
| Feb 05 | AI data center deal | Positive | -13.8% | Contract to acquire land for Tier III AI data center development in Florida. |
| Jan 26 | Cash burn update | Positive | -5.3% | Reported ~25% reduction in recent cash burn versus 2025 average levels. |
| Jan 23 | Prelim revenue | Positive | -9.0% | Announced ~<b>$79M</b> 2025 revenue with about <b>14%</b> organic growth year over year. |
| Jan 22 | Reverse stock split | Negative | -16.8% | Implemented <b>1‑for‑10</b> reverse split to reduce outstanding share count. |
Recent news, even when operationally or financially positive, has often been followed by negative price reactions.
Over the past few weeks, La Rosa has reported several balance-sheet and strategic actions, including a 1‑for‑10 reverse split, preliminary $79 million 2025 revenue with 14% organic growth, a ~25% cash‑burn reduction, and plans for a Tier III AI data center. It also eliminated $5.5 million of convertible debt. Despite these steps toward growth and de‑risking, the stock saw negative 24‑hour reactions to each release, suggesting persistent investor skepticism or liquidity pressure heading into today’s non‑core asset sale and licensing update.
Market Pulse Summary
The stock moved -8.9% in the session following this news. A negative reaction despite the company highlighting balance‑sheet benefits would fit its recent pattern, where prior debt reduction and growth updates still preceded declines. The transaction removes a non‑cash‑flow‑positive office representing about 10% of the agent base while adding licensing revenue. Yet the stock traded far below its 200‑day MA and 52‑week high before this news, suggesting ongoing skepticism that tactical asset sales alone address broader valuation and execution concerns.
Key Terms
proptech technical
technology platform technical
AI-generated analysis. Not financial advice.
Executes Trademark & Brand Licensing Agreement, Including Access to its Proprietary Tech Suite
Celebration, FL, Feb. 11, 2026 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a real estate and PropTech enterprise, today announced the sale of its
The divested office represents approximately
In connection with the sale, La Rosa entered into a one-year Trademark & Brand Licensing Agreement (the “Licensing Agreement”) with LR Kissimmee. Pursuant to the Licensing Agreement, La Rosa granted LR Kissimmee a non-exclusive, non-transferable license to use certain of the Company’s trademarks and branding in connection with its real estate brokerage business. The agreement also provides LR Kissimmee with continued access to the Company’s technology platform, including My Agent and JAEME. This structure allows La Rosa to maintain brand presence in the Kissimmee market while transitioning away from majority ownership and direct operational responsibility.
Joe La Rosa, CEO of La Rosa, commented, “This transaction reflects disciplined capital allocation, at a time when we believe our public market valuation does not fully reflect the intrinsic value of our assets and platform. The
“Furthermore, it removes an operating component that was not generating positive cash flow from our consolidated financials and has no material impact on our core agent growth or regional footprint. In addition, we entered into a one-year Licensing Agreement, which allows us to continue generating brand and platform-related revenue from the Kissimmee operation without the capital requirements of majority ownership. We continue to strengthen our financial position, streamline our operations, and are redeploying capital toward core brokerage growth, technology, ancillary services, and other profitability-driven initiatives,” concluded, Mr. La Rosa.
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
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 24 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 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 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 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 successful integration of the Company’s past and future acquired brokerages, the effect of the recent National Association of Realtors' landmark settlement on our 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, 2024, 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
FAQ
What did La Rosa Holdings (LRHC) sell on February 11, 2026?
How does the $0.5 million sale affect LRHC's balance sheet and operations?
What does the one-year Trademark & Brand Licensing Agreement with LR Kissimmee include?
Does the sale materially change La Rosa Holdings' agent footprint or growth?
What valuation does the sale imply for the Kissimmee office and what does LRHC say about it?
