La Rosa Holdings faces Nasdaq compliance issue

Published 28/05/2025, 18:06
La Rosa Holdings faces Nasdaq compliance issue

CELEBRATION, FL - La Rosa Holdings Corp. (NASDAQ: LRHC), a real estate and technology firm with a market capitalization of $5.57 million, has received a delinquency notice from Nasdaq due to the late filing of its quarterly report for the period ending March 31, 2025. The company did not meet Nasdaq’s Listing Rule 5250(c)(1), which mandates timely submission of financial reports to the Securities and Exchange Commission (SEC). According to InvestingPro data, the company’s overall financial health score is rated as WEAK, with concerning metrics across multiple dimensions.

The notice, which does not immediately affect La Rosa’s Nasdaq listing, requires the company to present a compliance plan by July 21, 2025. If accepted, Nasdaq may allow up to 180 days from the report’s original due date for La Rosa to comply, extending the deadline to November 17, 2025.

Nasdaq will consider various factors, including the likelihood of making the filing within the extended period, the company’s compliance history, the reasons for the delay, and La Rosa’s overall financial condition. Failure to have the plan accepted by Nasdaq could lead to an appeal opportunity before a Nasdaq Hearings Panel.

La Rosa’s CEO, Joe La Rosa, stated the company is working to file the overdue quarterly report promptly and expects to regain compliance soon. The company emphasized its commitment to transparency and robust financial reporting. InvestingPro analysis reveals additional challenges, including significant stock price deterioration, with shares down nearly 86% over the past year. Subscribers can access 12 more key ProTips about LRHC’s financial position and market performance.

La Rosa Holdings provides real estate brokerage services and technology-driven products to its agents and franchise partners. Despite generating revenue of $69.45 million in the last twelve months, the company is quickly burning through cash with negative free cash flow. The company operates 26 corporate-owned offices and has a presence in the U.S., Puerto Rico, and Europe. It also offers franchising, education, coaching, and property management services, alongside operating a full-service escrow settlement and title company in Florida.

The company’s future actions and business growth are subject to various risks and uncertainties, as detailed in its SEC filings. La Rosa’s forward-looking statements regarding its ability to regain compliance and continue its business strategy are based on current expectations and are not guarantees of future performance.

This article is based on a press release statement from La Rosa Holdings Corp.

In other recent news, La Rosa Holdings Corp. has announced a change in its independent registered accounting firm. Marcum LLP, the previous auditor, resigned, and the company has appointed CBIZ CPAs as their new auditor with the approval of its Audit Committee. Marcum’s reports on the company’s financial statements did not contain any adverse opinions, but they did include an explanatory paragraph about substantial doubt concerning La Rosa Holdings’ ability to continue as a going concern. Additionally, material weaknesses in internal control over financial reporting were noted, specifically related to segregation of duties, control environment, and cybersecurity staffing.

In another development, La Rosa Holdings introduced LR Agent Advance LLC, a subsidiary designed to offer real estate agents advances on their pending commissions. This initiative aims to provide agents with financial flexibility and generate additional revenue for the company. Agents participating in the program will give up 15% of their total commission in exchange for early access to their earnings. CEO Joe La Rosa expressed optimism about the program, stating it aligns with the company’s financial targets, including reaching $100 million in revenue by the end of 2025. The company believes this additional revenue stream will support its network of over 2,500 agents.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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