La Rosa
Celebration, Florida, United States
Industry: Real Estate
Region: US 🇺🇸
Year Founded: 2004
IPO Date: 04-19-2022
Market Cap: $35.02 million
Number of Employees: Approx. 12
Revenue: $28.8 million (2021)
Net Income: $0.1 million (2021)
La Rosa Holdings Corp.
La Rosa Holdings IPO
La Rosa Holdings filed for an IPO on April 19, 2022. The company initially planned a $7 million IPO and even revised the terms to remove warrants ahead of the IPO on April 26, 2023.
However, the company had to slash the unit offering by 53% ahead of the $7 million IPO on August 3, 2022. The IPO share price range was set at $5.00, and the company lowered the share offering by 29% ahead of a $5 million IPO on May 19, 2023.
Company Overview & History
La Rosa Holdings, founded in 2004 and led by CEO Joseph La Rosa, is a US-based company operating primarily in the residential real estate market.
The company acts as a holding entity for five agent-centric, technology-integrated, cloud-based, multi-service real estate firms. Its primary business, La Rosa Realty, LLC, is recognized as one of the “Top 75 Residential Real Estate Firms in the United States” by the National Association of Realtors.
The company offers person-to-person residential and commercial real estate brokerage services, along with ancillary technology-based products and services, primarily to its sales agents and the sales agents associated with its franchisees.
Its business activities are organized around the services provided internally to its agents and to the public, including residential and commercial real estate brokerage, franchising, real estate brokerage education and coaching, and property management.
The real estate brokerage business primarily operates under the trade name La Rosa Realty, and to a lesser extent, under the trade name Better Homes Realty.
The company has five La Rosa Realty corporate real estate brokerage offices in Florida, 28 franchised offices across six states in the United States and Puerto Rico, and an international franchised office in Peru.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2021 | 28.8 | 0.1 | 0.37 | 0.36 |
| 2020 | 24.13 | 0.13 | N/A | N/A |
Business Model
La Rosa Holdings runs an “agent-centric” platform, which allows its real estate agents to retain 100% of their commissions, thereby attracting new real estate sales talent.
The company operates as an end-to-end, fully integrated real estate brokerage services holding company, with over 41 offices and 2,400 agents under its umbrella.
Its revenue is driven by offering a full suite of services through its umbrella companies, including property management, agent coaching, title services, and insurance.
In addition to this, La Rosa Holdings provides a platform that integrates residential brokerage, mortgage, title, and insurance services with a state-of-the-art educational support system.
The platform was launched in 2011 and aims to drive exponential growth through rollup expansion, capitalizing on changing agency model trends in the industry.
The business model is designed to empower real estate agents to thrive with fee-based and franchising services. They provide extensive training and support to their agents, including a coaching program and access to advanced technology tools
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2022 | 35.02 |
Risk Factors
While La Rosa Holdings has achieved significant success, it also faces several risk factors that could impact its operations and financial performance.
These risks include economic downturns, regulatory changes, competition, and geopolitical uncertainties. Economic fluctuations can affect the profitability of La Rosa Holdings’ investments, while regulatory changes may impose new compliance requirements and impact the company’s business activities.
Additionally, intense competition within the industries in which La Rosa Holdings operates poses a risk to its market position. Geopolitical uncertainties, such as trade tensions and political instability, can also create challenges for the company’s global operations.
To mitigate these risks, La Rosa Holdings maintains a proactive approach to risk management.
The company closely monitors market trends, stays informed about regulatory developments, and adapts its strategies accordingly. By diversifying its investments across different sectors and geographies, La Rosa Holdings aims to minimize the impact of specific risks on its overall business.
Market Opportunity
La Rosa Holdings operates in a rapidly evolving global market, which presents both challenges and opportunities. The company recognizes the potential for growth in emerging markets, where it can leverage its expertise and resources to capitalize on rising consumer demands and emerging trends.
Additionally, La Rosa Holdings identifies technological advancements as a significant market opportunity, particularly in sectors such as artificial intelligence, renewable energy, and e-commerce.
By investing in companies at the forefront of innovation, La Rosa Holdings aims to stay ahead of the curve and benefit from the expanding market opportunities.
Competitors
- Zillow
- Redfin
- Trulia
- Realtor.com
- Compass
- Opendoor
- Zumper
- Co Star Group
Key/Fun Company Facts
- La Rosa Holdings use an “agent-centric” platform, allowing their agents to keep 100% of their commissions. This approach aims to attract new real estate sales talent and is a part of their strategy to drive exponential growth.
- The company’s CEO, Joe La Rosa, is known for his transformational leadership style. He runs the 3rd largest real estate brokerage in Florida and the 25th largest in the USA.
- La Rosa Holdings has seen significant growth. Its gross revenue for 2020 was $63,648,326, and it’s projected to increase to $76,377,989 in 2021 and $111,250,000 in 2022.
- The company offers a full suite of services, including property management, agent coaching, title services, and insurance, which create additional revenue streams with strong future projections for growth.
- La Rosa Realty, the primary business of La Rosa Holdings, has been listed in the “Top 75 Residential Real Estate Firms in the United States” by the National Association of Realtors.
- La Rosa Realty is an end-to-end real estate services platform integrating residential brokerage, mortgage, title, and insurance with a state-of-the-art educational support platform. It was launched in 2011 and is one of five companies under the La Rosa Holdings umbrella.