La Rosa Holdings Corp. (LRHC) reported Thursday that its core real estate business continues to grow steadily, even as the company makes a dramatic strategic shift toward AI data centers backed by over a billion dollars in new financing.
Third-quarter revenue rose 3.2% to $20.2 million from $19.6 million a year earlier, while gross profit increased 4.4% to $1.7 million. Not explosive growth, but respectable across the board.
The breakdown shows residential real estate services generated $16.8 million, up 1.7% year-over-year. Property management revenue climbed 8.9% to approximately $3.1 million, and commercial brokerage revenue jumped to $103,000 from $64,000 in the prior-year quarter.
The less cheerful part: operating expenses nearly doubled to $6.7 million from $3.4 million, pushing the operating loss to $5.0 million compared with a $1.7 million loss a year earlier. Net loss came in at $5.5 million, or $(5.44) per share, versus $3.4 million, or $(16.49) per share in the year-ago period.
One bright spot on the balance sheet—cash and restricted cash totaled roughly $6.4 million at quarter-end, up from $3.2 million at year-end 2024.
For the first nine months of 2025, total revenue increased 17.8% to $60.9 million from $51.7 million. Residential real estate services rose 19.2% to $50.8 million, property management revenue grew 12.4% to approximately $9.2 million, and commercial brokerage revenue expanded about 40.1% to $349,000. Gross profit improved 16.3% to $5.1 million.
"We delivered solid financial performance in the first nine months of 2025, with steady year-over-year growth across all major revenue streams," CEO Joe La Rosa said.
He added that the company strengthened its balance sheet by eliminating most outstanding warrants and ended the period with improved liquidity and "a more streamlined capital structure."
But here's where things get interesting: La Rosa said the company recently secured $1.25 billion in financing facilities, which provides flexibility to advance its AI data center strategy, pursue acquisitions, and expand partnerships.
"We believe this financing marks a pivotal step in positioning the Company to compete in one of the fastest-growing sectors of the technology and real estate landscape while delivering long-term value for our stockholders," he said.
Investors seemed less enthusiastic. LRHC shares traded 6.98% lower at $2.00 in premarket trading Thursday.
