La Rosa Holdings Corp. Segments Disclosure
Note 12 — Segments
ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statements. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and annually regarding significant and material aspects regarding revenue, related cost of revenue and general and administrative expense. All material operating sub-units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in economic characteristics and nature of services.
The Company has determined that the assets of the reporting segments, which consist primarily of cash, accounts receivable and intangible assets, do not provide operationally significant information due to the service nature of the business segments.
The Company’s business is organized into six material reportable segments which aggregate 100% of revenue:
| 1) | Real Estate Brokerage Services (Residential) |
| 2) | Franchising Services |
| 3) | Coaching Services |
| 4) | Property Management |
| 5) | Real Estate Brokerage Services (Commercial) |
| 6) | Title Settlement and Insurance |
The reporting segments follow the same accounting policies used in the preparation of the Company’s consolidated financial statements. The following represents the information for the Company’s reportable segments for the years ended December 31, 2024 and 2023, respectively.
| 2024 | 2023 | |||||||
| Revenue by segment | ||||||||
| Real Estate Brokerage Services (Residential) | $ | 57,024,911 | $ | 20,450,348 | ||||
| Franchising Services | 329,069 | 883,606 | ||||||
| Coaching Services | 568,516 | 628,846 | ||||||
| Property Management | 11,115,368 | 9,680,688 | ||||||
| Real Estate Brokerage Services (Commercial) | 327,912 | 115,916 | ||||||
| Title Settlement and Insurance | 83,010 | |||||||
| $ | 69,448,786 | $ | 31,759,404 | |||||
| Cost of goods sold by segment | ||||||||
| Real Estate Brokerage Services (Residential) | $ | 51,684,882 | $ | 18,764,157 | ||||
| Franchising Services | 488,136 | 472,309 | ||||||
| Coaching Services | 310,288 | 330,365 | ||||||
| Property Management | 10,774,162 | 9,350,248 | ||||||
| Real Estate Brokerage Services (Commercial) | 238,039 | 1,157 | ||||||
| Title Settlement and Insurance | ||||||||
| $ | 63,495,507 | $ | 28,918,236 | |||||
| Gross profit (loss) by segment | ||||||||
| Real Estate Brokerage Services (Residential) | $ | 5,340,029 | $ | 1,686,191 | ||||
| Franchising Services | (159,067 | ) | 411,297 | |||||
| Coaching Services | 258,228 | 298,481 | ||||||
| Property Management | 341,206 | 330,440 | ||||||
| Real Estate Brokerage Services (Commercial) | 89,873 | 114,759 | ||||||
| Title Settlement and Insurance | 83,010 | |||||||
| $ | 5,953,279 | $ | 2,841,168 | |||||
| G&A by segment | ||||||||
| Real Estate Brokerage Services (Residential) | $ | 10,414,191 | $ | 4,414,610 | ||||
| Franchising Services | 20,112 | (3,980 | ) | |||||
| Coaching Services | 1,625 | 2,051 | ||||||
| Property Management | 52,264 | 41,205 | ||||||
| Real Estate Brokerage Services (Commercial) | 51,717 | 19,454 | ||||||
| Title Settlement and Insurance | 85,642 | |||||||
| $ | 10,625,551 | $ | 4,473,340 | |||||
In addition to the expenses from these segments corporate expenses were $9,677,724 and $6,191,591, which resulted in the net loss of $14,349,996 and $7,823,763 for the years ended December 31, 2024 and 2023, respectively.
The following table disaggregates the Company’s revenue based on the type of sale or service and the timing of satisfaction of performance obligations for the years ended December 31:
| 2024 | 2023 | |||||||
| Performance obligations satisfied at a point in time | $ | 56,169,461 | $ | 20,448,767 | ||||
| Performance obligations satisfied over time | 13,279,325 | 11,310,637 | ||||||
| Revenue | $ | 69,448,786 | $ | 31,759,404 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Apr 15, 2025 | Showing above |
| 2023 | Apr 16, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.