Real Estate Market Fluctuations: The company's revenue and profitability are highly dependent on the overall health and activity of the real estate market. Downturns in housing sales volumes or prices, or reduced transaction activity due to factors like high interest rates or low inventory, could significantly impact commission revenue and agent productivity.

Agent Attraction and Retention Challenges: LRHC's business model relies heavily on its network of independent real estate agents. The inability to effectively attract new agents or retain existing productive agents in a competitive environment could lead to decreased transaction volume and revenue.

Intense Industry Competition: The real estate brokerage industry is highly fragmented and competitive, with numerous traditional, boutique, and technology-driven firms vying for agents and market share. Failure to differentiate its offerings or compete effectively could negatively impact growth and profitability.