La Rosa Holdings Restates 2024 Financials; Revenue Reduced $10.8M

What Happened

• On April 24, 2026 La Rosa Holdings Corp. (LRHC) filed a Form 8-K (Item 4.02) reporting that its Audit Committee concluded certain previously issued financial statements require correction. Management found that a significant portion of property management arrangements were recorded on a gross basis but, under ASC 606, LRHC acted as an agent rather than a principal. The company will restate its audited consolidated financial statements for the year ended December 31, 2024 and update interim quarterly statements for periods from March 31, 2024 through September 30, 2025.

Key Details

• Cumulative decrease in gross property management fee revenue: $10.8 million for fiscal 2024.
• Cost of revenue reduced by an equivalent amount; gross profit dollars remain intact.
• Gross margin percentage for fiscal 2024 increases from 8.57% to 10.14% after the adjustments.
• The Board discussed the matter with the company’s independent auditor, CBIZ CPAs P.C.

Why It Matters

• This is a restatement (an accounting correction) that reduces reported revenue and cost of revenue equally, so reported gross profit dollars are unchanged but revenue-based metrics and trend comparisons will be affected.
• Investors should expect updated 10-K/10-Q filings reflecting the adjusted revenue and cost presentation and should use the restated results when comparing historical performance or calculating per-share metrics.
• The filing is a non-reliance notice under Item 4.02, signaling prior reported amounts for the affected periods should not be relied upon until the company issues the restated statements.