La Rosa Holdings (NASDAQ: LRHC) restates 2024 results on revenue error

Q: How much revenue is affected by La Rosa Holdings’ restatement for 2024?

The cumulative correction for 2024 is a decrease of $10.8 million in gross property management fee revenue. An equivalent reduction in cost of revenue will be recorded, keeping gross profit dollars unchanged but lowering reported sales for that fiscal year.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

La Rosa Holdings Corp. is restating prior financial statements after identifying an error in how it recorded certain property management fee revenue. The company determined it acted as an agent, not a principal, for significant tenant-related revenues under ASC 606, so these amounts should not have been reported on a gross basis.

For the fiscal year ended December 31, 2024, gross property management fee revenue will decrease by $10.8 million, with an equivalent reduction in cost of revenue. This leaves gross profit dollars unchanged but increases the reported gross margin percentage from 8.57% to 10.14%. The restatement affects the 2024 annual period and quarterly statements from March 31, 2024 through September 30, 2025, and the board has discussed these matters with CBIZ CPAs P.C., the independent auditor.

Positive

None.

Negative

Material revenue recognition error and restatement: La Rosa determined that certain property management fee revenues were incorrectly recorded on a gross basis, leading to a $10.8 million reduction in 2024 gross property management fee revenue and a formal conclusion that prior financial statements for 2024 and several 2025 quarters should not be relied upon.

Insights

La Rosa will restate multiple periods after a revenue recognition error that overstated property management revenue by $10.8M.

The company found that certain property management fee revenue tied to tenant payments was booked on a gross basis, but ASC 606 analysis showed La Rosa was an agent for a significant portion of these contracts. As a result, those amounts should have been excluded from revenue, with only fees retained reported.

The correction reduces 2024 gross property management fee revenue by $10.8 million and equally lowers cost of revenue, so gross profit dollars are unchanged. However, the gross margin rate for 2024 rises from 8.57% to 10.14% because both revenue and cost of sales shrink while profit stays constant.

This is a material adjustment that triggers non-reliance on prior financial statements for the 2024 annual period and quarterly results from March 31, 2024 through September 30, 2025. Investors may focus on updated filings once the restated statements are issued to understand any knock-on impacts on trends and disclosures.

8-K Event Classification

Item 4.02 — Non-Reliance on Previously Issued Financial Statements or a Related Audit Report

1 item

Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report Governance

Previously issued financial statements should no longer be relied upon due to errors or restatements.

Key Figures

Revenue reduction: $10.8 million Cost of revenue reduction: $10.8 million Original gross margin: 8.57% +3 more

6 metrics

Revenue reduction $10.8 million Decrease in gross property management fee revenue for fiscal year 2024

Cost of revenue reduction $10.8 million Equivalent decrease in cost of revenue for fiscal year 2024

Original gross margin 8.57% Gross margin for fiscal year 2024 before restatement

Restated gross margin 10.14% Gross margin for fiscal year 2024 after restatement

Affected annual period Year ended December 31, 2024 Audited consolidated financial statements to be restated

Affected interim periods Quarters March 31, 2024 to September 30, 2025 Unaudited condensed consolidated financial statements to be restated

Key Terms

ASC 606, property management fee revenue, cost of revenue, gross margin, +2 more

6 terms

ASC 606 financial

"evaluation under ASC 606, Revenue from Contracts with Customers, management concluded that the Company acted as an agent"

A U.S. accounting standard that sets consistent rules for when and how companies record revenue from contracts with customers, focusing on the transfer of promised goods or services. It matters to investors because it affects the timing and amount of reported sales and profit—like deciding whether a contractor can count payment when a job starts, progresses, or finishes—so it improves comparability and helps assess a company's true economic performance.

property management fee revenue financial

"certain property management fee revenue was recorded inclusive of tenant revenues on a gross basis"

cost of revenue financial

"costs of revenue should be reduced equivalently to the amount of the revenues restated"

gross margin financial

"resulting in an increase to the percentage of gross margin for the company for the fiscal year ended December 31, 2024 from 8.57% to 10.14%"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

Non-Reliance on Previously Issued Financial Statements regulatory

"Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review"

Emerging Growth Company regulatory

"Emerging Growth Company"

An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.

Understanding 8-K Material Events →

04/24/2026 - 05:28 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 24, 2026

LA ROSA HOLDINGS CORP.

(Exact name of registrant as specified in its charter)

Nevada	001-41588	87-1641189
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

1420 Celebration Blvd., 2nd Floor
Celebration, Florida		34747
(Address of principal executive offices)		(Zip Code)

(321) 250-1799

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.0001 par value		LRHC		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

On April 24, 2026, the Audit Committee (the “Committee”) of the Board of Directors of La Rosa Holdings Corp. and Subsidiaries (the “Company”),in connection with the preparation of our consolidated financial statements for the years ended December 31, 2025,concluded that corrections are required to revenues and cost of revenue recognition in its previously issued condensed consolidated statement of operations for the year ended December 31, 2024 included in its Annual Report on Form 10-K for the year ended December 31, 2024 (the “Annual Period”), and unaudited condensed consolidated financial statements for the quarters ended March 31, 2024 through September 30, 2025 included in its Quarterly Reports on Form 10-Q (the “Interim Periods”, which, together with the Annual Period, the “Affected Periods”).

The Committee concluded that certain property management fee revenue was recorded inclusive of tenant revenues on a gross basis. Upon review of the underlying contractual arrangements and evaluation under ASC 606, Revenue from Contracts with Customers, management concluded that the Company acted as an agent rather than as a principal for a significant portion of these arrangements. As a result, the Company will restate revenues during the Affected Periods to adjust property management revenue to the fees received (the “Revenues Adjustment”).

Additionally, the Company has determined that costs of revenue should be reduced equivalently to the amount of the revenues restated, as a result, the Company has recorded an adjustment to its consolidated financial statements during the Affected Periods as the Company was previously presented payments related to tenant revenues as cost of revenues.

The Company will restate its audited consolidated financial statements as of, and for the fiscal year ended December 31, 2024. The cumulative effect of this correction is a decrease in gross property management fee revenue of $10.8 million, with a corresponding reduction to cost of revenue for fiscal year ended December 31, 2024.

These adjustments reduce overall revenue and cost of sale while leaving gross margin intact resulting in an increase to the percentage of gross margin for the company for the fiscal year ended December 31, 2024 from 8.57% to 10.14%

The Board has discussed the matters disclosed in this Current Report on Form 8-K with CBIZ CPAs P.C., the Company’s independent registered public accounting firm.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 24, 2026	LA ROSA HOLDINGS CORP.

	By:	/s/ Joseph La Rosa
	Name:	Joseph La Rosa
	Title:	Chief Executive Officer

Source: View Original Filing on SEC EDGAR

FAQ

What did La Rosa Holdings Corp. (LRHC) announce in this 8-K filing?

La Rosa disclosed that it must restate prior financial statements due to a revenue recognition error. Certain property management fee revenues were overstated, requiring corrections to 2024 annual results and quarterly reports from March 31, 2024 through September 30, 2025 under ASC 606 guidance.

How much revenue is affected by La Rosa Holdings’ restatement for 2024?

The cumulative correction for 2024 is a decrease of $10.8 million in gross property management fee revenue. An equivalent reduction in cost of revenue will be recorded, keeping gross profit dollars unchanged but lowering reported sales for that fiscal year.

Which financial periods of La Rosa Holdings (LRHC) are being restated?

The company will restate its audited consolidated financial statements for the year ended December 31, 2024. It will also adjust unaudited quarterly financial statements for the periods ended March 31, 2024 through September 30, 2025, collectively referred to as the affected periods.

Why is La Rosa changing its revenue recognition for property management fees?

After reviewing contracts under ASC 606, management concluded La Rosa acted as an agent, not a principal, for significant tenant-related revenues. Therefore, those amounts should not be recorded on a gross basis; only the fees retained by La Rosa should be recognized as property management revenue.

How does the restatement affect La Rosa Holdings’ gross margin?

While both revenue and cost of revenue decrease, gross profit dollars remain the same. As a result, La Rosa’s gross margin percentage for 2024 improves from 8.57% to 10.14%, reflecting a smaller revenue base with unchanged gross profit after the correction.

Did La Rosa Holdings discuss the restatement with its independent auditor?

Yes. The board of directors discussed the revenue recognition and restatement matters with CBIZ CPAs P.C., La Rosa Holdings’ independent registered public accounting firm, confirming auditor involvement in evaluating the adjustments to the affected financial statements.

Filing Exhibits & Attachments

3 documents