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La Rosa Holdings (NASDAQ: LRHC) restates 2024 results on revenue error
La Rosa Holdings Corp. (NASDAQ: LRHC) announced it will restate its 2024 annual financial statements and quarterly reports for periods from March 2024 through September 2025 due to a revenue recognition error. The company misclassified certain property management fee revenue, recording it on a gross basis instead of as an agent under ASC 606, leading to a $10.8 million reduction in 2024 gross property management fee revenue and a corresponding reduction in cost of revenue. While gross profit dollars remain unchanged, the restatement will cause the gross margin percentage for 2024 to increase from 8.57% to 10.14%.