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- Restatement (new) — Company will restate 2024 annual and multiple quarterly financial statements due to revenue recognition errors.
La Rosa to restate 2024 financials, cutting revenue by $10.8M on accounting error
Filed April 24, 2026 · Period ending April 24, 2026 · ~1 min read
Key Changes
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high
Company will restate 2024 annual report and five quarterly reports after discovering it recorded property management revenue incorrectly—booking gross amounts including tenant revenues instead of just its fees as an agent.
Item 4.02 verify on EDGAR → -
high
Both revenue and cost of revenue will decrease by $10.8 million for fiscal 2024, leaving gross profit dollars unchanged but increasing reported gross margin from 8.57% to 10.14%.
Item 4.02 verify on EDGAR → -
medium
The error stems from misapplication of ASC 606 revenue recognition rules—La Rosa acted as agent but recorded transactions as if it were principal, inflating top-line revenue without affecting bottom-line profitability.
Item 4.02 verify on EDGAR →
1 more material change behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.
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Source-verified from EDGAR · Narrative written by AI · Jun 2, 2026 · How we verify