Latch (LTCH) AI Stock Analysis

• Market Cap: $24.64M
• Dividend Yield: N/A
• Average Volume (3M): 100.85K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.86
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 75
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 164,257,800
• 10 Day Avg. Volume: 153,815
• 30 Day Avg. Volume: 100,851
• PEG Ratio: 7.76
• Price to Book (P/B): 183.16
• Price to Sales (P/S): 359.61
• P/FCF Ratio: -267.35
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $0.15 ▼(-6.88% Downside)

The score is held down primarily by weak financial quality—large ongoing losses and heavy negative free cash flow—despite improving revenue and gross margin and low balance-sheet leverage. Technicals are mildly supportive (price above major moving averages with neutral-to-positive momentum), but valuation is constrained by lack of earnings and no dividend, and corporate events add risk due to delayed filings and substantial cash draw tied to legal/regulatory matters.

Positive Factors

Revenue & gross margin improvement

Sustained revenue growth coupled with a material gross margin rebound to ~44% improves unit economics and scalability. Higher margins provide structural leverage as sales scale, making future profitability achievable without relying solely on cost cuts, supporting durable operating improvement.

Low financial leverage

Conservative leverage reduces fixed financing burdens and preserves flexibility to fund operations or invest in product development. Low debt limits insolvency risk during revenue variability and gives management time to execute strategic initiatives without high interest expense pressure.

Recurring software and services revenue

A business model blending hardware sales with subscription software and services provides recurring, higher-margin revenue and customer stickiness. This structural mix increases lifetime value, visibility into future cash flows, and opportunity for upsell and expansion in multifamily/commercial accounts.

Negative Factors

High cash burn and negative free cash flow

Substantial and persistent negative FCF erodes liquidity and forces reliance on external financing or asset sales. Over time this constrains strategic flexibility, risks dilution or restrictive covenants, and means the company must materially improve margins or scale revenue to achieve self-funded growth.

Legal, regulatory costs and reporting delays

Significant legal and regulatory expenses plus delayed SEC filings are structural governance and liquidity risks. They consume cash, distract management, impair investor confidence, and can limit access to capital markets or partnerships until compliance and litigation are resolved.

Deep unprofitability and negative returns

Large recurring losses and a strongly negative return on equity signal the company is destroying shareholder value at current scale. Without sustained revenue acceleration or structural cost reduction, ongoing unprofitability will necessitate funding, limit reinvestment, and hamper long-term viability.

Latch Business Overview & Revenue Model

Company Description

Latch, Inc. operates as an enterprise technology company in the United States and Canada. The company offers LatchOS, an operating system that extends smart access, delivery and guest management, smart home and sensors, connectivity, and personalization and services. Its software products include Latch Resident Mobile Applications, Latch Manager Web, and the Latch Manager Mobile Applications. The company also offers hardware devices that include M, C, and R series door-mounted access control products; Latch Intercom, which integrates into the Latch core access systems and allows audio and video calls for remote unlocking; Latch Camera, a dome camera; Latch Hub, a connectivity solution that enables smart access, smart home, and sensor devices at various buildings; and Latch Leak Detector, a solution to enable leak prevention, detection, and resolution for building owners and residents. In addition, it provides NFC unlock on Android that allows the user to unlock their door without even opening their phone; Latch Visitor Express, a contactless visitor entry system; and LatchID, an identification system. The company is headquartered in New York, New York.

How the Company Makes Money

Latch Financial Statement Overview

Summary

Revenue and gross margin improved materially in 2024, and leverage is low. However, the company remains deeply unprofitable (large net loss) and continues to burn substantial cash with very negative operating and free cash flow, which is the dominant financial risk.

Income Statement

Revenue has grown over the last few years, with 2024 reaching about $56.6M (up meaningfully from 2023). Profitability is improving as well: gross margin rebounded to ~44% in 2024 after being much lower/negative in earlier years, and losses narrowed versus 2023 and 2022. However, the business remains deeply unprofitable, with a 2024 net loss of roughly $57.6M (net margin around -102%) and negative EBITDA, indicating the cost structure is still too heavy relative to current scale.

Balance Sheet

Leverage looks conservative in 2024, with total debt of roughly $5.8M against equity of about $111.2M (low debt relative to equity). That said, equity and assets have fallen materially since 2021–2022 levels, reflecting ongoing losses and balance sheet shrinkage. Returns remain poor, with a strongly negative return on equity in 2024, highlighting that while the company isn’t heavily debt-funded, it is still eroding shareholder value through continued losses.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are significantly negative in 2024 (around -$75M and -$76M, respectively). While free cash flow improved versus 2023, the company is still consuming substantial cash to run the business, and free cash flow closely tracks the net loss, suggesting limited near-term self-funding capacity without continued liquidity support.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.47M	56.63M	44.96M	42.95M	41.36M	18.06M
Gross Profit	31.42M	24.99M	5.33M	-3.92M	-2.68M	-2.18M
EBITDA	-19.14M	-50.39M	-94.52M	-161.63M	-145.33M	-61.43M
Net Income	-28.22M	-57.60M	-107.54M	-162.34M	-166.32M	-65.99M
Balance Sheet
Total Assets	174.14M	196.42M	294.43M	316.66M	452.30M	89.61M
Cash, Cash Equivalents and Short-Term Investments	64.67M	75.39M	179.54M	230.06M	283.75M	60.53M
Total Debt	5.62M	5.83M	22.00M	724.00K	3.40M	57.20M
Total Liabilities	73.97M	85.24M	125.30M	75.91M	74.75M	243.89M
Stockholders Equity	100.17M	111.18M	169.14M	240.75M	377.56M	-154.28M
Cash Flow
Free Cash Flow	-77.23M	-76.17M	-65.91M	-137.48K	-114.68M	-59.11M
Operating Cash Flow	-76.56M	-75.41M	-65.59M	-135.24K	-105.86M	-53.64M
Investing Cash Flow	80.78M	72.89M	50.48M	126.36M	-277.66M	-5.47M
Financing Cash Flow	-44.22M	-22.00M	0.00	-6.04M	447.78M	65.41M

Latch Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	77 Outperform	$1.72B	15.65	21.35%	―	6.48%	168.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	59 Neutral	$338.43M	-10.77	-20.20%	―	-6.23%	28.57%
PRCH	57 Neutral	$957.83M	34.75	―	―	-2.13%	―
LAW	54 Neutral	$426.19M	-6.30	-41.00%	―	6.33%	-66.34%
SMRT	51 Neutral	$329.21M	-5.15	-25.48%	―	-24.30%	-181.62%
LTCH	49 Neutral	$24.64M	-0.46	―	―	―	―

Latch Corporate Events

Latch Files Delayed 10-Q, Shows Revenue Growth, Losses

On January 13, 2026, DOOR (still legally Latch, Inc.) reported that it had filed its Quarterly Report on Form 10-Q for the three months ended March 31, 2025, marking another step toward regaining current status with U.S. securities regulators after a period of delayed reporting. For the first quarter of 2025, the company posted software revenue of $5.2 million and total revenue of $15.8 million, representing a 31% year-on-year rise in overall sales alongside a 9% reduction in operating expenses, narrowing its net loss to $11.3 million even as adjusted EBITDA loss widened, signaling improving operating efficiency but ongoing profitability challenges. DOOR also disclosed that its estimated cash and securities balance fell from $75.4 million at year-end 2024 to about $34.7 million at year-end 2025, driven largely by roughly $18.9 million in legal, regulatory and professional fees tied to stockholder litigation, an SEC investigation and delayed audits, as well as one-time engineering transition costs, though management indicated that cash outflows from operating and non‑recurring items were expected to be meaningfully lower in 2026, an important consideration for investors monitoring the company’s liquidity and regulatory clean‑up.

The most recent analyst rating on (LTCH) stock is a Hold with a $0.16 price target. To see the full list of analyst forecasts on Latch stock, see the LTCH Stock Forecast page.

Latch Files 2024 Annual Reports, Shows Revenue Growth

On November 5, 2025, DOOR announced the filing of its 2024 Annual and Quarterly Reports with the SEC, marking a significant step towards regaining current SEC reporting status. The company reported a 26% increase in total revenue and a 31% reduction in operating expenses for 2024, highlighting strong financial performance and operational discipline. Despite a net loss, DOOR showed a 46% improvement year-over-year, reflecting the company’s strategic focus on sustainable growth and innovation. Preliminary estimates for 2025 indicate continued revenue growth, although cash reserves have decreased due to legal and restructuring costs.