Latch (LTCH)
OTHER OTC:LTCH
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Latch
(OTC:LTCH)
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Rating:40Underperform
Price Target:
$0.18
▲(13.12% Upside)
Action:Downgraded
Date:05/22/26
The score is primarily constrained by weak financial performance—continued large losses, ongoing cash burn, and a recent TTM revenue decline—despite improving gross margin and low leverage. Technicals are mildly negative (below key moving averages with negative MACD), while valuation is unattractive given the extreme negative P/E and no dividend support.
Positive Factors
Recurring SaaS revenue
Latch's business combines hardware with subscription software that scales per door/unit, creating recurring revenue and customer lock‑in. Over 2–6 months this durable revenue mix supports predictable ARR, aftermarket upsells, and higher lifetime value versus one‑time hardware sales.
Negative Factors
Material cash burn
Negative operating and free cash flow (~-$31M TTM) is a structural weakness: ongoing cash burn depletes runway, forces capital raises or austerity, and limits ability to invest in sales, product or scaling. Continued negative FCF over months constrains long‑term optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SaaS revenue
Latch's business combines hardware with subscription software that scales per door/unit, creating recurring revenue and customer lock‑in. Over 2–6 months this durable revenue mix supports predictable ARR, aftermarket upsells, and higher lifetime value versus one‑time hardware sales.
Read all positive factors
Latch (LTCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.21M
Dividend YieldN/A
Average Volume (3M)100.85K
Price to Earnings (P/E)―
Beta (1Y)-2.15
Revenue Growth16.03%
EPS Growth14.27%
CountryUS
Employees75
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)N/A
Shares Outstanding164,257,800
10 Day Avg. Volume153,815
30 Day Avg. Volume100,851
Financial Highlights & Ratios
PEG Ratio55.28
Price to Book (P/B)415.30
Price to Sales (P/S)343.60
P/FCF Ratio-669.75
Enterprise Value/Market Cap0.24
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit0.36
Enterprise Value/Ebitda-0.31
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 personali...
How the Company Makes Money
Latch makes money primarily by selling and deploying its access-control products and related software/services to building owners, developers, and property managers. Key revenue streams include: (1) Product revenue: sales of smart locks and access...
Latch Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
46
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Sep 2025 | Dec 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 70.05M | 70.12M | 56.63M | 44.96M | 42.95M | 41.36M |
| Gross Profit | 21.31M | 21.57M | 24.99M | 5.33M | -3.92M | -2.68M |
| EBITDA | -24.77M | -27.71M | -50.39M | -94.52M | -161.63M | -145.33M |
| Net Income | -48.44M | -53.75M | -57.60M | -107.54M | -162.34M | -166.32M |
Balance Sheet | ||||||
| Total Assets | 99.37M | 106.80M | 196.42M | 294.43M | 316.66M | 452.30M |
| Cash, Cash Equivalents and Short-Term Investments | 28.52M | 34.62M | 75.39M | 179.54M | 230.06M | 283.75M |
| Total Debt | 4.32M | 4.64M | 5.83M | 22.00M | 724.00K | 3.40M |
| Total Liabilities | 47.11M | 48.79M | 85.24M | 125.30M | 75.91M | 74.75M |
| Stockholders Equity | 52.26M | 58.01M | 111.18M | 169.14M | 240.75M | 377.56M |
Cash Flow | ||||||
| Free Cash Flow | -30.98M | -35.97M | -76.17M | -65.91M | -137.48K | -114.68M |
| Operating Cash Flow | -30.90M | -35.89M | -75.41M | -65.59M | -135.24K | -105.86M |
| Investing Cash Flow | -11.87M | 1.69M | 72.89M | 50.48M | 126.36M | -277.66M |
| Financing Cash Flow | 621.00K | -1.22M | -22.00M | 0.00 | -6.04M | 447.78M |
Latch Risk Analysis
Latch disclosed 75 risk factors in its most recent earnings report. Latch reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Latch Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.24B | 44.10 | 3.93% | ― | 7.64% | -80.72% | |
63 Neutral | $1.07B | -40.34 | 32.36% | ― | 13.03% | 7.07% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $238.58M | -6.32 | -32.73% | ― | 11.07% | 27.51% | |
48 Neutral | $235.26M | -16.16 | -10.61% | ― | -9.70% | 61.30% | |
40 Underperform | $31.21M | -1,420.44 | -8.89% | ― | 16.03% | 14.27% |
* Technology Sector Average
LTCH
Latch
0.18
0.07
63.64%
PRCH
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9.56
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-5.63%
SMRT
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1.28
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5.27
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-34.37%
LAW
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3.84
-0.01
-0.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.