Latch (LTCH) AI Stock Analysis

• Market Cap: $36.96M
• Dividend Yield: N/A
• Average Volume (3M): 100.85K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.85
• 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: 0.05
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: -1.01
• 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: $0.18 ▲(11.87% Upside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is held down primarily by ongoing large losses and substantial negative free cash flow, despite improving revenue/gross margin and a low-debt balance sheet. Technicals are moderately supportive with price above major moving averages and positive MACD. Corporate updates help on compliance/operational discipline, but liquidity and legal/regulatory cost overhangs remain meaningful.

Positive Factors

Revenue and Margin Recovery

Latch grew revenue to roughly $56.6M in 2024 with gross margin rebounding to ~44%. Sustained top-line growth plus improving unit economics indicate product-market fit in multifamily/commercial segments, supporting a pathway to durable margin expansion as scale increases.

Conservative Leverage

Low absolute debt relative to equity gives the company financial flexibility and lower fixed interest burden. That structural strength reduces refinancing risk and preserves capacity to fund deployments or absorb shocks without high leverage, supporting longer-term operational resilience.

Regulatory Reporting & Cost Discipline

Management has prioritized regaining SEC reporting status while cutting operating expenses meaningfully. Restored reporting and demonstrated cost discipline reduce regulatory overhang, improve governance, and create a more predictable baseline for cash planning and future capital access.

Negative Factors

Severe Cash Burn

Persistent, large negative operating and free cash flow materially erode runway and force reliance on external financing. That structural cash consumption limits self-funding of deployments, risks dilution or constrained investment, and weakens the company’s ability to scale sustainably.

Continued Deep Unprofitability

Despite improvements, the company remains deeply unprofitable with negative EBITDA and large net losses. At current scale the cost base outpaces revenue, eroding equity value and forcing ongoing restructuring or margin improvements to achieve durable profitability and return on capital.

Material Legal & Regulatory Costs

Significant outflows for litigation, SEC inquiry, and related professional fees have materially reduced liquidity. These structural legal and regulatory burdens increase future compliance costs, distract management, and raise the risk of further cash drains or restrictions on strategic investments.

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 generates revenue primarily by selling and deploying its smart access and building products and by charging ongoing software and services fees tied to those deployments. Key revenue streams include: (1) Product revenue from the sale of smart locks, access control devices, and other related hardware installed in buildings; (2) Software revenue from subscriptions/licenses for its cloud-based platform that enables and manages building access and connected features; and (3) Services and installation-related revenue from implementation, deployment, and support activities associated with onboarding buildings and customers. Revenue performance is influenced by adoption among multifamily and commercial properties, the pace of new building deployments and retrofits, and customer retention/expansion of subscribed software features. Specific details on major partnerships or customer concentration are null.

Latch Financial Statement Overview

Summary

Revenue growth and a rebound in gross margin are positives, and leverage is low (debt ~$5.8M vs equity ~$111.2M). However, the company remains deeply unprofitable (2024 net loss ~-$57.6M) and cash burn is severe (2024 operating cash flow ~-$75M; free cash flow ~-$76M), which materially weakens the financial profile.

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	Sep 2025	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.63M	44.96M	42.95M	41.36M	18.06M
Gross Profit	24.99M	5.33M	-3.92M	-2.68M	-2.18M
EBITDA	-50.39M	-94.52M	-161.63M	-145.33M	-61.43M
Net Income	-57.60M	-107.54M	-162.34M	-166.32M	-65.99M
Balance Sheet
Total Assets	196.42M	294.43M	316.66M	452.30M	89.61M
Cash, Cash Equivalents and Short-Term Investments	75.39M	179.54M	230.06M	283.75M	60.53M
Total Debt	5.83M	22.00M	724.00K	3.40M	57.20M
Total Liabilities	85.24M	125.30M	75.91M	74.75M	243.89M
Stockholders Equity	111.18M	169.14M	240.75M	377.56M	-154.28M
Cash Flow
Free Cash Flow	-76.17M	-65.91M	-137.48K	-114.68M	-59.11M
Operating Cash Flow	-75.41M	-65.59M	-135.24K	-105.86M	-53.64M
Investing Cash Flow	72.89M	50.48M	126.36M	-277.66M	-5.47M
Financing Cash Flow	-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	67 Neutral	$1.48B	69.87	3.93%	―	6.48%	168.94%
ONTF	66 Neutral	$345.51M	-11.71	-20.20%	―	-6.23%	28.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRCH	56 Neutral	$802.49M	61.80	-13.21%	―	-2.13%	―
SMRT	54 Neutral	$324.86M	-6.33	-25.34%	―	-24.30%	-181.62%
LTCH	49 Neutral	$36.96M	-603.28	-8.89%	―	―	―
LAW	46 Neutral	$279.28M	-10.79	-32.94%	―	6.33%	-66.34%

Latch Corporate Events

Latch Regains SEC Compliance and Reports Q3 Growth

On February 11, 2026, DOOR announced it had filed its Form 10-Q for the quarter ended September 30, 2025, under its legal name Latch, Inc., completing a multi-year effort to restate historical financials and regain current status with U.S. securities regulators. The company has now filed all required 2022–2025 reports, bringing it current with SEC obligations for the first time since mid-2022 and positioning it to pursue upgraded OTC market tiers and potential future listings.

For Q3 2025, DOOR reported unaudited software revenue of $5.4 million and total revenue of $17.4 million, representing year-over-year growth of 6% and 17%, respectively. Operating expenses fell 40% to $14.0 million, narrowing net loss by 61% to $6.6 million and improving adjusted EBITDA by 62% to a loss of $4.6 million, signaling strengthened operating discipline that may reassure investors after years of financial restatements and market downgrades.

The most recent analyst rating on (LTCH) stock is a Hold with a $0.18 price target. To see the full list of analyst forecasts on Latch stock, see the LTCH Stock Forecast page.

Latch Files Delayed Q2 2025 10-Q, Narrows Loss

On January 23, 2026, DOOR, which continues to trade as Latch, Inc. under the ticker LTCH, reported that it had filed its delayed Form 10-Q for the quarter ended June 30, 2025, marking another step toward regaining current SEC reporting status after a prolonged lapse since mid-2022. The second-quarter 2025 results showed total revenue rising 47% year over year to $19.1 million, modest 4% growth in software revenue to $5.2 million, a 34% reduction in operating expenses to $15.8 million, and a net loss narrowed by 54% to $7.8 million, alongside improved but still negative adjusted EBITDA; taken together with the rapid filing of its first- and second-quarter reports, these trends underscore management’s emphasis on cost discipline, operational efficiency and regulatory catch-up, with implications for restoring investor confidence and stabilizing the company’s market positioning.

The most recent analyst rating on (LTCH) stock is a Hold with a $0.15 price target. To see the full list of analyst forecasts on Latch stock, see the LTCH Stock Forecast page.

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.