Latch, Inc.

What they do

DOOR sells smart access control hardware (locks, readers, intercoms) and smart home devices, powered and managed by its cloud-based DOOR Platform SaaS. Customers are real estate developers, builders, owners and property managers in the U.S. and Canada who buy hardware and license the platform; residents use the DOOR App for access, guest passes, smart home control and services. Its HelloTech subsidiary provides a nationwide network of independent technicians for installation and home services, and it also offers property management in and around Boston. It operates in one operating and reporting segment.

Revenue drivers

• Software / SaaS (DOOR Platform) — Subscription licensing of the DOOR Platform; the fastest-growing line, at $6.1 million in Q2 2026, up 16.8% year-over-year.
• Hardware devices — Sales of smart access control devices (locks, readers, intercoms) and smart home devices, sold directly or through the channel partner network; shipments were cited as a drag on total revenue in Q2 2026.
• Professional services and installation — Deployment and installation services connecting property customers with partners for Latch and third-party hardware; lower installation activity contributed to the Q2 2026 revenue decline.
• HelloTech and property management — HelloTech provides a nationwide independent technician network for on-demand tech and home services; property management operates in and around Boston and is being exited under the restructuring plan.

Recent performance

Q2 2026 total revenue was $15.6 million, essentially flat sequentially versus Q1 2026's $15.7 million but down 18.1% year-over-year, which the company attributed to lower hardware shipments and professional services installation activity against an elevated prior-year quarter. Software revenue grew 16.8% year-over-year to $6.1 million. Net loss narrowed 12.1% year-over-year to $(6.9) million, and non-GAAP Adjusted EBITDA loss narrowed 37.5% to $(3.6) million. Operating expenses fell 5.7% year-over-year to $14.9 million. Full-year revenue has grown from $27.6 million in 2021 to $70.1 million in 2025, while net losses narrowed from $167.1 million in 2021 to $53.7 million in 2025.

Strategy

DOOR is positioning itself as a "Building Intelligence" platform, combining access control with broader smart home device management and AI-enabled automation of building operations. It launched DOOR Scout, a connected edge AI device combining remote lock management with environmental sensing, and OpenDOOR, a developer platform exposing access management, IoT and building data to partners and property technology vendors. Management says AI is embedded across software development, customer support and internal operations to build a leaner operating model. A restructuring plan announced after quarter end aims to cut annualized operating costs by about $10 million to $12 million through workforce reduction and exiting the DOOR Property Management business. The company also reached a settlement in principle with SEC Staff over a previously disclosed investigation, which it describes as resolving a legacy matter.

Risks

• SEC investigation and settlement — The company reached a settlement in principle with SEC Staff including a $1.0 million civil penalty payable in four quarterly installments, subject to Commission approval, and recorded a $1.0 million liability as of June 30, 2026.
• History of losses and liquidity — The company has reported annual net losses every year from 2021 through 2025 (most recently $(53.7) million) and negative operating cash flow in each of those years, and its own risk factors flag liquidity risks that may affect its ability to sustain operations.
• Material weaknesses in internal control — The 10-K risk factors state the company has material weaknesses in internal control over financial reporting, alongside the prior restatement and 2022 internal investigation of key performance indicators and revenue recognition.
• OTC market and customer concentration — Its securities trade on the OTC market, which the company says creates a minimal public market, and its risk factors note the loss of a significant customer could have a material adverse effect.

Outlook

Management says the restructuring plan is expected to reduce annualized operating costs by approximately $10 million to $12 million and accelerate its path to profitability and cash flow breakeven, after quarterly cash usage improved more than 60% versus Q1 2026. It expects several additional AI-enabled product releases on the Building Intelligence platform in the months ahead, following the launch of DOOR Scout and OpenDOOR. The company also notes its shares trade on OTC Markets under "LTCH," with corporate name and ticker updates expected at a later date. No specific revenue or earnings guidance figures were provided in the excerpts.