Latch, Inc. (DOOR) Reports Second Quarter 2026 Financial Results
Latch, Inc. (DOOR) Reports Second Quarter 2026 Financial Results |
| [10-August-2026] |
Software Revenue Grows 17% Year-over-Year, Net Loss Narrows 12%, and Quarterly Cash Usage Improves ST. LOUIS, Aug. 10, 2026 /PRNewswire/ -- Latch, Inc., which operates as DOOR, the Building Intelligence company ("DOOR" or the "Company"), today reported financial and operating results for the three and six months ended June 30, 2026. The Company's shares currently trade on the OTC Markets under the symbol, "LTCH," and the Company's corporate name and ticker updates are expected at a later date.
Second Quarter 2026 Highlights (Three Months Ended June 30, 2026)
"We are running a fundamentally different company than we were a year ago, and this quarter reflects meaningful progress in that transformation," said David Lillis, Chief Executive Officer of DOOR. "Software revenue grew 17% year over year, we narrowed our net loss, and reduced cash usage by more than 60% compared with the first quarter of 2026. Earlier this week, we announced actions expected to reduce annualized operating costs by $10 million to $12 million, which should accelerate our path to profitability and cash flow breakeven." "AI is central to how we expect to achieve these improvements," Lillis continued. "By embedding AI across software development, customer support, and our internal operations, we have built a leaner, more efficient organization that is expected to continue delivering innovative products for our customers. The launch of DOOR Scout marks the first of several AI-enabled products planned for our Building Intelligence platform, and we expect several additional releases in the months ahead. We also reached a settlement in principle with the SEC Staff, representing an important milestone toward resolving legacy matters. This allows us to focus on executing our Building Intelligence strategy, continue innovating, expanding customer adoption, and creating long-term value for our stockholders." Business Highlights SEC Investigation Settlement – The Company reached a settlement in principle with the Securities and Exchange Commission (the "SEC") Staff related to the previously disclosed investigation. Subject to Commission approval, the proposed settlement includes a $1.0 million civil monetary penalty payable in quarterly installments, representing a significant milestone toward resolving this legacy matter. Restructuring Plan – Subsequent to quarter end, the Company announced a restructuring plan designed to accelerate profitability and strengthen its focus on Building Intelligence. The plan is expected to reduce annualized operating costs by approximately $10 million to $12 million through a workforce reduction and the planned exit of the DOOR Property Management business, enabling the Company to concentrate resources on its core Building Intelligence platform, AI-enabled software capabilities, and continued product innovation. AI Innovation – Continued integration of AI across software development, customer support, and internal operations to improve productivity, accelerate innovation, and support a more efficient and scalable operating model. The Company also continued expanding AI-enabled capabilities within its Building Intelligence platform, representing an important step in executing its strategy to deliver intelligent, connected solutions that modernize multifamily operations. Building Intelligence – DOOR's strategy is to transform building operations through AI, automation, and an open platform that reduces the day-to-day burden on onsite teams, enabling management by exception and positioning DOOR as the operational layer for connected multifamily buildings. DOOR Scout – Launched a connected edge AI device that combines remote lock management with environmental sensing in one device, replacing a stack of multiple single-purpose hardware devices while enabling proactive building intelligence. OpenDOOR – Introduced a developer platform that provides partners, property technology vendors, and customers with access to DOOR's access management, IoT, and building data, expanding the building technology ecosystem and enabling future AI-driven automation. Key Business Metrics The Company's key business metrics are as follows for the periods presented (unaudited, in thousands):
Second Quarter 2026 Results Summary DOOR's second quarter of 2026 delivered total revenue of $15.6 million, essentially flat with the first quarter of 2026 but down 18.1% from $19.1 million in the second quarter of 2025. The year-over-year decline was driven primarily by a lower volume of hardware shipments and professional services installation activity, reflecting the elevated level of hardware shipments and related installation activity in the second quarter of 2025 that did not recur in subsequent periods. Software revenue increased 16.8% to $6.1 million, reflecting continued subscription growth from expanding adoption of the Company's platform solutions, and representing a larger share of total revenue than in the prior-year period. Hardware revenue was $3.4 million and professional services revenue was $6.0 million. The continued shift in revenue mix toward recurring software supported the Company's margin objectives. The Company continued to improve operating efficiency during the quarter. Gross profit was $7.7 million and gross margin expanded to 49.0% from 43.0% in the second quarter of 2025, driven by a more favorable revenue mix and improved professional services margins, even as results absorbed a $0.9 million inventory impairment related to slow moving products recorded in hardware cost of revenue. The inventory impairment reduced hardware gross margin by approximately 25% to approximately 3%. Excluding the impairment charge, hardware gross margin would have been approximately 28%, compared to 30% in the second quarter of 2025, and total gross margin would have been approximately 54.8%. Operating expenses declined 5.7% to $14.9 million as DOOR continued to streamline its cost structure. As a result, net loss narrowed 12.1% year-over-year to $(6.9) million, while Adjusted EBITDA loss narrowed 37.5% to $(3.6) million. Second Quarter 2026 Cash and Liquidity Update As of June 30, 2026, the Company had $26.1 million of cash, restricted cash, and available-for-sale securities, consisting of $19.1 million of cash and cash equivalents, $5.2 million of restricted cash, and $1.8 million of available-for-sale securities. Net cash used by the Company improved to $2.4 million during the second quarter of 2026, compared with $6.1 million during the first quarter of 2026, reflecting continued progress in reducing cash expenditures and improving the efficiency of the Company's operating model. Additional Information Available on Our Website The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's Quarterly Report on Form 10-Q for the three months ended June 30, 2026, which will be posted on the "Financials and SEC Filings" section of the Company's investor relations website at DOOR.com, when it is filed with the SEC. Information contained on, or accessible through, the Company's website is not incorporated by reference into this press release. Information Regarding Key Business Metrics DOOR reviews the key business metrics and other measures presented in this release to measure its performance, identify trends affecting its business, formulate business plans, and make strategic decisions that may impact the future operating results of the Company. For definitions and discussions of key business metrics, see the Company's most recent Annual Report on Form 10-K. Increases or decreases in the Company's key business metrics and other measures may not correspond with increases or decreases in its revenue. The limitations these measures have as analytical tools include: (1) they are not necessarily indicative of the Company's future financial results and (2) other companies, including companies in DOOR's industry, may calculate key business metrics or similarly titled measures differently, which reduces their usefulness as comparative measures. Non-GAAP Financial Measures To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our financial results, we have presented in this press release Adjusted EBITDA, a non-GAAP financial measure. Adjusted EBITDA is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies. We define Adjusted EBITDA as our net loss, excluding the impact of the following items, if applicable: (i) depreciation and amortization expense, (ii) net interest income or expense, (iii) provision for income taxes, (iv) change in fair value of warrant liability, trading securities, or derivative instruments, (v) restructuring costs, (vi) transaction-related costs, (vii) impairment of assets, (viii) non-ordinary course legal fees and settlement reserves, (ix) stock-based compensation expense and (x) gain or loss on extinguishment of debt. The most directly comparable GAAP measure is net loss. We believe excluding the impact of these items in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance. We monitor, and have presented in this press release, Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our operating performance, to establish budgets, and to develop operational goals for managing our business. We believe Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we include in net loss. Accordingly, we believe Adjusted EBITDA provides useful information to investors, analysts, and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance. Adjusted EBITDA is not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net loss, which is the most directly comparable financial measure calculated and presented in accordance with GAAP. In addition, the expenses and other items that we exclude in our calculations of Adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from Adjusted EBITDA when they report their operating results. In addition, other companies may use other measures to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA as a tool for comparison. The following table reconciles Adjusted EBITDA to net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands):
About DOOR DOOR is a Building Intelligence company redefining how buildings operate. By combining hardware, intuitive software, and automated services into one streamlined system, DOOR helps properties think ahead, reduce overhead, and quietly improve life inside. Headquartered in St. Louis, Missouri, DOOR supports owners, operators, and residents across residential portfolios and purpose-built communities. Visit www.door.com for more information. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This release contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "would," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward-looking information includes, but is not limited to, statements regarding: the Company's cash expenditures, cash flows, revenues, and other financial or operational results, the Company's business plans, the Company's name and branding, the Company's application for its securities to trade on any particular market or national securities exchange or under any particular stock ticker, the results of our ongoing business transformation, the impacts on our business of our recent restructuring and workforce reduction actions, the use of artificial intelligence by the Company and its anticipated benefits, our ability to continue launching new products and consumer demand for those products, and regulatory disputes and investigations, including any potential settlement with the Securities and Exchange Commission. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including: the Company's ability to implement its business plans and achieve revenue forecasts; changes in the Company's plans; unexpected delays, difficulties, or expenditures; and other factors outside of the Company's control. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K, and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. The Company does not give any assurance that it will achieve its expectations.
SOURCE Latch, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: OTC-BB:LTCH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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