What is Latch Inc's earnings per share (EPS)?

Latch Inc (LTCH) reported diluted earnings per share of -$0.34 for fiscal year 2025. This represents a 8.1% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Latch Inc Financials

LTCH

FY2025 annual

Revenue $70.1M +23.8% YoY

Net Income -$53.7M +6.7% YoY

EPS (Diluted) -$0.34 +8.1% YoY

Free Cash Flow -$36.0M +52.8% YoY

Source SEC Filings (10-K/10-Q) Latest period Q2 FY2026, ended Jun 30, 2026 Reported Aug 10, 2026 Currency USD FYE December

Latch Inc (LTCH) reported $70.1M in revenue for fiscal year 2025, up 23.8% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI LTCH FY2025 2026-08-29

Cost reductions, not gross-margin expansion, are narrowing losses while near-zero capital spending leaves operating cash flow persistently negative.

Revenue expanded from FY2023 to FY2025, but gross margin narrowed from 44.1% to 38.3%, so later loss improvement was not driven by richer unit economics. Operating margin improved while SG&A and R&D contracted, indicating a cost-structure reset did more work than scale.

In FY2025, operating cash flow was -$35.9M and free cash flow was -$36.0M, showing that reported losses translated almost directly into cash use. Capital expenditures were only $79K, so the cash gap reflects operating economics rather than a heavy reinvestment cycle.

The current ratio stayed broadly stable as total assets nearly halved between FY2024 and FY2025, meaning balance-sheet shrinkage did not come from a comparable collapse in short-term coverage. The reported liquidity comparison equaled 11.6 months of annual operating outflow, while debt-to-equity was 0.1x; that combination indicates limited debt reliance, but not positive cash generation.

Financial Health Signals

Financial health score not available

Latch Inc does not currently provide enough eligible data for a peer-relative financial health score, so none is published. The signals and metrics below are current.

Altman Z-Score Distress

-9.54

Latch Inc scores -9.54, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($29.4M) relative to total liabilities ($48.8M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Neutral

4/9

Latch Inc passes 4 of 9 financial strength tests. 1 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality No Cash Backing

N/A

Latch Inc reported a net loss of $53.7M while operations used $35.9M of cash. With neither figure positive, the ratio between the two carries no quality signal.

Interest Coverage At Risk

N/A

Latch Inc reported an operating loss of $52.7M against $3.0M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.

Key Financial Metrics

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Earnings & Revenue

Revenue

$70.1M

YoY+23.8%

5Y CAGR+40.1%

Latch Inc generated $70.1M in revenue in fiscal year 2025. This represents an increase of 23.8% from the prior year.

EBITDA

-$47.4M

YoY+9.1%

Latch Inc's EBITDA was -$47.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 9.1% from the prior year.

Net Income

-$53.7M

YoY+6.7%

Latch Inc reported -$53.7M in net income in fiscal year 2025. This represents an increase of 6.7% from the prior year.

EPS (Diluted)

-$0.34

YoY+8.1%

Latch Inc earned -$0.34 per diluted share (EPS) in fiscal year 2025. This represents an increase of 8.1% from the prior year.

Cash & Balance Sheet

Free Cash Flow

-$36.0M

YoY+52.8%

Latch Inc recorded an outflow of $36.0M in free cash flow in fiscal year 2025, representing a cash shortfall after capex. This represents an increase of 52.8% from the prior year.

Cash & Debt

$34.6M

YoY-50.7%

5Y CAGR-10.6%

Latch Inc held $34.6M in cash against $3.3M in long-term debt as of fiscal year 2025.

Shares Outstanding

164M

YoY-0.3%

Latch Inc had 164M shares outstanding in fiscal year 2025. This represents a decrease of 0.3% from the prior year.

Dividends Per Share

Not reported for fiscal year 2025.

Margins & Returns

Gross Margin

38.3%

YoY-5.8pp

5Y CAGR+58.5pp

Latch Inc's gross margin was 38.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 5.8 percentage points from the prior year.

Operating Margin

-75.2%

Latch Inc's operating margin was -75.2% in fiscal year 2025, reflecting core business profitability. No change is given against fiscal year 2024: its reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.

Net Margin

-76.6%

Latch Inc's net profit margin was -76.6% in fiscal year 2025, showing the share of revenue converted to profit. No change is given against fiscal year 2024: its reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.

Return on Equity

-92.7%

YoY-40.8pp

Latch Inc's ROE was -92.7% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 40.8 percentage points from the prior year.

Capital Allocation

R&D Spending

$18.3M

YoY+5.9%

5Y CAGR-6.6%

Latch Inc invested $18.3M in research and development in fiscal year 2025. This represents an increase of 5.9% from the prior year.

Capital Expenditures

$79K

YoY-89.7%

5Y CAGR-21.7%

Latch Inc invested $79K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 89.7% from the prior year.

Share Buybacks

Not reported for fiscal year 2025.

LTCH Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

LTCH quarterly income statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19
Revenue	$66.6M	$70.1M+23.8%	$56.6M+26.0%	$45.0M+4.7%	$43.0M+55.6%	$27.6M+112.5%	$13.0M-12.7%	$14.9M
Cost of Revenue	$39.6M	$43.3M+36.8%	$31.6M-3.1%	$32.6M-30.4%	$46.9M+43.6%	$32.7M+109.0%	$15.6M-9.7%	$17.3M
Gross Profit	$27.1M	$26.9M+7.4%	$25.0M+102.8%	$12.3M+414.1%	-$3.9M+22.1%	-$5.0M-91.9%	-$2.6M-9.0%	-$2.4M
R&D Expenses	$16.1M	$18.3M+5.9%	$17.3M-48.7%	$33.8M-38.5%	$54.9M+18.9%	$46.2M+79.1%	$25.8M+40.6%	$18.3M
SG&A Expenses	$21.1M	$24.0M-46.0%	$44.5M-32.8%	$66.2M+19.7%	$55.3M-9.1%	$60.8M+205.1%	$19.9M+31.5%	$15.1M
Operating Income	-$46.9M	-$52.7M+11.3%	-$59.4M+46.1%	-$110.3M+33.3%	-$165.2M-10.5%	-$149.5M-136.7%	-$63.1M-27.1%	-$49.7M
Interest Expense	$2.4M	$3.0M-32.9%	$4.5M-22.7%	$5.8M-22.2%	$7.4M-18.2%	$9.1M+165.5%	$3.4M+673.1%	$443K
Income Tax	$0	$0-100.0%	$2K-93.3%	$30K-66.3%	$89K+67.9%	$53K+562.5%	$8K-84.0%	$50K
Net Income	-$47.5M	-$53.7M+6.7%	-$57.6M+46.4%	-$107.5M+33.8%	-$162.3M+2.9%	-$167.1M-147.9%	-$67.4M-34.2%	-$50.2M
EPS (Diluted)	-$0.30	-$0.34+8.1%	-$0.37+48.6%	-$0.72+36.3%	-$1.13	-$1.93	-$9.31-21.7%	-$7.65

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Revenue	$15.6M-0.6%	$15.7M-12.1%	$17.9M+2.5%	$17.4M-8.5%	$19.1M+20.8%	$15.8M-5.6%	$16.7M+11.9%	$14.9M
Cost of Revenue	$8.0M+6.3%	$7.5M-48.1%	$14.4M+48.4%	$9.7M-10.6%	$10.9M+30.9%	$8.3M-18.5%	$10.2M+14.8%	$8.9M
Gross Profit	$7.7M-6.8%	$8.2M+137.7%	$3.5M-55.2%	$7.7M-5.8%	$8.2M+9.6%	$7.5M+14.5%	$6.5M+7.5%	$6.1M
R&D Expenses	$4.1M+7.0%	$3.8M-15.6%	$4.5M+19.5%	$3.8M-15.6%	$4.5M-20.9%	$5.6M+6.2%	$5.3M+8.8%	$4.9M
SG&A Expenses	$6.0M+27.7%	$4.7M-12.9%	$5.4M+7.3%	$5.0M-14.3%	$5.9M-24.6%	$7.8M+153.2%	$3.1M-76.1%	$12.8M
Operating Income	-$7.2M-30.1%	-$5.5M+80.0%	-$27.8M-339.3%	-$6.3M+16.6%	-$7.6M+31.2%	-$11.0M-7.7%	-$10.2M+41.1%	-$17.4M
Interest Expense	$496K-12.7%	$568K-15.6%	$673K-4.4%	$704K-7.1%	$758K-12.6%	$867K-3.5%	$898K-2.6%	$922K
Income Tax	$0	$0	$0	$0	$0	$0	$0	$0
Net Income	-$6.9M-16.2%	-$5.9M+78.8%	-$28.1M-326.4%	-$6.6M+16.1%	-$7.8M+30.2%	-$11.3M-12.9%	-$10.0M+41.6%	-$17.1M
EPS (Diluted)	-$0.040.0%	-$0.04+77.8%	-$0.18-350.0%	-$0.04+20.0%	-$0.05+28.6%	-$0.070.0%	-$0.07+36.4%	-$0.11

LTCH Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

LTCH quarterly balance sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19
Total Assets	$106.8M-45.6%	$196.4M-33.3%	$294.4M-7.0%	$316.7M-29.6%	$449.6M+401.7%	$89.6M	N/A
Current Assets	$64.9M-50.1%	$130.2M-45.0%	$236.9M-15.1%	$278.9M-15.9%	$331.4M+312.4%	$80.4M	N/A
Cash & Equivalents	$34.6M-50.7%	$70.2M-25.8%	$94.7M-13.8%	$109.8M-12.0%	$124.8M+106.2%	$60.5M+11.6%	$54.2M
Inventory	$15.3M+6.1%	$14.4M-13.2%	$16.6M-43.7%	$29.4M+27.6%	$23.1M+178.2%	$8.3M	N/A
Accounts Receivable	$8.0M-19.3%	$9.9M+64.4%	$6.0M-14.6%	$7.0M-40.9%	$11.9M+44.5%	$8.2M	N/A
Goodwill	$13.6M-55.0%	$30.2M+19.3%	$25.3M	$0	N/A	N/A	N/A
Total Liabilities	$48.8M-42.8%	$85.2M-32.0%	$125.3M+65.1%	$75.9M+0.4%	$75.6M-69.2%	$245.5M	N/A
Current Liabilities	$28.2M-50.6%	$57.2M-39.4%	$94.3M+113.1%	$44.3M+3.9%	$42.6M+259.4%	$11.9M	N/A
Long-Term Debt	$3.3M-26.2%	$4.5M	$0	N/A	N/A	$5.5M	N/A
Total Equity	$58.0M-47.8%	$111.2M-34.3%	$169.1M-29.7%	$240.8M-35.6%	$374.0M+339.8%	-$155.9M-71.6%	-$90.9M
Retained Earnings	-$712.5M-8.2%	-$658.7M-9.6%	-$601.1M-21.8%	-$493.6M-49.0%	-$331.2M-104.2%	-$162.2M	N/A

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Total Assets	$93.4M-6.0%	$99.4M-7.0%	$106.8M-24.6%	$141.6M-8.6%	$155.0M-11.0%	$174.1M-11.3%	$196.4M-8.0%	$213.5M
Current Assets	$47.8M-17.1%	$57.7M-11.2%	$64.9M-18.4%	$79.6M-14.8%	$93.4M-16.3%	$111.6M-14.2%	$130.2M-13.1%	$149.8M
Cash & Equivalents	$19.1M-31.8%	$27.9M-19.3%	$34.6M-18.7%	$42.6M-8.9%	$46.7M-20.4%	$58.7M-16.4%	$70.2M-15.0%	$82.6M
Inventory	$12.1M-4.8%	$12.7M-16.7%	$15.3M+0.9%	$15.1M-16.9%	$18.2M-6.4%	$19.4M+35.3%	$14.4M+8.4%	$13.3M
Accounts Receivable	$7.8M+31.8%	$5.9M-25.8%	$8.0M+0.5%	$7.9M-31.6%	$11.6M-7.6%	$12.5M+27.0%	$9.9M-9.5%	$10.9M
Goodwill	$13.6M0.0%	$13.6M0.0%	$13.6M-55.0%	$30.2M0.0%	$30.2M0.0%	$30.2M0.0%	$30.2M0.0%	$30.2M
Total Liabilities	$47.7M+1.2%	$47.1M-3.4%	$48.8M-12.5%	$55.7M-11.1%	$62.7M-15.2%	$74.0M-13.2%	$85.2M-1.1%	$86.1M
Current Liabilities	$28.4M+1.2%	$28.1M-0.6%	$28.2M-15.4%	$33.4M-13.2%	$38.5M-19.4%	$47.8M-16.5%	$57.2M+3.1%	$55.5M
Long-Term Debt	$4.4M+45.0%	$3.0M-9.7%	$3.3M-8.9%	$3.7M-8.1%	$4.0M-7.5%	$4.3M-4.7%	$4.5M-6.7%	$4.8M
Total Equity	$45.8M-12.4%	$52.3M-9.9%	$58.0M-32.5%	$85.9M-6.9%	$92.3M-7.9%	$100.2M-9.9%	$111.2M-12.7%	$127.4M
Retained Earnings	-$725.3M-1.0%	-$718.4M-0.8%	-$712.5M-4.1%	-$684.4M-1.0%	-$677.8M-1.2%	-$670.0M-1.7%	-$658.7M-1.5%	-$648.8M

LTCH Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

LTCH quarterly cash flow statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19
Operating Cash Flow	-$21.0M	-$35.9M+52.4%	-$75.4M-15.0%	-$65.6M+51.5%	-$135.2M-27.0%	-$106.5M-96.3%	-$54.3M-13.9%	-$47.6M
Capital Expenditures	N/A	$79K-89.7%	$766K+134.3%	$327K-85.4%	$2.2M+45.3%	$1.5M+472.9%	$269K-70.4%	$908K
Free Cash Flow	N/A	-$36.0M+52.8%	-$76.2M-15.6%	-$65.9M+52.1%	-$137.5M-27.2%	-$108.1M-98.2%	-$54.5M-12.4%	-$48.5M
Investing Cash Flow	-$385K	$1.7M-97.7%	$72.9M+44.4%	$50.5M-60.1%	$126.4M+145.6%	-$277.0M-5612.8%	-$4.8M-28.8%	-$3.8M
Financing Cash Flow	-$1.2M	-$1.2M+94.4%	-$22.0M	$0+100.0%	-$6.0M-101.3%	$447.8M+584.6%	$65.4M-1.0%	$66.1M

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Operating Cash Flow	-$3.3M+36.7%	-$5.1M+33.7%	-$7.8M-58.4%	-$4.9M+62.7%	-$13.1M-29.3%	-$10.1M+24.5%	-$13.4M+23.2%	-$17.5M
Capital Expenditures	N/A	N/A	$5K+66.7%	-$3K-96.1%	$77K	$0-100.0%	$536K+182.1%	$190K
Free Cash Flow	N/A	N/A	-$7.8M-58.4%	-$4.9M+62.8%	-$13.2M-30.1%	-$10.1M+27.4%	-$14.0M+21.0%	-$17.7M
Investing Cash Flow	-$200K+85.7%	-$1.4M-994.2%	$156K-85.2%	$1.1M-25.3%	$1.4M+250.9%	-$935K-192.4%	$1.0M-92.0%	$12.6M
Financing Cash Flow	-$199K+40.2%	-$333K+0.3%	-$334K-0.3%	-$333K0.0%	-$333K-49.3%	-$223K	$0	$0

Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.

LTCH Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples.

LTCH quarterly financial ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19
Gross Margin	38.3%-5.8pp	44.1%+16.7pp	27.4%+36.5pp	-9.1%+9.1pp	-18.3%+2.0pp	-20.2%-4.0pp	-16.2%
Operating Margin	-75.2%	-104.9%	-245.3%	-384.7%	-541.4%	-486.0%	-333.9%
Net Margin	-76.6%	-101.7%	-239.2%	-377.9%	-605.3%	-518.8%	-337.4%
Return on Equity	-92.7%-40.8pp	-51.8%+11.8pp	-63.6%+3.8pp	-67.4%-22.7pp	-44.7%	N/A	N/A
Return on Assets	-50.3%-21.0pp	-29.3%+7.2pp	-36.5%+14.7pp	-51.3%-14.1pp	-37.2%+38.1pp	-75.2%	N/A
Current Ratio	2.300.0x	2.28-0.2x	2.51-3.8x	6.30-1.5x	7.78+1.0x	6.78	N/A
Debt-to-Equity	0.060.0x	0.040.0x	0.00-0.3x	0.32+0.1x	0.20	N/A	N/A
FCF Margin	-51.3%	-134.5%	-146.6%	-320.1%	-391.4%	-419.6%	-326.0%

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Gross Margin	49.0%-3.3pp	52.3%+33.0pp	19.4%-24.9pp	44.3%+1.3pp	43.0%-4.4pp	47.4%+8.3pp	39.1%-1.6pp	40.6%
Operating Margin	-46.2%-10.9pp	-35.3%	-155.6%	-36.3%+3.5pp	-39.8%+30.1pp	-69.9%-8.6pp	-61.3%	-116.3%
Net Margin	-44.2%-6.4pp	-37.8%	-157.1%	-37.8%+3.4pp	-41.2%+30.1pp	-71.3%-11.7pp	-59.6%	-114.1%
Return on Equity	-15.1%-3.7pp	-11.4%+37.0pp	-48.4%-40.7pp	-7.7%+0.8pp	-8.5%+2.7pp	-11.2%-2.3pp	-9.0%+4.4pp	-13.4%
Return on Assets	-7.4%-1.4pp	-6.0%+20.3pp	-26.3%-21.6pp	-4.7%+0.4pp	-5.1%+1.4pp	-6.5%-1.4pp	-5.1%+2.9pp	-8.0%
Current Ratio	1.68-0.4x	2.05-0.2x	2.30-0.1x	2.380.0x	2.43+0.1x	2.34+0.1x	2.28-0.4x	2.70
Debt-to-Equity	0.100.0x	0.060.0x	0.060.0x	0.040.0x	0.040.0x	0.040.0x	0.040.0x	0.04
FCF Margin	N/A	N/A	-43.4%-15.3pp	-28.1%+41.1pp	-69.2%-4.9pp	-64.3%+19.3pp	-83.6%	-118.3%

Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin, FCF Margin.

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Where Latch Inc Ranks

Frequently Asked Questions

What is Latch Inc's annual revenue?

Latch Inc (LTCH) reported $70.1M in total revenue for fiscal year 2025. This represents a 23.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Latch Inc's revenue growing?

Latch Inc (LTCH) revenue grew by 23.8% year-over-year, from $56.6M to $70.1M in fiscal year 2025.

Is Latch Inc profitable?

No, Latch Inc (LTCH) reported a net income of -$53.7M in fiscal year 2025, with a net profit margin of -76.6%.

What is Latch Inc's EBITDA?

Latch Inc (LTCH) had EBITDA of -$47.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Latch Inc have?

As of fiscal year 2025, Latch Inc (LTCH) had $34.6M in cash and equivalents against $3.3M in long-term debt.

What is Latch Inc's gross margin?

Latch Inc (LTCH) had a gross margin of 38.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Latch Inc's operating margin?

Latch Inc (LTCH) had an operating margin of -75.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Latch Inc's net profit margin?

Latch Inc (LTCH) had a net profit margin of -76.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Latch Inc's return on equity (ROE)?

Latch Inc (LTCH) has a return on equity of -92.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Latch Inc's free cash flow?

Latch Inc (LTCH) recorded an outflow of $36.0M in free cash flow during fiscal year 2025. This represents a 52.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Latch Inc's operating cash flow?

Latch Inc (LTCH) recorded an outflow of $35.9M in operating cash flow during fiscal year 2025, representing cash used by core business activities.

What are Latch Inc's total assets?

Latch Inc (LTCH) had $106.8M in total assets as of fiscal year 2025, including both current and long-term assets.

What are Latch Inc's capital expenditures?

Latch Inc (LTCH) invested $79K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Latch Inc spend on research and development?

Latch Inc (LTCH) invested $18.3M in research and development during fiscal year 2025.

How many shares does Latch Inc have outstanding?

Latch Inc (LTCH) had 164M shares outstanding as of fiscal year 2025.

What is Latch Inc's current ratio?

Latch Inc (LTCH) had a current ratio of 2.30 as of fiscal year 2025, which is generally considered healthy.

What is Latch Inc's debt-to-equity ratio?

Latch Inc (LTCH) had a debt-to-equity ratio of 0.06 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Latch Inc's return on assets (ROA)?

Latch Inc (LTCH) had a return on assets of -50.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

How does Latch Inc's liquidity compare with its operating cash outflow?

At the end of fiscal year 2025, Latch Inc (LTCH) held $34.6M in cash, cash equivalents and investments, and reported an operating cash outflow of $35.9M over that year. Dividing the one by the other, the reported balance equals about 12 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.

What is Latch Inc's Altman Z-Score?

Latch Inc (LTCH) has an Altman Z-Score of -9.54, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Latch Inc's Piotroski F-Score?

Latch Inc (LTCH) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Latch Inc's earnings high quality?

Latch Inc (LTCH) reported a net loss of $53.7M while operations used $35.9M of cash. With neither figure positive, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Latch Inc cover its interest payments?

Latch Inc (LTCH) reported an operating loss of $52.7M against $3.0M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.