Latch (Now DOOR) Continues to Make Progress Toward Becoming Current with SEC Filing Obligations, Files Q1 2025 SEC Report, and Provides Q1 2025 Financial Update
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On the day this news was published, LTCH declined NaN%, reflecting a moderate negative market reaction.
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DOOR continues to work diligently to file its remaining 2025 SEC reports
The Quarterly Report was filed under the Company's legal name, Latch, Inc., as DOOR continues its transition to the new brand. The Company's shares currently trade on the OTC Markets under the symbol, "LTCH," and the corporate name and ticker update are expected at a later date.
The filing of the Quarterly Report marks another milestone in DOOR's progress toward regaining current SEC reporting status. DOOR is working diligently to complete its remaining SEC filings for 2025.
DOOR is providing unaudited first quarter 2025 financial and business highlights and certain preliminary, unaudited financial information as of and for additional periods in 2025, which remains subject to completion when the Company becomes current with its SEC filing obligations.
Q1 2025 Financial and Business Highlights
- Software revenue of
$5.2 million $0.1 million 2% ) year-over-year increase - Total revenue of
$15.8 million $3.7 million 31% ) year-over-year increase, while reducing operating expenses by$1.8 million 9% year-over-year improvement - Net loss of
$(11.3) million $2.4 million 18% ) year-over-year improvement - Adjusted EBITDA (non-GAAP) of
$(7.4) million $1.3 million 22% ) year-over-year decrease
"Completing the filing of our first quarter 2025 report represents continued progress toward becoming current with our SEC reporting obligations," said David Lillis, Chief Executive Officer of DOOR. "The first quarter reflected strong execution across the business, with a
Key Business Metrics (in thousands) | |||
Three Months Ended March 31, | |||
2025 | 2024 | YoY Change (%) | |
GAAP(1) Measures | |||
Software revenue | 2 % | ||
Total revenue | 31 % | ||
Net loss | (18) % | ||
Non-GAAP Measure | |||
Adjusted EBITDA | 22 % | ||
(1) | Generally accepted accounting principles in |
Additional details about DOOR's first quarter 2025 performance are presented in the Quarterly Report.
Year-End 2025 Cash Position Update
As of December 31, 2025, we estimate DOOR's total preliminary, unaudited cash and cash equivalents and current and non-current available-for-sale securities ("Liquid Assets") to be approximately
DOOR's Liquid Assets decreased by approximately
The decrease in DOOR's Liquid Assets between December 31, 2024 and December 31, 2025 primarily occurred during the quarter ended March 31, 2025, and DOOR experienced a significant reduction in cash outflows during the quarters ended June 30, 2025 and September 30, 2025. During the quarter ended December 31, 2025, our cash position decreased at an accelerated rate due to the payment of a litigation settlement, slower than anticipated collections, and timing of payments to third-party installation partners. See the table below for more detail.
1DOOR also has current and non-current liabilities including, but not limited to, a term loan that matures on July 15, 2029 with | |||||||||||
Quarter Ended | December 31, | March 31, | June 30, | September 30, | December 31, |
Value of Liquid Assets | |||||
Period-Over-Period Change(2) | - | ||||
Litigation, Untimely Audit, and | - |
(1) | Amounts exclude cash required to settle investment securities that were purchased during the applicable period, as the corresponding funds were deducted from the Company's accounts in the following period. |
(2) | Represents the change in value of Liquid Assets from the end of the prior quarter. |
(3) | Includes legal fees and settlements related to stockholder litigation and the pending SEC investigation, professional service fees in connection with preparation of our 2023 SEC reports, and restructuring costs. |
The amounts discussed above are preliminary, unaudited estimates and should not be relied upon as an indicator of DOOR's 2025 performance. We have not completed our financial procedures for the quarters ended June 30, 2025, September 30, 2025, or December 31, 2025, and our actual Liquid Assets, revenues, and other financial information may differ, possibly materially, from the Liquid Assets, revenues, and other preliminary financial information presented above due to a variety of factors. Accordingly, investors are cautioned not to place undue reliance on the foregoing preliminary, unaudited estimates because they do not provide a complete view of the Company's current financial results and position. These preliminary, unaudited estimates reflect the Company's best estimate of the amounts set forth above and are based on the information available to us as of the date of this press release. Additionally, our independent registered public accounting firm has not audited, reviewed, compiled, or performed any procedures with respect to these preliminary estimates and does not express an opinion or provide any other form of assurance with respect to these preliminary, unaudited estimates. These preliminary financial results should not be viewed as a substitute for full financial statements prepared in accordance with GAAP. In addition, these preliminary, unaudited estimates should not be interpreted as indicative of future performance. The Company intends to provide its finalized comprehensive financial position in connection with becoming current with its SEC filing obligations, and you should review such information when available. The Company assumes no obligation to update or revise these preliminary, unaudited estimates, whether as a result of new information, future events, or otherwise, except as required by law, including the securities laws of
About DOOR
DOOR is a Building Intelligence company redefining how buildings operate. By combining premium hardware, intuitive software, and automated services into one streamlined system, DOOR helps properties think ahead, reduce overhead, and quietly improve life inside. Headquartered in
DOOR continues to operate under the legal name Latch, Inc., and its common stock continues to trade under the stock symbol, "LTCH." The company anticipates updating its corporate name and stock symbol at a later date.
The new brand and platform experience are live today at DOOR.com.
Key Business Metrics
DOOR reviews key business metrics to measure its performance, identify trends affecting its business, formulate business plans, and make strategic decisions that will impact the future operating results of the Company. For definitions and discussions of our key business metrics, see the Quarterly Report. Increases or decreases in the Company's key business metrics may not correspond with increases or decreases in its revenue.
The limitations these key business metrics have as an analytical tool 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) net impairment of intangible 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):
Three months ended March 31, | ||
2025 | 2024 | |
Net Loss | ||
Depreciation and amortization | 1,522 | 1,896 |
Interest expense (income), net(1) | 135 | (446) |
Provision for income taxes | - | 2 |
Change in fair value of warrant liability | 37 | 54 |
Restructuring costs | (58) | 75 |
Non-ordinary course legal fees and settlement reserves(2) | 1,979 | 3,909 |
Stock-based compensation | 251 | 2,070 |
Adjusted EBITDA | ||
(1) | As a result of significant discounts provided to our customers on certain long-term software contracts paid in advance, the Company has determined that there is a significant financing component related to the time value of money and has therefore broken out the interest component and recorded it as a component of interest (expense) income, net on the Condensed Consolidated Statements of Operations and Comprehensive Loss. Interest (expense) income, net includes interest expense associated with the significant financing component of |
(2) | Amounts primarily represent legal fees related to certain stockholder lawsuits and the ongoing SEC investigation. The previously reported amount of |
(3) | The previously reported Adjusted EBITDA of |
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 timing of the Company's filings with the SEC, the Company's cash expenditures, cash flows, revenues, and other financial or operational results, and the Company's business plans. 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; 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 Annual Report on Form 10-K for the year ended December 31, 2024 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
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