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Latch (OTC: LTCH) boosts software growth, cuts Q1 2026 loss and cash burn

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Latch, Inc., operating as DOOR, reported sharply improved first-quarter 2026 results. Software revenue grew 19.1% year-over-year to $6.1 million, while total revenue was $15.7 million, roughly flat as higher software and hardware offset lower professional services. Gross profit rose to $8.2 million and gross margin expanded to 52.3% from 47.4%.

Operating expenses fell 25.6% to $13.8 million, helping narrow net loss by 47.2% to $5.9 million and reduce Adjusted EBITDA loss to $3.9 million. Cash and investments totaled $28.5 million as of March 31, 2026, with quarterly cash usage improving by $18.6 million versus a year earlier. The company also refinanced its debt with a new $5 million revolving credit facility on improved terms, which it expects to lower 2026 debt service by about $0.9 million.

Positive

  • Substantial improvement in profitability and cash burn: Net loss narrowed 47.2% year-over-year to $5.9 million, Adjusted EBITDA loss improved 45.7% to $3.9 million, and quarterly cash usage improved by $18.6 million, signaling effective cost controls and more efficient operations.
  • Favorable revenue mix and margin expansion: Software revenue grew 19.1% to $6.1 million and hardware revenue increased, helping expand gross margin to 52.3% from 47.4%, which supports a more scalable business model.
  • Liquidity and financing strengthened: Cash and investments totaled $28.5 million as of March 31, 2026, and a new $5.0 million revolving credit facility on improved terms is expected to cut 2026 debt service by about $0.9 million.

Negative

  • None.

Insights

DOOR shows meaningful loss and cash-burn improvement alongside solid software growth.

DOOR delivered Q1 2026 software revenue of $6.1 million, up 19.1% year-over-year, while total revenue stayed roughly flat at $15.7 million. The revenue mix shifted toward higher-margin software and improved hardware margins, lifting gross margin to 52.3% from 47.4%.

Cost discipline was notable: operating expenses dropped 25.6% to $13.8 million, cutting net loss nearly in half to $5.9 million and narrowing Adjusted EBITDA loss to $3.9 million. Cash and investments were $28.5 million as of March 31, 2026, with quarterly cash usage improving by $18.6 million versus the prior year period.

The new $5.0 million revolving credit facility with Truist Bank, maturing in May 2028, replaces the prior loan and is expected to reduce 2026 debt service by about $0.9 million. Future filings will clarify whether the company can maintain software growth and further reduce losses and cash burn while supporting its inventory position and deferred revenue obligations.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Software revenue $6.1M Q1 2026, up 19.1% year-over-year
Total revenue $15.7M Q1 2026, essentially flat year-over-year
Net loss $5.9M Q1 2026, narrowed 47.2% vs. Q1 2025
Adjusted EBITDA loss $3.9M Q1 2026, improved 45.7% year-over-year
Gross margin 52.3% Q1 2026 vs. 47.4% in Q1 2025
Cash and investments $28.5M As of March 31, 2026
Quarterly cash usage $6.1M Decrease in cash and securities Q1 2026; $18.6M YoY improvement
Revolving credit facility $5.0M New facility with Truist Bank, matures May 2028
Adjusted EBITDA financial
"Adjusted EBITDA loss (non-GAAP) narrowed by 45.7% year-over-year to $(3.9) million."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
available-for-sale securities financial
"cash and cash equivalents and available-for-sale securities were approximately $28.5 million."
Available-for-sale securities are investments in stocks, bonds or similar instruments that a company does not intend to trade frequently but may sell before they mature. They matter to investors because changes in the market value of these holdings show up as paper gains or losses on the company's balance sheet rather than immediately in profit, so they can affect reported net worth and the timing of income without changing day-to-day earnings. Think of them like items on a household shelf you might sell later: their value moves with the market even if you haven’t cashed out.
revolving credit facility financial
"entered into a new $5.0 million revolving credit facility with Truist Bank, maturing in May 2028."
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
Secured Overnight Financing Rate financial
"Borrowings under the facility bear interest at a variable rate based on one-month term Secured Overnight Financing Rate plus 1.75%."
A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.
deferred revenue financial
"Deferred revenue, current was $10,912 and deferred revenue, non-current was $13,955 as of March 31, 2026."
Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.
Total revenue $15.7M -0.5% YoY
Software revenue $6.1M +19.1% YoY
Net loss $5.9M +47.2% improvement YoY
Adjusted EBITDA -$3.9M +45.7% improvement YoY
Gross margin 52.3% +4.9 percentage points YoY
Understanding 8-K Material Events →
FALSE000182600000018260002026-03-312026-03-31

UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 15, 2026
Latch, Inc.
(Exact name of registrant as specified in its charter)
Delaware
001-39688
85-3087759
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
1220 N Price Road, Suite 2, Olivette, MO 63132
(Address of principal executive offices, Including Zip Code)

(314) 227-1100
Registrant’s telephone number, including area code
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act: None.
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.    Results of Operations and Financial Condition.
On May 15, 2026, Latch, Inc. (the “Company”) issued a press release announcing its results for the first quarter ended March 31, 2026. A copy of the press release is furnished and attached hereto as Exhibit 99.1.
The information set forth in Item 2.02 (including Exhibit 99.1) is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01.    Financial Statements and Exhibits.
Exhibit
Number
Description
99.1
Press Release dated May 15, 2026.
104
Cover Page Interactive Data File, formatted in Inline XBRL (included as Exhibit 101).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Latch, Inc.
 
 
 
Date:
May 15, 2026
By:
/s/ Jeff Mayfield
 
 
Name:
Jeff Mayfield
 
 
Title:
Chief Financial Officer



Exhibit 99.1
Latch, Inc. (Now DOOR) Reports First Quarter 2026 Financial Results
Software Revenue Grows 19%, Net Loss Narrows 47%, and Cash Usage is $18.6 million Lower, Year-over-Year

St. Louis, Mo. – May 15, 2026 -- Latch, Inc., which operates as DOOR (“DOOR” or the “Company”), today reported financial and operating results for the first quarter ended March 31, 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.
First Quarter 2026 Highlights
●Software revenue increased by 19.1% year-over-year to $6.1 million, driven by continued subscription growth on the DOOR platform.
●Total revenue was $15.7 million, essentially flat year-over-year, as software and hardware growth offset a reduction in services activity.
●Operating expenses decreased by 25.6% year-over-year to $13.8 million, reflecting disciplined expense management.
●Net loss narrowed by 47.2% year-over-year to $(5.9) million.
●Adjusted EBITDA loss (non-GAAP) narrowed by 45.7% year-over-year to $(3.9) million.
"Our first quarter performance reflects continued execution against the strategic priorities driving DOOR forward," said David Lillis, Chief Executive Officer of DOOR. "We believe the multifamily industry is shifting toward integrated, software-driven building systems, and we believe demand is increasing for scalable platforms capable of improving operating efficiency, reducing costs, streamlining portfolio management, and enhancing resident experiences. DOOR's combination of cloud-based access control, software, connected infrastructure, and automation positions us to capitalize on these long-term trends. We remain focused on three priorities for the remainder of 2026: continued revenue growth by adding new buildings to the DOOR ecosystem, disciplined expense management as legacy costs normalize, and ongoing progress toward profitability and operating cash flow improvement."
"We narrowed our Adjusted EBITDA loss by approximately $3.3 million and reduced cash usage by $18.6 million compared to the first quarter of 2025, reflecting continued progress toward a more efficient and scalable operating model," added Jeff Mayfield, Chief Financial Officer. "We also recently refinanced our debt through a new revolving credit facility with Truist Bank on improved economic terms, further strengthening our near-term liquidity position. We ended the quarter with $28.5 million in cash and investments, and $25.0 million in net inventory, which we believe provides the resources to support execution of our 2026 plan."


Key Business Metrics
The Company's key business metrics are as follows for the periods presented (unaudited, in thousands):
Three Months Ended March 31,

20262025
YoY Change (%)
GAAP(1) Measures:
Software revenue$6,143 $5,159 19.1%
Total revenue
$15,702 $15,774 (0.5%)
Net loss
$(5,938)$(11,250)(47.2%)
Non-GAAP Measure:
Adjusted EBITDA(2)
$(3,947)$(7,266)(45.7%)
(1)Generally accepted accounting principles in the United States of America.
(2)Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” below for the definition, limitations, and reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure.
First Quarter 2026 Results Summary
DOOR's first quarter of 2026 reflected continued progress against its strategy to drive software-led growth and higher margins on hardware while improving operational efficiency. Total revenue was $15.7 million, relatively flat year-over-year, as growth in software and hardware helped offset lower professional services activity. Software revenue increased 19.1% to $6.1 million, reflecting continued subscription growth as a result of expanding adoption of the Company’s platform solutions. Hardware revenue also grew 7.9% to $4.4 million on higher unit shipments. While professional services revenue declined 20.9% to $5.2 million primarily due to lower installation activity, the shift in revenue mix and improved hardware margins contributed to margin expansion.
The Company improved operating efficiency during the quarter. Gross profit increased $0.7 million year-over-year to $8.2 million, with gross margin expanding to 52.3% from 47.4% in the first quarter 2025, driven by operational efficiencies in professional services and a more favorable product mix. Operating expenses declined 25.6% to $13.8 million as DOOR continued to streamline its cost structure and reduce overlapping engineering and corporate expenses. As a result, net loss narrowed 47.2% year-over-year to $5.9 million, while Adjusted EBITDA loss narrowed 45.7% to $3.9 million. These results reflect continued execution against the Company’s profitability initiatives and reinforce management’s focus on building a more efficient, scalable business positioned for long-term growth.
First Quarter 2026 Cash Position Update
As of March 31, 2026, DOOR’s total, unaudited cash and cash equivalents and available-for-sale securities were approximately $28.5 million(1) and decreased by approximately $6.1 million from
(1)    As of March 31, 2026, DOOR also has current and non-current liabilities including, but not limited to, a term loan that matures on July 15, 2029 with $4.3 million of principal outstanding, deferred revenue, accrued liabilities, accounts payable, and litigation reserves.
2

the amount of cash and cash equivalents and available-for-sale securities as of December 31, 2025. This represents an approximate $18.6 million improvement year-over-year as compared to a decrease in cash and cash equivalents and available-for-sale securities of approximately $24.7 million from December 31, 2024 to March 31, 2025. This improvement was primarily due to (i) a reduction in litigation, untimely audit, and restructuring fees, and (ii) ongoing operational efficiencies. The opening and closing balances of cash and cash equivalents and available-for-sale securities is as follows for the periods presented (unaudited, in millions):
Three Months Ended March 31
Quarterly Change

20262025
Balance at beginning of quarter
$34.6 $75.4 
Balance at end of quarter28.5 50.7 
(1)
Cash used(2)
$(6.1)$(24.7)$18.6 
Cash used for Litigation, Untimely Audit, and Restructuring Fees(3)
$(0.3)$(11.3)$11.0 
(1)As reported in the in the Company's Form 10-Q for the period ended March 31, 2025, the Company's cash and cash equivalents was $58.7 million and the Company's available-for-sale securities was $6.0 million, resulting in a total of cash and cash equivalents and available-for-sale securities of $64.7 million as of the end of that period. The $50.7 million value included in this table excludes $14.0 million of cash required to settle investment securities that were purchased during the period ended March 31, 2025, as the corresponding funds were deducted from the Company’s accounts within the first few days in the following period.
(2)Represents the change in value of cash and cash equivalents and available-for-sale securities from the end of the prior quarter.
(3)Includes fees and settlements actually paid within the applicable periods related to stockholder litigation and the pending SEC investigation, professional service fees in connection with preparation of our 2023 SEC reports, and restructuring costs. Amounts in this row do not necessarily reflect all of such expenses, settlements, and fees recognized in the relevant periods as reported in the Company's Form 10-Q for the periods ended March 31, 2026 and March 31, 2025, respectively.
First quarter cash usage may not be indicative of ongoing quarterly cash usage, as annual upfront payments, the timing of inventory purchases, and collections activity can create variability between quarters. Management remains focused on its goal of reducing cash usage going forward.
Debt Refinance
On May 11, 2026, the Company entered into a new $5.0 million revolving credit facility with Truist Bank, maturing in May 2028. Borrowings under the facility bear interest at a variable rate based on one-month term Secured Overnight Financing Rate plus 1.75% and are secured by certain cash deposit accounts of the Company. In connection with entering into the new facility, the Company repaid and terminated its existing loan agreement with Customers Bank. The Company expects the refinancing to reduce cash used for debt service by approximately $0.9 million for 2026.
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 March 31, 2026, which will be posted on the “Financials and SEC Filings” section of the Company's investor relations website at DOOR.com,
3

when it is filed with the Securities and Exchange Commission (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 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 measure 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
4

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,
20262025
Net loss$(5,938)$(11,250)
Depreciation and amortization1,007 1,522 
Interest expense, net(1)
323 253 
Change in fair value of warrant liability37 37 
Restructuring costs— (58)
Non-ordinary course legal fees and settlement reserves(2)
470 1,979 
Stock-based compensation expense154 251 
Adjusted EBITDA$(3,947)$(7,266)
(1)As a result of significant discounts provided to our customers on certain long-term software contracts paid in advance, we determined that there is a significant financing component related to the time value of money and have therefore broken out the interest component and recorded it as a discount in interest expense, net on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss. Interest expense, net includes interest expense associated with the significant financing component of $0.5 million and $0.7 million for the three months ended March 31, 2026 and 2025, respectively.
(2)The amounts primarily represent legal fees related to stockholder lawsuits and the SEC’s ongoing investigation into issues related to our key performance indicators and revenue recognition practices. While we are involved in various litigation and legal disputes in the ordinary course of our business, we believe the non-ordinary course legal fees and settlement reserves included in our calculation of Adjusted EBITDA do not represent normal operating expenses. These costs are included within general and administrative on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss.
5

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.
Media Contact:
press@door.com
6

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, and the Company’s application for its securities to trade on any particular market or national securities exchange or under any particular stock ticker. 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.
###




7

Latch, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)
(in thousands)
Three Months Ended March 31,
20262025
Revenue
Hardware$4,357 $4,037 
Software6,143 5,159 
Professional services5,202 6,578 
Total revenue15,702 15,774 
Cost of revenue(1)
Hardware3,218 3,303 
Software531 551 
Professional services3,734 4,441 
Total cost of revenue7,483 8,295 
Operating expenses
Research and development3,793 5,633 
Sales and marketing4,272 3,577 
General and administrative4,691 7,771 
Depreciation and amortization1,007 1,522 
Total operating expenses13,763 18,503 
Loss from operations(5,544)(11,024)
Other expense, net
Interest expense, net(323)(253)
Change in fair value of warrant liability(37)(37)
Other (expense) income, net(34)64 
Total other expense, net(394)(226)
Loss before income taxes(5,938)(11,250)
Provision for income taxes— — 
Net loss$(5,938)$(11,250)
Other comprehensive income (loss)
Unrealized gain (loss) on available-for-sale securities(3)(14)
Foreign currency translation adjustment33 4 
Comprehensive loss$(5,908)$(11,260)
Net loss per common share:
Basic and diluted net loss per common share$(0.04)$(0.07)
Weighted average shares outstanding:
Basic and diluted160,658,450 160,272,142 
(1)Exclusive of depreciation and amortization shown in operating expenses.
Addendum to Latch, Inc. First Quarter 2026 Earnings Release
1

Latch, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands, except share amounts)

March 31, 2026December 31, 2025
Assets
Current assets
Cash and cash equivalents$27,945 $34,620 
Available-for-sale securities576 — 
Accounts receivable, net5,903 7,960 
Inventories, net current12,708 15,258 
Prepaid expenses and other current assets10,526 7,098 
Total current assets57,658 64,936 
Property and equipment, net800 835 
Internally-developed software, net8,320 8,382 
Inventories, net non-current12,266 12,080 
Goodwill13,605 13,605 
Intangible assets, net2,211 2,297 
Other non-current assets4,511 4,667 
Total assets$99,371 $106,802 
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable$4,901 $4,447 
Current portion of long-term debt1,314 1,314 
Accrued expenses10,171 10,458 
Deferred revenue, current10,912 11,237 
Other current liabilities782 790 
Total current liabilities28,080 28,246 
Deferred revenue, non-current13,955 15,138 
Long-term debt3,007 3,330 
Other non-current liabilities2,071 2,077 
Total liabilities47,113 48,791 
Stockholders' equity
Common stock - $0.0001 par value, 1,000,000,000 shares authorized19 19 
Treasury stock(1)(1)
Additional paid-in capital770,578 770,423 
Accumulated other comprehensive income69 39 
Accumulated deficit(718,407)(712,469)
Total stockholders’ equity52,258 58,011 
Total liabilities and stockholders’ equity$99,371 $106,802 


Addendum to Latch, Inc. First Quarter 2026 Earnings Release
2

Latch, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(in thousands)


Three Months Ended March 31,
20262025
Operating activities
Net loss$(5,938)$(11,250)
Adjustments to reconcile net loss to net cash used by operating activities
Depreciation and amortization1,007 1,522 
Non-cash interest income(4)(74)
Change in fair value of warrant liability37 37 
Change in unrealized loss on marketable securities(3)(12)
Provision for expected credit losses, net of recoveries(22)38 
Provision for credit losses on contract assets(3)(9)
Stock-based compensation expense154 251 
Changes in assets and liabilities (excluding effects of acquisitions)
Accounts receivable2,079 (2,698)
Inventories, net2,364 (3,009)
Prepaid expenses and other current assets(3,416)15,534 
Other non-current assets(23)610 
Accounts payable449 (1,766)
Accrued expenses(275)(6,495)
Other current liabilities(8)(2,344)
Other non-current liabilities(33)(446)
Deferred revenue(1,508)(26)
Net cash used in operating activities(5,143)(10,137)
Investing activities
Purchase of available-for-sale securities(572)(4,255)
Proceeds from sales and maturities of available-for-sale securities— 3,562 
Capitalized internally-developed software(823)(242)
Net cash used in investing activities(1,395)(935)
Financing activities
Repayment of term loan(333)(223)
Net cash used in financing activities(333)(223)
Effect of exchange rate on cash196 (191)
Net change in cash and cash equivalents(6,675)(11,486)
Cash and cash equivalents
Beginning of period34,620 70,203 
End of period$27,945 $58,717 
Supplemental disclosure of non-cash investing and financing activities
Capitalization of stock-based compensation to internally developed software$1 $(4)
Addendum to Latch, Inc. First Quarter 2026 Earnings Release
3

Source: View Original Filing on SEC EDGAR

FAQ

How did Latch (LTCH), operating as DOOR, perform in Q1 2026?

Latch, operating as DOOR, reported Q1 2026 revenue of $15.7 million, essentially flat year-over-year. Software revenue grew 19.1% to $6.1 million, while net loss narrowed 47.2% to $5.9 million as operating expenses fell and margins improved.

Did DOOR improve its profitability metrics in the first quarter of 2026?

Yes. DOOR cut its Q1 2026 net loss to $5.9 million from $11.3 million a year earlier. Adjusted EBITDA loss improved to $3.9 million from $7.3 million, reflecting lower operating expenses and better gross margins across software, hardware, and services.

What were DOOR’s key revenue drivers in Q1 2026?

Software was the main growth driver, with revenue rising 19.1% year-over-year to $6.1 million on expanding subscriptions. Hardware revenue increased 7.9% to $4.4 million, while professional services declined 20.9% to $5.2 million, leaving total revenue roughly flat at $15.7 million.

How strong is DOOR’s cash position and cash usage trend after Q1 2026?

As of March 31, 2026, DOOR held $28.5 million in cash, cash equivalents, and available-for-sale securities. Cash usage for the quarter was about $6.1 million, a $18.6 million year-over-year improvement, aided by lower litigation, audit, restructuring fees, and operational efficiencies.

What new debt facility did DOOR enter into in May 2026?

On May 11, 2026, DOOR entered a $5.0 million revolving credit facility with Truist Bank, maturing in May 2028. The facility, secured by certain cash accounts, is expected to reduce 2026 cash used for debt service by approximately $0.9 million versus the prior loan arrangement.

What is DOOR’s gross margin trend based on Q1 2026 results?

DOOR’s gross profit rose to $8.2 million in Q1 2026, with gross margin expanding to 52.3% from 47.4% a year earlier. The improvement came from operational efficiencies in professional services and a more favorable mix toward higher-margin software and improved hardware margins.

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