Earnings Releases·Nov 12, 2026, 7:51 AM ET

Latch, Inc. — Third Quarter 2026 Earnings Summary

Total revenue declined 18.9% year-over-year to $14.1 million, driven by lower hardware and professional services activity, though software revenue rose 18.1% to $6.3 million; gross margin expanded to 55.2% from 44.3% in the prior-year period.
Net loss widened to $20.5 million from $6.6 million due to a $13.6 million non-cash goodwill impairment charge, while non-GAAP operating expenses fell 6.0% year-over-year to $13.2 million and adjusted EBITDA loss improved 17.7% to $3.8 million.
The company is exiting non-core operations, including the sale of its DOOR Property Management business and a reduction in force, aiming to generate $10 million to $12 million in annualized cost savings and achieve positive cash flow by the second half of 2027.
Strategic shifts include the September 2026 launch of the OpenDOOR Platform, a transition to the "DOOR" brand, and a focus on AI-driven development that has nearly quadrupled engineering output.
The company holds $22.9 million in cash and cash equivalents, though it faces a three-year forward-looking statement restriction following a $1.0 million SEC settlement and recorded long-term debt increasing to $5.0 million.