ST. LOUIS, May 15, 2026 /PRNewswire/ -- 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,
2026
2025
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 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 EndedMarch 31
Quarterly Change
2026
2025
Balance at beginning of quarter
$ 34.6
$ 75.4
Balance at end of quarter
28.5
50.7
(1)
Cash used(2)
$ (6.1)
$ (24.7)
$ 18.6
Cash used for Litigation, Untimely Audit, andRestructuring 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.
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.
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, 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 ...
