Latch
Latch (now DOOR) sells smart locks and access software for apartment buildings.
On the record
Checkpoint: Q2 2026 earnings release, showing whether revenue stays flat and cash keeps falling toward $25M
The call
Latch has software that locked-in buildings keep paying for, but new buildings are going to bigger rivals, and the cash to survive on its own is running out fast.
Latch sells electronic lock and entry systems to multifamily buildings, competing directly with established rivals like Allegion (which owns Schlage, a century-old lock brand), ADT, SmartRent, and ButterflyMX. Existing Latch customers are somewhat sticky because switching systems is annoying, but that does not stop new buildings from choosing a competitor instead, and all of these rivals already have products in the market. The real problem is financial: Latch lost $53.7 million last year while bringing in only $70.1 million in revenue, and its cash is draining fast enough that it will need new money or a sale within one to two years unless it cuts losses sharply or grows much faster. Revenue growth has already stalled from 24% annually to flat in the most recent quarter, and the company only got its accounting filings back in order in February 2026 after three years of restatement trouble. If Q2 2026 shows revenue still flat with cash dipping below $25 million, a desperate financing round or forced sale becomes likely.
Why
01
AI pressure: None apparent. AI is not the immediate danger here, cash and competitors are; smarter access algorithms could later commoditize the software layer. Could AI do the core job? Unlikely.
02
Bigger players: Allegion/Schlage and ADT (via IOTAS), plus peers SmartRent and ButterflyMX. Allegion and ADT already sell rival smart-access systems into new buildings, and Latch's flat revenue suggests it is losing new deals to them. Could a giant copy it? Yes, easily.
03
What protects it. Buildings already wired for Latch face real switching costs, so existing customers tend to stay even as new deals go elsewhere.
What would change this call
Q2 2026 earnings (Aug-Sept 2026) show total revenue flat or declining again. Would confirm new-building losses to Allegion, ADT, SmartRent, or ButterflyMX outweigh installed-base retention.
Cash and securities fall below $25M in a quarterly filing. Would show runway shrinking toward a forced, likely dilutive capital raise.
Announcement of an equity raise, refinancing, or strategic sale within 12 months. Would confirm the company could not fund itself from operations alone.
Cash and securities fall below $25M in a quarterly filing. Would show runway shrinking toward a forced, likely dilutive capital raise.
Announcement of an equity raise, refinancing, or strategic sale within 12 months. Would confirm the company could not fund itself from operations alone.
Key numbers
- Cash fell from $34.7M to $28.5M in one quarter
- Q1 2026 revenue $15.7M, flat year over year
- Net loss $53.7M on $70.1M FY2025 revenue
Named risks
- Cash fell from $34.7M to $28.5M in a single quarter against a $53.7M annual net loss.
- Revenue growth stalled to flat YoY in Q1 2026 after 24% growth in FY2025.
- Likely need for dilutive refinancing within roughly 12 to 24 months given burn rate.
- Thin OTC trading and low market cap (~$26-28M) limit access to capital markets.
- Professional-services revenue fell 20.9% in Q1 2026 after growing 55.9% in FY2025, showing volatility.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Allegion/Schlage | contesting | Century-old lock-hardware channel incumbent already shipping into same multifamily buildings as of 2026 |
| ADT | gaining on | Acquired multifamily access-control firm IOTAS in 2022, competing directly with DOOR since |
| SmartRent | contesting | Claims 600+ clients and 3.1M+ connected devices (vendor-claimed, 2025-05-01) |
| ButterflyMX | contesting | Claimed 25-30% share of premium US multifamily video-intercom market as of 2026-03-20 |
Questions people ask
- Is Latch profitable in 2026?
- No. Latch (now DOOR) posted a Q1 2026 net loss of $5.9M on revenue of $15.7M, flat year over year, and a full-year 2025 net loss of $53.7M on $70.1M revenue. Losses are narrowing but the company is not profitable as of March 31, 2026.
- Is Latch going to run out of money?
- Cash and securities fell from $34.7M at year-end 2025 to $28.5M by March 31, 2026, against a $53.7M FY2025 net loss, implying roughly 12 to 24 months of runway before Latch likely needs a dilutive refinancing.
- Did Latch get delisted from Nasdaq?
- Yes. Nasdaq delisted Latch (ticker LTCH) in March 2024 after it failed to file periodic reports on time, following a multi-year accounting restatement covering 2019 to 2022 that wasn't completed until December 2024.
- Who owns Latch now and is it still public?
- Latch, Inc. is still publicly traded, now on OTC markets rather than Nasdaq, under ticker LTCH, with a market cap of roughly $26 to $28 million as of July 22, 2026, down from a $1.56B SPAC valuation in June 2021. It rebranded products as DOOR in August 2025.
- Could AI replace Latch's DOOR access control business?
- Unlikely as a full replacement. DOOR's core product is physical lock and access hardware installed in buildings, requiring hands-on integration with elevators, intercoms and cameras. AI features like the 2024 DOOR Bug sensor are vendor-branded additions, not the core moat.
- Who is Latch/DOOR's biggest competitor?
- Allegion/Schlage, a century-old lock-hardware incumbent, and ADT, which acquired multifamily access-control firm IOTAS in 2022, both already ship competing products with no structural barrier stopping them. SmartRent and ButterflyMX compete directly in smart-access software.
Timeline
- 2026-06-17Delaware court approves $1.95M Schwartz v. Latch shareholder settlement
- 2026-05-15Q1 2026: revenue $15.7M flat YoY, net loss narrows 47% to $5.9M
- 2026-03-31FY2025 annual report filed: $70.1M revenue, $53.7M net loss
- 2026-02-11Company becomes current with all SEC filings after filing Q3 2025 10-Q
- 2025-08-14Latch rebrands products and corporate identity as DOOR
- 2024-12-31Multi-year restatement covering 2019-2022 accounting errors completed
- 2024-06-24Acquires HelloTech, launches DOOR Services marketplace
- 2024-03-20Nasdaq formally delists Latch (LTCH) for late filings
- 2023-11-30Completes roughly 59% workforce reduction
- 2021-06-30SPAC merger closes at $1.56B post-money valuation
Revision history
23 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Latch (Now DOOR) Files 2025 Annual Report and Provides Financial Update (2026-03-31)
- Latch (DOOR) Q1 loss narrows 47% on 19% software gain (2026-05-15)
- Delisting of Securities of Latch, Inc. ... (2024-03-20)
- Latch (LTCH) Stock News & Updates (2026-06-17)
- Latch (Now DOOR) Files Q3 2025 SEC Report (2026-02-11)
- Latch unlocks public listing with reverse merger (2021-01-26)
- Latch (LTCH) Stock Price, News & Analysis (2026-07-22)
- Latch Receives Expected Nasdaq Delisting Determination (2023-08-09)
- Smart lock company Latch, now known as Door, sees 2025 revenue rise 24% (2026-04-07)
- Latch Rebrands as DOOR to Advance Building Intelligence (2025-08-14)
- DOOR to Acquire HelloTech, Officially Launching DOOR Services (2024-06-24)
- Summary Notice ... Schwartz v. Latch (2025-09-08)