Latch | 10-K: FY2025 Revenue: USD 70.12 M

Revenue: As of FY2025, the actual value is USD 70.12 M.

EPS: As of FY2025, the actual value is USD -0.34.

EBIT: As of FY2025, the actual value is USD -51.61 M.

Segment Information

Latch, Inc. operates as one operating and reporting segment .

Revenue

• Total Revenue: Increased by $13,487 thousand (23.8%) to $70,117 thousand for the year ended December 31, 2025, from $56,630 thousand for the year ended December 31, 2024 .
• Hardware Revenue: Increased by $1,486 thousand (8.1%) to $19,772 thousand in 2025 from $18,286 thousand in 2024 .
• Software Revenue: Increased by $1,885 thousand (9.3%) to $22,140 thousand in 2025 from $20,255 thousand in 2024 .
• Professional Services Revenue: Increased by $10,116 thousand (55.9%) to $28,205 thousand in 2025 from $18,089 thousand in 2024, primarily driven by a full year of revenue from the 2024 HelloTech Merger ($6.6 million increase), a $2.1 million increase in installation revenue, and a $1.4 million increase in property management revenue .

Operational Metrics

• Net Loss: Improved by $3,849 thousand (-6.7%) to - $53,747 thousand for the year ended December 31, 2025, from - $57,596 thousand for the year ended December 31, 2024 .
• Adjusted EBITDA: Improved by $8,877 thousand (-24.7%) to - $27,089 thousand in 2025 from - $35,966 thousand in 2024 .
• Total Cost of Revenue: Increased by $11,631 thousand (36.8%) to $43,267 thousand in 2025 from $31,636 thousand in 2024 .
  • Cost of Hardware Revenue: $19,308 thousand in 2025 compared to $15,270 thousand in 2024, including a $4.9 million write-off of prepaid inventory deposits in 2025 .
  • Cost of Software Revenue: $2,029 thousand in 2025 compared to $2,013 thousand in 2024 .
  • Cost of Professional Services Revenue: $21,930 thousand in 2025 compared to $14,353 thousand in 2024 .
• Total Operating Expenses: Decreased by - $4,837 thousand (-5.7%) to $79,571 thousand in 2025 from $84,408 thousand in 2024 .
  • Research and Development Expenses: Increased by $1,020 thousand (5.9%) to $18,338 thousand in 2025 from $17,318 thousand in 2024 .
  • Sales and Marketing Expenses: Increased by $2,758 thousand (21.9%) to $15,326 thousand in 2025 from $12,568 thousand in 2024 .
  • General and Administrative Expenses: Decreased by - $20,441 thousand (-46.0%) to $24,030 thousand in 2025 from $44,471 thousand in 2024, primarily due to a $9.7 million decrease in investigation, legal and settlement fees, and a $4.9 million decrease in audit fees .
  • Depreciation and Amortization Expenses: Decreased by - $1,925 thousand (-26.7%) to $5,277 thousand in 2025 from $7,202 thousand in 2024 .
  • Impairment of Goodwill: $16,600 thousand in 2025, compared to $0 in 2024 .
  • Impairment of Intangible Assets, Net: $0 in 2025, compared to $2,849 thousand in 2024 .
• Interest (expense) income, net: - $1,113 thousand in 2025 compared to $1,416 thousand in 2024 .
• Non-ordinary course legal fees and settlement reserves: $3,228 thousand in 2025 and $12,151 thousand in 2024 .
• Stock-based compensation: $551 thousand in 2025 and - $580 thousand in 2024 .

Cash Flow

• Net Cash Used in Operating Activities: - $35,893 thousand for the year ended December 31, 2025, a decrease of $39,513 thousand compared to - $75,406 thousand for the year ended December 31, 2024 .
• Net Cash Provided by Investing Activities: $1,686 thousand for the year ended December 31, 2025, a decrease of $71,200 thousand compared to $72,886 thousand for the year ended December 31, 2024 .
• Net Cash Used in Financing Activities: - $1,223 thousand for the year ended December 31, 2025, a decrease of $20,777 thousand compared to - $22,000 thousand for the year ended December 31, 2024 .

Unique Metrics

• Unrestricted cash and cash equivalents and current and non-current available-for-sale securities: Approximately $34.6 million as of December 31, 2025, compared to $75.4 million as of December 31, 2024 .
• Net Inventory: Approximately $27.3 million as of December 31, 2025, compared to $30.5 million as of December 31, 2024 . The total excess and obsolete inventory reserve was $10.9 million and $12.8 million as of December 31, 2025 and 2024, respectively .
• Customer Concentration: As of December 31, 2025, one customer accounted for 47% of gross accounts receivable and 32% of total revenue for the year ended December 31, 2025 .
• Net Operating Loss (NOL) Carryforwards: As of December 31, 2025, Latch, Inc. had approximately $30.5 million in federal NOL carryforwards expiring in 2034, and approximately $538.2 million in federal NOL carryforwards with an indefinite life . State NOL carryforwards were approximately $493.5 million .
• Term Loan: The outstanding principal of the Loan with Customers Bank was $4.8 million as of December 31, 2025, compared to $6.0 million as of December 31, 2024, with the loan maturing on July 15, 2029 . Latch, Inc. was in compliance with the covenants under the Loan Agreement as of December 31, 2025 and 2024 .
• Accrued Litigation Costs: As of December 31, 2025, accrued litigation costs primarily included $6.8 million related to a service provider demand .
• Deferred Revenue: Total deferred revenue was $26,375 thousand as of December 31, 2025, compared to $33,182 thousand as of December 31, 2024 .

Outlook / Guidance

Latch, Inc. expects to generate sufficient liquidity to fund operations for at least 12 months beyond the Filing Date using existing cash and securities . The company may seek additional outside capital, but success or acceptable terms are not assured, especially given its trading on the OTCID Market . Latch, Inc. plans to monitor cash flow and potentially implement incremental cost savings, including exiting unprofitable business units, to preserve liquidity .