Revenue: As of FY2026 Q1, the actual value is USD 15.7 M.

EPS: As of FY2026 Q1, the actual value is USD -0.04.

EBIT: As of FY2026 Q1, the actual value is USD -5.221 M.

Financial Performance for the Three Months Ended March 31, 2026 vs. 2025

Revenue by Segment

• Hardware Revenue: $4,357 thousand in 2026, marking a 7.9% increase from $4,037 thousand in 2025 .
• Software Revenue: $6,143 thousand in 2026, an increase of 19.1% from $5,159 thousand in 2025 .
• Professional Services Revenue: $5,202 thousand in 2026, a decrease of 20.9% from $6,578 thousand in 2025 . This decline was primarily due to a $0.7 million reduction in HelloTech services, a $0.4 million decrease in hardware activation and installation services, and a $0.3 million decrease in property maintenance services .
• Total Revenue: $15,702 thousand in 2026, reflecting a slight decrease of 0.5% from $15,774 thousand in 2025 .

Cost of Revenue and Gross Profit

• Total Cost of Revenue: $7,483 thousand in 2026, a decrease of 9.8% from $8,295 thousand in 2025 . This reduction was mainly driven by a $0.7 million decrease in professional services cost due to fewer installation projects .
• Gross Profit: Calculated at $8,219 thousand in 2026, an increase from $7,479 thousand in 2025 .
• Gross Margin: 52.34% in 2026, compared to 47.41% in 2025 .

Operating Expenses

• Research and Development: $3,793 thousand in 2026, a 32.7% decrease from $5,633 thousand in 2025 . This was primarily due to a $1.0 million reduction in third-party expenses, an $0.8 million decrease in abandoned capitalized internally-developed software, and a $0.4 million decrease in personnel-related expenses .
• Sales and Marketing: $4,272 thousand in 2026, an increase of 19.4% from $3,577 thousand in 2025 . This was mainly attributed to a $0.3 million increase in compensation expenses and a $0.2 million increase in digital marketing for HelloTech .
• General and Administrative: $4,691 thousand in 2026, a decrease of 39.6% from $7,771 thousand in 2025, driven by reductions in investigation, legal, settlement, audit, professional, consulting, and insurance fees .
• Depreciation and Amortization: $1,007 thousand in 2026, a decrease of 33.8% from $1,522 thousand in 2025 .
• Total Operating Expenses: $13,763 thousand in 2026, representing a 25.6% decrease from $18,503 thousand in 2025 .

Profitability

• Loss from Operations: - $5,544 thousand in 2026, showing a 49.7% improvement from - $11,024 thousand in 2025 .
• Net Loss: - $5,938 thousand in 2026, a 47.2% improvement from - $11,250 thousand in 2025 .
• Adjusted EBITDA (Non-GAAP): - $3,947 thousand in 2026, improving by 45.7% from - $7,266 thousand in 2025 .

Cash Flow

• Net Cash Used in Operating Activities: - $5,143 thousand in 2026, an improvement from - $10,137 thousand in 2025 . This improvement was attributed to a $7.6 million favorable change in working capital, a $6.8 million decrease in cash payments for accrued litigation settlements, a $4.7 million reduction in net loss adjusted for non-cash items, and a $2.1 million decrease in inventory purchases .
• Net Cash Used in Investing Activities: - $1,395 thousand in 2026, compared to - $935 thousand in 2025 .
• Net Cash Used in Financing Activities: - $333 thousand in 2026, compared to - $223 thousand in 2025 .

Balance Sheet Highlights (as of March 31, 2026 vs. December 31, 2025)

• Cash and Cash Equivalents: $27,945 thousand, down from $34,620 thousand .
• Accounts Receivable, net: $5,903 thousand, down from $7,960 thousand .
• Inventories, net current: $12,708 thousand, down from $15,258 thousand .
• Deferred Revenue, current: $10,912 thousand, down from $11,237 thousand .
• Total Liabilities: $47,113 thousand, down from $48,791 thousand .
• Total Stockholders’ Equity: $52,258 thousand, down from $58,011 thousand .

Future Outlook and Strategy

Latch, Inc., also known as DOOR, is expanding its platform and device integrations to include broader smart home solutions like sensors, thermostats, and lighting to create more connected and efficient buildings . This strategy aims to develop a building intelligence platform that automates and streamlines building operations, including work order management, property maintenance, and unit inspections . The company anticipates using its current cash, cash equivalents, and available-for-sale securities to fund operational cash requirements for at least 12 months beyond the filing date .