{"success":true,"data":{"pressRelease":{"id":"113992","rtpr_id":"nPn6jhQfTa","ticker":"LTCH","exchange":"OTC","all_tickers":["LTCH"],"title":"Latch, Inc. (DOOR) Reports Second Quarter 2026 Financial Results","author":"PR Newswire","published_at":"2026-08-10T12:12:28.076Z","article_body":"Latch, Inc. (DOOR) Reports Second Quarter 2026 Financial Results\n\nPR Newswire\n\nST. LOUIS, Aug. 10, 2026\n\nSoftware Revenue Grows 17% Year-over-Year, Net Loss Narrows 12%, and Quarterly\nCash Usage Improves\n\nST. LOUIS, Aug. 10, 2026 /PRNewswire/ -- Latch, Inc., which operates as DOOR,\nthe Building Intelligence company (\"DOOR\" or the \"Company\"), today reported\nfinancial and operating results for the three and six months ended June 30,\n2026. The Company's shares currently trade on the OTC Markets under the\nsymbol, \"LTCH,\" and the Company's corporate name and ticker updates are\nexpected at a later date.\n\nSecond Quarter 2026 Highlights (Three Months Ended June 30, 2026)\n\n * Software revenue increased by 16.8% year-over-year to $6.1 million, driven by\ncontinued subscription growth on the DOOR platform.\n * Total revenue was $15.6 million, essentially flat sequentially with the first\nquarter of 2026 but down 18.1% year-over-year, primarily reflecting a lower\nvolume of hardware shipments and professional services installation activity\nagainst an elevated prior-year second quarter.\n * Operating expenses decreased by 5.7% year-over-year to $14.9 million,\nreflecting disciplined expense management.\n * Net loss narrowed by 12.1% year-over-year to $(6.9) million.\n * Adjusted EBITDA loss (non-GAAP) narrowed by 37.5% year-over-year to $(3.6)\nmillion.\n\"We are running a fundamentally different company than we were a year ago, and\nthis quarter reflects meaningful progress in that transformation,\" said David\nLillis, Chief Executive Officer of DOOR. \"Software revenue grew 17% year over\nyear, we narrowed our net loss, and reduced cash usage by more than 60%\ncompared with the first quarter of 2026. Earlier this week, we announced\nactions expected to reduce annualized operating costs by $10 million to $12\nmillion, which should accelerate our path to profitability and cash flow\nbreakeven.\"\n\n\"AI is central to how we expect to achieve these improvements,\" Lillis\ncontinued. \"By embedding AI across software development, customer support, and\nour internal operations, we have built a leaner, more efficient organization\nthat is expected to continue delivering innovative products for our customers.\nThe launch of DOOR Scout marks the first of several AI-enabled products\nplanned for our Building Intelligence platform, and we expect several\nadditional releases in the months ahead. We also reached a settlement in\nprinciple with the SEC Staff, representing an important milestone toward\nresolving legacy matters. This allows us to focus on executing our Building\nIntelligence strategy, continue innovating, expanding customer adoption, and\ncreating long-term value for our stockholders.\"\n\nBusiness Highlights\n\nSEC Investigation Settlement – The Company reached a settlement in principle\nwith the Securities and Exchange Commission (the \"SEC\") Staff related to the\npreviously disclosed investigation. Subject to Commission approval, the\nproposed settlement includes a $1.0 million civil monetary penalty payable in\nquarterly installments, representing a significant milestone toward resolving\nthis legacy matter.\n\nRestructuring Plan – Subsequent to quarter end, the Company announced a\nrestructuring plan designed to accelerate profitability and strengthen its\nfocus on Building Intelligence. The plan is expected to reduce annualized\noperating costs by approximately $10 million to $12 million through a\nworkforce reduction and the planned exit of the DOOR Property Management\nbusiness, enabling the Company to concentrate resources on its core Building\nIntelligence platform, AI-enabled software capabilities, and continued product\ninnovation.\n\nAI Innovation – Continued integration of AI across software development,\ncustomer support, and internal operations to improve productivity, accelerate\ninnovation, and support a more efficient and scalable operating model. The\nCompany also continued expanding AI-enabled capabilities within its Building\nIntelligence platform, representing an important step in executing its\nstrategy to deliver intelligent, connected solutions that modernize\nmultifamily operations.\n\nBuilding Intelligence – DOOR's strategy is to transform building operations\nthrough AI, automation, and an open platform that reduces the day-to-day\nburden on onsite teams, enabling management by exception and positioning DOOR\nas the operational layer for connected multifamily buildings.\n\nDOOR Scout – Launched a connected edge AI device that combines remote lock\nmanagement with environmental sensing in one device, replacing a stack of\nmultiple single-purpose hardware devices while enabling proactive building\nintelligence.\n\nOpenDOOR – Introduced a developer platform that provides partners, property\ntechnology vendors, and customers with access to DOOR's access management,\nIoT, and building data, expanding the building technology ecosystem and\nenabling future AI-driven automation.\n\nKey Business Metrics\n\nThe Company's key business metrics are as follows for the periods presented\n(unaudited, in thousands):\n Three Months Ended June 30,\n 2026 2025 $ Change % Change\n GAAP((1)) Measures:\n Software revenue $ 6,124 $ 5,244 $ 880 16.8 %\n Total revenue $ 15,615 $ 19,055 $ (3,440) (18.1) %\n Net loss $ (6,900) $ (7,849) $ 949 (12.1) %\n Non-GAAP Measure:\n Adjusted EBITDA((2) ) $ (3,558) $ (5,689) $ 2,131 (37.5) %\n\n (1) Generally accepted accounting principles in the United States of America.\n (2) Adjusted EBITDA is a non-GAAP financial measure. See \"Non-GAAP Financial\n Measures\" below for the definition, limitations, and reconciliation of\n Adjusted EBITDA to net loss, the most directly comparable GAAP measure.\n\nSecond Quarter 2026 Results Summary\n\nDOOR's second quarter of 2026 delivered total revenue of $15.6 million,\nessentially flat with the first quarter of 2026 but down 18.1% from $19.1\nmillion in the second quarter of 2025. The year-over-year decline was driven\nprimarily by a lower volume of hardware shipments and professional services\ninstallation activity, reflecting the elevated level of hardware shipments and\nrelated installation activity in the second quarter of 2025 that did not recur\nin subsequent periods. Software revenue increased 16.8% to $6.1 million,\nreflecting continued subscription growth from expanding adoption of the\nCompany's platform solutions, and representing a larger share of total revenue\nthan in the prior-year period. Hardware revenue was $3.4 million and\nprofessional services revenue was $6.0 million. The continued shift in revenue\nmix toward recurring software supported the Company's margin objectives.\n\nThe Company continued to improve operating efficiency during the quarter.\nGross profit was $7.7 million and gross margin expanded to 49.0% from 43.0% in\nthe second quarter of 2025, driven by a more favorable revenue mix and\nimproved professional services margins, even as results absorbed a $0.9\nmillion inventory impairment related to slow moving products recorded in\nhardware cost of revenue. The inventory impairment reduced hardware gross\nmargin by approximately 25% to approximately 3%. Excluding the impairment\ncharge, hardware gross margin would have been approximately 28%, compared to\n30% in the second quarter of 2025, and total gross margin would have been\napproximately 54.8%. Operating expenses declined 5.7% to $14.9 million as DOOR\ncontinued to streamline its cost structure. As a result, net loss narrowed\n12.1% year-over-year to $(6.9) million, while Adjusted EBITDA loss narrowed\n37.5% to $(3.6) million.\n\nSecond Quarter 2026 Cash and Liquidity Update\n\nAs of June 30, 2026, the Company had $26.1 million of cash, restricted cash,\nand available-for-sale securities, consisting of $19.1 million of cash and\ncash equivalents, $5.2 million of restricted cash, and $1.8 million of\navailable-for-sale securities. Net cash used by the Company improved to $2.4\nmillion during the second quarter of 2026, compared with $6.1 million during\nthe first quarter of 2026, reflecting continued progress in reducing cash\nexpenditures and improving the efficiency of the Company's operating model.\n\nAdditional Information Available on Our Website\n\nThe information in this press release should be read in conjunction with the\nfinancial statements and footnotes contained in the Company's Quarterly Report\non Form 10-Q for the three months ended June 30, 2026, which will be posted on\nthe \"Financials and SEC Filings\" section of the Company's investor relations\nwebsite at DOOR.com, when it is filed with the SEC. Information contained on,\nor accessible through, the Company's website is not incorporated by reference\ninto this press release.\n\nInformation Regarding Key Business Metrics\n\nDOOR reviews the key business metrics and other measures presented in this\nrelease to measure its performance, identify trends affecting its business,\nformulate business plans, and make strategic decisions that may impact the\nfuture operating results of the Company. For definitions and discussions of\nkey business metrics, see the Company's most recent Annual Report on Form\n10-K.\n\nIncreases or decreases in the Company's key business metrics and other\nmeasures may not correspond with increases or decreases in its revenue. The\nlimitations these measures have as analytical tools include: (1) they are not\nnecessarily indicative of the Company's future financial results and (2) other\ncompanies, including companies in DOOR's industry, may calculate key business\nmetrics or similarly titled measures differently, which reduces their\nusefulness as comparative measures.\n\nNon-GAAP Financial Measures\n\nTo supplement our financial statements presented in accordance with GAAP and\nto provide investors with additional information regarding our financial\nresults, we have presented in this press release Adjusted EBITDA, a non-GAAP\nfinancial measure. Adjusted EBITDA is not based on any standardized\nmethodology prescribed by GAAP and is not necessarily comparable to similarly\ntitled measures presented by other companies.\n\nWe define Adjusted EBITDA as our net loss, excluding the impact of the\nfollowing items, if applicable: (i) depreciation and amortization expense,\n(ii) net interest income or expense, (iii) provision for income taxes, (iv)\nchange in fair value of warrant liability, trading securities, or derivative\ninstruments, (v) restructuring costs, (vi) transaction-related costs, (vii)\nimpairment of assets, (viii) non-ordinary course legal fees and settlement\nreserves, (ix) stock-based compensation expense and (x) gain or loss on\nextinguishment of debt. The most directly comparable GAAP measure is net loss.\nWe believe excluding the impact of these items in calculating Adjusted EBITDA\ncan provide a useful measure for period-to-period comparisons of our core\noperating performance. We monitor, and have presented in this press release,\nAdjusted EBITDA because it is a key measure used by our management and board\nof directors to understand and evaluate our operating performance, to\nestablish budgets, and to develop operational goals for managing our business.\nWe believe Adjusted EBITDA helps identify underlying trends in our business\nthat could otherwise be masked by the effect of the expenses that we include\nin net loss. Accordingly, we believe Adjusted EBITDA provides useful\ninformation to investors, analysts, and others in understanding and evaluating\nour operating results, enhancing the overall understanding of our past\nperformance.\n\nAdjusted EBITDA is not prepared in accordance with GAAP and should not be\nconsidered in isolation of, or as an alternative to, measures prepared in\naccordance with GAAP. There are a number of limitations related to the use of\nAdjusted EBITDA rather than net loss, which is the most directly comparable\nfinancial measure calculated and presented in accordance with GAAP. In\naddition, the expenses and other items that we exclude in our calculations of\nAdjusted EBITDA may differ from the expenses and other items, if any, that\nother companies may exclude from Adjusted EBITDA when they report their\noperating results.\n\nIn addition, other companies may use other measures to evaluate their\nperformance, all of which could reduce the usefulness of Adjusted EBITDA as a\ntool for comparison. The following table reconciles Adjusted EBITDA to net\nloss, the most directly comparable financial measure calculated and presented\nin accordance with GAAP (in thousands):\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 2026 2025\n Net loss $ (6,900) $ (7,849) $ (12,838) $ (19,099)\n Depreciation and amortization 1,021 1,320 2,028 2,842\n Interest expense, net((1)) 306 281 629 534\n Loss on extinguishment of debt 120 — 120 —\n Change in fair value of warrant liability (14) 32 23 69\n Restructuring costs — (30) — (88)\n Loss on derecognition of intangible assets 251 — 251 —\n Non-ordinary course legal fees and 1,141 607 1,614 2,586\n settlement reserves((2))\n Stock-based compensation expense 517 (50) 671 201\n Adjusted EBITDA $ (3,558) $ (5,689) $ (7,502) $ (12,955)\n\n (1) As a result of significant discounts provided to our customers on certain\n long-term software contracts paid in advance, we determined that there is a\n significant financing component related to the time value of money and have\n therefore broken out the interest component and recorded it as a discount in\n interest expense, net on the accompanying Condensed Consolidated Statements of\n Operations and Comprehensive Loss. Interest (income) expense, net includes\n interest expense associated with the significant financing component of $0.4\n million and $0.9 million for the three and six months ended June 30, 2026,\n respectively, and $0.6 million and $1.4 million for the three and six months\n ended June 30, 2025, respectively.\n (2) The amounts primarily represent legal fees related to stockholder lawsuits and\n the SEC's ongoing investigation into issues related to our key performance\n indicators and revenue recognition practices (the \"SEC Investigation\"). While\n we are involved in various litigation and legal disputes in the ordinary\n course of our business, we believe the non-ordinary course legal fees and\n settlement reserves included in our calculation of Adjusted EBITDA do not\n represent normal operating expenses. These costs are included within general\n and administrative on the accompanying Condensed Consolidated Statements of\n Operations and Comprehensive Loss.\n\nAbout DOOR\n\nDOOR is a Building Intelligence company redefining how buildings operate. By\ncombining hardware, intuitive software, and automated services into one\nstreamlined system, DOOR helps properties think ahead, reduce overhead, and\nquietly improve life inside. Headquartered in St. Louis, Missouri, DOOR\nsupports owners, operators, and residents across residential portfolios and\npurpose-built communities.\n\nVisit www.door.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4748465-1&h=3628178381&u=https%3A%2F%2Fwww.door.com%2F&a=www.door.com)\n for more information.\n\nCAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS\n\nThis release contains certain forward-looking statements within the meaning of\nthe federal securities laws. These forward-looking statements generally are\nidentified by the words \"believe,\" \"project,\" \"expect,\" \"anticipate,\"\n\"estimate,\" \"intend,\" \"strategy,\" \"future,\" \"opportunity,\" \"plan,\" \"may,\"\n\"should,\" \"would,\" \"will continue,\" \"will likely result,\" and similar\nexpressions. Forward-looking statements are predictions, projections and other\nstatements about future events that are based on current expectations and\nassumptions and, as a result, are subject to risks and uncertainties.\nForward-looking information includes, but is not limited to, statements\nregarding: the Company's cash expenditures, cash flows, revenues, and other\nfinancial or operational results, the Company's business plans, the Company's\nname and branding, the Company's application for its securities to trade on\nany particular market or national securities exchange or under any particular\nstock ticker, the results of our ongoing business transformation, the impacts\non our business of our recent restructuring and workforce reduction actions,\nthe use of artificial intelligence by the Company and its anticipated\nbenefits, our ability to continue launching new products and consumer demand\nfor those products, and regulatory disputes and investigations, including any\npotential settlement with the Securities and Exchange Commission. Many factors\ncould cause actual future events to differ materially from the forward-looking\nstatements in this release, including: the Company's ability to implement its\nbusiness plans and achieve revenue forecasts; changes in the Company's plans;\nunexpected delays, difficulties, or expenditures; and other factors outside of\nthe Company's control. The foregoing list of factors is not exhaustive. You\nshould carefully consider the foregoing factors and the other risks and\nuncertainties described in the \"Risk Factors\" section of the Company's most\nrecent Annual Report on Form 10-K, and other documents filed by the Company\nfrom time to time with the SEC. These filings identify and address other\nimportant risks and uncertainties that could cause actual events and results\nto differ materially from those contained in the forward-looking statements.\nForward-looking statements speak only as of the date they are made. Readers\nare cautioned not to put undue reliance on forward-looking statements, and the\nCompany assumes no obligation to update or revise these forward-looking\nstatements, whether as a result of new information, future events, or\notherwise, except as required by law, including the securities laws of the\nUnited States and the rules and regulations of the SEC. The Company does not\ngive any assurance that it will achieve its expectations.\n Latch, Inc. and Subsidiaries\n\nCondensed Consolidated Balance Sheets (unaudited)\n\n(in thousands, except share amounts)\n\n June 30, 2026 December 31, 2025\n Assets\n Current assets\n Cash and cash equivalents $ 19,056 $ 34,620\n Available-for-sale securities 1,794 —\n Accounts receivable, net 7,778 7,960\n Inventories, net current 12,099 15,258\n Prepaid expenses and other current assets 7,096 7,098\n Total current assets 47,823 64,936\n Property and equipment, net 775 835\n Internally-developed software, net 8,121 8,382\n Inventories, net non-current 11,623 12,080\n Goodwill 13,605 13,605\n Intangible assets, net 1,875 2,297\n Other non-current assets 9,625 4,667\n Total assets $ 93,447 $ 106,802\n Liabilities and Stockholders' Equity\n Current liabilities\n Accounts payable $ 5,659 $ 4,447\n Current portion of long-term debt — 1,314\n Accrued expenses 10,621 10,458\n Deferred revenue, current 11,275 11,237\n Other current liabilities 851 790\n Total current liabilities 28,406 28,246\n Deferred revenue, non-current 12,898 15,138\n Long-term debt 4,361 3,330\n Other non-current liabilities 2,012 2,077\n Total liabilities 47,677 48,791\n Commitments and contingencies (see Note 14)\n Stockholders' equity\n Common stock - $0.0001 par value, 1,000,000,000 shares authorized; 19 19\n 164,860,955 and 163,519,801 shares issued and outstanding as of June 30,\n 2026 and December 31, 2025, respectively⁽¹⁾\n Treasury stock (1) (1)\n Additional paid-in capital 770,980 770,423\n Accumulated other comprehensive income 79 39\n Accumulated deficit (725,307) (712,469)\n Total stockholders' equity 45,770 58,011\n Total liabilities and stockholders' equity $ 93,447 $ 106,802\n\n (1) On June 4, 2026, the 738,000 shares subject to vesting requirements held by TS\n Innovation Acquisitions Sponsor, L.L.C. (the \"Sponsor\") related to the 2021\n business combination (the \"Sponsor Shares\") were forfeited and cancelled\n pursuant to the Sponsor Agreement dated January 24, 2021. Accordingly, such\n shares are no longer outstanding as of June 30, 2026. Shares issued and\n outstanding as of December 31, 2025 exclude the unvested Sponsor Shares held\n by the Sponsor.\n\n \n Latch, Inc. and Subsidiaries\n\nCondensed Consolidated Statements of Operations and Comprehensive Loss\n (unaudited)\n\n(in thousands, except share and per share amounts)\n\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 2026 2025\n Revenue\n Hardware $ 3,444 $ 5,916 $ 7,801 $ 9,953\n Software 6,124 5,244 12,267 10,403\n Professional services 6,047 7,895 11,249 14,473\n Total revenue 15,615 19,055 31,317 34,829\n Cost of revenue⁽¹⁾\n Hardware 3,340 4,150 6,558 7,453\n Software 600 503 1,131 1,054\n Professional services 4,016 6,206 7,750 10,647\n Total cost of revenue 7,956 10,859 15,439 19,154\n Operating expenses\n Research and development 4,057 4,454 7,850 10,087\n Sales and marketing 3,806 4,150 8,078 7,727\n General and administrative 5,989 5,856 10,680 13,627\n Depreciation and amortization 1,021 1,320 2,028 2,842\n Total operating expenses 14,873 15,780 28,636 34,283\n Loss from operations (7,214) (7,584) (12,758) (18,608)\n Other expense, net\n Loss on extinguishment of debt (120) — (120) —\n Interest expense, net (306) (281) (629) (534)\n Realized gain on equity investment 765 — 765 —\n Change in fair value of warrant liability 14 (32) (23) (69)\n Other (expense) income, net (39) 48 (73) 112\n Total other income (expense), net 314 (265) (80) (491)\n Loss before income taxes (6,900) (7,849) (12,838) (19,099)\n Provision for income taxes — — — —\n Net loss $ (6,900) $ (7,849) $ (12,838) $ (19,099)\n Other comprehensive income (loss)\n Unrealized loss on available-for-sale (1) (2) (4) (16)\n securities\n Foreign currency translation adjustment 11 (15) 44 (11)\n Comprehensive loss $ (6,890) $ (7,866) $ (12,798) $ (19,126)\n Net loss per common share:\n Basic and diluted net loss per common $ (0.04) $ (0.05) $ (0.08) $ (0.12)\n share\n Weighted average shares outstanding:\n Basic and diluted 161,191,157 160,416,365 160,949,018 160,344,652\n\n (1) Exclusive of depreciation and amortization shown in operating expenses.\n\n \n Latch, Inc. and Subsidiaries\n\nCondensed Consolidated Statements of Cash Flows (unaudited)\n\n(in thousands)\n\n Six Months Ended June 30,\n 2026 2025\n Operating activities\n Net loss $ (12,838) $ (19,099)\n Adjustments to reconcile net loss to net cash used by operating activities\n Depreciation and amortization 2,028 2,842\n Non-cash interest income (1) (118)\n Extinguishment of debt 120 —\n Change in fair value of warrant liability 23 69\n Realized gain on equity investment (765) —\n Unrealized income on marketable securities (4) (12)\n Loss on derecognition of intangible assets 251 —\n Provision for expected credit losses, net of recoveries 110 56\n Provision for expected credit losses on contract assets (9) (8)\n Stock-based compensation expense 671 201\n Changes in assets and liabilities\n Accounts receivable 72 (1,760)\n Inventories, net 3,616 (1,351)\n Prepaid expenses and other current assets (934) 17,248\n Other non-current assets 111 700\n Accounts payable 1,207 490\n Accrued expenses 175 (18,085)\n Deferred revenue (2,202) (3,899)\n Other current liabilities 61 (463)\n Other non-current liabilities (88) (55)\n Net cash used in operating activities (8,396) (23,244)\n Investing activities\n Purchase of available-for-sale securities (2,357) (6,656)\n Proceeds from sales and maturities of available-for-sale securities 577 8,307\n Proceeds from sale of investment in private company 1,719 —\n Purchase of property and equipment (6) (77)\n Capitalized internally-developed software (1,528) (1,098)\n Net cash (used in) provided by investing activities (1,595) 476\n Financing activities\n Repayment of term loan (4,777) (556)\n Proceeds from revolving credit facility 4,361 —\n Tax withholdings on settlement of equity awards (116) —\n Net cash used in financing activities (532) (556)\n Effect of exchange rate on cash 227 (152)\n Net change in cash, cash equivalents and restricted cash (10,296) (23,476)\n Cash, cash equivalents and restricted cash\n Beginning of period 34,620 70,203\n End of period $ 24,324 $ 46,727\n Supplemental disclosure of non-cash investing and financing activities\n Capitalization of stock-based compensation to internally developed software $ 2 $ —\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/latch-inc-door-reports-second-quarter-2026-financial-results-302847064.html\n(https://www.prnewswire.com/news-releases/latch-inc-door-reports-second-quarter-2026-financial-results-302847064.html)\n\nSOURCE Latch, Inc.\n\n\n\npress@door.com\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1700984/DOOR-Logo.jpg?id=OA2841130\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn6jhQfTa","title":"Latch, Inc. (DOOR) Reports Second Quarter 2026 Financial Results","author":"PR Newswire","ticker":"LTCH","created":"2026-08-10T12:12:28.076Z","tickers":["LTCH"],"exchange":"OTC","article_body":"Latch, Inc. (DOOR) Reports Second Quarter 2026 Financial Results\n\nPR Newswire\n\nST. LOUIS, Aug. 10, 2026\n\nSoftware Revenue Grows 17% Year-over-Year, Net Loss Narrows 12%, and Quarterly\nCash Usage Improves\n\nST. LOUIS, Aug. 10, 2026 /PRNewswire/ -- Latch, Inc., which operates as DOOR,\nthe Building Intelligence company (\"DOOR\" or the \"Company\"), today reported\nfinancial and operating results for the three and six months ended June 30,\n2026. The Company's shares currently trade on the OTC Markets under the\nsymbol, \"LTCH,\" and the Company's corporate name and ticker updates are\nexpected at a later date.\n\nSecond Quarter 2026 Highlights (Three Months Ended June 30, 2026)\n\n * Software revenue increased by 16.8% year-over-year to $6.1 million, driven by\ncontinued subscription growth on the DOOR platform.\n * Total revenue was $15.6 million, essentially flat sequentially with the first\nquarter of 2026 but down 18.1% year-over-year, primarily reflecting a lower\nvolume of hardware shipments and professional services installation activity\nagainst an elevated prior-year second quarter.\n * Operating expenses decreased by 5.7% year-over-year to $14.9 million,\nreflecting disciplined expense management.\n * Net loss narrowed by 12.1% year-over-year to $(6.9) million.\n * Adjusted EBITDA loss (non-GAAP) narrowed by 37.5% year-over-year to $(3.6)\nmillion.\n\"We are running a fundamentally different company than we were a year ago, and\nthis quarter reflects meaningful progress in that transformation,\" said David\nLillis, Chief Executive Officer of DOOR. \"Software revenue grew 17% year over\nyear, we narrowed our net loss, and reduced cash usage by more than 60%\ncompared with the first quarter of 2026. Earlier this week, we announced\nactions expected to reduce annualized operating costs by $10 million to $12\nmillion, which should accelerate our path to profitability and cash flow\nbreakeven.\"\n\n\"AI is central to how we expect to achieve these improvements,\" Lillis\ncontinued. \"By embedding AI across software development, customer support, and\nour internal operations, we have built a leaner, more efficient organization\nthat is expected to continue delivering innovative products for our customers.\nThe launch of DOOR Scout marks the first of several AI-enabled products\nplanned for our Building Intelligence platform, and we expect several\nadditional releases in the months ahead. We also reached a settlement in\nprinciple with the SEC Staff, representing an important milestone toward\nresolving legacy matters. This allows us to focus on executing our Building\nIntelligence strategy, continue innovating, expanding customer adoption, and\ncreating long-term value for our stockholders.\"\n\nBusiness Highlights\n\nSEC Investigation Settlement – The Company reached a settlement in principle\nwith the Securities and Exchange Commission (the \"SEC\") Staff related to the\npreviously disclosed investigation. Subject to Commission approval, the\nproposed settlement includes a $1.0 million civil monetary penalty payable in\nquarterly installments, representing a significant milestone toward resolving\nthis legacy matter.\n\nRestructuring Plan – Subsequent to quarter end, the Company announced a\nrestructuring plan designed to accelerate profitability and strengthen its\nfocus on Building Intelligence. The plan is expected to reduce annualized\noperating costs by approximately $10 million to $12 million through a\nworkforce reduction and the planned exit of the DOOR Property Management\nbusiness, enabling the Company to concentrate resources on its core Building\nIntelligence platform, AI-enabled software capabilities, and continued product\ninnovation.\n\nAI Innovation – Continued integration of AI across software development,\ncustomer support, and internal operations to improve productivity, accelerate\ninnovation, and support a more efficient and scalable operating model. The\nCompany also continued expanding AI-enabled capabilities within its Building\nIntelligence platform, representing an important step in executing its\nstrategy to deliver intelligent, connected solutions that modernize\nmultifamily operations.\n\nBuilding Intelligence – DOOR's strategy is to transform building operations\nthrough AI, automation, and an open platform that reduces the day-to-day\nburden on onsite teams, enabling management by exception and positioning DOOR\nas the operational layer for connected multifamily buildings.\n\nDOOR Scout – Launched a connected edge AI device that combines remote lock\nmanagement with environmental sensing in one device, replacing a stack of\nmultiple single-purpose hardware devices while enabling proactive building\nintelligence.\n\nOpenDOOR – Introduced a developer platform that provides partners, property\ntechnology vendors, and customers with access to DOOR's access management,\nIoT, and building data, expanding the building technology ecosystem and\nenabling future AI-driven automation.\n\nKey Business Metrics\n\nThe Company's key business metrics are as follows for the periods presented\n(unaudited, in thousands):\n Three Months Ended June 30,\n 2026 2025 $ Change % Change\n GAAP((1)) Measures:\n Software revenue $ 6,124 $ 5,244 $ 880 16.8 %\n Total revenue $ 15,615 $ 19,055 $ (3,440) (18.1) %\n Net loss $ (6,900) $ (7,849) $ 949 (12.1) %\n Non-GAAP Measure:\n Adjusted EBITDA((2) ) $ (3,558) $ (5,689) $ 2,131 (37.5) %\n\n (1) Generally accepted accounting principles in the United States of America.\n (2) Adjusted EBITDA is a non-GAAP financial measure. See \"Non-GAAP Financial\n Measures\" below for the definition, limitations, and reconciliation of\n Adjusted EBITDA to net loss, the most directly comparable GAAP measure.\n\nSecond Quarter 2026 Results Summary\n\nDOOR's second quarter of 2026 delivered total revenue of $15.6 million,\nessentially flat with the first quarter of 2026 but down 18.1% from $19.1\nmillion in the second quarter of 2025. The year-over-year decline was driven\nprimarily by a lower volume of hardware shipments and professional services\ninstallation activity, reflecting the elevated level of hardware shipments and\nrelated installation activity in the second quarter of 2025 that did not recur\nin subsequent periods. Software revenue increased 16.8% to $6.1 million,\nreflecting continued subscription growth from expanding adoption of the\nCompany's platform solutions, and representing a larger share of total revenue\nthan in the prior-year period. Hardware revenue was $3.4 million and\nprofessional services revenue was $6.0 million. The continued shift in revenue\nmix toward recurring software supported the Company's margin objectives.\n\nThe Company continued to improve operating efficiency during the quarter.\nGross profit was $7.7 million and gross margin expanded to 49.0% from 43.0% in\nthe second quarter of 2025, driven by a more favorable revenue mix and\nimproved professional services margins, even as results absorbed a $0.9\nmillion inventory impairment related to slow moving products recorded in\nhardware cost of revenue. The inventory impairment reduced hardware gross\nmargin by approximately 25% to approximately 3%. Excluding the impairment\ncharge, hardware gross margin would have been approximately 28%, compared to\n30% in the second quarter of 2025, and total gross margin would have been\napproximately 54.8%. Operating expenses declined 5.7% to $14.9 million as DOOR\ncontinued to streamline its cost structure. As a result, net loss narrowed\n12.1% year-over-year to $(6.9) million, while Adjusted EBITDA loss narrowed\n37.5% to $(3.6) million.\n\nSecond Quarter 2026 Cash and Liquidity Update\n\nAs of June 30, 2026, the Company had $26.1 million of cash, restricted cash,\nand available-for-sale securities, consisting of $19.1 million of cash and\ncash equivalents, $5.2 million of restricted cash, and $1.8 million of\navailable-for-sale securities. Net cash used by the Company improved to $2.4\nmillion during the second quarter of 2026, compared with $6.1 million during\nthe first quarter of 2026, reflecting continued progress in reducing cash\nexpenditures and improving the efficiency of the Company's operating model.\n\nAdditional Information Available on Our Website\n\nThe information in this press release should be read in conjunction with the\nfinancial statements and footnotes contained in the Company's Quarterly Report\non Form 10-Q for the three months ended June 30, 2026, which will be posted on\nthe \"Financials and SEC Filings\" section of the Company's investor relations\nwebsite at DOOR.com, when it is filed with the SEC. Information contained on,\nor accessible through, the Company's website is not incorporated by reference\ninto this press release.\n\nInformation Regarding Key Business Metrics\n\nDOOR reviews the key business metrics and other measures presented in this\nrelease to measure its performance, identify trends affecting its business,\nformulate business plans, and make strategic decisions that may impact the\nfuture operating results of the Company. For definitions and discussions of\nkey business metrics, see the Company's most recent Annual Report on Form\n10-K.\n\nIncreases or decreases in the Company's key business metrics and other\nmeasures may not correspond with increases or decreases in its revenue. The\nlimitations these measures have as analytical tools include: (1) they are not\nnecessarily indicative of the Company's future financial results and (2) other\ncompanies, including companies in DOOR's industry, may calculate key business\nmetrics or similarly titled measures differently, which reduces their\nusefulness as comparative measures.\n\nNon-GAAP Financial Measures\n\nTo supplement our financial statements presented in accordance with GAAP and\nto provide investors with additional information regarding our financial\nresults, we have presented in this press release Adjusted EBITDA, a non-GAAP\nfinancial measure. Adjusted EBITDA is not based on any standardized\nmethodology prescribed by GAAP and is not necessarily comparable to similarly\ntitled measures presented by other companies.\n\nWe define Adjusted EBITDA as our net loss, excluding the impact of the\nfollowing items, if applicable: (i) depreciation and amortization expense,\n(ii) net interest income or expense, (iii) provision for income taxes, (iv)\nchange in fair value of warrant liability, trading securities, or derivative\ninstruments, (v) restructuring costs, (vi) transaction-related costs, (vii)\nimpairment of assets, (viii) non-ordinary course legal fees and settlement\nreserves, (ix) stock-based compensation expense and (x) gain or loss on\nextinguishment of debt. The most directly comparable GAAP measure is net loss.\nWe believe excluding the impact of these items in calculating Adjusted EBITDA\ncan provide a useful measure for period-to-period comparisons of our core\noperating performance. We monitor, and have presented in this press release,\nAdjusted EBITDA because it is a key measure used by our management and board\nof directors to understand and evaluate our operating performance, to\nestablish budgets, and to develop operational goals for managing our business.\nWe believe Adjusted EBITDA helps identify underlying trends in our business\nthat could otherwise be masked by the effect of the expenses that we include\nin net loss. Accordingly, we believe Adjusted EBITDA provides useful\ninformation to investors, analysts, and others in understanding and evaluating\nour operating results, enhancing the overall understanding of our past\nperformance.\n\nAdjusted EBITDA is not prepared in accordance with GAAP and should not be\nconsidered in isolation of, or as an alternative to, measures prepared in\naccordance with GAAP. There are a number of limitations related to the use of\nAdjusted EBITDA rather than net loss, which is the most directly comparable\nfinancial measure calculated and presented in accordance with GAAP. In\naddition, the expenses and other items that we exclude in our calculations of\nAdjusted EBITDA may differ from the expenses and other items, if any, that\nother companies may exclude from Adjusted EBITDA when they report their\noperating results.\n\nIn addition, other companies may use other measures to evaluate their\nperformance, all of which could reduce the usefulness of Adjusted EBITDA as a\ntool for comparison. The following table reconciles Adjusted EBITDA to net\nloss, the most directly comparable financial measure calculated and presented\nin accordance with GAAP (in thousands):\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 2026 2025\n Net loss $ (6,900) $ (7,849) $ (12,838) $ (19,099)\n Depreciation and amortization 1,021 1,320 2,028 2,842\n Interest expense, net((1)) 306 281 629 534\n Loss on extinguishment of debt 120 — 120 —\n Change in fair value of warrant liability (14) 32 23 69\n Restructuring costs — (30) — (88)\n Loss on derecognition of intangible assets 251 — 251 —\n Non-ordinary course legal fees and 1,141 607 1,614 2,586\n settlement reserves((2))\n Stock-based compensation expense 517 (50) 671 201\n Adjusted EBITDA $ (3,558) $ (5,689) $ (7,502) $ (12,955)\n\n (1) As a result of significant discounts provided to our customers on certain\n long-term software contracts paid in advance, we determined that there is a\n significant financing component related to the time value of money and have\n therefore broken out the interest component and recorded it as a discount in\n interest expense, net on the accompanying Condensed Consolidated Statements of\n Operations and Comprehensive Loss. Interest (income) expense, net includes\n interest expense associated with the significant financing component of $0.4\n million and $0.9 million for the three and six months ended June 30, 2026,\n respectively, and $0.6 million and $1.4 million for the three and six months\n ended June 30, 2025, respectively.\n (2) The amounts primarily represent legal fees related to stockholder lawsuits and\n the SEC's ongoing investigation into issues related to our key performance\n indicators and revenue recognition practices (the \"SEC Investigation\"). While\n we are involved in various litigation and legal disputes in the ordinary\n course of our business, we believe the non-ordinary course legal fees and\n settlement reserves included in our calculation of Adjusted EBITDA do not\n represent normal operating expenses. These costs are included within general\n and administrative on the accompanying Condensed Consolidated Statements of\n Operations and Comprehensive Loss.\n\nAbout DOOR\n\nDOOR is a Building Intelligence company redefining how buildings operate. By\ncombining hardware, intuitive software, and automated services into one\nstreamlined system, DOOR helps properties think ahead, reduce overhead, and\nquietly improve life inside. Headquartered in St. Louis, Missouri, DOOR\nsupports owners, operators, and residents across residential portfolios and\npurpose-built communities.\n\nVisit www.door.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4748465-1&h=3628178381&u=https%3A%2F%2Fwww.door.com%2F&a=www.door.com)\n for more information.\n\nCAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS\n\nThis release contains certain forward-looking statements within the meaning of\nthe federal securities laws. These forward-looking statements generally are\nidentified by the words \"believe,\" \"project,\" \"expect,\" \"anticipate,\"\n\"estimate,\" \"intend,\" \"strategy,\" \"future,\" \"opportunity,\" \"plan,\" \"may,\"\n\"should,\" \"would,\" \"will continue,\" \"will likely result,\" and similar\nexpressions. Forward-looking statements are predictions, projections and other\nstatements about future events that are based on current expectations and\nassumptions and, as a result, are subject to risks and uncertainties.\nForward-looking information includes, but is not limited to, statements\nregarding: the Company's cash expenditures, cash flows, revenues, and other\nfinancial or operational results, the Company's business plans, the Company's\nname and branding, the Company's application for its securities to trade on\nany particular market or national securities exchange or under any particular\nstock ticker, the results of our ongoing business transformation, the impacts\non our business of our recent restructuring and workforce reduction actions,\nthe use of artificial intelligence by the Company and its anticipated\nbenefits, our ability to continue launching new products and consumer demand\nfor those products, and regulatory disputes and investigations, including any\npotential settlement with the Securities and Exchange Commission. Many factors\ncould cause actual future events to differ materially from the forward-looking\nstatements in this release, including: the Company's ability to implement its\nbusiness plans and achieve revenue forecasts; changes in the Company's plans;\nunexpected delays, difficulties, or expenditures; and other factors outside of\nthe Company's control. The foregoing list of factors is not exhaustive. You\nshould carefully consider the foregoing factors and the other risks and\nuncertainties described in the \"Risk Factors\" section of the Company's most\nrecent Annual Report on Form 10-K, and other documents filed by the Company\nfrom time to time with the SEC. These filings identify and address other\nimportant risks and uncertainties that could cause actual events and results\nto differ materially from those contained in the forward-looking statements.\nForward-looking statements speak only as of the date they are made. Readers\nare cautioned not to put undue reliance on forward-looking statements, and the\nCompany assumes no obligation to update or revise these forward-looking\nstatements, whether as a result of new information, future events, or\notherwise, except as required by law, including the securities laws of the\nUnited States and the rules and regulations of the SEC. The Company does not\ngive any assurance that it will achieve its expectations.\n Latch, Inc. and Subsidiaries\n\nCondensed Consolidated Balance Sheets (unaudited)\n\n(in thousands, except share amounts)\n\n June 30, 2026 December 31, 2025\n Assets\n Current assets\n Cash and cash equivalents $ 19,056 $ 34,620\n Available-for-sale securities 1,794 —\n Accounts receivable, net 7,778 7,960\n Inventories, net current 12,099 15,258\n Prepaid expenses and other current assets 7,096 7,098\n Total current assets 47,823 64,936\n Property and equipment, net 775 835\n Internally-developed software, net 8,121 8,382\n Inventories, net non-current 11,623 12,080\n Goodwill 13,605 13,605\n Intangible assets, net 1,875 2,297\n Other non-current assets 9,625 4,667\n Total assets $ 93,447 $ 106,802\n Liabilities and Stockholders' Equity\n Current liabilities\n Accounts payable $ 5,659 $ 4,447\n Current portion of long-term debt — 1,314\n Accrued expenses 10,621 10,458\n Deferred revenue, current 11,275 11,237\n Other current liabilities 851 790\n Total current liabilities 28,406 28,246\n Deferred revenue, non-current 12,898 15,138\n Long-term debt 4,361 3,330\n Other non-current liabilities 2,012 2,077\n Total liabilities 47,677 48,791\n Commitments and contingencies (see Note 14)\n Stockholders' equity\n Common stock - $0.0001 par value, 1,000,000,000 shares authorized; 19 19\n 164,860,955 and 163,519,801 shares issued and outstanding as of June 30,\n 2026 and December 31, 2025, respectively⁽¹⁾\n Treasury stock (1) (1)\n Additional paid-in capital 770,980 770,423\n Accumulated other comprehensive income 79 39\n Accumulated deficit (725,307) (712,469)\n Total stockholders' equity 45,770 58,011\n Total liabilities and stockholders' equity $ 93,447 $ 106,802\n\n (1) On June 4, 2026, the 738,000 shares subject to vesting requirements held by TS\n Innovation Acquisitions Sponsor, L.L.C. (the \"Sponsor\") related to the 2021\n business combination (the \"Sponsor Shares\") were forfeited and cancelled\n pursuant to the Sponsor Agreement dated January 24, 2021. Accordingly, such\n shares are no longer outstanding as of June 30, 2026. Shares issued and\n outstanding as of December 31, 2025 exclude the unvested Sponsor Shares held\n by the Sponsor.\n\n \n Latch, Inc. and Subsidiaries\n\nCondensed Consolidated Statements of Operations and Comprehensive Loss\n (unaudited)\n\n(in thousands, except share and per share amounts)\n\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 2026 2025\n Revenue\n Hardware $ 3,444 $ 5,916 $ 7,801 $ 9,953\n Software 6,124 5,244 12,267 10,403\n Professional services 6,047 7,895 11,249 14,473\n Total revenue 15,615 19,055 31,317 34,829\n Cost of revenue⁽¹⁾\n Hardware 3,340 4,150 6,558 7,453\n Software 600 503 1,131 1,054\n Professional services 4,016 6,206 7,750 10,647\n Total cost of revenue 7,956 10,859 15,439 19,154\n Operating expenses\n Research and development 4,057 4,454 7,850 10,087\n Sales and marketing 3,806 4,150 8,078 7,727\n General and administrative 5,989 5,856 10,680 13,627\n Depreciation and amortization 1,021 1,320 2,028 2,842\n Total operating expenses 14,873 15,780 28,636 34,283\n Loss from operations (7,214) (7,584) (12,758) (18,608)\n Other expense, net\n Loss on extinguishment of debt (120) — (120) —\n Interest expense, net (306) (281) (629) (534)\n Realized gain on equity investment 765 — 765 —\n Change in fair value of warrant liability 14 (32) (23) (69)\n Other (expense) income, net (39) 48 (73) 112\n Total other income (expense), net 314 (265) (80) (491)\n Loss before income taxes (6,900) (7,849) (12,838) (19,099)\n Provision for income taxes — — — —\n Net loss $ (6,900) $ (7,849) $ (12,838) $ (19,099)\n Other comprehensive income (loss)\n Unrealized loss on available-for-sale (1) (2) (4) (16)\n securities\n Foreign currency translation adjustment 11 (15) 44 (11)\n Comprehensive loss $ (6,890) $ (7,866) $ (12,798) $ (19,126)\n Net loss per common share:\n Basic and diluted net loss per common $ (0.04) $ (0.05) $ (0.08) $ (0.12)\n share\n Weighted average shares outstanding:\n Basic and diluted 161,191,157 160,416,365 160,949,018 160,344,652\n\n (1) Exclusive of depreciation and amortization shown in operating expenses.\n\n \n Latch, Inc. and Subsidiaries\n\nCondensed Consolidated Statements of Cash Flows (unaudited)\n\n(in thousands)\n\n Six Months Ended June 30,\n 2026 2025\n Operating activities\n Net loss $ (12,838) $ (19,099)\n Adjustments to reconcile net loss to net cash used by operating activities\n Depreciation and amortization 2,028 2,842\n Non-cash interest income (1) (118)\n Extinguishment of debt 120 —\n Change in fair value of warrant liability 23 69\n Realized gain on equity investment (765) —\n Unrealized income on marketable securities (4) (12)\n Loss on derecognition of intangible assets 251 —\n Provision for expected credit losses, net of recoveries 110 56\n Provision for expected credit losses on contract assets (9) (8)\n Stock-based compensation expense 671 201\n Changes in assets and liabilities\n Accounts receivable 72 (1,760)\n Inventories, net 3,616 (1,351)\n Prepaid expenses and other current assets (934) 17,248\n Other non-current assets 111 700\n Accounts payable 1,207 490\n Accrued expenses 175 (18,085)\n Deferred revenue (2,202) (3,899)\n Other current liabilities 61 (463)\n Other non-current liabilities (88) (55)\n Net cash used in operating activities (8,396) (23,244)\n Investing activities\n Purchase of available-for-sale securities (2,357) (6,656)\n Proceeds from sales and maturities of available-for-sale securities 577 8,307\n Proceeds from sale of investment in private company 1,719 —\n Purchase of property and equipment (6) (77)\n Capitalized internally-developed software (1,528) (1,098)\n Net cash (used in) provided by investing activities (1,595) 476\n Financing activities\n Repayment of term loan (4,777) (556)\n Proceeds from revolving credit facility 4,361 —\n Tax withholdings on settlement of equity awards (116) —\n Net cash used in financing activities (532) (556)\n Effect of exchange rate on cash 227 (152)\n Net change in cash, cash equivalents and restricted cash (10,296) (23,476)\n Cash, cash equivalents and restricted cash\n Beginning of period 34,620 70,203\n End of period $ 24,324 $ 46,727\n Supplemental disclosure of non-cash investing and financing activities\n Capitalization of stock-based compensation to internally developed software $ 2 $ —\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/latch-inc-door-reports-second-quarter-2026-financial-results-302847064.html\n(https://www.prnewswire.com/news-releases/latch-inc-door-reports-second-quarter-2026-financial-results-302847064.html)\n\nSOURCE Latch, Inc.\n\n\n\npress@door.com\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1700984/DOOR-Logo.jpg?id=OA2841130\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-08-10T12:12:28.144024643Z","server_sent_at_ms":1786363948144},"received_at":"2026-08-10T12:12:28.296Z","source_url":"https://www.prnewswire.com/news-releases/latch-inc-door-reports-second-quarter-2026-financial-results-302847064.html"},"analysis":{"id":"102998","press_release_id":"113992","analysis_json":{"industry":{"label":"Software","sector":"Information Technology"},"redFlags":["Total revenue declined 18.1% year-over-year","$0.9 million inventory impairment recorded in hardware cost of revenue","Shares currently trade on the OTC Markets under symbol LTCH","Continued net losses and negative cash flow from operations"],"eventType":"earnings","narrative":"Latch reported Q2 total revenue of $15.6 million, down 18.1% year-over-year due to lower hardware shipments, though software revenue grew 16.8% to $6.1 million.\n\nThe company announced a restructuring plan to reduce annualized operating costs by $10-12 million and reached a settlement in principle with the SEC involving a $1.0 million penalty.\n\nNet loss narrowed 12.1% year-over-year to $(6.9) million, and liquidity stood at $26.1 million as management launched new AI-enabled products DOOR Scout and OpenDOOR.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"Restructuring and SEC settlement overshadow top-line miss as DOOR pivots to AI and profitability."},"keyFigures":{"revenue":15615000,"revenueYoy":"-18.1%","customDimensions":{"sec_penalty":1000000,"gross_margin":"49.0%","software_revenue":6124000,"cash_and_liquidity":26100000,"software_revenue_yoy":"16.8%","restructuring_savings_annualized":"$10-12 million"}},"quotedText":"We are running a fundamentally different company than we were a year ago, and this quarter reflects meaningful progress in that transformation","namedEntities":{"people":[{"name":"David Lillis","role":"Chief Executive Officer"}],"products":["DOOR Scout","OpenDOOR","DOOR Property Management"],"companies":[{"name":"Latch, Inc.","ticker":"LTCH"},{"name":"Securities and Exchange Commission","relationship":"regulator"}],"dollarAmounts":[{"amount":"$6.1 million","context":"Q2 2026 software revenue"},{"amount":"$15.6 million","context":"Q2 2026 total revenue"},{"amount":"$(6.9) million","context":"Q2 2026 net loss"},{"amount":"$(3.6) million","context":"Q2 2026 Adjusted EBITDA loss"},{"amount":"$1.0 million","context":"SEC civil monetary penalty"},{"amount":"$10 million to $12 million","context":"expected annualized operating cost reduction"},{"amount":"$26.1 million","context":"cash, restricted cash, and available-for-sale securities"}]},"materialImpact":{"score":4,"reasoning":"Results feature a material restructuring plan to cut costs by $10-12M annually, a significant narrowing of net losses, and the resolution of the SEC investigation, offset by an 18% decline in total revenue and continued net losses."},"tickerRelevance":{"others":[],"primary":"LTCH"},"globalImportance":10,"audienceRelevance":15,"eventTypeSecondary":["restructuring","legal_litigation","product_launch"],"importanceComponents":{"tickerTier":"micro-cap","eventGravity":"earnings_with_restructuring_and_legal_settlement"}},"event_type":"earnings","event_type_secondary":["restructuring","legal_litigation","product_launch"],"sentiment":"mixed","material_impact_score":4,"narrative":"Latch reported Q2 total revenue of $15.6 million, down 18.1% year-over-year due to lower hardware shipments, though software revenue grew 16.8% to $6.1 million.\n\nThe company announced a restructuring plan to reduce annualized operating costs by $10-12 million and reached a settlement in principle with the SEC involving a $1.0 million penalty.\n\nNet loss narrowed 12.1% year-over-year to $(6.9) million, and liquidity stood at $26.1 million as management launched new AI-enabled products DOOR Scout and OpenDOOR.","key_figures":{"revenue":15615000,"revenueYoy":"-18.1%","customDimensions":{"sec_penalty":1000000,"gross_margin":"49.0%","software_revenue":6124000,"cash_and_liquidity":26100000,"software_revenue_yoy":"16.8%","restructuring_savings_annualized":"$10-12 million"}},"named_entities":{"people":[{"name":"David Lillis","role":"Chief Executive Officer"}],"products":["DOOR Scout","OpenDOOR","DOOR Property Management"],"companies":[{"name":"Latch, Inc.","ticker":"LTCH"},{"name":"Securities and Exchange Commission","relationship":"regulator"}],"dollarAmounts":[{"amount":"$6.1 million","context":"Q2 2026 software revenue"},{"amount":"$15.6 million","context":"Q2 2026 total revenue"},{"amount":"$(6.9) million","context":"Q2 2026 net loss"},{"amount":"$(3.6) million","context":"Q2 2026 Adjusted EBITDA loss"},{"amount":"$1.0 million","context":"SEC civil monetary penalty"},{"amount":"$10 million to $12 million","context":"expected annualized operating cost reduction"},{"amount":"$26.1 million","context":"cash, restricted cash, and available-for-sale securities"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-10T16:22:20.194Z","global_importance":10,"audience_relevance":15,"importance_components":{"tickerTier":"micro-cap","eventGravity":"earnings_with_restructuring_and_legal_settlement"}},"durationMs":317317,"modelName":"glm-4.7"}}