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Latch
(OTC:LTCH)
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Rating:46Neutral
Price Target:
$0.15
▼(-18.33% Downside)
Action:Reiterated
Date:08/10/26
LTCH scores low primarily due to weak financial performance—large ongoing losses, significant negative free cash flow, and a recent TTM revenue decline. Technicals add pressure given the stock’s position below key moving averages and negative MACD. Valuation is not supportive because the company is unprofitable (negative P/E), while restructuring-related cost cuts provide only a modest offset until they translate into materially improved margins and cash flow.
Positive Factors
Restructuring to focus core platform
The announced restructuring shifts resources from property management to the core Building Intelligence platform and targets $10–12M annualized cost savings. This should durably align the cost base with revenue, improve operating leverage, and accelerate a structural path toward profitability if execution holds.
Negative Factors
Persistent negative cash flow
Material and persistent cash burn (TTM OCF ~-54.7M; FCF ~-57.5M) creates structural funding risk. Even with some improvement versus prior years, sustained negative cash generation requires continued external financing or swift, durable margin gains to avoid dilution or constrained growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Restructuring to focus core platform
The announced restructuring shifts resources from property management to the core Building Intelligence platform and targets $10–12M annualized cost savings. This should durably align the cost base with revenue, improve operating leverage, and accelerate a structural path toward profitability if execution holds.
Read all positive factors
Latch (LTCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.93M
Dividend YieldN/A
Average Volume (3M)100.85K
Price to Earnings (P/E)―
Beta (1Y)-2.06
Revenue Growth0.18%
EPS Growth-1.21%
CountryUS
Employees120
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.29
Shares Outstanding165,656,200
10 Day Avg. Volume153,815
30 Day Avg. Volume100,851
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.42
Price to Sales (P/S)0.34
P/FCF Ratio-0.67
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)$380.40M
Latch Business Overview & Revenue Model
Company Description
Latch, Inc. operates as an enterprise technology firm, serving clients across the United States and Canada. At the core of its offerings is LatchOS, a sophisticated operating system. This platform enhances building operations by providing smart ac...
How the Company Makes Money
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Latch Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
14
Very Negative
| Breakdown | TTM | Mar 2026 | Sep 2025 | Dec 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 66.61M | 70.12M | 56.63M | 44.96M | 42.95M | 41.36M |
| Gross Profit | 19.75M | 21.57M | 24.99M | 5.33M | -3.92M | -2.68M |
| EBITDA | -23.56M | -27.71M | -50.39M | -94.52M | -161.63M | -145.33M |
| Net Income | -47.49M | -53.75M | -57.60M | -107.54M | -162.34M | -166.32M |
Balance Sheet | ||||||
| Total Assets | 93.45M | 106.80M | 196.42M | 294.43M | 316.66M | 452.30M |
| Cash, Cash Equivalents and Short-Term Investments | 20.85M | 34.62M | 75.39M | 179.54M | 230.06M | 283.75M |
| Total Debt | 4.36M | 4.64M | 5.83M | 22.00M | 724.00K | 3.40M |
| Total Liabilities | 47.68M | 48.79M | 85.24M | 125.30M | 75.91M | 74.75M |
| Stockholders Equity | 45.77M | 58.01M | 111.18M | 169.14M | 240.75M | 377.56M |
Cash Flow | ||||||
| Free Cash Flow | -57.52M | -35.97M | -76.17M | -65.91M | -137.48K | -114.68M |
| Operating Cash Flow | -54.71M | -35.89M | -75.41M | -65.59M | -135.24K | -105.86M |
| Investing Cash Flow | -385.00K | 1.69M | 72.89M | 50.48M | 126.36M | -277.66M |
| Financing Cash Flow | -1.20M | -1.22M | -22.00M | 0.00 | -6.04M | 447.78M |
Latch Technical Analysis
Negative
0.18
Price Trends
0.17
Negative
0.19
Negative
0.18
Negative
Market Momentum
>-0.01
Positive
46.23
Neutral
61.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTCH, the sentiment is Negative. The current price of 0.18 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.17, and above the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.23 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LTCH.
Latch Risk Analysis
Latch disclosed 75 risk factors in its most recent earnings report. Latch reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Latch Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.92B | -141.76 | 25.17% | ― | 15.79% | -125.94% | |
64 Neutral | $1.65B | 59.86 | 5.25% | ― | 8.10% | -73.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $275.92M | -14.84 | -8.50% | ― | -2.78% | 72.47% | |
49 Neutral | $297.33M | -6.88 | -32.17% | ― | 12.90% | 31.66% | |
46 Neutral | $24.93M | -0.52 | -8.89% | ― | 0.18% | -1.21% |
* Technology Sector Average
LTCH
Latch
0.17
0.04
30.77%
PRCH
Porch Group
17.38
2.04
13.30%
SMRT
SmartRent
1.49
0.17
12.88%
CXM
Sprinklr
6.89
-1.36
-16.48%
LAW
CS Disco
4.40
-0.50
-10.20%
Latch Corporate Events
Business Operations and Strategy
Latch Announces Major Restructuring to Focus on Core Platform
Negative
Aug 5, 2026
On August 3, 2026, DOOR’s board authorized a restructuring plan to streamline operations and cut costs, including a workforce reduction and the exit of its DOOR Property Management business. The plan, detailed in an August 5, 2026 press rele...
Business Operations and StrategyLegal Proceedings
Latch Derivative Settlement Wins Preliminary Court Approval
Neutral
Jul 30, 2026
On July 20, 2026, the U.S. District Court for the Southern District of New York granted preliminary approval to a proposed settlement of consolidated stockholder derivative actions against current and former Latch Inc. directors and officers. The ...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Latch Updates Executive Equity Agreements and New RSU Grants
Positive
Jun 17, 2026
On June 12, 2026, Latch, Inc.’s compensation committee adopted updated forms of restricted stock unit and stock option agreements, along with a new common stock award agreement, to govern equity grants under its 2021 Incentive Award Plan. Th...
Executive/Board ChangesShareholder Meetings
Latch Shareholders Approve Directors, Auditor and Executive Pay
Positive
Jun 16, 2026
On June 10, 2026, Latch, Inc. held its 2026 annual meeting of stockholders, at which shareholders elected all nominated directors to serve their respective terms, signaling continued support for the company’s current board composition and go...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.