Latch (LTCH) AI Stock Analysis

Latch

(Other OTC:LTCH)

Select Model

Rating:32Underperform

Price Target:$0.17▼(-9.19% Downside)

Action:reiterated

Date:10/22/26

LTCH scores low primarily due to severe financial strain: heavy cash burn (-$57.5M free cash flow TTM), a shrinking equity base down to $46M, and TTM revenue that has turned negative. Low debt and improving gross margins and narrowing losses are positives, but they do not yet offset going-concern risk. Technicals reinforce caution, with the price below all key moving averages and neutral momentum readings. Valuation provides no support given negative earnings and no dividend. Recent restructuring targeting $10–12M in annualized savings and leadership retention measures are constructive steps toward profitability, but execution risk remains high.

Positive Factors

Low LeverageLow leverage limits the immediate burden of debt service and reduces solvency pressure relative to a highly indebted business. This gives management more financial flexibility to restructure operations, invest selectively, and address losses without an outsized debt load.

Negative Factors

Persistent Cash BurnSustained negative operating and free cash flow means the company is consuming substantial cash to run the business rather than funding operations internally. Unless profitability improves materially, this pressure can restrict investment capacity and increase reliance on external capital or further cost reductions.

Latch (LTCH) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $30.65M
Dividend Yield: ―
Average Volume (3M): 37.43K
Price to Earnings (P/E): -0.6
Beta (1Y): -2.53
Revenue Growth: 0.18%
EPS Growth: -1.21%
Country: US
Employees: 120
Sector: Technology
Sector Strength: 61
Industry: Software - Application

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 acces...

How the Company Makes Money

Latch primarily makes money by selling building access hardware and monetizing software tied to that hardware. Revenue is typically generated through (1) product revenue from the sale of smart locks, access control devices, and related installation/i...

Latch Financial Statement Overview

Summary

Financials remain very weak. The income statement (18) shows persistent losses with TTM revenue declining ~4.9% to $66.6M and net margin at -69%, though gross margin recovery to ~30% and narrowing losses are genuine improvements. The balance sheet (25) carries minimal debt (D/E ~0.08x), but equity has collapsed from $378M to $46M in four years with ROE at -67%. Cash flow (15) is the weakest link, with TTM operating cash flow of -$54.7M and free cash flow of -$57.5M, leaving limited runway without new capital despite a clear trend of reduced burn.

Income Statement

18Very Negative

Balance Sheet

25Negative

Cash Flow

15Very Negative

Financial statement breakdown
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	-157.73M	-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	-6.04M	447.78M

Latch Technical Analysis

Technical Analysis SentimentPositive

Last Price0.18

Price Trends

50DMA0.18Positive

100DMA0.17Positive

200DMA0.19Negative

Market Momentum

MACD0.00Negative

RSI51.41Neutral

STOCH85.71Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTCH, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.18, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of 0.00 indicates Negative momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LTCH.

Latch Risk Analysis

Latch disclosed 78 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

3 New Risks

1.The settlement in principle with the SEC Staff remains subject to Commission approval, and there is no assurance it will be approved on the agreed terms or at all.Q2, 2026

2.Our Credit Facility requires us to maintain a minimum restricted cash balance, which reduces the cash available to fund our operations.Q2, 2026

3.Our restructuring activities, including our workforce reduction and exit from the property management business, may not achieve the anticipated benefits and could adversely affect our business.Q2, 2026

Latch Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

LTCH against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	64Neutral	$1.58B	71.89	4.29%	―	6.35%	-79.74%
PRCH	64Neutral	$2.35B	230.89	-104.73%	―	19.82%	-68.81%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SMRT	55Neutral	$258.68M	-13.74	-8.50%	―	-2.78%	72.47%
LAW	54Neutral	$340.18M	-8.05	-32.17%	―	12.90%	31.66%
LTCH	32Underperform	$30.65M	-0.64	-78.52%	―	0.18%	-1.21%

* Technology Sector Average

Performance Comparison

LTCH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
LTCH	Latch Inc	0.18	0.07	54.17%
PRCH	Porch Group, Inc.	20.18	5.57	38.12%
SMRT	Smartrent, Inc.	1.38	0.03	2.22%
CXM	Sprinklr, Inc.	6.88	-0.65	-8.63%
LAW	Cs Disco, Inc.	5.15	-0.84	-14.02%

Latch Corporate Events

Business Operations and StrategyExecutive/Board Changes

Latch Implements Executive Retention Bonus Program for Stability

Positive

Aug 28, 2026

On August 24, 2026, Latch, Inc. adopted a retention bonus program for key executives, including its chief executive, financial, and strategy and legal officers, tying cash awards to their continued employment through December 31, 2027. The program, w...

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 release...

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.

Date of analysis: Oct 22, 2026

Latch AI Stock Analysis