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Latch (LTCH)
OTHER OTC:LTCH
US Market
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Latch (LTCH) AI Stock Analysis

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LTCH

Latch

(OTC:LTCH)

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Neutral 46 (OpenAI - Gpt-5.6Sol)
Rating:46Neutral
Price Target:
$0.17
▲(14.00% Upside)
Action:Reiterated
Date:08/29/26
The score is primarily held down by weak financial performance—large ongoing losses, meaningful cash burn, and a slight TTM revenue decline—despite low leverage. Technical indicators are roughly neutral with negative MACD, valuation is constrained by a negative P/E, and corporate events are mixed with cost-cutting restructuring balanced by retention-focused governance actions.
Positive Factors
Low leverage
Limited debt reduces solvency pressure and interest burden, giving Latch more flexibility to execute its restructuring. However, this strength is partly offset by the company’s shrinking equity base and continued operating losses.
Negative Factors
Persistent unprofitability
Deep operating and net losses show that the business model has not yet reached sustainable profitability. The decline in gross margin also indicates margin pressure, making a durable earnings recovery dependent on substantial cost and execution improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage
Limited debt reduces solvency pressure and interest burden, giving Latch more flexibility to execute its restructuring. However, this strength is partly offset by the company’s shrinking equity base and continued operating losses.
Read all positive factors

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

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
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 installatio...

Latch Financial Statement Overview

Summary
Overall fundamentals are weak. Revenue growth from 2021–2025 has stalled with TTM revenue down (~4.9%), profitability remains deeply negative (TTM EBIT margin ~-41%, net margin ~-69%), and cash burn is significant (TTM FCF about -$57.5M). The balance sheet has low leverage (debt-to-equity ~0.08), but equity has shrunk materially over time, reflecting ongoing losses.
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
14
Very Negative
BreakdownTTMMar 2026Sep 2025Dec 2024Dec 2022Dec 2021
Income Statement
Total Revenue66.61M70.12M56.63M44.96M42.95M41.36M
Gross Profit19.75M21.57M24.99M5.33M-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 Assets93.45M106.80M196.42M294.43M316.66M452.30M
Cash, Cash Equivalents and Short-Term Investments20.85M34.62M75.39M179.54M230.06M283.75M
Total Debt4.36M4.64M5.83M22.00M724.00K3.40M
Total Liabilities47.68M48.79M85.24M125.30M75.91M74.75M
Stockholders Equity45.77M58.01M111.18M169.14M240.75M377.56M
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-385.00K1.69M72.89M50.48M126.36M-277.66M
Financing Cash Flow-1.20M-1.22M-22.00M0.00-6.04M447.78M

Latch Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.15
Price Trends
50DMA
0.17
Positive
100DMA
0.18
Positive
200DMA
0.18
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
55.34
Neutral
STOCH
34.19
Neutral
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 0.15 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and below the 200-day MA of 0.18, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.34 is Neutral, neither overbought nor oversold. The STOCH value of 34.19 is Neutral, 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
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$2.05B-146.3325.17%15.79%-125.94%
69
Neutral
$1.46B61.764.29%6.35%-79.74%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
55
Neutral
$254.84M-13.25-8.50%-2.78%72.47%
49
Neutral
$283.70M-6.63-32.17%12.90%31.66%
46
Neutral
$24.96M-0.66-78.52%0.18%-1.21%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LTCH
Latch
0.19
0.03
18.13%
PRCH
Porch Group
17.94
-1.10
-5.78%
SMRT
SmartRent
1.33
-0.13
-8.90%
CXM
Sprinklr
5.91
-2.00
-25.28%
LAW
CS Disco
4.24
-1.51
-26.26%

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...
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.Date of analysis: Aug 29, 2026