Latch, Inc. Reports 18.1% Revenue Decline to $15.6 Million for Q2 2026

Latch, Inc. reported a total revenue of $15.6 million for the three months ended June 30, 2026, a decrease of 18.1% compared to $19.1 million in the same period last year. The decline was primarily driven by a significant drop in hardware revenue, which fell by 41.8% to $3.4 million, attributed to lower shipment volumes and a cautious customer spending environment. In contrast, software revenue increased by 16.8% to $6.1 million, reflecting continued growth in subscription services. Professional services revenue also decreased by 23.4% to $6.0 million, largely due to reduced hardware activation and installation services.

For the first half of 2026, Latch reported a net loss of $12.8 million, an improvement from a loss of $19.1 million in the same period of 2025. This reduction in losses was supported by a decrease in total operating expenses, which fell by 16.5% to $28.6 million, driven by lower research and development costs and a reduction in general and administrative expenses. The company’s cost of revenue also decreased by 19.4% to $15.4 million, reflecting lower costs associated with hardware and professional services.

In terms of strategic developments, Latch has undergone significant organizational changes, including a rebranding to DOOR in August 2025 and the recent establishment of a new revolving credit facility with Truist Bank, which provides for borrowings of up to $5 million. This facility was utilized to repay a previous term loan, thereby streamlining the company’s debt structure. Additionally, Latch announced a restructuring plan on August 3, 2026, which includes a reduction in workforce and the discontinuation of its property management services, aiming to align its cost structure with current revenue expectations.

Operationally, Latch reported a decrease in customer engagement metrics, with one customer accounting for 26% of total revenue in the latest quarter, compared to two customers accounting for 34% in the prior year. The company’s cash and cash equivalents decreased to $19.1 million as of June 30, 2026, down from $34.6 million at the end of 2025, reflecting ongoing liquidity challenges. The company also recorded a $1 million liability related to a settlement in principle with the SEC regarding prior investigations into its financial practices.

Looking ahead, Latch remains focused on improving its operational efficiency and financial performance. The company anticipates that the restructuring efforts and strategic realignments will enhance its market position and operational capabilities. However, management acknowledges the ongoing risks associated with customer demand and market conditions, which may impact future revenue and profitability.