Latch, Inc. Reports $70.1 Million Revenue for Fiscal Year 2025, Despite Net Loss

Latch, Inc., which recently rebranded as DOOR, reported a total revenue of $70.1 million for the fiscal year ending December 31, 2025, marking a 23.8% increase from $56.6 million in 2024. The growth was driven by a significant rise in professional services revenue, which surged by 55.9% to $28.2 million, largely due to the integration of HelloTech's services. Software revenue also saw a 9.3% increase to $22.1 million, while hardware revenue rose by 8.1% to $19.8 million. Despite this revenue growth, the company reported a net loss of $53.7 million, a slight improvement from the previous year's loss of $57.6 million.

The company underwent several strategic developments during the fiscal year, including the acquisition of the property management business from The Broadway Company and Boston Realty Advisors, which led to the formation of Door Property Management, LLC. Additionally, the merger with HelloTech, completed in July 2024, has enhanced DOOR's service offerings, particularly in on-demand technical support and installation services. The company also recorded a goodwill impairment charge of $16.6 million, reducing its goodwill balance to $13.6 million as of December 31, 2025.

Operationally, Latch reported a decrease in its employee headcount to approximately 120 full-time employees, all based in the United States. The company continues to focus on expanding its customer base in the North American multifamily rental market, which comprises around 27 million units. As of the end of 2025, Latch had approximately $34.6 million in cash and cash equivalents, down from $75.4 million in 2024, reflecting ongoing investments in business operations and legal expenses related to the SEC investigation and other litigation.

Looking ahead, Latch aims to enhance its product offerings and expand its market presence, particularly through the continued development of the DOOR Platform. The company is also focused on improving its internal controls and financial reporting processes, following the identification of material weaknesses in its internal control over financial reporting. Management has committed to ongoing remediation efforts to address these deficiencies and strengthen the overall control environment.

In summary, while Latch, Inc. has demonstrated revenue growth and strategic expansion through acquisitions, it continues to face challenges related to profitability and internal controls. The company remains focused on leveraging its technology and service offerings to capture a larger share of the multifamily rental market while navigating ongoing legal and regulatory scrutiny.