Latch, Inc. Reports 16.6% Revenue Growth in Q3 2025, Net Loss Reduced by 61.4%

Latch, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $17.4 million, a 16.6% increase from $14.9 million in the same period last year. The growth was driven by a notable rise in hardware sales, which surged by 42.5% to $5.1 million, alongside a 10.5% increase in professional services revenue, which reached $6.9 million. Software revenue also saw a modest increase of 5.8%, totaling $5.4 million. Despite the revenue growth, the company recorded a net loss of $6.6 million, significantly improved from a loss of $17.1 million in the prior year, marking a 61.4% reduction in losses.

For the nine months ending September 30, 2025, Latch's total revenue increased by 30.9% to $52.3 million, compared to $39.9 million in the same period of 2024. This increase was primarily attributed to a substantial rise in professional services revenue, which nearly doubled to $21.4 million, largely due to the acquisition of HelloTech and increased installation services. Hardware revenue also grew by 9.1% to $15.1 million, while software revenue increased by 4.2% to $15.8 million. The net loss for the nine-month period was $25.7 million, a 46.1% improvement from the previous year's loss of $47.6 million.

Operationally, Latch has undergone significant changes, including a rebranding to DOOR in August 2025, which reflects its strategic focus on enhancing its integrated ecosystem of hardware, software, and services for the multifamily rental market. The company has also expanded its service offerings through acquisitions, including the HelloTech merger, which has bolstered its professional services segment. As of September 30, 2025, Latch reported a total employee headcount of 300, a reduction from previous periods, as part of ongoing efforts to streamline operations and reduce costs.

The company’s balance sheet as of September 30, 2025, showed total assets of $141.6 million, down from $196.4 million at the end of 2024, primarily due to a decrease in cash and cash equivalents, which fell to $42.6 million from $70.2 million. Total liabilities also decreased to $55.7 million from $85.2 million, reflecting a reduction in accrued expenses and other liabilities. The company’s stockholders' equity stood at $85.9 million, down from $111.2 million, largely due to accumulated losses.

Looking ahead, Latch anticipates continued growth in its revenue streams, particularly in professional services, as it integrates its acquisitions and expands its market presence. The company remains focused on improving its operational efficiency and managing costs while navigating ongoing legal and regulatory challenges. Management believes that its current cash reserves and available-for-sale securities will support operational needs for at least the next 12 months, as it works to stabilize its financial position and enhance shareholder value.