Latch, Inc. (LTCH): History, Ownership, Mission, How It Works & Makes Money

How does a company like Latch, Inc., the smart access pioneer, navigate a major financial restatement and a rebrand to DOOR while still projecting significant revenue growth? You're looking at a fascinating case of a PropTech firm that, despite reporting a 2024 Net Loss of $(57.60) million, is forecasting at least 20% preliminary revenue growth for the first nine months of 2025, building on its $56.63 million in total 2024 revenue. This story isn't just about smart locks; it's a high-stakes lesson in business model resilience, showing how the shift to a software-centric platform-LatchOS-is the defintely key to survival in a volatile market.

Latch, Inc. (LTCH) History

You want the unvarnished truth on Latch, Inc.'s journey, and honestly, it's a classic case of a high-potential tech company navigating the brutal realities of hardware, software, and the public market. The direct takeaway is this: Latch, Inc., now operating as DOOR, started with a clear vision for smart access in multifamily buildings, but its evolution has been defined by a necessary pivot from rapid, high-growth spending to a sharp focus on operational efficiency and core profitability, especially after its 2021 SPAC merger.

Given Company's Founding Timeline

The company, initially called Latchable Inc., was conceived to solve a simple but frustrating problem: access in modern apartment buildings. Moving beyond keys and disparate systems was the core idea.

Year established

2014

Original location

New York, NY

Founding team members

• Luke Schoenfelder
• Brian Jones
• Thomas Meyerhoffer

Initial capital/funding

The company secured $1.5 million in seed funding in 2014, which was the defintely essential starting fuel for developing their first smart access system prototype.

Given Company's Evolution Milestones

The early years were about proving the concept and scaling capital. The later years, particularly post-IPO, became a scramble to fix financial reporting issues and streamline the business model.

Given Company's Transformative Moments

The two most transformative moments for Latch, Inc. were its public market debut and the subsequent financial reckoning. Going public was a huge capital win, but it exposed operational weaknesses that ultimately forced a radical change in strategy.

The 2021 SPAC merger gave the company up to $510 million in cash, which was a massive runway for growth. But, as we saw, that growth came at a cost. The subsequent investigation into revenue recognition practices-specifically around hardware sales-forced a restatement of financials and a serious loss of investor confidence. That's a tough lesson in public market precision.

Here's the quick math on the shift: for the 2025 fiscal year, the company reported Total Revenue of $56.63 million, a solid increase of 26.0% from the previous year, driven by professional services and software. But the real story is the operational improvement, with the Net Loss reduced to $(57.60) million), a 46.4% reduction from the prior year's loss. They are still losing money, but they are burning cash much slower. That's a major, transformative change in focus.

The rebranding to DOOR in August 2025 was a clear signal to the market that the company is moving past its troubled past and repositioning its platform, Mission Statement, Vision, & Core Values of Latch, Inc. (LTCH). are now centered on the full-building operating system, DOOR Platform, which integrates access, smart home devices, and property management. This move, plus the June 2024 acquisition of HelloTech for last-mile installation services, shows a commitment to owning the entire customer experience, which is smart. You can't just sell the lock; you have to sell the service and the support.

Next Step: Review the DOOR Platform's Q4 2025 customer retention rates to gauge the success of the rebranding and service-focused strategy.

Latch, Inc. (LTCH) Ownership Structure

Latch, Inc.'s ownership structure is currently dominated by retail and other public shareholders, a common situation for companies trading outside of major exchanges, which means decision-making power is highly dispersed.

Given Company's Current Status

Latch, Inc. is a publicly traded enterprise technology company, but its stock is not listed on a major exchange like NASDAQ. Following a delisting from NASDAQ in August 2023 due to a failure to meet periodic filing obligations, the common stock, trading under the ticker LTCH, is now on the Other OTC market (Over-The-Counter).

The company has officially rebranded as DOOR to align with its expanded platform focus, though the legal entity name remains Latch, Inc. for now. The management team, appointed in early 2025, has been focused on operational efficiency and becoming current with its SEC filings for the 2025 fiscal year. This is a critical step toward potential relisting. You can review the company's strategic direction and product evolution at Mission Statement, Vision, & Core Values of Latch, Inc. (LTCH).

Here's the quick math on liquidity: as of September 30, 2025, the company's total preliminary, unaudited Liquid Assets (cash, cash equivalents, and available-for-sale securities) were approximately $44.1 million. This reflects a significant stabilization in cash burn, which dropped sharply to only $2.7 million in the third quarter of 2025.

Given Company's Ownership Breakdown

The ownership breakdown reflects a low level of institutional confidence following the financial restatement issues and delisting, with a very high percentage held by retail investors and the public float. This means a small number of large shareholders can still exert outsized influence, but the vast majority of shares are held by the general public.

Given Company's Leadership

The leadership team was restructured in early 2025 to focus on financial discipline and regaining compliance, shifting the operational center to St. Louis.

The core executive team steering the company, now operating under the DOOR brand, is as follows:

• Dave Lillis, Chief Executive Officer (CEO): Appointed in February 2025, Lillis has a background in scaling companies and financial strategy, previously serving as Senior Vice President of Finance at Latch.
• Jeff Mayfield, Chief Financial Officer (CFO): Also appointed in February 2025, Mayfield is a Certified Public Accountant who was instrumental in rebuilding the accounting team and completing the financial restatement.
• Priyen Patel, Chief Strategy and Legal Officer: In this expanded role since February 2025, Patel is key to developing and implementing the company's strategic plans and partnership opportunities.
• Jamie Siminoff, Doorman (Advisory Role): The company's former Chief Strategy Officer transitioned to this advisory role in early 2025, still providing support to the leadership team.

This new team's primary near-term action is to complete the 2025 SEC filings and continue the operational turnaround, which has already resulted in preliminary, unaudited total revenue growth of at least 20% for the first nine months of 2025.

Latch, Inc. (LTCH) Mission and Values

Latch, Inc.'s core purpose transcends smart locks; it's about fundamentally improving how people interact with their living and working environments through integrated technology. This mission provides the cultural defintely DNA for a company that, as of August 2025, has strategically rebranded as DOOR to reflect its broader focus on building intelligence.

Given Company's Core Purpose

As a financial analyst, I look past the quarterly reports to the cultural engine driving the business, and Latch, Inc.'s values are all about seamless experience and operational efficiency. The company's focus on a unified platform-hardware, software, and services-shows they understand that a fragmented experience is a broken one for both residents and property owners. This is the bedrock of their long-term value proposition.

Here's the quick math: when you reduce operational overhead for a property owner, you increase their Net Operating Income (NOI), which directly boosts the asset's valuation. That's a clear financial incentive tied to their mission.

Official mission statement

The official mission statement is a simple, powerful declaration that maps directly to the value proposition of their integrated platform, LatchOS.

• To make spaces better places to live, work, and visit.

This mission guides product development, ensuring every new feature, from smart sensors to delivery management, contributes to a more secure, convenient, and overall better experience. It's about experience, not just security.

Vision statement

While Latch, Inc. doesn't publish a single, distinct vision statement, its strategic moves and goals paint a clear picture of its long-term aspiration, especially following the rebranding to DOOR in 2025. The vision is to move beyond simple access control to a full-stack building intelligence platform.

• Innovate the way we live in our homes and buildings.
• Expand the DOOR Platform to include broader smart home solutions and building intelligence capabilities.

This vision directly impacts their valuation; the market cap was around $24.15 million USD as of April 2025, and realizing this vision is the only way to justify a significant uplift from the 2025 stock price range of $0.1383 to $0.1400. The future is in the platform, not just the lock.

You can see how this vision plays out by Exploring Latch, Inc. (LTCH) Investor Profile: Who's Buying and Why?

Given Company slogan/tagline

The company has used a few phrases over time, reflecting its evolution from a smart lock maker to a full-service platform, but the most concise and original tagline is just one word. The current commercial focus, however, is on the operational benefit for property managers.

• Original Tagline: Access.
• Current Focus: Simplify property operations with DOOR.

The 'Access' tagline is short and memorable, but the shift to 'Simplify property operations' is where the money is, speaking directly to the customer's pain point: complexity. Honestly, the best taglines are the ones that save your customer time and money.

Latch, Inc. (LTCH) How It Works

Latch, Inc. operates by delivering a unified, smart building operating system, the DOOR Platform, that combines proprietary hardware devices with a recurring software subscription. The company's core business is to digitize physical access, guest management, and smart home control for multifamily rental properties, making money primarily through sticky, long-term software contracts.

Latch, Inc. (LTCH) Product/Service Portfolio

Latch, Inc. (LTCH) Operational Framework

The company's operational model is a hardware-enabled Software-as-a-Service (SaaS) approach, where the initial sale of hardware devices-like the smart locks-serves as the gateway to the high-margin, recurring software revenue. They often lose money on the initial hardware sale, but the value comes from the multi-year software service contracts, which typically run for six years.

In 2025, Latch, Inc. has shifted its focus heavily toward austerity and survival. This involved a decisive strategic action that led to an 89% drop in its quarterly Liquid Asset burn, from $24.8 million in Q1 2025 to just $2.7 million in Q3 2025. This extreme cost control is extending the financial runway.

• Streamline operations: Reduced operating expenses by 31% year-over-year, improving the 2024 Net Loss by 46% to $(57.60) million.
• Prioritize services: The June 2024 acquisition of HelloTech integrated on-demand installation and support, enhancing the professional services revenue stream.
• Expand platform: The rebrand to DOOR in August 2025 signals a move to expand the platform beyond just access control into broader smart home solutions and building intelligence.

Latch, Inc. (LTCH) Strategic Advantages

The biggest advantage Latch, Inc. holds is its integrated ecosystem. Most competitors offer piecemeal solutions, but Latch provides a single, unified system for the entire building, from the front door to the in-unit devices. That holistic approach drives customer retention.

The company is also a trend-aware realist in the multifamily market, focusing on the owner's return on investment (ROI). The platform generates data-driven insights that help property managers optimize building operations, which is a clear value-add beyond simple security.

• Unified Platform: The DOOR Platform is a full-building operating system, not just a lock, which creates a high switching cost for property owners.
• Recurring Revenue Base: Despite challenges, the core Software revenue grew 14% in 2024 to $20.3 million, demonstrating the stickiness of the subscription model.
• Market Penetration: The company's solutions are scalable for all building sizes, from small apartments to large multi-use developments, primarily focusing on the North American multifamily market.

The preliminary unaudited revenue for the first nine months of 2025 is estimated to be up at least 20% versus the same period in 2024, which shows commercial activity is still strong. You can read more about the company's core philosophy here: Mission Statement, Vision, & Core Values of Latch, Inc. (LTCH).

Latch, Inc. (LTCH) How It Makes Money

Latch, Inc., which rebranded as DOOR in August 2025, generates revenue by selling an integrated ecosystem of smart access hardware, recurring software subscriptions, and professional services, primarily to the US multifamily rental market. The core financial engine is a hardware-enabled Software-as-a-Service (SaaS) model, where the initial sale of smart locks unlocks a high-margin, sticky stream of subscription revenue over the life of the building.

Given Company's Revenue Breakdown

Based on the most recent full-year data for 2024, which was filed with the SEC in November 2025, the company's revenue streams are shifting due to strategic acquisitions like HelloTech, which dramatically increased the Professional Services component.

Here's the quick math: Total revenue for 2024 was $56.63 million. Software revenue was $20.3 million, and Professional Services revenue was $18.1 million. The remaining $18.23 million is attributed to hardware sales.

Business Economics

The company's economic model is a classic razor-and-blade strategy, but with a twist. The razor (smart lock hardware) is sold near cost or even at a loss to secure the blade (the LatchOS software subscription), which carries a much higher margin. This model is now complicated by the rapid growth of the Professional Services segment.

• Software Margin: This is the high-margin core, providing predictable, recurring revenue (Annual Recurring Revenue or ARR). Its growth was modest at 14% in 2024.
• Hardware Margin: This segment is low-margin, often volatile, and tied to the lumpy multifamily construction cycle. It serves as the necessary gateway to the software platform.
• Services Dilution: The Professional Services revenue, which surged 143% in 2024 to $18.1 million, is primarily from new acquisitions like HelloTech. This growth is great for the top line, but it has severely challenged the overall gross margin, which stood at about 44.1% for 2024 (Gross Profit of $24.99 million on $56.63 million revenue).
• Profitability Hurdle: Investors are defintely monitoring whether the services gross margin can be raised significantly above 30% by mid-2025 for the integrated model to be viable.

The strategic pivot is clear: use acquisitions to expand the service offering and capture a greater share of the building owner's wallet, but this comes at the cost of the traditional high-margin SaaS profile. You need to watch the margin on those services.

Given Company's Financial Performance

The most recent financial reports, filed in November 2025, show a company in the middle of a significant operational turnaround, focused on austerity and survival. While losses improved dramatically, the liquidity position remains a critical near-term risk.

• Total Revenue: Grew 26.0% year-over-year in 2024 to $56.63 million. Preliminary 2025 data shows continued strong revenue growth of at least 20% through September 30, 2025.
• Net Loss: Improved by 46% in 2024, reducing the loss to $(57.60) million. This reflects aggressive cost-cutting, including a 31% year-over-year reduction in operating expenses.
• Adjusted EBITDA Loss: Improved by 41% in 2024 to $(40.7) million.
• Cash Burn: The quarterly Liquid Asset burn rate dropped sharply by 89%, from a decrease of $24.8 million in Q1 2025 to only a decrease of $2.7 million in Q3 2025. That's a huge win for extending the runway.
• Liquidity: Unrestricted cash and available-for-sale securities plummeted to $44.1 million by September 30, 2025. This rapid depletion creates a high risk of breaching the critically stringent 4.00 liquidity ratio covenant on its $5.8 million term loan.

The company is running a much tighter ship, but the cash balance is low. For a deeper dive into who is betting on this turnaround, you should read Exploring Latch, Inc. (LTCH) Investor Profile: Who's Buying and Why?

Latch, Inc. (LTCH) Market Position & Future Outlook

Latch, Inc. (LTCH), now operating under the brand DOOR, is in a critical, high-risk transition, shifting from a high-growth, money-losing PropTech model to one focused on operational efficiency and recurring software revenue. The company's ability to stabilize its cash burn-reducing the quarterly Liquid Asset burn from $24.8 million in Q1 2025 to just $2.7 million in Q3 2025-is the most important near-term data point, but the long-term outlook still hinges on resolving its SEC reporting issues and regaining investor confidence.

You can see the full financial picture in Breaking Down Latch, Inc. (LTCH) Financial Health: Key Insights for Investors, but the quick math on 2024 shows a total revenue of $56.63 million with a net loss of $(57.60) million, though that loss was a 46.4% improvement over the prior year.

Competitive Landscape

The smart access market is a battle between established lock manufacturers and agile, software-first PropTech firms. Latch, Inc. competes in the latter category, but the sheer scale of legacy players like Allegion and Assa Abloy means they dominate the overall lock market, commanding the lion's share of distribution. The global smart door lock market is valued at an estimated $3.16 billion in 2025, and Latch's focus is the niche, high-value multifamily segment.

Opportunities & Challenges

The strategic shift to the DOOR Platform (a full-building enterprise software-as-a-service, or SaaS, platform) is the core opportunity. This pivot prioritizes higher-margin recurring software revenue over lower-margin hardware sales, which is defintely the right move. Plus, the acquisitions of Honest Day's Work and HelloTech give them a professional services arm, which is crucial for reliable, last-mile installation and support.

Industry Position

Latch, Inc.'s position is that of an innovative, but financially distressed, niche leader in the multifamily PropTech space. They are not a major player in the overall lock market, but they are a significant force in the sub-segment of full-building smart access platforms for residential properties.

• Software-First Differentiation: Unlike competitors who are primarily hardware companies adding software, Latch's value proposition is the LatchOS/DOOR Platform, which manages access, smart home devices, and building operations from a single interface.
• Financial Distress: The company's market capitalization of approximately $19.31 million in November 2025 reflects the extreme investor skepticism due to the delisting and ongoing regulatory issues.
• Liquidity Improvement: The dramatic reduction in cash burn in Q2 and Q3 2025 is a sign of operational discipline, buying the company time to execute its turnaround strategy.

The goal now is to convert that operational efficiency into a sustainable path back to a national exchange, but honestly, that hinges entirely on becoming current with all SEC filings. That's the one thing that changes the whole equation.