Latch, Inc. (LTCH): BCG Matrix [Dec-2025 Updated]

You're looking at Latch, Inc., now DOOR, and the picture is classic high-stakes tech: a company with a 20% preliminary revenue growth engine in its core Software-as-a-Service subscriptions, yet still burning cash to the tune of a $(57.60) million net loss in 2024. We've mapped their portfolio using the BCG Matrix to see where the $20.3 million in high-margin software revenue sits against the low-margin hardware and the massive investment needed for global reach. See below to find out exactly which parts are the Stars funding the fight and which are the Dogs dragging down that tiny $17 million to $20 million market cap as of late 2025.

Background of Latch, Inc. (LTCH)

You're looking at Latch, Inc., which you should know has rebranded to DOOR as of August 2025, aligning with its strategic push toward a broader building intelligence platform. The company, established back in 2014 in New York, NY, by founders like Luke Schoenfelder, set out to revolutionize access control and property management for buildings. It went public in 2021 through a SPAC merger, but since late 2025, it's been trading on the OTC Markets under the ticker LTCH following a Nasdaq delisting in February 2024.

Honestly, the core business remains an integrated ecosystem of hardware, software, and services, mainly targeting the multifamily rental market across the US and Canada. They make money in two main ways: selling the physical smart lock devices and, crucially, through recurring software subscriptions, which give building managers and residents features like remote access and guest management tools. This shift to recurring revenue is defintely key to their long-term strategy.

To bolster its offering, Latch, Inc. has been active on the M&A front, picking up Honest Day's Work, Inc. in July 2023 and then HelloTech in June 2024. These moves were designed to enhance their technology assets and provide on-demand, last-mile installation and support services. Furthermore, the company has been diligently working to complete its outstanding SEC filings, announcing the filing of its 2024 Annual Reports in November 2025.

Looking at the 2024 audited numbers, Total Revenue hit $56.63 million, which was a 26.0% increase year-over-year, with Gross Profit coming in at $24.99 million. While they showed operational discipline by reducing the Loss from Operations by 46.1% to $(59.41) million, the Net Loss for 2024 was still substantial at $(57.60) million. That translates to a Basic and Diluted Net Loss Per Common Share of $(0.37) for the year.

The preliminary picture for late 2025 looks promising on the top line, with Q3 2025 revenue reported at $23M, a 63.5% sequential jump, and Net Income for that quarter at $17M. Analysts project the full-year 2025 revenue could approach $67.9 million. Still, the company remains unprofitable, though its balance sheet shows a very conservative capital structure with a Debt-to-Equity ratio of only 0.08 as of September 30, 2025, when Liquid Assets stood near $44.1 million.

Latch, Inc. (LTCH) - BCG Matrix: Stars

The DOOR Platform's core Software-as-a-Service (SaaS) subscriptions represent the primary Star business unit for Latch, Inc. (LTCH), now operating under the DOOR brand. This segment is characterized by its recurring revenue engine, which is essential for long-term valuation, even as the company navigates its current financial structure. The success of this recurring revenue stream is the key indicator placing this unit in the Star quadrant, signifying high market share in a rapidly expanding segment.

You're looking at a business unit that has demonstrated strong preliminary momentum for the fiscal year 2025. Based on preliminary, unaudited numbers released in November 2025, total revenues for the first nine months of 2025 increased by at least 20% over the prior year period. This trajectory puts the full-year 2025 revenue on track to hit a projected $67.9 million.

The Star positioning is cemented by the unit's dominant position within the North American multifamily smart access niche, which is a high-growth market. While specific market share percentages for the entire smart access segment are not explicitly detailed in the latest filings, the at least 20% revenue growth rate for the first nine months of 2025 strongly suggests market leadership and capture within this expanding sector. This performance contrasts with the prior full-year 2024 total revenue of $56.63 million, which itself represented a 26.0% year-over-year increase.

Here's a quick comparison of the recent revenue performance:

To maintain and grow this Star status, DOOR is executing a strategy of strategic expansion, leveraging the core DOOR Platform across adjacent, high-value areas. This investment is necessary to ensure the unit matures into a Cash Cow when the overall market growth rate inevitably decelerates.

The strategic expansion focuses on:

• Integrating building intelligence features into DOOR OS.
• Expanding the platform to manage broader smart home controls.
• Deepening the integration of hardware, software, and automation.
• Driving professional services revenue through platforms like HelloTech.

Latch, Inc. (LTCH) - BCG Matrix: Cash Cows

You're looking at the core engine of Latch, Inc. (now DOOR) that is supposed to generate the necessary cash, even while the overall company is still running a deficit. In the BCG framework, Cash Cows are those business units or products with a high market share in a mature, low-growth market. They are the market leaders that generate more cash than they consume, funding the rest of the operation.

For Latch, Inc., the software component is the clear candidate here. The Software Subscription Revenue for the fiscal year ended December 31, 2024, hit $20.3 million. This is the highest-margin component of the business, which is exactly what you want from a Cash Cow. The entire business model hinges on the stickiness of the DOOR OS platform contracts, which lock in those predictable, high-margin revenue streams.

The Professional Services segment is also key to supporting this, especially after the HelloTech acquisition in June 2024. This acquisition was designed to drive higher-margin software adoption by handling the on-the-ground installation and support.

Here's how the high-margin revenue stacks up against the total picture for 2024. This comparison shows the potential of the 'Cow' versus the current reality of the entire enterprise:

This segment is the potential Cash Cow, funding the overall business despite the 2024 Net Loss of $(57.60) million. The operational discipline shown in 2024-reducing operating expenses by 31% year-over-year-is the necessary action to let this segment's cash flow shine through, even if the overall reported loss remains significant due to non-recurring items and the hardware component.

To maintain this position, Latch, Inc. is advised to focus investments on efficiency rather than aggressive promotion, which aligns with the Cash Cow strategy. The focus should be on supporting infrastructure to improve cash flow further. Preliminary data suggests continued strong revenue growth into 2025, which helps leverage the fixed costs associated with the platform.

The key operational metrics supporting the Cash Cow thesis are:

• Software revenue of $20.3 million in 2024.
• Total revenue grew 26.0% year-over-year in 2024.
• Operating expenses were reduced by 31% in 2024.
• Loss from Operations improved by 46.1% to $(59.41) million in 2024.
• Total cash, cash equivalents, and available-for-sale securities stood at approximately $75 million as of December 31, 2024.

The company's debt structure is light, with total debt at approximately $5.83 million against $111.18 million in stockholders' equity at the end of 2024. This low debt load means the cash generated by the software platform doesn't immediately need to service heavy interest payments, allowing more of it to support R&D or cover administrative costs, as a true Cash Cow should.

Finance: draft 13-week cash view by Friday.

Latch, Inc. (LTCH) - BCG Matrix: Dogs

You're looking at the units that are consuming management attention without delivering commensurate returns. For Latch, Inc. (LTCH), the Dog quadrant is characterized by legacy operations that are struggling to generate meaningful profit in low-growth segments.

These Dog units are typically in mature, low-growth markets and possess a low relative market share. They often break even or consume cash slowly, but the capital tied up in them prevents investment in higher-potential areas. The strategic imperative here is clear: minimize exposure and consider divestiture.

Legacy Hardware Sales

The foundation of Latch, Inc.'s earlier business, the legacy hardware sales-think physical locks and readers-fall squarely into this category. These are now highly commoditized products whose primary function is often just to enable the software subscription. The margin profile on this hardware is thin, defintely not where the future value creation lies.

• Hardware Revenue in Nine Months 2023: $12.8 million
• Hardware Revenue Decline Year-to-Date 2023: 28.9%

Inventory Management Strain

The low-margin nature of the hardware is compounded by inventory issues, which is a classic symptom of a Dog unit where demand forecasting is difficult or the product lifecycle is ending. This is evidenced by a significant write-down taken by Latch, Inc.

The financial impact of carrying obsolete stock is substantial, as shown by the specific reserve set aside:

High Non-Recurring Costs

Further draining resources are significant, non-recurring cash outflows related to necessary, but expensive, clean-up activities. These costs are associated with legal battles and the necessary restructuring to right-size the organization away from the legacy hardware focus.

These cash drains are a major concern because they pull capital away from growth initiatives. Here are the reported cash outflows related to these activities:

• Total Legal and Restructuring Cash Outflows (Through Q3 2025): $15.6 million
• Example of a large litigation cost (Fiduciary Settlement, Latch Share): $14.875 million (Reported in 2023 context)

Market Valuation as a Dog Indicator

The market's perception of Latch, Inc. as a whole reflects the challenges in its portfolio, particularly the weight of these Dog segments. The low market capitalization signals a lack of investor confidence in near-term growth prospects or profitability, a common trait for companies heavily weighted with Dog business units.

The valuation metrics as of late 2025 clearly place Latch, Inc. in the small-cap, high-risk category:

Honestly, when the entire company valuation is in this range, it tells you the market views most of the assets as having minimal future cash flow potential. Finance: draft 13-week cash view by Friday.

Latch, Inc. (LTCH) - BCG Matrix: Question Marks

You're looking at the Question Marks quadrant of Latch, Inc. (LTCH), which is where high-growth potential meets low current market penetration. These are the areas where the company is spending cash to try and capture future market share, but the returns aren't there yet. Honestly, it's a classic high-risk, high-reward spot on the matrix.

Consider the international push. For the three months ended March 31, 2024, revenue generated outside the United States was only approximately $0.4 million. That small figure in a growing global market clearly signals low current market share, fitting the profile of a Question Mark that needs aggressive adoption strategies to move forward.

The entire company's financial profile underscores the cash consumption inherent in this quadrant. For the 2024 fiscal year, Latch, Inc. reported a net loss of $\text{(57.60) million}$. While this loss represented a 46% improvement year-over-year, it still means the business is burning capital, which is typical for units trying to establish dominance in fast-growing segments.

The need for heavy investment is visible in the R&D spend supporting new product lines like the DOOR Camera and DOOR Hub. For the full year 2024, Research and Development expenses totaled $17,318 thousand. To give you a more recent snapshot of the operational focus, R&D expenses in the second quarter of 2024 were down 66% year-over-year to $2.9 million, showing management is trying to balance investment with cost control.

The most dramatic evidence of the cash drain, and the subsequent efforts to control it, is in the liquid asset burn rate. This is your key near-term risk indicator. The company made a decisive strategic move, slashing the quarterly Liquid Asset burn rate from $24.8 million in Q1 2025 down to just $2.7 million by Q3 2025. That represents an 89% drop, which buys Latch, Inc. critical time, but it doesn't eliminate the need for a clear path to profitability for these growth bets.

Here is a snapshot of the financial metrics defining Latch, Inc.'s Question Mark status as of the latest available data:

The strategy here is clear: you must invest heavily to quickly gain market share in these high-growth areas, or you risk them becoming Dogs. You're watching for the next set of preliminary, unaudited revenues for the first nine months of 2025, which management projected to increase by at least 20% compared to the same period in 2024. That growth needs to accelerate from the new product lines to justify the past cash burn.

The operational discipline is showing up in other areas, too. For the first half of 2024, total operating expenses fell 32.7% year-over-year in Q2. You need to see that discipline applied to convert this high-growth potential into positive returns. Finance: review the Q4 2025 cash flow projections against the current burn rate by next Tuesday.