Latch, Inc. (LTCH): Business Model Canvas [Dec-2025 Updated]

You're looking at Latch, Inc. right now and seeing a company making a hard pivot to the DOOR platform while navigating serious financial pressure; honestly, it's a classic case of balancing recurring software revenue against the high cost of a full-stack operation. To make sense of their strategy-which projects total revenue of about $67.9 million for 2025, still chasing profitability after a $(57.60) million net loss in 2024, while holding roughly $44.1 million in liquid assets as of September 30, 2025-you need the full blueprint. See below how Latch, Inc. is structuring its key activities and customer relationships to keep the lights on and grow that essential SaaS base.

Latch, Inc. (LTCH) - Canvas Business Model: Key Partnerships

You're looking at the structure that supports DOOR's (formerly Latch, Inc.) operational scale as of late 2025. These relationships are critical, especially given the company's current liquidity position, with Liquid Assets estimated at approximately $44.1 million as of September 30, 2025.

The partnerships are layered, covering service delivery, financing, and core customer acquisition. For instance, the 2024 Total Revenue reached $56.63 million, a 26.0% increase year-over-year, showing these alliances are driving top-line growth, even as the 2024 Net Loss stood at $(57.60) million.

Here's a breakdown of the key external relationships:

• HelloTech (acquired) for last-mile installation and support services.
• Customers Bank for a $6 million term loan in July 2024.
• Real estate developers and owners (e.g., Tishman Speyer, Brookfield) as early adopters and investors.
• Hardware manufacturers and suppliers for smart access devices.
• Integrators for smart home devices and building management systems.

The acquisition of HelloTech, Inc. on July 1, 2024, was a major move to bolster the service component of the DOOR platform. This move integrated HelloTech's expertise in on-demand, last-mile installation and support. Before the merger, HelloTech had serviced over 100,000 residences in the preceding 12 months. This platform now forms the foundation for DOOR Services.

The financing relationship with Customers Bank is a direct obligation tied to this strategic acquisition.

You can see the scale of the early developer partnerships. Tishman Speyer and Brookfield were foundational investors, helping Latch secure up to $510 million in cash post-merger in early 2021. Brookfield Properties, for example, committed to installing Latch's system throughout its development pipeline, aiming to create one of the largest smart home access ecosystems within a single portfolio. This early adoption by major players helped establish the initial market footprint.

The nature of the business requires deep integration with hardware manufacturers for the physical access control devices and with other system integrators to ensure the LatchOS (now DOOR) platform connects seamlessly with broader building management systems. While specific dollar amounts for these supplier contracts aren't public, the 2024 Total Cost of Revenue was $31.64 million, which directly reflects the cost of goods sold, including these hardware components and installation services.

The company's focus remains on expanding the DOOR Platform penetration in the North American multifamily market. Finance: draft 13-week cash view by Friday.

Latch, Inc. (LTCH) - Canvas Business Model: Key Activities

You're looking at the core engine of Latch, Inc. (now DOOR) and what it takes to keep the lights on and the platform running, especially after a period of heavy financial and regulatory cleanup. The Key Activities section of the Business Model Canvas is where the real work happens-the day-to-day execution that translates strategy into results. For Latch, Inc., this is a mix of high-tech engineering, on-the-ground service delivery, and intense corporate governance.

Software development and maintenance of the DOOR Platform (LatchOS)

This is the heart of the business, the continuous effort to refine LatchOS, the cloud-based software that powers the access control and smart home ecosystem. The investment here is substantial, reflecting the need to maintain security, add features, and ensure seamless integration across the platform's hardware base. You see this commitment in the year-over-year spending figures, even as the company aggressively controlled other costs.

Here's a look at the financial commitment to the engineering side:

The R&D spend dropped significantly from 2023 to 2024, which aligns with the broader cost-cutting narrative, but the software revenue stream remains critical. For context, the 2023 software revenue alone was $17.775 million, which grew 37% year-over-year for that period.

Providing professional services for hardware installation and support

This activity is increasingly important for top-line growth, especially following the acquisition of HelloTech in June 2024 to bolster last-mile installation and support. This segment drives a significant portion of the revenue growth Latch, Inc. is reporting. The growth in professional services revenue is a key driver behind the total revenue increase.

The revenue mix shows this shift:

• Total Revenue for 2024 was $56.63 million, a 26.0% increase from 2023.
• This growth was explicitly driven by a significant rise in professional services revenue and software revenue.

The company is focused on expanding professional services revenue through the HelloTech platform to support the DOOR ecosystem.

Aggressive cost control and operational efficiency improvements

This has been a necessary, high-priority activity, especially given the company's liquidity situation and trading status on the OTC Markets. Management has been laser-focused on aligning staffing and expenses with current sales volumes. This isn't just a suggestion; it's backed by concrete actions and measurable results in the financial statements.

Key efficiency metrics include:

• Operating Expenses reduction in 2024 compared to 2023 was a major win, with the Loss from Operations improving by 46.1% to $(59.41) million in 2024.
• The Net Loss for 2024 was $(57.60) million, a reduction of $49.94 million, or 46.4%, from the prior year.
• A workforce reduction in May 2022 impacted approximately 130 employees, or 28% of staff, targeting annual cost savings of $40 million.
• The company reported reducing its operating expenses by 24% year-over-year in 2024.

The balance sheet reflects this conservative approach, with a Debt-to-Equity ratio of only 0.08 as of late 2025, far below the Communication Equipment sector average of 0.48.

Managing SEC filing compliance and ongoing litigation

This activity has consumed significant management time and cash resources. The company made a major push to become current with its filings, completing the 2023 reports in March 2025. This process involved significant non-ordinary course expenditures.

Financial impact related to these activities:

The company's cash position as of September 30, 2025, stood at approximately $44.1 million.

Research and development for new smart home solutions like DOOR Bug

While R&D spending decreased from 2023 to 2024, the activity continues, focusing on expanding the platform beyond core access control into broader smart home solutions. The announcement of DOOR Bug, an AI-Powered Intelligent Sensor, in November 2024 signals this ongoing commitment to innovation.

The company is actively working to:

• Expand the DOOR Platform to include broader smart home solutions.
• Invest in research and development for new products and services.

Management has guided that 2025 cash outflows are expected to be "meaningfully lower" than the $104 million decrease seen in 2024, suggesting a stabilization of non-operational spending like litigation and restructuring, which should free up resources for R&D and growth initiatives.

Latch, Inc. (LTCH) - Canvas Business Model: Key Resources

You're looking at the core assets Latch, Inc. (now operating as DOOR) is relying on to execute its turnaround strategy as of late 2025. These aren't just line items; they are the actual tools and capital supporting the business model.

The most critical intangible asset is the proprietary software platform, which has been rebranded to the DOOR Platform, built around LatchOS (the operating system). This platform is the central nervous system, integrating hardware, software, and services. Key components that represent intellectual property and platform depth include:

• DOOR OS: The web-based application for property owners to manage access permissions and monitor devices remotely.
• OpenKit: Software Development Kits (SDKs) and APIs allowing partners to embed unlocking and other features directly within their own applications.
• Concierge Pro: A 24/7 remote receptionist service for deliveries and guest arrivals, integrated with Latch Intercom or Latch Link devices.

Financially, the company's immediate resource strength is its liquidity position, which management has worked hard to stabilize. As of September 30, 2025, the preliminary, unaudited Liquid Assets (cash and cash equivalents plus available-for-sale securities) are estimated to be approximately $44.1 million. This is a key focus area, especially considering the company is still managing non-recurring outflows related to litigation and SEC remediation.

The operational backbone is supported by physical and human capital. The company maintains its primary operations base in its St. Louis-based headquarters and warehouse. Furthermore, the professional services network, which is crucial for driving the growing services revenue stream, was significantly enhanced by the acquisition of HelloTech in June 2024, integrating on-demand, last-mile installation and support capabilities.

To give you a clearer picture of the financial context surrounding these resources, here are the latest available performance metrics that reflect the value derived from the platform and services:

While the installed base of smart access devices in North American multifamily units is a core asset driving recurring software revenue, a precise, publicly stated unit count as of late 2025 isn't available in the latest filings. Similarly, the exact scale of the professional services network is not quantified with a specific number of certified technicians or service locations, though its impact is clear in the revenue mix.

Latch, Inc. (LTCH) - Canvas Business Model: Value Propositions

You're looking at the core value Latch, Inc., now rebranded as DOOR as of August 2025, delivers to its customers. This isn't just about selling a lock; it's about selling a platform that changes how buildings run and how people live in them.

The primary value proposition centers on providing a full-building operating system for smart access and building intelligence. This system integrates everything a modern multifamily property needs. The scale of this offering is reflected in the latest figures: Total Revenue for the fiscal year 2025 reached $56.63 million, showing growth driven by both software and services components of the integrated stack.

For property owners, the promise is tangible financial improvement. While specific Net Operating Income (NOI) uplift per unit isn't public, the focus on efficiency is clear. The company achieved a significant operational turnaround, with the Loss from Operations improving by 46.1% year-over-year to $(59.41) million in fiscal year 2025. This operational discipline mirrors the efficiency Latch, Inc. (DOOR) aims to bring to its clients.

The value proposition of reduced operational expenses for landlords is supported by the company's own cost management success. For instance, in the prior year (2024), the company achieved a 31% year-over-year reduction in its own operating expenses. Eliminating tasks like physical rekeying is a key component of this, though the specific dollar savings per property are not disclosed in the latest filings.

The connected living experience for tenants is the other side of the coin. The platform is designed to offer a premium, connected residential living experience. The company's structure supports this through its integrated approach, which is defintely a full stack of hardware, software, and professional services. The Cost of Revenue was $31.64 million against Total Revenue of $56.63 million in fiscal year 2025, with Gross Profit coming in at $24.99 million. The inclusion of professional services, bolstered by acquisitions like HelloTech in 2024, ensures end-to-end deployment and support for this premium experience.

Here's a quick look at the financial health supporting this platform strategy as of late 2025:

• Quarterly Liquid Asset Burn (Q3 2025): Stabilized at $2.7 million.
• Liquid Assets (Q3 2025): Approximately $44.1 million.
• Debt-to-Equity Ratio: A conservative 0.08.
• Basic and Diluted Net Loss Per Common Share (FY 2025): $(0.37).
• Price-to-Sales Ratio: A low 0.3x relative to its peers.

The full-stack nature is evident in how the business is structured to deliver value across the entire building lifecycle:

The company is also managing non-core drains, expecting approximately $8.9 million in legal drains for 2025, which management is working to contain while focusing on the core value delivery. Finance: draft 13-week cash view by Friday.

Latch, Inc. (LTCH) - Canvas Business Model: Customer Relationships

You're looking at how Latch, Inc., which rebranded to DOOR in August 2025, manages its relationships across the property technology stack. Honestly, the relationship structure is bifurcated: one high-touch path for the enterprise client-the property owner or developer-and a self-service, high-volume path for the resident end-user.

Dedicated sales and account management for enterprise real estate clients.

The core relationship is definitely with the enterprise customer, which includes real estate developers, builders, building owners, and property managers across the United States and Canada. These are the entities signing the long-term contracts for the DOOR Platform. While I don't have the exact headcount for the dedicated sales team as of late 2025, the revenue structure tells you where the focus is. In 2024, the high-margin software revenue-the recurring part of the relationship-was \$20.3 million, a 14% year-over-year increase. This recurring revenue stream is what the account management teams are focused on nurturing and expanding through upsells, like adding intercom or smart home systems on top of the initial smart access control.

Subscription-based model fostering long-term, recurring relationships.

The entire model hinges on the subscription aspect, which is the Software-as-a-Service (SaaS) component of the DOOR Platform. This is the sticky part of the relationship, typically secured via six-year contracts. The growth in this segment is crucial for long-term profitability, even as other segments surge. The software revenue grew by \$2.5 million in 2024. This recurring base is what management is trying to grow, as evidenced by the preliminary 2025 data showing total revenue increasing by at least 20% through September 30, 2025, over the prior year. The company is pushing to increase the Average Revenue Per Home Unit (ARPHU) on top of the initial access offering.

The shift in revenue mix shows how the relationship is evolving:

• Software Revenue (2024): \$20.3 million.
• Professional Services Revenue (2024): \$18.1 million.
• Professional Services Revenue Growth (2024 YoY): Surged 143%.
• Total Revenue (2024): \$56.63 million.

Self-service and in-app support for resident end-users (DOOR app).

For the residents, the relationship is largely transactional and digital, centered around the recently launched DOOR app. This is where self-service support lives. Residents use the app for remote unlocking, guest access, and smart home control. This digital-first approach helps keep the operating cost per unit low for the property manager, which is key to the value proposition. The platform is designed to streamline the resident move-in and move-out processes, reducing manual labor for the property staff.

Professional services team for high-touch installation and onboarding.

To ensure the initial high-touch deployment, Latch, Inc. acquired HelloTech in June 2024, which bolsters its professional services offering for on-demand, last-mile installation and support. This team is critical for bridging the gap between the hardware sale and the software subscription activation. The success of this team is reflected in the massive growth of that revenue stream, which jumped 143% in 2024 to reach \$18.1 million. This high-touch service is what helps secure the long-term software contract, even though the services segment itself has lower margins than pure software. The company is defintely using this service arm to ensure a smooth start for new enterprise clients.

Here's a look at the financial context driving these relationship investments as of late 2025:

If onboarding takes 14+ days, churn risk rises, so the professional services team's efficiency directly impacts the recurring revenue relationship.

Finance: draft 13-week cash view by Friday.

Latch, Inc. (LTCH) - Canvas Business Model: Channels

You're looking at how Latch, Inc., now operating as DOOR, gets its integrated hardware, software, and services into the hands of property owners and residents across North America. The channel strategy centers on direct enterprise sales, supported by a professional installation network, and driven by resident engagement through the mobile application.

Direct sales team targeting large North American multifamily developers and owners

The primary channel for securing new building deployments is a direct sales force focused on large multifamily developers and owners. This team sells the core offering, which is structured into bundles like the Base, Complete, and Enterprise tiers, all powered by the DOOR Platform. While the exact size of the direct sales team as of late 2025 isn't public, the focus remains on securing long-term contracts within the multifamily rental market, which is the company's primary segment.

Professional services network (HelloTech) for last-mile delivery and installation

Successful deployment relies heavily on the professional services network for what you call last-mile delivery and installation. This capability was significantly bolstered by the acquisition of HelloTech in June 2024. This network is integral to ensuring the DOOR Platform hardware (locks, readers, intercoms) is implemented efficiently and correctly. The emphasis on these services is reflected in the 2024 financial results, where professional services revenue contributed to the 26.0% year-over-year total revenue increase, which reached $56.63 million for the year ended December 31, 2024.

DOOR app for resident and property manager interaction

The resident-facing channel is the DOOR App, which replaced the older Latch application for certain customers, with availability expected to expand to additional customers throughout 2025. This app is the daily touchpoint for residents, enabling them to unlock doors, manage guest access, and control integrated IoT devices. The average Latch App user interacts with the application multiple times per day. Property managers use the platform for monitoring and control. The software component, which underpins this channel, generated $20.3 million in revenue in 2024, marking a 14% year-over-year increase.

Here's a quick look at the financial context supporting the channel performance through 2024 and preliminary 2025 guidance:

Online presence and investor relations (OTC Markets trading)

The company maintains an online presence for general information and investor relations, especially critical given its current trading status. As of late 2025, Latch, Inc. shares trade on the OTC Markets under the symbol LTCH. This channel is how the public market accesses the equity. For instance, as of December 4, 2025, the market capitalization was reported around $22.96 million, with the stock price at $0.120 on that date. The company is actively working toward regaining current SEC reporting status, a key step for any future channel expansion or capital market activity.

Key data points related to the public channel include:

• Trading Venue: OTC Markets.
• Market Capitalization (Dec 4, 2025): Approximately $22.96 million.
• Stock Price (Dec 4, 2025): $0.120.
• Shares Outstanding (as of March 21, 2025): 164,825,277.

Finance: draft 13-week cash view by Friday.

Latch, Inc. (LTCH) - Canvas Business Model: Customer Segments

You're looking at the core of DOOR's (formerly Latch, Inc.) business, which is deeply rooted in the North American multifamily real estate sector. The customer segments are distinct, even though the end-user experience is what gets the most attention.

Multifamily real estate owners, operators, and developers in the US and Canada represent the primary, high-value customer base. These are the entities that purchase and deploy the DOOR Platform across entire buildings or portfolios. The company's geographic performance is heavily concentrated in top-tier urban centers and major U.S. cities, reflecting where high-density multifamily properties are concentrated. To give you a sense of the scale they are targeting, the estimated total addressable market (TAM) for an apartment building operating system in the United States was approximately $54 billion annually, based on an estimated 47 million rental homes as of early 2021. While DOOR is still capturing a small fraction of that, their 2024 Total Revenue was $56.63 million, showing growth even on that large base. Preliminary, unaudited data suggests total revenue growth of at least 20% through September 30, 2025, indicating continued traction within this segment.

Here's a quick look at the financial scale related to the core segment:

Residents and tenants are the end-users, though not the direct paying customer for the platform license. Their adoption and satisfaction are critical because they drive the value proposition for the property owners-convenience, security, and a modern living experience. If onboarding takes 14+ days, churn risk rises. The company's strategy focuses on increasing Revenue Per Apartment Unit (ARPHU) by delighting these users with new offerings like Intercom and Smart Home features, all accessible through the trusted DOOR Platform interface.

Property management companies are a key channel and a segment DOOR is now integrating with directly. In March 2024, the company launched Door Property Management, LLC (DPM), which included the acquisition of the property management arm of The Broadway Company. This move allows DOOR to collect direct management insights from a small portfolio of units, specifically in the Boston area, to shorten the product invention timeline. This vertical integration is designed to help owners and operators increase and create operational efficiencies, aligning with the marketing message: 'Don't Die, Get NOI.'

The segment of Commercial property owners remains a potential future expansion vertical. While the current focus is overwhelmingly on the multifamily rental market, the enterprise SaaS platform is designed to enhance operations within buildings generally. As of late 2025, specific financial metrics or unit counts related to a commercial segment aren't publicly detailed, as the strategic shift is centered on deepening penetration in the existing North American multifamily market.

You should keep an eye on how DPM's portfolio size grows, as that will be a leading indicator for success in the property management channel. Finance: draft 13-week cash view by Friday.

Latch, Inc. (LTCH) - Canvas Business Model: Cost Structure

You're looking at the cost side of the DOOR business model, which, as of late 2025, is heavily influenced by the necessary cleanup from past accounting issues and a pivot toward platform expansion. The cost structure reflects a company aggressively cutting overhead while still funding its technology roadmap.

High cost of revenue, particularly for hardware sales and sourcing remains a structural challenge, even as software revenue grows. Hardware sales carry inherent sourcing and fulfillment costs that software does not. For the fiscal year ended December 31, 2024, the Total Cost of Revenue was reported at $31,636 thousand (in thousands of USD). This resulted in a Gross Profit of $24,994 thousand on Total Revenue of $56,630 thousand for 2024. To be fair, the cost of sales saw a significant decline in prior periods, such as a 30.5% year-on-year decline in Cost of Sales for the nine months ending September 30, 2023, largely due to lower hardware sales-related costs.

The company has demonstrated significant progress in controlling its overhead, leading to significant operating expenses, though reduced by 31% year-over-year in 2024. The total Operating Expenses for 2024 were $79,830 thousand, a substantial reduction from the $105,880 thousand recorded in 2023. This 31% reduction was driven by decisive actions, including the workforce reduction announced in July 2023. The quarterly burn rate on Liquid Assets (cash and short-term investments) also dramatically improved, falling from $24.8 million in Q1 2025 to just $2.7 million in Q3 2025, an 89% improvement.

The lingering effects of past issues manifest as elevated non-recurring costs for legal fees and financial restatement/compliance. These costs hit the General and Administrative line item. For instance, Legal Settlements recorded in the fiscal year 2024 amounted to $7.38 million, following $10.41 million in 2023. The completion of the restatement of the 2022 financial statements in December 2024 was a major milestone, but the associated legal and compliance expenses are still being absorbed. Non-Recurring Items in 2024 were listed at $2,849 thousand.

Funding the future of the integrated ecosystem requires sustained technology and R&D investment for the DOOR Platform expansion. Research and Development expense for 2024 was $17,318 thousand. This figure represents a significant decrease from the $33,787 thousand spent on R&D in 2023, showing that even R&D investment was rationalized as part of the broader cost containment strategy. The focus is now on expanding the DOOR Platform to include broader smart home solutions.

The bulk of the operating expenditure is tied up in personnel costs for software engineering and professional services staff, which are embedded within the major expense categories. Here's how the major operating expense buckets break down for the fiscal year 2024 (in thousands of USD):

The description of these line items confirms the personnel focus:

• R&D expense consists primarily of personnel and related expenses for employees working on product design and engineering teams.
• Sales and Marketing expense consists primarily of personnel and related expenses for employees working on sales, customer success, deployment, and marketing teams.
• General and Administrative expense consists primarily of personnel and related expenses for executive, legal, human resources, finance, and IT functions.

The professional services growth, bolstered by the HelloTech acquisition, also drives personnel costs within the Sales and Marketing or potentially the Cost of Revenue structure, as these teams provide on-demand installation and support services.

Latch, Inc. (LTCH) - Canvas Business Model: Revenue Streams

You're looking at how DOOR, formerly Latch, Inc., is structuring its income generation as of late 2025. The model is fundamentally a hardware-enabled Software-as-a-Service (SaaS) approach, but the near-term reality shows a heavy reliance on services to drive the top line while the core software subscriptions mature. The initial sale of smart locks and sensors often involves significant upfront discounts, sometimes even at a loss, because the real value is intended to be the sticky, recurring revenue from the platform subscriptions over the life of the building, which typically runs for six years.

The business model is now clearly diversifying away from being purely dependent on lumpy construction cycles, which is why Professional Services has become such a focus. This shift is a direct response to the need for more predictable, non-hardware-dependent growth levers. Still, the company is defintely navigating a significant cash burn challenge, as evidenced by the 2024 Net Loss.

Here's a quick look at the key financial markers that frame these revenue activities:

The revenue streams are segmented into three primary areas, reflecting the integrated ecosystem DOOR provides to the US multifamily rental market. The strategic focus in 2025 has been on accelerating the service component, which is a key growth driver this year. For instance, in the first quarter of 2024, the revenue breakdown showed how the different parts contributed, though the mix has been shifting since then.

The components of the Revenue Streams block look like this:

• Software-as-a-Service (SaaS) subscriptions for the DOOR Platform (recurring revenue).
• Professional services revenue from installation and support (a key 2025 growth driver).
• Hardware sales revenue (locks, sensors, cameras), often sold at low margin or a loss.

To give you a concrete example of the segment mix from earlier in 2024, for the three months ended March 31, 2024, the revenue was split as follows:

• Hardware revenue was $4.6 million.
• Software revenue was $5.0 million.
• Professional services revenue was $2.4 million.

The growth in professional services, bolstered by the HelloTech acquisition, is crucial for diversifying the top line away from the hardware cycle. The projected full-year 2025 total revenue of approximately $67.9 million suggests this strategy is gaining traction, even as the company works to manage the underlying profitability issues shown by the 2024 Net Loss of $(57.60) million. Finance: draft 13-week cash view by Friday.