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Latch, Inc. (DOOR) Reports Third Quarter 2026 Financial Results
DOOR Launches OpenDOOR Platform and Advances Automation Capabilities as Software Revenue Grows 18% and Gross Margin Expands to 55%
ST. LOUIS, Nov. 12, 2026 /PRNewswire/ — Latch, Inc., which operates as DOOR, the Building Intelligence company (“DOOR” or the “Company”), today reported financial and operating results for the three and nine months ended September 30, 2026. The Company’s shares currently trade on the OTC Markets under the symbol “LTCH.”
Third Quarter 2026 Highlights (Three Months Ended September 30, 2026)
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Software revenue increased by 18.1% year-over-year to $6.3 million, driven by continued subscription growth on the DOOR platform.
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Total revenue was $14.1 million, a decrease of $3.3 million, or 18.9% year-over-year, primarily reflecting a lower volume of hardware shipments and professional services installation activity.
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Gross profit was $7.8 million, slightly improved year-over-year despite lower total revenue, while gross margin expanded to 55.2% from 44.3%.
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Operating expenses were $28.0 million, including a $13.6 million non-cash goodwill impairment charge and $1.2 million of restructuring costs. Excluding these items, non-GAAP operating expenses were $13.2 million, a decrease of 6.0% year-over-year.
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Net loss was $20.5 million, compared with $6.6 million in the third quarter of 2025, primarily reflecting the non-cash goodwill impairment charge.
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Adjusted EBITDA loss (non-GAAP) improved 17.7% year-over-year to $3.8 million.
“The third quarter results reflect our continued focus on driving profitability, highlighted by our improvement in gross margin,” said David Lillis, Chief Executive Officer of DOOR. “Our priorities are clear: strengthen our best-in-class integrated hardware and software platform, streamline operations, and build a more profitable and sustainable company. We are concentrating our resources on the products and services that deliver the greatest value to our customers while maintaining complementary services that support our broader business objectives. We are leaning into what we do best and exiting non-core operations to focus our resources on higher-margin offerings. The restructuring plan we announced in August, which is expected to reduce annualized operating costs by $10 million to $12 million, is progressing as planned and should accelerate our path to profitability. We are already seeing the benefits of those actions, which should meaningfully support our goal of generating positive cash flow by the second half of 2027.”
“DOOR pioneered Building Intelligence, and growing industry adoption of this approach validates the strategy we set in motion,” Lillis continued. “Following the launch of DOOR Scout, we publicly introduced our developer platform OpenDOOR and our first public partner EliseAI this quarter, and we expect additional releases through year-end. We are focused on executing our Building Intelligence strategy, expanding customer adoption, and creating long-term value for our stockholders.”
