Software Revenue Grows 19%, Net Loss Narrows 47%, and Cash Usage is $18.6 million Lower, Year-over-Year

ST. LOUIS, May 15, 2026 /PRNewswire/ -- Latch, Inc., which operates as DOOR ("DOOR" or the "Company"), today reported financial and operating results for the first quarter ended March 31, 2026. The Company's shares currently trade on the OTC Markets under the symbol, "LTCH," and the Company's corporate name and ticker updates are expected at a later date.

First Quarter 2026 Highlights

• Software revenue increased by 19.1% year-over-year to $6.1 million, driven by continued subscription growth on the DOOR platform.
• Total revenue was $15.7 million, essentially flat year-over-year, as software and hardware growth offset a reduction in services activity.
• Operating expenses decreased by 25.6% year-over-year to $13.8 million, reflecting disciplined expense management.
• Net loss narrowed by 47.2% year-over-year to $(5.9) million.
• Adjusted EBITDA loss (non-GAAP) narrowed by 45.7% year-over-year to $(3.9) million.

"Our first quarter performance reflects continued execution against the strategic priorities driving DOOR forward," said David Lillis, Chief Executive Officer of DOOR. "We believe the multifamily industry is shifting toward integrated, software-driven building systems, and we believe demand is increasing for scalable platforms capable of improving operating efficiency, reducing costs, streamlining portfolio management, and enhancing resident experiences. DOOR's combination of cloud-based access control, software, connected infrastructure, and automation positions us to capitalize on these long-term trends. We remain focused on three priorities for the remainder of 2026: continued revenue growth by adding new buildings to the DOOR ecosystem, disciplined expense management as legacy costs normalize, and ongoing progress toward profitability and operating cash flow improvement."

"We narrowed our Adjusted EBITDA loss by approximately $3.3 million and reduced cash usage by $18.6 million compared to the first quarter of 2025, reflecting continued progress toward a more efficient and scalable operating model," added Jeff Mayfield, Chief Financial Officer. "We also recently refinanced our debt through a new revolving credit facility with Truist Bank on improved economic terms, further strengthening our near-term liquidity position. We ended the quarter with $28.5 million in cash and investments, and $25.0 million in net inventory, which we believe provides the resources to support execution of our 2026 plan."

Key Business Metrics

The Company's key business metrics are as follows for the periods presented (unaudited, in thousands):

First Quarter 2026 Results Summary

DOOR's first quarter of 2026 reflected continued progress against its strategy to drive software-led growth and higher margins on hardware while improving operational efficiency. Total revenue was $15.7 million, relatively flat year-over-year, as growth in software and hardware helped offset lower professional services activity. Software revenue increased 19.1% to $6.1 million, reflecting continued subscription growth as a result of expanding adoption of the Company's platform solutions. Hardware revenue also grew 7.9% to $4.4 million on higher unit shipments. While professional services revenue declined 20.9% to $5.2 million primarily due to lower installation activity, the shift in revenue mix and improved hardware margins contributed to margin expansion.

The Company improved operating efficiency during the quarter. Gross profit increased $0.7 million year-over-year to $8.2 million, with gross margin expanding to 52.3% from 47.4% in the first quarter 2025, driven by operational efficiencies in professional services and a more favorable product mix. Operating expenses declined 25.6% to $13.8 million as DOOR continued to streamline its cost structure and reduce overlapping engineering and corporate expenses. As a result, net loss narrowed 47.2% year-over-year to $5.9 million, while Adjusted EBITDA loss narrowed 45.7% to $3.9 million. These results reflect continued execution against the Company's profitability initiatives and reinforce management's focus on building a more efficient, scalable business positioned for long-term growth.

First Quarter 2026 Cash Position Update

As of March 31, 2026, DOOR's total, unaudited cash and cash equivalents and available-for-sale securities were approximately $28.5 million⁽¹⁾  and decreased by approximately $6.1 million from the amount of cash and cash equivalents and available for sale securities as of December 31, 2025. This represents an approximate $18.6 million improvement year-over-year as compared to a decrease in cash and cash equivalents and available for sale securities of approximately $24.7 million from December 31, 2024 to March 31, 2025. This improvement was primarily due to (i) a reduction in litigation, untimely audit, and restructuring fees, and (ii) ongoing operational efficiencies. The opening and closing balances of cash and cash equivalents and available-for-sale securities is as follows for the periods presented (unaudited, in millions):

First quarter cash usage may not be indicative of ongoing quarterly cash usage, as annual upfront payments, the timing of inventory purchases, and collections activity can create variability between quarters. Management remains focused on its goal of reducing cash usage going forward.

Debt Refinance

On May 11, 2026, the Company entered into a new $5.0 million revolving credit facility with Truist Bank, maturing in May 2028. Borrowings under the facility bear interest at a variable rate based on one-month term Secured Overnight Financing Rate plus 1.75% and are secured by certain cash deposit accounts of the Company. In connection with entering into the new facility, the Company repaid and terminated its existing loan agreement with Customers Bank. The Company expects the refinancing to reduce cash used for debt service by approximately $0.9 million for 2026.

Additional Information Available on Our Website

The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2026, which will be posted on the "Financials and SEC Filings" section of the Company's investor relations website at DOOR.com, when it is filed with the Securities and Exchange Commission (the "SEC"). Information contained on, or accessible through, the Company's website is not incorporated by reference into this press release.

Information Regarding Key Business Metrics

DOOR reviews the key business metrics and other measures presented in this release to measure its performance, identify trends affecting its business, formulate business plans, and make strategic decisions that may impact the future operating results of the Company. For definitions and discussions of key business metrics, see the Company's most recent Annual Report on 10-K.

Increases or decreases in the Company's key business metrics and other measures may not correspond with increases or decreases in its revenue. The limitations these measure have as analytical tools include: (1) they are not necessarily indicative of the Company's future financial results and (2) other companies, including companies in DOOR's industry, may calculate key business metrics or similarly titled measures differently, which reduces their usefulness as comparative measures.

Non-GAAP Financial Measures

To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our financial results, we have presented in this press release Adjusted EBITDA, a non-GAAP financial measure. Adjusted EBITDA is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies.

We define Adjusted EBITDA as our net loss, excluding the impact of the following items, if applicable: (i) depreciation and amortization expense, (ii) net interest income or expense, (iii) provision for income taxes, (iv) change in fair value of warrant liability, trading securities, or derivative instruments, (v) restructuring costs, (vi) transaction-related costs, (vii) impairment of assets, (viii) non-ordinary course legal fees and settlement reserves, (ix) stock-based compensation expense and (x) gain or loss on extinguishment of debt. The most directly comparable GAAP measure is net loss. We believe excluding the impact of these items in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance. We monitor, and have presented in this press release, Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our operating performance, to establish budgets, and to develop operational goals for managing our business. We believe Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we include in net loss. Accordingly, we believe Adjusted EBITDA provides useful information to investors, analysts, and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance.

Adjusted EBITDA is not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net loss, which is the most directly comparable financial measure calculated and presented in accordance with GAAP. In addition, the expenses and other items that we exclude in our calculations of Adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from Adjusted EBITDA when they report their operating results.

In addition, other companies may use other measures to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA as a tool for comparison. The following table reconciles Adjusted EBITDA to net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands):

About DOOR

DOOR is a Building Intelligence company redefining how buildings operate. By combining hardware, intuitive software, and automated services into one streamlined system, DOOR helps properties think ahead, reduce overhead, and quietly improve life inside. Headquartered in St. Louis, Missouri, DOOR supports owners, operators, and residents across residential portfolios and purpose-built communities.

Visit www.door.com for more information.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "would," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward-looking information includes, but is not limited to, statements regarding: the Company's cash expenditures, cash flows, revenues, and other financial or operational results, the Company's business plans, the Company's name and branding, and the Company's application for its securities to trade on any particular market or national securities exchange or under any particular stock ticker. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including: the Company's ability to implement its business plans and achieve revenue forecasts; changes in the Company's plans; unexpected delays, difficulties, or expenditures; and other factors outside of the Company's control. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K, and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. The Company does not give any assurance that it will achieve its expectations.

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SOURCE Latch, Inc.