Latch, Inc. Narrows Losses Amid Strategic Pivot to Building Intelligence

The company posted total revenue of $15.6 million, a figure largely stable compared to the first quarter of 2026 but down 18.1% from the same period last year. This year-over-year decline stems from a reduced volume of hardware shipments and professional services activity. Conversely, the firm’s core software revenue climbed 16.8% to $6.1 million, reflecting a successful shift toward recurring subscription models.

Management is leaning heavily into automation to stabilize the balance sheet. CEO David Lillis noted that the company has integrated artificial intelligence across its development and support channels to drive efficiency. This transition includes the recent launch of DOOR Scout, an edge AI device, and a new developer platform dubbed OpenDOOR. Alongside these product updates, the company reached a settlement in principle with the SEC regarding a long-standing investigation, agreeing to a $1 million penalty to resolve legacy matters. Looking ahead, a planned restructuring—including exiting the property management business—is expected to slash annualized operating costs by $10 million to $12 million, further accelerating the firm’s path toward cash flow breakeven.