Latch Q2: Software Revenue Climbs 17%, Losses Narrow, SEC Settlement Reached, and Restructuring Targets $10M+ in Savings
LTCH has more than doubled off its 52-week low of $0.05 on light trading volume (0.1× avg).
Summary
Latch reported Q2 2026 results with software revenue up 17%, a narrower net loss, and sharply reduced cash burn. The company also settled its SEC investigation for $1.0 million and announced a restructuring expected to save $10–12 million annually.
Key Events · Earnings and Guidance · LTCH
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Software Revenue Grows 17%
Software revenue reached $6.1 million in Q2 2026, up 16.8% year-over-year, driven by subscription growth on the DOOR platform. Total revenue was $15.6 million, down 18.1% YoY due to lower hardware and services activity.
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Net Loss Narrows, Cash Burn Drops
Net loss improved 12.1% to $(6.9) million, and Adjusted EBITDA loss narrowed 37.5% to $(3.6) million. Net cash used in operations fell to $2.4 million in Q2 from $6.1 million in Q1, with $26.1 million in cash and securities at quarter-end.
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SEC Settlement Reached
The company reached a settlement in principle with the SEC Staff, agreeing to a $1.0 million civil penalty payable in quarterly installments, subject to Commission approval. This resolves a major legacy legal matter.
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Restructuring to Save $10M–$12M Annually
A restructuring plan announced subsequent to quarter-end includes a workforce reduction and exit from the DOOR Property Management business, expected to reduce annualized operating costs by $10–12 million and accelerate the path to profitability.
Analysis · LTCH · Trade & Services
Latch delivered a quarter of tangible progress: software revenue grew 17% year-over-year to $6.1 million, net loss narrowed 12% to $(6.9) million, and cash burn dropped sharply to $2.4 million from $6.1 million in Q1. The company also reached a settlement in principle with the SEC for a $1.0 million penalty, removing a major legal overhang. A restructuring plan announced earlier this week is expected to cut annual costs by $10–12 million, accelerating the path to breakeven. Against a market cap of just $25 million, these improvements meaningfully de-risk the equity story, though the stock remains on the OTC and the company is still loss-making.
At the time of this filing, LTCH was trading at $0.15 on OTC in the Trade & Services sector, with a market capitalization of approximately $24.7M. The 52-week trading range was $0.05 to $0.30. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.