Latch(OTC) LTCH

Latch makes smart locks and building access systems for apartments and offices. Its products help property managers control entry and monitor visitors. Residents use mobile apps to unlock doors and manage deliveries.

Unlocking the Product Line

• Software (48.2% of Q3 2023 revenue): LatchOS and mobile apps let residents unlock doors, manage guests, and control smart devices.
• Hardware (33.2% of Q3 2023 revenue): Door-mounted access devices, intercoms, cameras, and leak detectors for building entry and monitoring.
• Installation Services (18.6% of Q3 2023 revenue): On-site setup and activation of Latch hardware for property owners and managers.
• Connectivity Solutions: Latch Hub connects smart home devices and sensors in buildings for seamless control.
• Visitor and Identity Management: Latch Visitor Express and LatchID enable secure, contactless guest entry and resident identification.

Growth Moves: Latch’s Expansion Playbook

• Acquired Honest Day’s Work in July 2023 to expand technology and resident services.
• Acquired HelloTech in July 2024, adding in-home tech support and service capabilities.
• Relocated headquarters to Olivette, Missouri in November 2023 to cut costs and consolidate operations.
• Streamlined workforce by about 70% in July 2023 to reduce expenses and focus on core business.

What Makes Latch Stand Out

Latch combines hardware, software, and services into one platform for apartment buildings. Its recurring revenue model relies on long-term software subscriptions. The company targets property managers and owners, not individual consumers.

Five Things You Need to Know

• Total revenue was $16 million in Q1 2025, up 31.1% year-over-year.
• Software revenue grew 36.9% year-over-year in Q3 2023, while hardware fell 20.2%.
• Net loss improved to –$11 million in Q1 2025, from –$14 million a year earlier.
• One customer made up 36% of Q3 2023 revenue, showing high customer concentration risk.

Bottom Line

Latch has shifted from rapid growth to cost control and operational focus. Its integrated platform and recurring revenue model target the multifamily rental market.