LTCH Latch, Inc.

Overview and Growth

Fiscal 2025 results for Latch, Inc. combined $70.12M of revenue with net loss of $53.75M and an operating cash outflow of $35.89M. The $70.12M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 23.8% above fiscal 2024 revenue of $56.63M, marking a year-over-year increase. Diluted earnings per share were -$0.34, translating the period’s attributable earnings into the amount reported for each diluted share. The company employed $106.80M of total assets, the balance-sheet base supporting its current operating and cash-flow results. Asset turnover was 0.66x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $26.85M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 38.3% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was an operating loss of $52.72M, reflecting costs that exceeded gross profit. Relative to revenue, the operating deficit measured 75.2%, showing the shortfall after operating costs. After all below-operating-line items, the company recorded a net loss of $53.75M for the fiscal year. Measured against revenue, the bottom-line deficit represented 76.7% after all recognized items. Before income taxes, the company recorded a loss of $53.75M, bridging the operating result to the final net loss. Pretax margin was -76.7%, reflecting a pre-tax loss equal to 76.7% of revenue. Income tax expense totaled $0.00, providing the reported tax component that separates pretax and after-tax earnings. The loss-to-equity relationship was 92.6%, placing the bottom-line deficit against shareholder capital. Relative to total assets, the net loss represented 50.3%. Compared with a $57.60M net loss in fiscal 2024, the current loss improved to $53.75M.

Liquidity and Capital Structure

The company held $106.80M of assets against $48.79M of liabilities and $58.01M of equity, revealing how the asset base was financed. Current assets were $64.94M against $28.25M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 2.3x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $34.62M, separating immediately recognizable cash resources from the rest of the current-asset base. Measured only with cash and equivalents, coverage of current liabilities was 122.6%, excluding receivables and other current assets. Total debt was $4.64M, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.08x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 4.3%, comparing borrowing with the total asset balance. The liabilities-to-assets relationship was 45.7%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 32.4%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $196.42M in fiscal 2024, the current asset base moved 45.6% and finished lower. Reported equity changed 47.8% from $111.18M in fiscal 2024, placing the current capital base lower year over year. Compared with $70.20M in fiscal 2024, the current cash balance moved 50.7% and finished lower.

Cash Flow and Earnings Quality

The company reported an operating cash outflow of $35.89M, rather than cash generation from operations. Capital expenditures used $79.00K in addition to the operating cash outflow, increasing the total cash consumed by operations and investment during the period. Negative free cash flow was $35.97M, leaving a cash deficit after capital spending and reducing financial flexibility. The free-cash-flow deficit equaled 51.3% of revenue, showing the post-investment cash shortfall relative to sales. Relative to total assets, the post-investment cash deficit measured 33.7%.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.