LTCH

Latch (now branded DOOR) is a smart-access hardware/SaaS company for the multifamily market, and its top line is the one genuine bright spot: FY2025 revenue of $70.1M is up 23.8% YoY and has more than doubled off the $27.6M of FY2021, with software revenue reaching $22.1M. But growth is the only part of the story that works. The company loses money on a staggering scale — operating margin of -75.2%, net margin of -76.7%, a FY2025 net loss of $53.7M, and an accumulated deficit of $712M. Even the improving trend (net loss narrowed from -$167M in FY2021, Adjusted EBITDA improved to -$27.1M) leaves it nowhere near breakeven, and management is candid that revenue is threatened by 'pricing compression' and uncertain adoption of the DOOR app and HelloTech.

The balance sheet and market structure turn a speculative growth name into an un-ownable one. Cash fell 50.7% to $34.6M while operating cash burn ran at -$35.9M — roughly one year of runway on current cash, exactly what management concedes when it says it can fund operations 'for at least 12 months beyond the Filing Date' and may need to 'secure additional outside capital,' with 'no assurance' it can. Crucially, the shares now trade on the OTCID Market, not Nasdaq — the filing states there is 'a minimal public market for our securities' and that capital-raising 'may be impaired.' That delisting, combined with a required liquidity ratio under the Customers Bank Loan Agreement it must not breach, means a dilutive or distressed raise is a live scenario for a company with only a $32.8M market cap.