Latch (LTCH) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $15.6M, down 18.1% year-over-year, with software revenue up 17% to $6.1M, while hardware and professional services declined due to softer demand and longer purchasing cycles.

• Net loss for Q2 2026 was $6.9M, a 12.1% improvement from Q2 2025, reflecting improved cost management.

• The company rebranded as DOOR in August 2025, operates as a single segment focused on smart access and home technology, and announced a restructuring plan in August 2026 with a 32% workforce reduction and exit from property management.

• Adjusted EBITDA loss for Q2 2026 was $3.6M, a 38% improvement year-over-year.

• Gross margin expanded to 49.0% from 43.0% year-over-year, aided by a favorable revenue mix and improved professional services margins.

Financial highlights

• Total revenue for the six months ended June 30, 2026 was $31.3M, down 10% year-over-year.

• Software revenue for the six months was $12.3M, up 18% year-over-year.

• Net loss for the six months was $12.8M, a 33% improvement from the prior year.

• Operating expenses for Q2 2026 were $14.9M, down 5.7% year-over-year.

• Cash, restricted cash, and available-for-sale securities totaled $26.1M as of June 30, 2026.

Outlook and guidance

• Management expects continued cost discipline and liquidity preservation, with available resources projected to fund operations for at least 12 months.

• The restructuring plan is expected to incur $1.5M–$2.5M in charges, mostly in Q3 and Q4 2026, and aims to reduce annualized operating costs by $10–12M.

• Focus is shifting to the core Building Intelligence platform and AI-enabled software, with AI integration expected to drive further efficiency and innovation.