Latch, Inc. (LTCH)·Q4 2024 Earnings Summary

Executive Summary

• Latch did not issue a conventional Q4 2024 earnings press release with revenue/EPS; instead, management provided a cash position update and reiterated the plan to file 2024 SEC reports, reflecting continued transition to become current following the 2023 filings completion .
• As of December 31, 2024, total cash, cash equivalents, and available-for-sale securities were approximately $75 million, with inventory of approximately $28 million; 2024 cash decreased by approximately $104 million, driven by non-ordinary course items including note repayment related to HDW, settlement timing of late-2023 securities purchase, and legal/restatement costs .
• 2023 results (filed March 26–27, 2025) show year-over-year improvement: total revenue $44.961 million (+5%), software revenue $17.775 million (+37%), net loss $(107.540) million (+34% improvement), and Adjusted EBITDA $(68.459) million (+42% improvement) .
• Management expects 2025 cash outflows to be “meaningfully lower” than 2024 and targets generating positive operating cash flow during 2026 (excluding non-ordinary activities), a medium-term catalyst once filings are current and normalized operating metrics are disclosed .

What Went Well and What Went Wrong

What Went Well

• Completed 2023 Annual Report and all 2023 Quarterly Reports less than four months after the 2022 restatement, marking “another major milestone” in becoming current with SEC obligations .
• 2023 operating discipline: total revenue +5% YoY to $44.961M, software revenue +37% YoY to $17.775M; net loss improved by $54.8M to $(107.540)M; Adjusted EBITDA improved by $50.1M to $(68.459)M .
• CEO David Lillis emphasized resilience through sales team overhaul and restatement disruption: “Despite the disruption… we increased total revenue year-over-year while simultaneously reducing our operating expenses by 24%… I am excited about what the future holds for Latch” .

What Went Wrong

• Liquidity drawdown: total cash, equivalents, and AFS securities fell approximately $104M in 2024 due to non-ordinary course activities (HDW note repayment ~$24M, $19M settlement timing on late-2023 securities purchase, and ~$24M legal/restatement/restructuring/acquisition costs) .
• Limited disclosure for Q4 2024: no quarterly revenue/EPS/margins provided; amounts noted were preliminary and unaudited, with full 2024 results deferred to future SEC reports .
• Continued legal and regulatory burdens: ongoing stockholder litigation, pending SEC investigation, and elevated cash outflows anticipated into 2025, constraining near-term financial flexibility .

Financial Results

Quarterly Comparison vs Estimates

Note: Latch did not disclose Q4 2024 revenue/EPS/margins; prior two quarters’ earnings materials were also not available in our document set. S&P Global consensus estimates were unavailable due to a CIQ mapping gap.

Liquidity and Inventory (Q4 2024 snapshot)

Annual Reference (to contextualize trajectory)

Guidance Changes

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was found in our document set.

Management Commentary

• “Despite the disruption… we increased total revenue year-over-year while simultaneously reducing our operating expenses by 24%… Our focus on balancing growth and operational discipline continued into 2024 and 2025… With the restatement now behind us, our priorities are getting current… maintaining operational excellence, and continuing to innovate…” — David Lillis, CEO (appointed Feb 6, 2025) .
• Non-GAAP framework: Adjusted EBITDA defined as net loss excluding stock-based comp, D&A, net interest, taxes, restructuring, non-ordinary legal/settlement, extinguishment of debt, fair value changes (derivatives, warrants, trading securities), and transaction-related expenses; reconciliations provided for FY 2022–2023 .
• Outlook tone: cautious on legal/SEC process yet constructive on 2025 cash outflow trajectory and medium-term path to positive operating cash flow in 2026 (excluding non-ordinary items) .

Q&A Highlights

• No Q4 2024 earnings call transcript available in our document set; management communicated via 8-K press releases focused on filings status, cash position, and 2023 performance .

Estimates Context

• S&P Global consensus estimates for Q2–Q4 2024 (revenue/EPS/EBITDA) were unavailable due to a CIQ mapping gap for LTCH in our SPGI tool; therefore, we cannot provide estimate comparisons for Q4 2024 at this time.

Key Takeaways for Investors

• Disclosure cadence remains atypical: Q4 2024 lacked standard quarterly revenue/EPS; investors should watch for the 2024 SEC filings to normalize reporting and enable conventional analysis .
• Liquidity contracted in 2024 due to discrete non-ordinary items; near-term focus is on reducing 2025 cash outflows and resolving legal/regulatory overhangs .
• 2023 fundamentals improved materially (revenue growth, lower net loss, significantly better Adjusted EBITDA), suggesting operating discipline that could translate once filings are current and non-ordinary costs subside .
• Medium-term catalyst: management’s target to achieve positive operating cash flow in 2026 (excluding non-ordinary items) could re-rate the equity if execution and disclosure stabilize .
• Strategic narrative under DOOR brand emphasizes AI-driven property management solutions; investor focus should be on product commercialization, customer adoption, and software revenue trajectory once regular reporting resumes .
• Watch the litigation/SEC investigation path: settlement costs and legal fees were material drivers of cash usage; favorable resolution and lower run-rate could materially improve free cash flow optics .
• Trading implications: near term likely driven by filing milestones (2024 reports), liquidity updates, and any guidance on normalized operating metrics; absence of quarterly detail increases event risk around filings and disclosures .