Latch, Inc.

OTCPK:LTCH Stock Report

Market Cap: US$32.9m

Latch Dividends and Buybacks

Dividend criteria checks 0/6

Latch does not have a record of paying a dividend.

Key information

n/a

Dividend yield

n/a

Buyback Yield

Total Shareholder Yieldn/a
Future Dividend Yieldn/a
Dividend Growthn/a
Next dividend pay daten/a
Ex dividend daten/a
Dividend per sharen/a
Payout ration/a

Recent dividend and buyback updates

No updates

Recent updates

Seeking Alpha • Oct 05

Latch, Inc. Is Worth More Dead Than Alive

Summary The spectacular decline in high-growth stocks have yielded a number of interesting net-net situations, including Latch, Inc. A conservative estimate of Latch's liquidation value is $1.17 a share, or as much as $1.38 in a best-case liquidation scenario. The stock could be worth much more than liquidation value if management gets lucky with controlling costs as sales are extremely strong. The spectacular decline in growth stocks has presented investors with some interesting net-net opportunities, and Latch, Inc. (LTCH) is certainly one of them. Once labelled by Chamath Palihapitiya as the best SaaS company he's ever seen, the stock now sells for less than cash net of all liabilities after falling a spectacular 91.39% over the past 12 months as of the time of writing. The stock represents an interesting opportunity for net-net investors. Made famous by Benjamin Graham in his 1932 Fortune Magazine article, a net-net situation arises when a company's stock sells below liquidation value. Latch along with a handful of other growth companies find themselves in that situation today. A Look at Latch's Q1 Balance Sheet Latch has a high-quality balance sheet (Latch, Inc. 10-Q) The two most important figures here are the cash and cash equivalents plus available for sale securities on one side, and the total liabilities on the other. You can see that the company is worth $262 million based on the cash it has net of all liabilities. With 142 million shares outstanding at the end of the quarter, that would equate to a liquidation value of approximately $1.85, more than double the current price. The Wrinkle in Latch's Balance Sheet Almost half of total liabilities are comprised of deferred revenue. That would have been good news if the company is profitable. In Latch's case, however, it means the company will spend even more to realize that revenue. Obviously, some of what it will spend will be deducted from inventories and prepaid expenses and wouldn't affect the liquidation value. However, for the sake of conservatism, let's assume the company will expense these costs out of the cash it has on hand. Looking at the income statement of Q2, the company lost $50.6 million on $13.7 million in revenue. Of that, $36.4 million were cash expenses. Applying the same margin to deferred revenue of $35.7 million, the increase in total liabilities would be $94.9 million. This lowers the liquidation value to $167.1 million, or $1.17 a share. As I've mentioned there is upside to that number based on how much of the expenses come out from other assets like inventory and prepaid expenses, in addition to any potential improvement from management's cost-cutting initiatives. There is also an upside from collecting receivables. The company has accounts receivable of $29 million, with an additional $2.8 million in doubtful accounts. The quarterly showed that the company recovered $350k during the quarter, so there is potential to recover more in future quarters. But focusing solely on the $29 million in account receivables, the sum would represent a significant boost to the liquidation value if the company can collect them. In this best-case scenario, the liquidation value could jump to $196.1 million or $1.38 a share. This represents an upside of 50% There is an Empty Half of the Glass for Latch's Story The company has already failed to file its second quarter 10-Q which is an ominous sign. This means that the figures discussed in this article might have changed dramatically. Also, the management team has been selling stock according to SEC Filings. I haven't been able to find an open-market purchase by any member of the management team, which hardly inspires confidence. But The Glass is Also Half Full Despite its troubles, Latch is still growing revenue almost triple digits. Its gross margins on the software side are a whopping 89%. The company simply faces the problem many other smaller companies face as a result of disrupted supply chains and inflation. These issues have meant it couldn't improve its gross margin profitability on the hardware side. While I personally wouldn't understand why a management would continue to sell a product it loses on when liquidity is looking like an issue, the fact the product is growing this strongly should count for something. The company cut more than 30% of the workforce. Also, supply chain and inflation-related issues will not last forever. If these issues are resolved in time, there is potential for multi-bagger returns and not just the 25-50% return mentioned in this article This is also a net-net situation after all so no investor should have an assumption that holding the stock will be a breeze. At the end of the day, Latch is a relatively small company with $50 million. Almost every company, regardless of how invincible it may be today, has faced a similar challenge to what Latch is facing today. So just because it seems like the company faces an uphill battle today, doesn't mean it is doomed to fail. Having said that, it is my opinion that no investor should concentrate into net-net stocks. They work best as a portfolio due to the high bankruptcy risk. In my personal experience, most net-nets I've seen work was because they were either liquidated or because they got lucky with their turnaround efforts. However, the absolute majority of net-nets I have come across burned through their cash and the stock ended up languishing lower than when it first became a net-net. That is why it is better to buy net-nets as a portfolio. It's the few winners that will more than make up for the losers. Ben Graham described investing in net-nets better than I ever will: I consider it a foolproof method of systematic investment--once again, not on the basis of individual results but in terms of the expectable group outcome.
Seeking Alpha • Sep 13

Latch to provide NYC apartment residents with WeWork membership subscriptions

Latch (NASDAQ:LTCH), which makes an operating system for buildings called LatchOS, on Tuesday said it had entered into a partnership with workspace provider WeWork (NYSE:WE). Under the collaboration, certain residents in New York City that live in Latch-enabled buildings will be provided with WeWork's monthly membership subscription called WeWork All Access, LTCH said in a statement. The program will be available at select apartment buildings in New York City, with plans to expand throughout the metro area and, eventually, nationwide. Latch (LTCH), through its operating system, connects building services and residents and allows apartment dwellers to perform actions such as unlock their spaces, access building amenities, control smart home devices and schedule deliveries. Shares of LTCH initially jumped more than 20% in premarket hours, but pared all the gains and slipped into the red amid a broader market slump after trading started. LTCH stock was last down 1.2% at $1.23 in mid-day trading, while class A shares of WeWork (WE) were -8% at $3.97.
Seeking Alpha • Aug 15

Latch receives non-compliance notification from Nasdaq for delay in filing quarterly report

Latch (NASDAQ:LTCH) received a letter from the Listing Qualifications Department of The Nasdaq that it did not comply with the listing rule related to filing of quarterly report on Form 10-Q  for the quarter ended June 30, 2022 by the required due date. On Aug.10, the company had notified the SEC of its inability to file the report. The company has been granted time until Oct.10, 2022 to submit a plan for regaining compliance; if plan is approved it will be granted extension of up to 180 calendar days from the due date to regain compliance. The notification has no impact on the listing of shares or warrants.
Seeking Alpha • Jul 03

Making Buildings More Secure Is Leaving Latch Poorer

Latch is growing quickly, but at a significant cost. The company's cash burn is quickly consuming existing cash and equivalents. With Latch servicing just one percent of the market for access control and building software, growth should continue to be strong. Proptech firm Latch (LTCH) helps buildings become more secure. The company does this through a smart access system named LatchOS, a combination of hardware and software that manages who gains access to a building. With revenue for the New York-based company rapidly ramping, its bulls argue that Latch is opening up clear market leadership on the back of a strong technology stack. With LatchOS being used in more than 1 in 10 newly built U.S. apartments, this argument likely rings true. The company counts many large real estate development firms as partners, including AvalonBay (AVB), Brookfield (BAM), and Toll Brothers (TOL). The market for access control and building software is growing, with a number of public firms like SmartRent (SMRT) and private startups such as Dwelo and BeHome247 all competing for market share. Latch's management has placed this market at $54 billion in the United States, with an estimated 47 million rental homes. With LatchOS currently serving less than one per cent of this figure, the company's management has guided for significant revenue growth ahead. An ambition to fully capitalize on this market drove the company to go public in June 2021 with a merger with a Tishman Speyer blank check company. The transaction was completed at a $1.56 billion valuation, and Latch raised gross proceeds of $453 million from a long investor list that included Social Capital's Chamath Palihapitiya. Data by YCharts Latch's common share prices have since collapsed by 92% as growth stocks fell alongside a market pullback of historic proportions. Inflation running at multi-decade highs has forced the FED to become extremely hawkish in their roadmap for raising interest rates, bringing an end to an era of cheap liquidity. However, with Latch recording revenue of just $13.7 million for its last reported earnings period, its go-public valuation of $1.56 billion was always a stretch. Bears point to the extreme euphoria and excess of the SPAC market boom of early 2021, when Latch initially announced it would go public, as a critical factor in embedding overly optimistic revenue multiples to technology-related upstarts. The good times were never meant to last, hence Latch's public adventure presented an inherent exit for its private investors and a terrible deal for its early public backers. Cash Burn Rising As Revenue Ramps The company last released earnings for its fiscal 2022 first quarter, which saw total revenue come in at $13.7 million, a 106% increase from the year-ago period but a miss by $350,000 on consensus estimates. Software accounted for 22% of total revenue and grew by 88% year-over-year, as annual recurring revenue grew by 137% to reach $7.9 million. Latch Inc The company sees hardware sales as a loss-leader for higher-margin software sales. Indeed, sales of its physical locks were completed at a -21% gross margin during the quarter, compared to a gross margin of 89% for its software sales. However, and perhaps most alarming, net loss for the period grew to reach $44.2 million, up from $38.1 million in the year-ago quarter. This came as operating expenses grew by 61.5% from its year-ago figure. Negative free cash flow during the quarter was at $44.5 million, up from a cash burn of $14.6 million in the comparable year-ago period. This meant cash and equivalents continued its decline, reaching $264 million at the end of the quarter. With no real debt on its balance sheet, Latch's enterprise value stands at -$100 million, materially lower than its current market cap of $163.73 million. A negative enterprise value is rare and highlights just how much sentiment towards the company's stock has collapsed.
Seeking Alpha • Apr 13

A Hard Look At Latch Inc.

Today, we put Latch Inc. in the spotlight for the first time. The company is seeing impressive revenue growth, but recently lowered forward guidance and is seeing considerable cash burn. A full investment analysis follows in the paragraphs below.
Analysis Article • Mar 01

Time To Worry? Analysts Are Downgrading Their Latch, Inc. (NASDAQ:LTCH) Outlook

Today is shaping up negative for Latch, Inc. ( NASDAQ:LTCH ) shareholders, with the analysts delivering a substantial...
Analysis Article • Feb 27

Latch, Inc. (NASDAQ:LTCH) Analysts Are Cutting Their Estimates: Here's What You Need To Know

There's been a major selloff in Latch, Inc. ( NASDAQ:LTCH ) shares in the week since it released its yearly report...
Seeking Alpha • Jan 20

Latch: An Intelligent Speculation In Real Estate Tech

Latch designs smart building hardware and software for apartments and office buildings. The hardware is a loss leader for the recurring high margin software revenue. Latch has experienced triple-digit revenue growth and has a large amount of bookings, giving the company some visibility on future revenue. The company is led by its four founders and has a variety of experiences and skillsets on the management team. The warrants, which expire in June 2026, seem to be mispriced and could provide huge returns if the company continues on the same trajectory.
Seeking Alpha • Oct 20

Latch: Use This Key Piece Of Data Before You Buy

Latch is a young company with a great recurring revenue business model. The company's revenue and earnings figures are negatively impacted by construction delays and supply shortages. Long-term investors should analyze specific survey data before purchasing shares.

Stability and Growth of Payments

Fetching dividends data

Stable Dividend: Insufficient data to determine if LTCH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LTCH's dividend payments have been increasing.

Dividend Yield vs Market

Latch Dividend Yield vs Market
How does LTCH dividend yield compare to the market?
SegmentDividend Yield
Company (LTCH)n/a
Market Bottom 25% (US)1.4%
Market Top 25% (US)4.3%
Industry Average (Software)0.9%
Analyst forecast (LTCH) (up to 3 years)n/a

Notable Dividend: Unable to evaluate LTCH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LTCH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate LTCH's payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LTCH has not reported any payouts.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/15 21:07
End of Day Share Price 2026/05/15 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Latch, Inc. is covered by 11 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Joseph VruwinkBaird
Mark SchappelBenchmark Company
Justin AgesBerenberg