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SEC filingLatch, Inc. posted FY2025 results marked by year-over-year revenue growth and narrowed operating losses, as management prioritized cost discipline and liquidity preservation.
FY2025 revenue grew 23.8% year-over-year to $70.1M, while gross profit increased 7.4% year-over-year to $26.9M, resulting in a gross margin of 38.3% for the period. Margin pressure stemmed primarily from higher compensation expenses tied to reduced capitalization of internally developed software costs, plus increased software license expenses. These headwinds were partially offset by lower hardware costs, driven by supply chain management efficiencies and reduced unit costs linked to prior-year inventory impairments.
Operating loss narrowed 11.3% year-over-year to $52.7M for FY2025, with net loss also narrowing 6.7% year-over-year to $53.7M and diluted EPS improving 8.1% year-over-year to -$0.34. These improvements are consistent with management’s stated focus on cost discipline across all business functions, as the company works to reduce operating cash burn while supporting core product and go-to-market activities.
The company faces operational risks related to inventory forecasting errors, which could lead to supply shortages that increase production costs or excess inventory that pressures gross margins. It also faces potential regulatory, litigation and breach-related risks that could result in unexpected costs, lost customers or reduced revenues in future periods.