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Unless the context otherwise requires, references in this subsection to we, our, Latch, DOOR and the Company refer to the business and operations of Latch, Inc. and its consolidated subsidiaries. Overview Latch is a technology company delivering an integrated ecosystem of hardware, software and services designed to enhance operations and experiences within buildings, primarily serving the multi…
The business is unprofitable at the operating level (-75.19% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue up 23.8% YoY with margins expanding 29.7pp.
ROIC dropped from -27.96% to -45.02%, capital efficiency is deteriorating. Negative free cash flow of -$36M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$70M
▲ +23.8% YoY
Net Income (TTM)
-$48M
▲ +6.7% YoY
Op. Margin
-67.44%
▲ +29.7pp YoY
ROIC
-48.14%
▼ -17.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$31M
▲ +52.8% YoY
Op. Cash Flow (TTM)
-$31M
▲ +52.4% YoY
Net Debt
-$24M
Net Cash Position
Cash & Equiv.
$29M
3Y CAGR: +17.7%
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