8-K: DOOR Files 2024 SEC Reports, Reports Strong Revenue Growth

DOOR, formerly Latch, Inc., filed its 2024 SEC reports, showcasing significant revenue growth and improved financial performance while continuing efforts to become current with SEC obligations.

Summary

• Filed Annual Report on Form 10-K for the year ended December 31, 2024, and Quarterly Reports on Form 10-Q for the periods ended March 31, 2024, June 30, 2024, and September 30, 2024.
• Software revenue increased by 14% year-over-year to $20.3 million in 2024.
• Total revenue grew by 26% year-over-year to $56.6 million in 2024.
• Operating expenses were reduced by 31% year-over-year, an improvement of $38.2 million in 2024.
• Net loss improved by 46% year-over-year to $(57.6) million in 2024.
• Adjusted EBITDA improved by 41% year-over-year to $(40.7) million in 2024.
• Preliminary, unaudited total revenues for the nine months ended September 30, 2025, are estimated to have increased by at least 20% compared to the same period in 2024.
• Preliminary, unaudited Liquid Assets (cash, cash equivalents, and available-for-sale securities) were approximately $44.1 million as of September 30, 2025.
• Liquid Assets decreased by approximately $31.3 million from December 31, 2024 ($75.4 million) to September 30, 2025 ($44.1 million).
• Approximately $15.6 million of outflows from December 31, 2024, to September 30, 2025, were attributed to legal fees and settlements ($8.9 million), professional service fees for 2023 SEC reports ($3.3 million), and restructuring activities ($3.4 million).
• The company has a $6.0 million term loan maturing on July 15, 2029.

Sentiment

Score: 7

Explanation: The company shows strong operational improvements and revenue growth, both in 2024 and preliminary 2025. While still incurring losses and facing legal/regulatory costs, the significant reduction in cash burn and progress on SEC filings are positive indicators. The ongoing legal and SEC issues, and the preliminary nature of 2025 data, temper the sentiment slightly.

Positives

• Significant year-over-year increase in software revenue (14% to $20.3 million) and total revenue (26% to $56.6 million) in 2024.
• Substantial reduction in operating expenses by 31% ($38.2 million) in 2024, demonstrating operational discipline.
• Improved net loss by 46% to $(57.6) million and Adjusted EBITDA by 41% to $(40.7) million in 2024.
• Estimated preliminary, unaudited total revenues for the first nine months of 2025 increased by at least 20% year-over-year, indicating continued growth momentum.
• Experienced a significant reduction in cash outflows during Q2 and Q3 2025, after a larger outflow in Q1 2025.
• Anticipates total cash outflows from operating and non-recurring activities to be meaningfully lower in 2025 compared to 2024.
• Filed all 2024 SEC reports (10-K and 10-Qs), marking a key milestone towards regaining current SEC reporting status.

Negatives

• Remains in a net loss position of $(57.6) million and negative Adjusted EBITDA of $(40.7) million for 2024.
• Liquid Assets decreased by $31.3 million from December 31, 2024, to September 30, 2025, to $44.1 million.
• Incurred significant non-recurring expenses totaling $15.6 million for legal fees, settlements, professional services for prior SEC reports, and restructuring activities.
• Elevated expenses related to stockholder litigation and an ongoing SEC investigation are expected through the remainder of 2025.
• The company is not yet current with its 2025 SEC filing obligations.
• The total amount of current and non-current liabilities (beyond the $6.0 million term loan) cannot be determined until the company becomes current with its SEC filing obligations.
• Preliminary 2025 financial information is unaudited and subject to material change, cautioning investors against undue reliance.

Risks

• The company's ability to implement its business plans and achieve revenue forecasts.
• Unexpected delays, difficulties, or expenditures.
• Factors outside of the company's control.
• Ongoing stockholder litigation and a pending SEC investigation, which are incurring significant legal fees and settlements.
• The preliminary, unaudited 2025 financial estimates may differ materially from actual results.
• The company is not yet current with its 2025 SEC filing obligations, which could have implications.
• The total amount of certain liabilities is currently undeterminable.

Future Outlook

DOOR anticipates continued momentum and a strong finish to 2025, with preliminary, unaudited total revenues for the first nine months of 2025 estimated to have increased by at least 20% year-over-year. The company expects total cash outflows from operating and non-recurring activities to be meaningfully lower in 2025 compared to 2024, despite elevated expenses related to stockholder litigation and the SEC investigation through the remainder of 2025. The company is diligently working to complete its 2025 SEC filings and expects to update its corporate name and stock symbol from Latch, Inc. (LTCH) to DOOR at a later date.

Management Comments

• "I am incredibly proud of our team's performance, as we delivered strong top-line growth while demonstrating significant operational discipline."
• "In 2024, we increased total revenue by 26% and decreased operating expenses by 31%, resulting in a 41% year-over-year improvement in our Adjusted EBITDA."
• "These results underscore the strength and discipline of our team as we navigated a pivotal phase of the business."
• "With our transition to DOOR well underway, we are focused on driving continued innovation, operational excellence, and sustainable growth across our expanding customer base."
• "For the nine months ended September 30, 2025, we estimate that DOOR's total preliminary, unaudited revenues increased by at least 20% compared to the same period in 2024."
• "This consistent growth demonstrates the maturity of our business model and the growing demand for our platform. It positions DOOR for continued momentum and a strong finish to 2025."

Industry Context

The company's focus on 'Building Intelligence' combining hardware, software, and automated services aligns with broader industry trends towards smart building technology, IoT integration, and operational efficiency in real estate. The reported revenue growth and operational improvements suggest a positive response to its platform in a competitive market for property technology solutions.

Legal Proceedings

• Ongoing stockholder litigation, which incurred approximately $8.9 million in legal fees and settlements from December 31, 2024, to September 30, 2025.
• Pending SEC investigation, which also contributed to the $8.9 million in legal fees and settlements.
• Elevated expenses related to stockholder litigation and the SEC investigation are expected through the remainder of 2025.

Stakeholder Impact

• Shareholders: Benefit from improved financial performance (revenue growth, reduced losses, lower cash burn) and progress towards SEC compliance, which could lead to increased transparency and potentially a re-listing on a major exchange. However, they face risks from ongoing litigation, SEC investigation, and the preliminary nature of 2025 financial data.
• Employees: The operational discipline and focus on innovation suggest a stable or growing environment, but restructuring activities (which incurred $3.4 million in outflows) indicate past or ongoing workforce adjustments.
• Customers: Continued innovation and growth in the 'Building Intelligence' platform suggest ongoing product development and support.
• Creditors: The $6.0 million term loan and other liabilities are noted, with the total amount of liabilities not yet fully determinable, which could be a concern. The improved cash outflow trend is positive for debt servicing.

Next Steps

• Complete SEC filings for 2025.
• Update corporate name from Latch, Inc. to DOOR.
• Update stock symbol from LTCH.
• Drive continued innovation, operational excellence, and sustainable growth.
• Provide finalized comprehensive financial position in connection with becoming current with SEC filing obligations.

Key Dates

Recommendation

The company demonstrates strong operational improvements and revenue growth in 2024, with preliminary 2025 data suggesting continued positive momentum. Progress towards becoming current with SEC filings is a crucial step. However, the company still operates at a net loss and negative Adjusted EBITDA, faces ongoing significant legal and regulatory costs, and its 2025 financial data remains unaudited and preliminary. The uncertainty surrounding the full extent of liabilities and the outcome of legal/SEC matters warrants a 'hold' position until more definitive and audited 2025 results are available and the legal/regulatory overhang is resolved.

Keywords

DOOR, Latch, LTCH, SEC Filings, 10-K, 10-Q, Financial Results, Software Revenue, Total Revenue, Net Loss, Adjusted EBITDA, Cash Position, Liquid Assets, Corporate Governance, Risk Management, Building Intelligence, Smart Building Technology, Operational Excellence, Growth Strategy