Life360 Stock Earnings Reports

Life360 reported strong Q1 results with total revenue up 38% year-over-year to $143.1M driven by subscription growth and a newly scaled advertising business. Subscriptions reached $108.2M (up 32%) with paying-circle growth of 27% and ARPPC at an all-time high. Advertising revenue (first time disclosed separately) was $19.7M, boosted by the Nativo acquisition, and the company expects a steep ad revenue ramp into the back half of the year. MAU growth was +17% YoY but was temporarily suppressed in Q1 by technical issues (fraud-detection partner change and Android/lower-end device onboarding problems); management expects recovery and to be back on plan by Q3 and guides full-year MAU growth of 17–20%. Life360 raised full-year revenue guidance to $650M–$685M and raised adjusted EBITDA guidance to $130M–$140M (~20% margin). Gross margin dynamics: overall 77% (vs. 81% a year ago) with subscription gross margin steady at 87%, ad gross margin initially ~60% with an expected normalization toward ~70% as scale improves, and hardware margins negative in the near term due to Pet GPS pricing and Tile retail exit costs. Management highlighted AI as a strategic priority—R&D restructuring to become AI-native and reported >50% developer productivity gains from AI adoption—anticipating long-term operating leverage and faster feature delivery. Pet GPS demand is strong (sell-outs and high free-side pet profile creation); inventory/manufacturing being scaled for a summer relaunch. Capital allocation: management acknowledged investor interest in buybacks but is balancing growth investments and integration needs; will consider buybacks as part of a balanced approach. Overall, the company reiterated its longer-term targets (>$150M MAU, $1B revenue, >35% adjusted EBITDA margins) and emphasized that Q1 issues delay but do not change the trajectory.