revenue
650–685 $million
FY 2026
official guidance
Life360, Inc.
Last · NASDAQ$43.17+1.30 (+3.10%)stale · yahoo · 264h ago
Market cap$3.52B81.5M sh
P/E · TTM25.1fwd 24.2 · eps 1.72
Beta1.09vs S&P 500
Div yield—annual · TTM
52w range
$37.01$112.54
Volume609.8Ksession
| Revenue | $302.1M |
|---|---|
| Operating income | $-8.1M |
| Net income | $7.8M |
| Free cash flow | $41.0M |
| Operating margin | -2.7% |
| Net margin | 2.6% |
| Return on equity | 1.3% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Hold/watchlist rather than buy aggressively.
Q2 was strong—revenue rose 38% to $159.0 million, subscription revenue 31% to $115.6 million, Paying Circles 27% to 3.2 million, and adjusted EBITDA 53% to $31.1 million—but the quarter benefited from a $3.6 million tariff refund and the unchanged $130-$140 million EBITDA outlook implies substantial second-half execution. The core subscription engine is attractive, while advertising monetization and Pet GPS remain largely unproven and hardware gross profit is expected to be negative initially.
Themes
- Subscription Growth
- Maus
- Advertising Ramp
- Nativo Integration
- Pet Gps
- Ai Native
Near term
Q3 is the key validation quarter: management expects approximately 18% adjusted EBITDA margin as back-to-school marketing shifts into the period, while MAU growth must accelerate from the reported 16% year-over-year rate toward the company’s internal 20% trajectory.
Advertising is seasonally weighted to Q4, with management saying Q4 revenue is expected to be approximately double Q1; this creates material fourth-quarter forecast risk despite $22 million of Q2 advertising revenue.
The $2 price increase for new U.S. Silver and Gold subscribers is being implemented soon. It may lift ARPPC, but management explicitly limited the change to new subscribers and gave no quantified conversion or churn impact.
Pet GPS relaunch timing, availability after the production-line move, and adoption of the $99 annual Silver bundle will be important near-term catalysts, but management does not expect it to be a material revenue contributor in 2026.
Q4 adjusted EBITDA margin is expected to exceed 22%, versus approximately 18% in Q3; analyst questioning highlighted that the implied back-half margin requirement is demanding, even though management rejected the need to reach 30%.
Longer term
The subscription model continues to show strong operating leverage: Paying Circles grew 27%, ARPPC rose 5%, subscription gross margin reached 87%, and international subscription revenue grew 45%.
Advertising could become a meaningful second growth engine if Life360 converts its first-party, consented location data into repeatable performance budgets; management cited call-to-action rates up to 47% higher than third-party targeting and success in automotive, QSR, travel, and retail.
The Nativo integration and device graph are reportedly complete and in market, including coverage of close to 100% of the U.S. addressable ad market. This improves the strategic case, but the call did not quantify advertiser retention, pipeline conversion, take rates, or sustainable ad growth.
Pet GPS is being used as a customer-acquisition and subscription-retention tool rather than a hardware-margin business. That could increase lifetime value, but it requires accepting initial device-level losses and proving that bundled customers remain profitable over time.
The AI-native restructuring and Family AI Lab could improve personalization, conversion, engagement, and product velocity from 2027 onward, but management supplied no quantified productivity gains or margin benefit.
Expansion into pets, aging adults, Apple Watch, and international markets broadens the addressable opportunity, but each initiative adds execution complexity and requires evidence of incremental paid conversion rather than merely higher engagement.
Red flags
Management raised subscription guidance but kept total revenue and EBITDA guidance unchanged because advertising seasonality creates elevated risk; this is a direct signal that the Q4 advertising ramp is doing substantial work in the plan.
Q2 adjusted EBITDA margin was lifted by roughly three percentage points from the tariff refund, which management had expected later in the year. Excluding that benefit, hardware gross margin would have been approximately 7%, and Pet GPS is expected to generate an initial device gross profit loss.
Analysts pressed management on the MAU recovery and implied second-half cadence. Management said the business was back on its glide path but described Q2 as performance according to plan rather than a clear outperformance, and did not provide monthly MAU figures.
The implied second-half EBITDA progression remains aggressive: Q3 margin guidance is approximately 18%, while Q4 must be materially above the prior-year 22% margin to support full-year guidance. Management did not quantify the exact Q4 margin or bridge the assumptions in detail.
Advertising gross margin was only 57% in Q2 because of managed-service traffic acquisition, technology, hosting, personnel, and data costs. The expected 65%-70% normalization by Q4 is a management framework, not demonstrated steady-state economics.
Operating expenses rose 43%, including R&D up 47% and G&A up 57%. Management expects AI-related operating leverage over time, but analyst questions on R&D, SBC, and 2027 margins elicited no numerical framework beyond Q2 SBC being the highest quarter of 2026.
Management gave no exact target for further free-to-paid conversion improvement despite calling the AI monetization engine a major driver, leaving the size and durability of this opportunity unquantified.
The company claims insulation from location-data regulation because its data is first-party and consented, but the response was categorical and did not quantify possible state-by-state compliance costs, opt-out rates, or advertiser limitations.
Forward outlook
revenue
475–480 $million
FY 2026
official guidance
revenue
35–45 $million
FY 2026
official guidance
revenue
98–150 $million
FY 2026
official guidance
revenue
42–45 $million
FY 2026
official guidance
ebitda
130–140 $million
FY 2026
official guidance
ebitda
18–18 pct
Q3 2026
official guidance
ebitda
—
Q4 2026
official guidance
gross margin
65–70 pct
Q4 2026
management framework
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$0.17
Est. revenue
156.7M
Earnings transcripts
Documents
FormReporting forFiledFlags