Life360 Delivers Record Q1 Result as Paying Circles, Revenue and Advertising Momentum Accelerate

About Life360 Inc

Life360 Inc (ASX: 360) is a family connection and safety company listed on both the Nasdaq and ASX. Its mobile app and hardware tracking devices help families stay connected with people, pets and belongings through services such as location sharing, safe driver reports, crash detection and emergency dispatch. The company serves users across more than 180 countries and had approximately 97.8 million monthly active users at the end of March 2026.

Revenue growth remained strong

The headline result showed a business continuing to scale at a rapid pace. Total revenue increased 38 per cent year-on-year to US$143.1 million, up from US$103.6 million in the prior corresponding period. Subscription revenue remained the core driver, increasing 32 per cent to US$108.2 million, while core subscription revenue rose 36 per cent to US$103.5 million.

This matters because Life360’s core subscription business remains the foundation of the company’s earnings model. The result was supported by a 27 per cent increase in Paying Circles and a 7 per cent increase in Average Revenue Per Paying Circle. That combination suggests Life360 is not only adding more paying users, but also generating more revenue from each paying group.

Other revenue also contributed to growth, increasing 30 per cent to US$10.7 million. The company said this was supported by higher data revenue from increased data volumes, as well as growth in partnership revenue. Hardware revenue was the one softer area, falling 49 per cent to US$4.5 million, mainly due to fewer net hardware units shipped and the strategic exit from the brick-and-mortar retail channel.

User growth continued across key markets

Life360’s user metrics were a clear strength in the quarter. Global Monthly Active Users increased 17 per cent year-on-year to approximately 97.8 million, with 1.9 million net additions during the quarter. U.S. Monthly Active Users increased 14 per cent to 51.8 million, while international Monthly Active Users increased 20 per cent to 46.0 million.

The UK, Australia-New Zealand and Canada region was particularly strong, with Monthly Active Users increasing 26 per cent to 12.5 million. Other international markets also grew, rising 18 per cent to 33.5 million users. This shows Life360 is becoming less dependent on the U.S. market alone, with international growth continuing to broaden the platform’s reach.

Paying Circles also grew strongly. Global Paying Circles increased 27 per cent to 3.0 million, supported by 201,000 net additions during the quarter. U.S. Paying Circles increased 24 per cent, while international Paying Circles rose 32 per cent. The UK, Australia-New Zealand and Canada region recorded 30 per cent growth in Paying Circles, while other international markets increased 34 per cent.

Advertising became a larger growth driver

One of the most important developments in the result was the scale-up of advertising revenue. Life360 disclosed advertising revenue separately for the first time, with revenue increasing 329 per cent year-on-year to US$19.7 million. The company said this was primarily driven by growth in managed advertising revenue following the acquisition of Nativo.

This is important because advertising provides Life360 with an additional growth engine beyond subscriptions. The company is now building a broader monetisation model around its large user base, first-party location data and family-focused platform. While subscriptions remain the core business, advertising is becoming a material contributor to revenue growth.

However, advertising also affected margins. Gross margin declined to 77 per cent from 81 per cent in the prior corresponding period, partly due to the inclusion of a broader range of advertising products with different margin profiles after the Nativo acquisition. Hardware discounts and returns connected to the retail channel exit also weighed on gross margin.

Expenses increased as the company invested for growth

Operating expenses rose 46 per cent year-on-year to US$118.6 million, increasing to 83 per cent of revenue compared with 79 per cent a year earlier. Research and development costs rose 29 per cent, sales and marketing costs increased 62 per cent, and general and administrative expenses increased 43 per cent.

The increase reflects Life360’s investment phase. The company pointed to higher personnel-related costs, the acquisition of Nativo, increased growth media spend, higher app store commissions and integration costs. While expense growth outpaced revenue growth in the quarter, the company still delivered positive adjusted EBITDA and operating cash flow.

Adjusted EBITDA increased 7 per cent to US$17.1 million, compared with US$15.9 million in the prior corresponding period. Adjusted EBITDA margin was 12 per cent, down from 15 per cent, reflecting higher investment and the changing revenue mix. Net income was US$2.8 million, compared with US$4.4 million a year earlier.

Cash generation and balance sheet remained solid

Life360 generated US$17.2 million of operating cash flow in the quarter, up 42 per cent year-on-year. Cash, cash equivalents, restricted cash and short-term investments totalled US$459.0 million at quarter-end, up US$288.6 million from the prior corresponding period.

The company ended the quarter with cash, cash equivalents and restricted cash of US$352.9 million, down from the previous quarter due to the acquisition of Nativo and purchases of short-term investments. Investing activities used US$163.6 million, mainly due to short-term investment purchases and the acquisition. Even so, the broader liquidity position remains strong and gives Life360 capacity to continue investing in growth.

FY26 guidance was upgraded

Life360 increased its FY26 revenue guidance to US$650 million to US$685 million, representing expected year-on-year growth of 33 per cent to 40 per cent. This was up from the previous range of US$640 million to US$680 million. Subscription revenue guidance was increased to US$470 million to US$475 million, while hardware revenue, advertising revenue and other revenue guidance were unchanged.

Adjusted EBITDA guidance was also increased to US$130 million to US$140 million, up from the previous range of US$128 million to US$138 million. The company expects an adjusted EBITDA margin of approximately 20 per cent for FY26, with earnings weighted more heavily to the second half due to investment timing and seasonality.

Outlook

Life360 appears to be entering the rest of FY26 with strong operating momentum. User growth remains healthy, Paying Circles are expanding, core subscription revenue is rising and advertising is becoming a more meaningful contributor. The upgraded FY26 guidance also suggests confidence in second-half acceleration.

The main positives are the strength of the subscription base, rapid international growth, strong operating cash flow and the early scale-up of advertising. The main risks are higher operating expenses, lower hardware revenue, margin pressure from advertising mix and the need to successfully integrate acquisitions while maintaining growth.

Overall, Life360 delivered a strong first-quarter result, with record metrics across several key areas. The company remains in investment mode, but its growing user base, expanding subscription revenue and emerging advertising platform suggest the business is building momentum into the second half of FY26.