LIF - NASDAQ
Life360, Inc.
LIF·NASDAQ
$46.21
+0.63%TechnologySoftware - Application
Life360, Inc. operates a technology platform to locate people, pets, and things in North America, Europe, the Middle East, Africa, and internationally. The company provides Life360 mobile application under the freemium model, which offers its services to users at no charge; and provides Life360 Platform, which offers location coordination and safety, driving safety, digital safety, and emergency assistance services. It also provides tile hardware tracking devices to locate lost devices sold through online and brick and mortar retail channels, as well as directly through Tile.com; tile mobile application that includes a free service, as well as two paid subscription options, such as Premium and Premium Protect to offer additional services, including warranties and item reimbursement; Jiobit subscriptions; and Jiobit wearable location devices for young children, pets, and seniors primarily in the United States through online retailers. The company was formerly known as LReady, Inc. and changed its name to Life360, Inc. in October 2011. Life360, Inc. was incorporated in 2007 and is headquartered in San Mateo, California.
At a Glance
Live SnapshotMarket Cap$3.74B
EPS1.9500
P/E Ratio23.70
Earnings Date08/10/2026
Earnings Call Transcript
LIF • 2026 • Q1
Lauren Antonoff
To everyone in the U.S., and good morning to those joining from Australia. Thank you for joining the call. We're doing something a little different this quarter with shorter remarks so we can get to more Q&A. The letter we shared provided a lot of detail, so I wanna take a couple of minutes to reinforce a few key points. I wanna talk about what's propelling our strong financial results and why I'm confident in our trajectory. I also wanna spotlight our advertising business, which has long been a glimmer in our eye and is finally at a scale where it's becoming a significant part of our business. I wanna touch on our progress in learning on AI. First, our strong revenue growth is a clear reflection of what makes Life360 so special. Life360 is in a rare position.
Lauren Antonoff
We've become a meaningful part of everyday family life for more than 97 million people who use Life360 to keep their families safe and connected. The trust families place in us is a genuinely differentiated asset, one that grows and compounds day after day because of the real value we deliver around safety, coordination, and connection. It's the foundation and fuel for every part of our business. The momentum we have in subscriptions, advertising, and partnerships all flows from it. Every quarter we ask ourselves, are we increasing the value we deliver to families, and are we seeing that value compound in our results? The answer to both of those questions in Q1 is yes. This trust and value translated into outstanding Q1 revenue growth of 38% to $143 million.
Lauren Antonoff
We delivered the most quarterly subscription net adds ever, bringing us to three million Paying Circles. ARPPC is at an all-time high. These aren't one quarter anomalies. They're the result of a flywheel that's continually getting stronger. Better product drives higher conversion and retention. Those improved economics fund more investment, and more investment makes the product better. The value we deliver to our members powers our monetization engine. Let me take a moment on monthly active users. Q1 MAU growth came in at 17% year-over-year. That's solid growth, but below where we plan to be due to a series of technical issues that temporarily suppressed registration volume during the peak of Q1 marketing. After fixing a widespread issue that impacted new signups, we uncovered additional Android specific problems disproportionately affecting lower-end devices.
Lauren Antonoff
The latter took longer to resolve, but was largely concentrated in populations that don't materially impact revenue today. We've implemented the major fixes, put systems in place to quickly catch problems in that part of the funnel should they ever arise again, and we're still finding opportunities for improvement. Recovery won't happen in a single quarter, but even with pressure on registration, our monetization through the funnel has remained strong. What I really wanna convey is that demand never faded and engagement continues to deepen. When we look at the underlying data, the story is clear. Google Trends searches for Life360 were up over 40% during the affected period. Our most penetrated U.S. states continued to increase their penetration consistent with previous years. Our iOS segments, which drive the vast majority of our revenue, recovered and are growing well.
Lauren Antonoff
The U.K. is growing at 25%, Canada at 32%, and Australia and New
Lauren Antonoff
Our real-world first-party family data is unique, impossible to replace with a synthetic model, and it's what turns relevant reach into measurable results. With the completion of the Nativo acquisition, advertising revenue has reached critical scale, and the promise we've seen for some time has become real. We broke out advertising revenue for the first time with nearly $20 million in Q1, and we expect a steep ramp over the next few quarters as we enter peak advertising season. Over the long term, we continue to expect advertising to rival the scale of our subscription business, powered by our unique audience and real-time, real-world data. Now that we've integrated Nativo, our location data activates not just inside Life360, but across over 20,000 publisher sites and connected TV, extending our reach from under 20% of U.S. ad eligible adults to over 95%.
Lauren Antonoff
With world-class buy side tools, sell side infrastructure, and data intelligence, we can reach relevant audiences in the moments that matter and allow advertisers to clearly see when a campaign drives real world behavior from store visits to test drives, all while keeping the data private within our walled garden. What that means in practice is that brands like Starbucks can reach families in a real moment near a store on a Saturday morning, then close the loop to see whether that impression drove a visit. Uber likes our results enough to deepen their product integration with us. Parents will soon be able to call an Uber for their teen and see the trip live all inside Life360.
Lauren Antonoff
Brands like these wanna work with us because of the trust we build with the families they serve and because we can close the loop between ad targeting and customer behavior. Experiences like these enrich the value that we deliver our members and propel the flywheel that drives member value and monetization. That's why we see so much potential in our ads business. Finally, I wanna touch on AI. I want to address this directly because it doesn't yet show up in the financials, it will shape how we operate and compete for years to come. We see AI as a critical opportunity to accelerate our path and deepen our moat. The vision for Life360 has always been bigger than location sharing. We're working to become the go-to app for everyday family life across every life stage.
Lauren Antonoff
AI empowers us to take insights based on real relationships, location history, and behavioral patterns across our enormous membership base and make that vision a reality. Our real-time continuous data becomes even more valuable in an AI-first world. In April, we restructured our R&D organization as a first step toward becoming an AI native company, where AI handles more of the execution work and our people direct, decide, and are accountable for outcomes. What we see clearly now is that AI doesn't just help work get done faster, it fundamentally changes how work gets done. Becoming AI native demands deeper changes in how roles and organizations are defined and aligned. We believe that companies that go AI native will compound that advantage over time. We're still early in our AI journey, but strong adoption across our engineering organization has increased developer productivity by over 50% from last year.
Lauren Antonoff
That velocity lets us do more and unlocks high-value features that would have previously required unrealistic levels of manual effort. As our AI implementation matures, Life360 becomes the easiest way to orchestrate everyday family life, compounding value for our members and our business. Those were the points that I wanted to highlight for Q1. Looking forward, the setup into the back half of the year is strong. Revenue acceleration, margin expansion, and MAU growth all point in the same direction. We've got some exciting updates and product innovations in store for H2, including an action-packed back to school and the next phase of our push into families and aging parents. We continue on the path to exceed 150 million MAU, a billion in revenue, and over 35% adjusted EBITDA margins. Q1 reinforced our confidence in that path.
Lauren Antonoff
The MAU headwinds slowed us a bit, but the trajectory remains unchanged. With that, I'll ask Russell to share a bit more detail on our performance and outlook.
Russell Burke
Thanks, Lauren. Q1 delivered strong financial results across our core business, and there are some important cost structure dynamics that are worth walking through. All figures are unaudited and in U.S. dollars. Total revenue grew 38% to a record $143.1 million. Subscription revenue grew 32% to $108.2 million, with core subscription up 36%, driven by 27% Paying Circles growth and 7% higher ARPPC. U.S. subscription revenue grew 28% and international grew 58%. Advertising revenue was $19.7 million, up 329%, boosted by the Nativo acquisition. This revenue stream is now disclosed as a separate line. Hardware revenue was $4.5 million, down as expected, given our strategic exit from brick-and-mortar retail for Tile. Other revenue grew 30% to $10.7 million.
Russell Burke
March AMR reached a record $517.9 million, up 32% year-over-year. Gross margin was 77% versus 81% in Q1 last year. The difference reflects three distinct dynamics across our revenue lines. Subscription gross margin held at 87% in line with last quarter. Advertising gross margin was 60%. As the Life360 advertising business broadens following the Nativo acquisition, we're introducing a wider suite of products that carry higher costs than pure digital advertising. Advertising gross margin will improve as the platform scales and should normalize towards 70% as revenue scales in the higher margin back half. Lastly, hardware margin was negative as we priced Pet GPS for adoption and absorbed brick-and-mortar retail exit costs. Operating expenses were $118.6 million, up 46%.
Russell Burke
R&D grew 29%, reflecting Nativo headcount and platform investments, as well as AI investments that are already accelerating our delivery pace. Sales and marketing grew 62%, driven by the increase in growth media spend, higher App Store commissions, and personnel costs associated with our newly enlarged sales organization. Our upper funnel investment, such as streaming Super Bowl and Winter Olympics commercials, is oriented towards brand awareness, which offers longer-term payoffs. Even with these investments, we expect to resume our march to increasing operating leverage by Q4. The April organizational reshaping affected a small group of employees. Rather than backfilling certain roles, we're allocating that investment towards AI native capabilities and workflow redesign. The net financial impact should be neutral to 2026 and is fully reflected in our guidance. We expect operating leverage from AI to then begin to impact and compound thereafter.
Russell Burke
GAAP net income was $2.8 million, with basic and diluted EPS at $0.03. Adjusted EBITDA was $17.1 million at a 12% margin, reflecting the front-loading of our investment cycle, as discussed last quarter. Operating cash flow was $17.2 million, positive for the 12th consecutive quarter. We ended the quarter with $459 million in cash equivalents, restricted cash, and short-term investments, and total assets exceeding $1 billion. On guidance, we're updating our full-year financial outlook. We're raising total revenue guidance to $650 million-$685 million, up from $640 million-$680 million. This is driven by subscription revenue, which we now expect to be between $470 million and $475 million, up from $460 million-$470 million.
Russell Burke
Full-year guidance for the rest of the business is unchanged, with advertising revenue now disclosed separately and expected to be $98 million-$115 million. Hardware revenue of $40 million-$50 million, and other revenue of $42 million-$45 million. We're raising adjusted EBITDA guidance to $130 million-$140 million, up from $128 million-$138 million, representing approximately 20% margin. A few modeling points worth noting for our 2026 outlook. Revenue and margin are back-half weighted, driven by advertising seasonality concentrating in the second half, integration costs and brand investment front-loaded in the first half, and lower hardware revenue as we complete the retail exit. Q1 advertising revenue accounts for approximately 18% of our expected full-year total, with Q4 representing approximately double that of Q1. Operating costs for the advertising platform are largely fixed.
Russell Burke
Beginning in Q1, we took on incremental quarterly operating costs from adding nearly 125 personnel and new ad tech operations related to the acquisition, while revenue and profit contribution are back-half weighted. This is the primary driver of first-half to second-half margin progression. It's why Q4 2026 adjusted EBITDA margin is expected to exceed the 22% that we delivered in Q4 2025. The financial setup into the back half is strong. Revenue acceleration, margin expansion, and MAU trends are all pointed in the same direction. We look forward to demonstrating that in the quarters ahead. RJ, back to you for Q&A.
Lauren Antonoff
Thanks. The first thing that's important to understand is that we've fully integrated our Nativo team into the Life360 Ads team. They function as one team and one business. We are pounding the pavement in the ad circuit, attending the key conferences, continuing to reach out to both the customer base that Nativo and Life360 had cultivated over time. We're seeing a lot of enthusiasm for the combined offering. We're off to a good start.
Lauren Antonoff
Okay. Let me unpack this a little. In Q1, we saw the suppression of the funnel that really impacted certain segments more than others, and that is the Android-heavy markets and, in general, the lower-end devices. When we sort of pull apart and look at the performance of our premium devices, iOS devices and high-end Android devices, we're already seeing really strong momentum. As we look into Q2 and we see a lot of the problems that we saw in Q1 start to recover, although that's still ongoing through some of Q2, we see a return to similar levels of ads that we've had in previous Q2s.
Lauren Antonoff
Yeah, I'll add a couple of things. You know, even as this has been ongoing, we're seeing increased demand, we're seeing increased user retention. We're seeing a lot of great signals in the fundamentals. The problem that we've been contending with is pretty narrow and we put fixes in place and new monitoring, and we feel good about getting back on that glide slope by Q3.
Lauren Antonoff
The issues that we've seen are sort of a cluster of issues. That first issue that we detected was a broader impact that affected traffic coming into Life360 as a whole. When we repaired that issue, it's when we sort of uncovered that there was remaining issues, particularly in Android and particularly with lower-end devices. There were a few very specific issues that we have fixes in place for, and those fixes went in, you know, in between late Q1 and Q2. Those are already seeing good progress. The thing that this work has really helped us understand is that, you know, very much not all MAU is created equally, and there's an opportunity to look at those lower-end devices and continually improve performance among those cohorts.
Lauren Antonoff
Let me take the partnership one first, and then Russell will get back to you on his earlier comment. One of the interesting things about the ads business is, and this is something we learned as we started getting in, is that customers want to start small and then grow. That was a real challenge for us before Nativo because we just didn't have the capacity or frankly the platform to be able to do these initial tests and get to know partners and sort of prove what our platform can do with them. Now with Nativo, we're able to engage in partnerships, and we are starting on that journey with Starbucks and many other partners.
Lauren Antonoff
That is helping us get going, and those accounts will build over time. Uber is really in a great example of how partnerships grow and blossom over time. That is a bigger deal. We're not disclosing specific numbers, but that relationship is growing both in terms of the value that it provides our members and the economics that it returns to the business.
Lauren Antonoff
Yeah. I can give you some examples. The first that I mentioned is technology that we use to make sure that there isn't fraud in traffic coming into Life360. It's very helpful to prevent fraud, there was a technical change made by the partner that we provide, it started to catch more legitimate traffic as well as fraudulent traffic. That was sort of like the first problem that we resolved and fixed. When we did that fix, we saw strong improvement in iOS, we didn't see the same recovery in Android, that was really the signal that there was a unique set of problems impacting Android. These particular problems are things that caused problems with people just getting started and onboarding into the app.
RJ Jones
Thanks, Chris. Next, we'd like to open up to Nitin Bansal from Bank of America. Nitin, are you on the line, and could you unmute and ask the question?
Nitin Bansal
Hi. Thank you for taking questions. On the user, U.S. user growth side, can you help us understand, like, which regions or demographic cohorts contributed most meaningfully to the user additions in 1Q? As we look ahead for the remainder of the year, where do you still see, like, the largest white space opportunities for growth within U.S.? And what do you believe will are the key levers that could drive deeper penetration in those under-penetrated markets? Thank you.
Lauren Antonoff
Okay. Growth in Q1 is pretty broad within the U.S. It's not necessarily one segment. The key thing that we're seeing is that the premium devices are growing much more strongly than the Android devices that were impacted by the technical problems that we had. In terms of opportunities, we see two things. Historically, we've had stronger growth in regions where cars are really important. Our car value props resonate really well. One of the things we've been doing, one of the enhancements that's come out and been increasing in the app over the last couple of quarters, is our awareness of other modalities. Riding bikes, walking, and soon trains. That is helping us appeal to demographics where we haven't been as popular. I'm hopeful that we'll see New York come up at some point.
Lauren Antonoff
When we look at growth within our most penetrated states, the states that are doing well, we do see a real continuation of the momentum that we have there. You know, this is layering on to strong growth in our best regions, the ability to go after regions where the driving value props aren't as strong. The other opportunity, of course, are the less premium devices. States where Android is more popular, where there's a higher propensity of lower-end devices. We expect as we improve those things, not only international markets will benefit, but it'll also benefit the U.S.
Nitin Bansal
Thank you.
Russell Burke
James, I think what we said is conversion has improved fairly dramatically and we've been talking for a while about the impact of our marketing efforts and how they've been very successful in, you know, really getting to people with a greater propensity to convert to subscription. Now, that's part of it. The member experience that Lauren referred to earlier is definitely part of it. You know, so that is all building in terms of conversion. When we look at the, you know, the MAU growth sort of to connect the two, our growth has not slowed down at all in those higher premium devices that are the ones that are more likely to convert. All of that is sort of driving a, you know, higher conversion and all the way through to the Paying Circles growth that we're seeing.
Lauren Antonoff
We're seeing a little bit of both. We're definitely seeing new customers with a higher propensity to come in.
RJ Jones
Thanks, James. We'd like to open up to Stephen Ju from UBS. UBS, excuse me. Stephen, can you unmute your line and ask a question?
Stephen Ju
Yes, Sir. Thank you. Wondering if you can update us on the state of the elderly segment product development. Secondarily, whether there's anything you can share about the type of advertisers who are showing up to your platform, whether they are performance advertisers or more the upper funnel, brand advertisers? Thank you.
RJ Jones
Lauren, can you pick one? Which one would you prefer?
Lauren Antonoff
I wanna talk about Aging Parents.
RJ Jones
Yeah. Aging Parents, there we go. We're gonna move that one to later in the queue.
Stephen Ju
Okay.
Lauren Antonoff
Okay. On Aging Parents, I'm incredibly excited about the opportunity that we have to expand to serve more families at more life stages. We're laying those foundations with Aging Parents today. We're starting to make changes in the core product that make it a better fit for those parents. We have more work lined up both in the back half of the year and years to come. The key thing here is that as we expand into things like Pet GPS and Aging Parents, it's really important that we're disciplined and that we're doing it well and that we're seeing it through. You'll see us double down on Pet GPS later this year. Not just improving Pet GPS, but really looking at the whole pet ecosystem from our free customer to our subscriber customers and partnerships.
Lauren Antonoff
We're making sure that we're following through with that so we can scale a really healthy part of our business and not just move on too quickly. We are laying the foundation with aging parents, and you will see more this year, but that will build over the next few years.
RJ Jones
Thanks, Stephen.
Stephen Ju
Thank you. Thank you.
Lauren Antonoff
Yeah, great. We're really excited about the momentum that we're seeing in Pet GPS. You know, first on the free side, we're seeing something like 120,000 new customers, or new pet profiles created every week, really great momentum there. Of course, you know that we've sold out, at least in the U.S., we've sold out of our Life360 Pet GPS pretty quickly. We've moved that manufacturing to a new location, and we are retooling and getting ready to build up or getting the inventory ready to relaunch in the summer. We're excited about that progress there. In terms of what we're seeing, one thing that's interesting is that a lot of the customers that are pet customers are free teenage families.
Lauren Antonoff
A lot of them are earlier in their life cycle than the typical Life360 family. That's helping us think about how we wanna shape those offers. One of the things that we've been doing in Q1 is a lot of price testing. I know a lot of you have observed a lot of different prices and different mechanisms by which we're selling this. That insight that a lot of these customers are early in the journey, it means some of the things in the current lineup are more or less appealing to them at different layers of the tiering, and that's informing how we're going to go to market in Q3.
Lauren Antonoff
It's hard for me to compare exactly, you know, one campaign to another. I would say we continue to see really good performance of our advertising. You know, we're very much focused on demand creation, on building What we talk about is building an iconic brand and getting, making it so that more people understand our brand, when they encounter us, they're more likely to join and eventually convert. We're really happy with the overall progress in that, we are teeing up new campaigns. I will say we are more likely to lean into that after we've sort of gotten through this little wave of the technical suppression on our registration. I feel like it was frustrating to me that, you know, during the height of our Q1 marketing we were facing these technical issues. As we come out of that, we'll lean back into our marketing.
Russell Burke
Andrew, we've also talked about this year our plan is to spend more in international territories and again, where we've talked about our sort of focus territories, particularly Brazil and Mexico and Germany. And we're really sort of laying out, you know, the campaigns and going to support the go-to-market in those territories.
RJ Jones
Thanks, Andrew. We'd like to open up to Andrew Gillies. Andrew, can you unmute your line and ask a question? Andrew Gillies, Macquarie.
Lauren Antonoff
Come back to it.
Lauren Antonoff
Okay. The first question was Remind me what the?
RJ Jones
I think it's about fraud.
Lauren Antonoff
Okay. I'll take that one first. What happens here is when traffic is coming in, we were not getting some of those customers. Those particular customers that may have come in and been turned away, we don't magically get them back. What we do is we repair that, and this part has already been fixed. We sort of repair that problem so that as new traffic is coming in, and hopefully some of those same people return again. As new traffic is coming in, that part of the funnel performs healthy again. Repeat the question for me.
RJ Jones
AI for families, AI initiative. That was the question, I believe.
Lauren Antonoff
I'll separate those two things. Just in general, the Paying Circles conversions, we expect to continue to hold strong and improve over time. The way that AI is really impacting Paying Circles conversion today is more about feature discovery than about those new capabilities. That's the way it's driving Paying Circles conversion and growth today. What we're doing now with AI is starting to weave it into features so that we use more intelligence about what people are doing to make new features that help orchestrate family life. I would like to give the example of carpool, which is one of those crazy times in every parent's life. What are the things we can do if we know who's nearby and what people's schedules are to inform those kind of things.
Lauren Antonoff
Those kind of AI capabilities will play out over a long time horizon, but the kinds of ways that we're using AI today to get the right message to the right people are already having a positive impact in the business.
RJ Jones
Thanks, Siraj.
Lauren Antonoff
There were a lot of questions there. I hope I answered them.
RJ Jones
Next, we'd like to go to Andrew Gillies. Andrew, if you could unmute your line and ask a question.
Andrew Gillies
Hi, guys. Can you hear me?
RJ Jones
Yes.
Andrew Gillies
Perfect. Thank you. Just a quick question on Nativo and the relationships you've got there. That's very core to the business and the growth story. How have the retention dynamics been? Are there any opportunities there, and effectively just a bit of an update would be great.
Lauren Antonoff
Overall, the Nativo business or what was the Nativo business is holding strong, and a lot of people who have long been customers there are looking to do more with us now that we have a broader offering and more capabilities, especially on the measurement side. We see a real opportunity to increase performance there. There were, you know, maybe one or two customers who were with Nativo that aren't necessarily a great fit, one customer in particular that sees us as competitive. For the most part, customers have decided to double down and are looking for new ways they can expand their relationship now that we're one company.
Andrew Gillies
Thank you very much.
Lauren Antonoff
Yeah. Chris is building a small team within the company. It's not a huge number of headcount. Of course, they're fortified with AI, so they'll punch above their weight. The nice thing about being a startup within a broader company is that we can start to harness some of the benefits of the work that they're doing sooner, even if some of the work that they're doing takes longer to play out. They also benefit from learning and progress that we're making in the rest of the company. It's not the same as being a fully, you know, on your own isolated startup.
Lauren Antonoff
Chris and I have a pretty good relationship set up around this, where they're really free to push the limits and do whatever it is they think is really going to get us to that next level of meeting families' needs. We have a sort of a way that we evaluate that to decide what goes into production from that based on a couple of gates that we set up. It's pretty exciting.
Russell Burke
Wei, that small resource that's being allocated there is, you know, considered as within our guidance for the year.
Lauren Antonoff
He's good.
Russell Burke
In terms of the progression of subscription revenue over the course of the year, you know, we do expect similar levels of growth. You know, when you look at it on a period by period comparison, as we maintain that sort of percentage revenue growth, we're really getting more and more volume there. You know, that I think it's sort of fair assumption that we maintain that growth over the year. You know, in terms of the capital management side, you know, there's a few things that we need to consider.
RJ Jones
Thanks, Eric. All right, that concludes our questions. Lauren, I'll turn it over to you to sign off.
Transcript from May 11, 2026
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