Life360’s Hardware Revenue Declines Amid Subscription and Ad Growth
Life360’s Q1 2025 results reveal robust revenue growth, expanding profitability, and a bullish outlook for FY 2025, driven by a scalable freemium model and international expansion.
- Q1 2025 revenue up 32% year-over-year to $103.6 million
- Adjusted EBITDA rises to $15.9 million with 15% margin
- Global monthly active users grow 26% to 83.7 million
- Subscription revenue climbs 33%, supported by price increases and paying circle growth
- Advertising and data partnerships nearly double other revenue
Strong Q1 Performance Highlights
Life360, the family safety and location-sharing app, reported a strong start to 2025 with first-quarter revenue reaching $103.6 million, marking a 32% increase compared to the same period last year. This growth was underpinned by a 33% rise in subscription revenue, which now accounts for the lion’s share of the company’s income. The company’s adjusted EBITDA expanded significantly to $15.9 million, reflecting a 15% margin and demonstrating effective operating leverage despite increased expenses.
Expanding User Base and Monetization
Life360’s global monthly active users (MAUs) surged 26% year-over-year to 83.7 million, fueled by organic growth and international expansion. Paying circles, the company’s key subscription metric, grew 26%, supported by strategic price increases across multiple markets including the U.S., United Kingdom, Australia, and Canada. This pricing power, combined with a shift toward higher-value subscription tiers, contributed to an 8% increase in average revenue per paying circle globally.
While hardware revenue declined 13% due to fewer bundled offerings and increased discounting, other revenue streams nearly doubled, driven primarily by advertising and data partnerships. Life360 has begun to capitalize on its large free user base through targeted advertising and data monetization, establishing initial infrastructure to build this revenue stream further.
Strategic Growth and Market Positioning
The company’s freemium model continues to prove powerful, leveraging network effects and high user engagement to drive subscription conversions and advertising opportunities. Life360’s positioning as a comprehensive family safety platform, with features ranging from location sharing and crash detection to roadside assistance and identity theft protection, creates a competitive moat in a fragmented market.
International penetration remains a key growth lever, with markets outside the U.S. showing accelerated adoption and monetization. The company’s rollout of Triple Tier subscription offerings in high-income international markets is boosting average revenue per paying circle and expanding its global footprint.
Outlook and Long-Term Ambitions
Looking ahead, Life360 projects full-year 2025 revenue between $450 million and $480 million, with adjusted EBITDA expected to reach $65 million to $75 million. The company aspires to become the number one brand for everyday family life, targeting over 150 million monthly active users and annual revenue exceeding $1 billion in the longer term. This ambition is supported by continued investment in product innovation, international expansion, and diversified monetization strategies including advertising and partnerships.
Bottom Line?
Life360’s Q1 momentum and diversified growth strategy set the stage for sustained expansion, but execution risks remain as it scales internationally and builds new revenue streams.
Questions in the middle?
- How will Life360 balance subscription price increases with user retention in competitive markets?
- What is the potential scale and profitability of Life360’s emerging advertising and data monetization initiatives?
- How effectively can Life360 expand beyond its core U.S. market amid diverse international regulatory and competitive landscapes?