Life360’s Hardware Revenue Decline and Nativo Acquisition Pose Strategic Questions
Life360 reported a robust Q3 2025 with 34% revenue growth and a significant jump in adjusted EBITDA, while advancing its advertising platform through the planned acquisition of Nativo and expanding into pet tracking services.
- Q3 2025 revenue up 34% year-over-year to $124.5 million
- Adjusted EBITDA surged 174% to $24.5 million, achieving a 20% margin
- Global paying circles grew 23% to approximately 2.7 million
- Planned acquisition of Nativo to enhance advertising capabilities
- Raised FY 2025 guidance with expected revenue of $474–485 million and adjusted EBITDA of $84–88 million
Strong Financial Momentum
Life360, the family safety and location-sharing app, delivered a compelling Q3 2025 performance, reporting revenue of $124.5 million, a 34% increase compared to the same period last year. This growth was primarily driven by a 37% rise in core subscription revenue, reflecting the company’s success in expanding its paying user base and increasing monetization per subscriber.
Adjusted EBITDA, a key profitability metric excluding certain non-cash and non-operational items, soared by 174% to $24.5 million, representing a healthy 20% margin. This margin expansion underscores Life360’s ability to leverage operating efficiencies while scaling its subscription and advertising revenues.
Expanding User Base and Monetization
The company’s global paying circles; essentially paying family groups; grew 23% year-over-year to about 2.7 million, while monthly active users reached 91.6 million globally, up 19%. Life360’s freemium model continues to fuel organic growth, with a strong retention rate that outperforms many social media peers, reflecting the app’s daily utility and family-centric value proposition.
Life360 also reported a 33% increase in annualized monthly revenue, now standing at $446.7 million, highlighting the steady conversion of free users to paid subscribers and the impact of recent price increases in the U.S. and international markets.
Strategic Expansion into Advertising and Pet Tracking
Beyond subscriptions, Life360 is aggressively developing new revenue streams. The company is advancing its advertising platform with the planned acquisition of Nativo, a move expected to bring a seasoned sales team, premium advertiser relationships, and advanced ad technology. This acquisition aims to transform Life360’s ad offering into a full end-to-end platform, enhancing monetization of its highly engaged user base.
Additionally, Life360 launched a new pet tracking product and the Pet Finder Network, expanding its addressable market into the growing pet wearables segment. This diversification aligns with Life360’s strategy to meet family needs at every life stage and broaden its premium service offerings.
Raised Guidance Reflects Confidence
Reflecting its strong operational momentum, Life360 raised its full-year 2025 guidance. The company now expects consolidated revenue between $474 million and $485 million, up from prior estimates, and adjusted EBITDA of $84 million to $88 million, signaling confidence in continued profitability improvements.
Operating expenses grew modestly but declined as a percentage of revenue, demonstrating disciplined cost management amid growth investments. Hardware revenue saw a slight decline due to increased discounts, but this was offset by robust subscription and other revenue streams, including advertising and data partnerships.
Global Growth and Market Opportunity
Life360’s international expansion is gaining traction, with triple-digit growth in paying circles in key markets such as the UK, Australia, and Canada. Despite trailing U.S. penetration rates, international markets represent a substantial runway for growth, supported by tailored membership tiers and localized pricing strategies.
With a unique combination of family safety, location sharing, and digital services, Life360 is carving out a defensible niche in a competitive landscape. Its strong brand, high user engagement, and expanding monetization avenues position it well for sustained growth.
Bottom Line?
Life360’s Q3 results and strategic moves set the stage for accelerated growth, but investors will watch closely how the Nativo acquisition integrates and how hardware softness evolves.
Questions in the middle?
- How will the integration of Nativo impact Life360’s advertising revenue and margins?
- Can Life360 sustain its subscription growth amid increasing competition and price hikes?
- What is the long-term potential and profitability outlook for the new pet tracking segment?