Life360 has reported a record-breaking third quarter in 2025, with significant growth in users, revenue, and profitability, while announcing a strategic acquisition to expand its advertising capabilities.
- Monthly active users reach 91.6 million, up 19% year-over-year
- Paying Circles hit an all-time high of 2.7 million with record net additions
- Total quarterly revenue grows 34% to $124.5 million
- Adjusted EBITDA soars 174% to $24.5 million
- Announces $120 million acquisition of ad tech company Nativo
Robust User and Revenue Growth
Life360, the family safety and connection app provider, has delivered an impressive set of results for Q3 2025, underscoring its expanding footprint in the mobile safety market. The company reported approximately 91.6 million monthly active users (MAUs), marking a 19% increase year-over-year. This growth was fueled by both U.S. and international markets, with international MAUs growing 24% and U.S. MAUs up 15%.
More notably, Life360’s paying customer base, measured in Paying Circles, reached a record 2.7 million, with net additions of 170,000 in the quarter; the highest ever recorded. This metric is critical as it directly correlates with subscription revenue, which climbed 34% year-over-year to $96.3 million.
Financial Strength and Margin Expansion
The company’s total revenue for the quarter hit $124.5 million, a 34% increase from the previous year, driven by strong subscription sales and growth in other revenue streams such as advertising partnerships. Life360 also highlighted a 33% rise in annualized monthly revenue to $446.7 million, reflecting sustained momentum.
Profitability metrics showed remarkable improvement. Adjusted EBITDA surged 174% to $24.5 million, supported by disciplined expense management and operational efficiencies. Operating cash flow was positive at $26.4 million, up 319% year-over-year, reinforcing the company’s robust cash generation capabilities.
Strategic Acquisition and Product Innovation
In a move to bolster its advertising technology and data monetization, Life360 announced an agreement to acquire Nativo, an ad tech company, for approximately $120 million in cash and stock. This acquisition is expected to enhance Life360’s ability to deliver contextually relevant advertisements leveraging its extensive first-party location data, potentially opening new revenue streams.
CEO Lauren Antonoff emphasized the company’s strategy to deepen family engagement beyond safety, citing the recent launch of Pet GPS tracking across multiple countries as an example of expanding product offerings. This diversification aims to keep families connected in more meaningful ways, driving further subscription growth.
Outlook and Market Implications
Reflecting confidence in its trajectory, Life360 raised its full-year revenue guidance to a range of $474 million to $485 million and adjusted EBITDA guidance to $84 million to $88 million, both upward revisions from prior forecasts. Despite some tariff-related cost pressures on hardware gross profit, the company has taken steps to mitigate these impacts going forward.
With a strong balance sheet, including $457.2 million in cash and equivalents, and a tenth consecutive quarter of positive operating cash flow, Life360 appears well-positioned to capitalize on growth opportunities and innovation in the family safety and connection space.
Bottom Line?
Life360’s record quarter and strategic acquisition set the stage for accelerated growth, but investors will watch closely for integration success and tariff impacts.
Questions in the middle?
- How will the Nativo acquisition integrate with Life360’s existing platform and revenue model?
- What impact will tariff-related hardware costs have on future margins despite mitigation efforts?
- Can Life360 sustain its strong subscription growth amid increasing competition in family safety apps?