Life360 Posts 32% Revenue Growth to $489.5M, Adjusted EBITDA Doubles

Record Growth Across Key Metrics

Life360, the family safety and connection app, reported a standout 2025 with record-breaking financial and operational results. The company’s monthly active users (MAU) surged 20% year-over-year to approximately 95.8 million, while paying subscribers, known as Paying Circles, expanded 26% to 2.8 million. This growth was fuelled by strong conversion rates and strategic price increases, particularly in the U.S. and international markets.

Subscription revenue was the primary driver, rising 30% year-over-year to $369.3 million, complemented by other revenue streams including advertising and partnerships, which nearly doubled. Hardware revenue saw a slight decline due to pricing pressures but remains an important part of Life360’s ecosystem.

Profitability Milestone and Operational Efficiency

For the first time in its history, Life360 achieved full-year net income, reporting $150.8 million, boosted by a significant one-time, non-cash tax benefit. Adjusted EBITDA more than doubled to $93.2 million, reflecting improved operating leverage and disciplined cost management despite increased investment in growth initiatives.

Operating expenses rose 25% year-over-year but remained a stable proportion of revenue, underscoring the company’s focus on balancing growth with efficiency. The company ended 2025 with a strong cash position of nearly $496 million, bolstered by convertible notes issuance and robust operating cash flow.

Strategic Expansion and AI-Driven Innovation

Life360’s 2025 was marked not only by financial milestones but also by strategic moves to broaden its platform. The launch of Pet GPS devices across five global markets and acquisitions of Fantix and Nativo have expanded Life360’s capabilities into location-based advertising and a full-stack advertising platform. These moves position Life360 as a multi-engine business combining subscription and advertising revenue streams.

The company is also deepening its AI integration, with over 95% active AI adoption across the organisation. This AI-first approach aims to enhance user experience and operational execution, leveraging real-world location data to build a competitive moat.

Outlook: Accelerating Growth and Margin Expansion

Looking ahead, Life360 projects continued momentum with 2026 revenue guidance between $640 million and $680 million, representing up to 39% growth. Subscription revenue is expected to grow by up to 27%, while other revenue streams, including advertising, are forecast to more than double. Adjusted EBITDA margins are targeted to expand to around 20%, with profitability weighted towards the second half of the year due to strategic investments.

The company’s ambitious goals include surpassing 150 million MAU and $1 billion in annual revenue, underpinned by its evolving multi-engine platform and AI capabilities. Investors will be watching closely to see how Life360 balances growth investments with margin expansion in a competitive and fast-evolving market.