Life360 Inc. reported fourth‑quarter 2025 results that surpassed analyst expectations, with total revenue of $145.98 million—up 26% year‑over‑year—and earnings per share of $1.51, a beat of $1.22 to $1.38 against consensus estimates ranging from $0.13 to $0.29.
The revenue mix reflected a robust subscription engine and a rapidly growing advertising and data segment. Subscription revenue reached $102.5 million, up 30% YoY, while core Life360 subscriptions grew 33% to $97.3 million. Other revenue—comprising advertising and data services—jumped 86% to $24.2 million, and hardware revenue fell 19% to $19.3 million, reflecting a shift away from Pet GPS sales that are being priced to gain market share.
Gross margin for the quarter was 75%, an improvement over the 75% margin reported in Q4 2024, driven by the higher mix of high‑margin subscription and advertising revenue. The decline in hardware revenue partially offset the margin expansion, but the company’s cost‑control program and pricing power in its core services helped maintain healthy profitability.
For fiscal 2026, Life360 guided revenue of $640–$680 million, a range that is slightly below the consensus estimate of $651.9–$643.1 million. The guidance reflects management’s confidence in continued growth of its subscription base and the monetization of its advertising platform, while acknowledging the need to balance investment in product innovation with margin expansion.
CEO Lauren Antonoff highlighted the company’s milestone achievements: "2025 was a landmark year for Life360. For the first time in company history, we achieved annual net income of over $32 million, even excluding a one‑time non‑cash tax benefit, reflecting both the fundamental strength of our freemium model and the operating discipline we’ve built over the past several years." She added, "Full year revenue grew 32% to nearly $490 million, adjusted EBITDA more than doubled to over $93 million and we exited the year with more than 95 million monthly active users and 2.8 million Paying Circles." CFO Russell Burke noted, "Advertising in particular creates high incremental margins as it scales in the second half, partly related to seasonality, but also importantly leveraging our existing infrastructure and user base."
Investors reacted cautiously to the guidance, noting that while the company’s current performance was strong, the slightly lower revenue outlook for 2026 raised concerns about the pace of future growth. The market’s mixed response underscores the importance of the company’s strategic focus on subscription expansion and advertising monetization as it navigates competitive pressures and margin dynamics.
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