Life360 Q1 revenue rises on subscription growth

Overview

• US family safety app's Q1 revenue rose 38% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q1 beat consensus, up 7% yr/yr

• Gross margin declined to 77% from 81% due to product mix and hardware discounts

Outlook

• Life360 raises FY'26 consolidated revenue guidance to $650 mln-$685 mln from $640 mln-$680 mln

• Company increases FY'26 subscription revenue forecast to $470 mln-$475 mln from $460 mln-$470 mln

• Life360 expects revenue growth acceleration in H2 2026, driven by subscriptions and advertising

Result Drivers

• SUBSCRIPTION GROWTH - 27% increase in Paying Circles and 7% higher average revenue per Paying Circle, driven by product mix shift to higher-priced offerings, especially internationally

• ADVERTISING PLATFORM - 329% rise in advertising revenue, primarily from growth in managed advertising after Nativo acquisition

• HARDWARE REVENUE DECLINE - 49% drop in hardware revenue due to fewer units shipped and increased discounts linked to exit from brick-and-mortar retail

Company press release: ID:nGNX7xCcB

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Life360 Inc is $65.15, about 47.9% above its May 8 closing price of $44.05

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 41 three months ago

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