Highlights
- Life360 shares declined 10.15% to USD 22.210 in latest session.
- FY25 revenue increased 32% year-over-year to USD 489.5 million.
- Monthly Active Users reached 95.8 million, up 20% YoY.
Shares of Life360 Inc ( ASX:360) traded at at USD 22.210, down 10.153% as on 03 March 2026, Trading volume reached 1,831,871 shares, with the bid-offer range between USD 22.190 and USD 22.210. The company’s market capitalisation stood at USD 5.93 billion.
The decline came despite the company reporting record financial and operating metrics for the fourth quarter and full year ended December 31, 2025.
Revenue Expansion and Profitability Milestones
For FY25, total revenue rose 32% YoY to USD 489.5 million compared to USD 371.5 million in FY24. Subscription revenue increased to USD 369.3 million from USD 277.8 million a year earlier. Annualized Monthly Revenue (AMR) climbed 30% YoY to USD 478.0 million.
Net income for FY25 was USD 150.8 million, compared to a net loss of USD 4.6 million in FY24. Excluding a one-time, non-cash tax benefit of USD 118.4 million, adjusted net income was USD 32.5 million. Adjusted EBITDA rose 105% YoY to USD 93.2 million, with margin expanding to 19% for the full year.
In Q4’25, revenue totalled USD 146.0 million, up 26% YoY. Adjusted EBITDA reached USD 32.4 million compared to USD 21.2 million in Q4’24, while quarterly margin expanded to 22%.
User Growth and Subscription Trends
Global Monthly Active Users (MAU) increased 20% YoY to approximately 95.8 million. U.S. MAU grew 16% YoY, while international MAU rose 26%. Q4’25 global net additions totalled 4.2 million users.
Paying Circles reached 2.8 million, up 26% YoY, with annual net additions of 576 thousand. U.S. Paying Circles grew 23%, while international subscriptions increased 32%.
Average Revenue per Paying Circle (ARPPC) rose 6% YoY to USD 139.54 in Q4’25. The increase reflected pricing changes and product mix adjustments across markets.
Margin Profile and Cost Structure
Gross profit for FY25 was USD 380.8 million, with gross margin improving to 78% from 75% in FY24. Subscription-only gross margin stood at 86% for the year.
Operating expenses for FY25 totalled USD 362.0 million, representing 74% of revenue, compared to 77% in the prior year. Research and development expenses increased 12% YoY in Q4, while sales and marketing costs rose 25%. General and administrative expenses increased 55% YoY during the quarter.
Cash Position and FY26 Outlook
Cash, cash equivalents and restricted cash at the end of Q4’25 stood at USD 495.8 million, compared to USD 160.5 million at the end of FY24. Operating cash flow for FY25 totalled USD 88.6 million.
For FY26, the company expects consolidated revenue between USD 640 million and USD 680 million, representing YoY growth of 31% to 39%. Adjusted EBITDA is projected between USD 128 million and USD 138 million, implying margin of approximately 20%.
Life360 Inc. shares declined more than 10% to USD 22.210 despite reporting record FY25 financial results. Revenue rose 32% YoY to USD 489.5 million, while MAU reached 95.8 million. Adjusted EBITDA increased 105% to USD 93.2 million. The company ended FY25 with USD 495.8 million in cash and guided for continued revenue growth in FY26.
FAQs
- Why did Life360 shares fall despite record earnings?
The share price declined 10.15% despite revenue growth, reflecting market reaction rather than reported financial performance alone.
- What were Life360’s key financial results for FY25?
FY25 revenue reached USD 489.5 million, with net income of USD 150.8 million and Adjusted EBITDA of USD 93.2 million.
- What is Life360’s revenue guidance for FY26?
The company expects FY26 revenue between USD 640 million and USD 680 million, alongside Adjusted EBITDA of USD 128–138 million.
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