Life360, Inc. (ASX:360): How Subscription Growth and Advertising Reset Shape FY26 Guidance

Aditi Sarkar

12 November 2026 05:43 PM AEDT

Life360, Inc. (ASX:360): How Subscription Growth and Advertising Reset Shape FY26 Guidance

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Highlights

Life360 reported Q3 2026 Revenue of USD 174.1 million, up 40% year on year.
Global monthly active users reached 107.7 million following 5.3 million quarterly additions.
Paying Circles increased 26% year on year to approximately 3.4 million.
FY26 revenue guidance stands at USD 665–681 million, with revised segment expectations.
Advertising growth accompanied a lower consolidated gross Margin of 77%.

Life360, Inc. (ASX:360) operates a family connection and safety platform offering location sharing, driving-related features and tracking devices. Its unaudited September 2026 quarter results, released on 9 November, showed growth in users and subscription revenue alongside a changing mix of Advertising and hardware sales. The latest guidance also separates improving subscription expectations from a narrower outlook for advertising.

Subscription Members and Revenue Expand

Life360 (ASX:360) reported Q3'26 consolidated revenue of USD 174.1 million, compared with USD 124.5 million in Q3'25, representing 40% year-on-year growth. Subscription revenue reached USD 124.2 million, an increase of 29%, while core subscription revenue rose 32% to USD 119.9 million.

At quarter-end, Life360 (ASX:360) had approximately 107.7 million global monthly active users, 17% above the prior year, following 5.3 million additions during the quarter. Paying Circles, the company's measure of paying family groups, totalled about 3.4 million, up 26%. The quarterly net addition of 188,000 Paying Circles was a third-quarter record. Average revenue per Paying Circle increased 4% year on year, reflecting a shift towards higher-priced offerings and initial US pricing changes. International average revenue per Paying Circle increased 10%.

Advertising Mix and Quarterly Profitability

Advertising revenue rose 250% year on year to USD 25.4 million, primarily reflecting managed advertising growth following the Nativo acquisition. By contrast, hardware revenue declined 20% to USD 9.0 million, with unit shipments down 32% as the company exited physical retail distribution.

The expanded advertising mix affected profitability measures differently. Consolidated gross margin declined to 77% from 78% in Q3'25, mainly because advertising carried a lower gross margin following Nativo's addition. Subscription gross margin improved to 87% from 85%. Life360 (ASX:360) recorded adjusted EBITDA of USD 34.6 million, compared with USD 24.5 million a year earlier, with a reported adjusted margin of 20%.

Quarterly Net Income rose to USD 22.5 million from USD 9.8 million, although the latest figure included a USD 17.5 million gain from changes in Investment fair values. Operating cash inflow was USD 27.2 million. Cash, restricted cash and short-term investments together stood at USD 465.0 million at 30 September 2026.

Full-Year Guidance Reflects Different Business Trends

For FY26, Life360 (ASX:360) expects consolidated revenue of USD 665–681 million, compared with its earlier USD 650–685 million range. Subscription revenue guidance increased to USD 483–488 million from USD 475–480 million. Advertising guidance narrowed to USD 98–102 million from USD 98–115 million, removing the upper portion of its previous expectation.

The company also narrowed hardware revenue guidance to USD 35–40 million and raised other revenue guidance to USD 49–51 million. Its adjusted EBITDA forecast stands at USD 132–138 million, versus USD 130–140 million previously. Expected monthly active user growth remains 17–20%.

Product Direction and Execution Considerations

Life360 (ASX:360) has discussed making family information available to third-party artificial-intelligence agents, with members deciding whether their Circle information is shared. This represents a product direction rather than a quantified revenue contribution. The company also identified pending litigation and arbitration, macroeconomic developments, Acquisition integration and product performance among uncertainties relevant to forward-looking statements.

Key Insights

Life360 (ASX:360) entered the final quarter of 2026 with a larger user base, higher subscription revenue and an expanded advertising operation. The revised FY26 ranges indicate higher expected subscription revenue but a lower advertising ceiling than previously forecast. Reported net income also benefited from an investment valuation gain, while advertising mix reduced consolidated gross margin. Delivery against the remaining guidance depends on trading conditions and operational execution.

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