Key Highlights

  • Life360 reported Q2 2026 revenue of US$159.0 million, up 38% year on year, and adjusted EBITDA of US$31.1 million.
  • Monthly active users reached about 102.4 million and paying circles reached 3.2 million.
  • FY26 subscription revenue guidance was raised to US$475 million to US$480 million, while hardware guidance was reduced.

Life360 Inc (ASX:360) shares were priced at $19.90 during the trading session on 19 October 2026, down 2.36%. Life360 operates a family connection and safety mobile application and is listed on both NASDAQ and the ASX. On 10 August 2026, the company released unaudited financial results for the second quarter ended 30 June 2026, including user metrics, revenue by category, cash flow and updated full-year guidance. The price data relates only to the 19 October 2026 session and is separate from the release date.

Second quarter financial results

All figures are in US dollars. Total revenue was US$159.0 million, up 38% year on year. Subscription revenue was US$115.6 million, up 31%, and core subscription revenue was US$111.1 million, up 34%. Advertising revenue was US$22.0 million, up 315%. Annualised monthly revenue was US$537.2 million, up 29%.

Adjusted EBITDA was US$31.1 million, up 53% from US$20.3 million, at a margin of 20%. Net income was US$5.1 million, compared with US$7.0 million in the prior year quarter. Operating cash flow was US$23.8 million, up 79%, and cash, restricted cash and short-term investments totalled US$467.7 million.

User and customer metrics

Global monthly active users were approximately 102.4 million, up 16%, with net additions of 4.6 million in the quarter. In the US, monthly active users were 54.0 million, up 14%, and international users were 48.4 million, up 20%.

Paying circles reached 3.2 million, up 27%, with 185 thousand net additions in the quarter. Average revenue per paying circle was US$142.56, up 5%, which the company linked to a shift towards higher-priced offerings. Net hardware units shipped fell 18% year on year to about 0.7 million, which the company linked to its exit from the brick-and-mortar retail channel and lower online retail volumes.

Updated FY26 guidance

Life360 expects FY26 consolidated revenue of US$650 million to US$685 million, representing growth of 33% to 40%. Subscription revenue guidance was increased to US$475 million to US$480 million from US$470 million to US$475 million. Hardware revenue guidance was reduced to US$35 million to US$45 million from US$40 million to US$50 million.

Advertising revenue guidance remains US$98 million to US$115 million and other revenue guidance remains US$42 million to US$45 million. Adjusted EBITDA guidance is unchanged at US$130 million to US$140 million, and monthly active user growth is expected to be 17% to 20%, weighted to the second half.

Additional operating metrics

Total subscriptions were 3.7 million, up 18%, and average revenue per paying subscription was US$128.38, up 11%. US paying circles were 2.3 million, up 25%, while international paying circles were 1.0 million, up 32%. Paying circles in the UK, Australia-New Zealand and Canada grew 34% to 0.4 million, with 27 thousand net additions in the quarter.

The average hardware price was US$14.70, 1% lower than a year earlier, and hardware units shipped rose 75% from the first quarter of 2026. The company also stated that advertising platform integration is largely complete and that its focus is on building awareness and commercial momentum.

Sector backdrop

Consumer subscription apps are commonly assessed on user growth, conversion to paying subscribers and revenue per subscriber, while advertising platforms add a seasonally weighted revenue stream. The release states that the advertising business enters its seasonally highest-revenue period in the second half. Dual-listed technology companies report in US dollars and follow US accounting conventions, which differ in presentation from many Australian-domiciled peers.

Risks shareholders should weigh

The press release and the wider operating environment point to several considerations that shareholders may wish to weigh:

  • Hardware units shipped fell 18% and hardware revenue guidance was reduced, which the company linked to its exit from the brick-and-mortar retail channel.
  • Net income in the quarter was lower than in the prior year quarter, even though adjusted EBITDA increased.
  • Operating cash flow of US$23.8 million was lower than adjusted EBITDA because of the timing of receipts and payables.
  • The company expects monthly active user growth to be weighted towards the second half, so the guidance depends on that timing.
  • Continued investment in international expansion, advertising platform scaling and AI labs affects the balance between growth and margin expansion.

What's next

The company expects revenue growth to accelerate in the second half of 2026, citing its core subscription business and the advertising platform entering its seasonally highest-revenue period. It said it will continue investing in international expansion, the advertising platform, AI labs and product innovation, and that it is furthering a focus on pet owners, children and ageing adults in the third quarter. Full-year guidance figures are listed above.