SAN FRANCISCO, March 02, 2026 (GLOBE NEWSWIRE) -- Life360, Inc. (Life360 or the Company) (NASDAQ:LIF, ASX: 360)), the provider of the market leading family safety and connection mobile application, today announced unaudited financial results for the fourth quarter (Q4) and audited financial results for the full year ended December 31, 2025.
Building on the momentum of prior quarters, the Company achieved record-breaking results across key metrics, including Monthly Active Users (MAU), Paying Circles, Global Net Additions, Subscription Revenue, Annualized Monthly Revenue, Net Income, and Adjusted EBITDA.
"2025 was a landmark year for Life360. For the first time in company history, we achieved annual net income, reflecting both the fundamental strength of our freemium model and the operating discipline we've built over the past several years," said Life360 Chief Executive Officer Lauren Antonoff. "We exited the year with 95.8 million monthly active users, 2.8 million Paying Circles with record annual net additions, full-year revenue growth of 32%, and 105% growth of Adjusted EBITDA."
"Beyond the numbers, we made significant progress building our family super app platform in 2025. We introduced Pet GPS, our first fully in-house created device, and launched simultaneously across five global markets. We acquired Fantix, enabling proprietary location-based Place Ads and attribution measurement with Uplift. And we completed the Nativo acquisition in January 2026, creating a full-stack advertising platform with Fortune 500 relationships and thousands of publishers. Together, these initiatives establish Life360 as a multi-engine platform combining subscription excellence with emerging advertising scale.
"We are deep into the transition to become an AI-first company. Organization-wide active AI adoption has grown to over 95%, accelerating our execution and expanding what's possible for families on our platform. We see AI as an opportunity to accelerate our path and deepen our moat. Our core use case is durable because it is anchored in real people moving through the physical world, generating data that further deepens our advantage.
"These accomplishments bring us closer to achieving our strategic goals of surpassing 150 million MAU and $1 billion in annual revenue, delivering consistent Adjusted EBITDA margin expansion on our path to above 35%. We enter 2026 with accelerating Paying Circles growth, our multi-engine business model scaling, and strong conviction in our ability to deliver substantial value for Life360 members, advertisers, partners, and shareholders."
"Life360 delivered strong financial performance in 2025, exceeding our guidance across all key metrics," said Chief Financial Officer Russell Burke. "Full year revenue grew 32% year-over-year to $489.5 million, and Adjusted EBITDA grew 105% year-over-year to $93.2 million. We also achieved our first full year of profitability with net income of $150.8 million, or $32.5 million after excluding a significant one-time, non-cash tax benefit of $118.4 million,1 demonstrating the significant leverage inherent in our business model as we scale. Fourth quarter Adjusted EBITDA margin expanded to 22%, our highest quarterly margin to date, with full year margin reaching 19%.
"We ended 2025 with $495.8 million in cash, a significant increase from $160.5 million at year-end 2024, primarily driven by operating cash flow of $88.6 million, up 172% year-over-year, and the net proceeds from our June 2025 convertible notes offering. This provides substantial financial flexibility to invest in our highest-return growth opportunities while maintaining disciplined capital allocation.
"Looking ahead to 2026, we expect revenue growth acceleration driven by both our core subscription business and the scaling of our advertising platform. We plan to invest in strategic initiatives including international expansion, advertising platform scaling, and continued product innovation, while remaining committed to balancing growth investment with margin expansion, and we are on track to achieving our strategic target of above 35% Adjusted EBITDA margin."
Q4'25 Financial Highlights
Total Q4'25 revenue of $146.0 million, a YoY increase of 26%, with total subscription revenue of $102.5 million, up 30% YoY and core subscription revenue2 of $97.3 million, up 33% YoY.
Annualized Monthly Revenue (AMR) of $478.0 million, up 30% YoY.
Q4'25 Net Income of $129.7 million, up 1,426% YoY, includes a one-time, non-cash tax benefit of $118.4 million.1
Adjusted EBITDA3 of $32.4 million increased 53% over $21.2 million in Q4'24.
Positive Operating Cash Flow of $36.8 million, up 199% YoY.
Quarter-end cash, cash equivalents and restricted cash of $495.8 million, an increase of $335.3 million from Q4'24, which was primarily the result of net capital raised from the issuance of the June 2025 convertible notes.
Q4'25 Operating Highlights
Q4'25 global MAU net additions of 4.2 million lifted total MAU to approximately 95.8 million, up 20% YoY.
Q4'25 global Paying Circle net additions totaled 132 thousand, with full-year 2025 net additions of 576 thousand representing the largest annual subscriber net adds on record. Total Paying Circles grew 26% YoY to 2.8 million.
Average Revenue Per Paying Circle (ARPPC) increased 6% YoY primarily due to U.S. price increases for new and existing annual subscribers implemented in the second half of 2024 and continuing into 2025, a shift in product mix toward higher-priced offerings, and the introduction of higher-priced membership tiers across select international markets throughout 2024 and 2025.
Key Performance Indicators
(in millions, except ARPPC, ARPPS, ASP, and percentages)
Q4 2025
Q4 2024
% YoY
Core4
Monthly Active Users (MAU) - Global5
95.8
79.6
20
%
U.S.
50.6
43.7
16
%
International
45.3
36.0
26
%
ANZ
3.5
2.7
26
%
Paying Circles - Global6
2.8
2.3
26
%
U.S.
2.0
1.6
23
%
International
0.8
0.6
32
%
Average Revenue per Paying Circle (ARPPC)7,8
$
139.54
$
131.76
6
%
Life360 Consolidated
Subscriptions9
3.4
2.9
17
%
Average Revenue per Paying Subscription (ARPPS)8,10
$
122.41
$
110.43
11
%
Net hardware units shipped11
1.9
1.9
3
%
Average Selling Price (ASP)12,13
$
10.06
$
12.56
(20
)
%
Annualized Monthly Revenue (AMR)
$
478.0
$
367.6
30
%
FY 2025
FY 2024
% YoY
Core4
Average Revenue per Paying Circle (ARPPC)7,8
$
136.63
$
128.00
7
%
Life360 Consolidated
Average Revenue per Paying Subscription (ARPPS)8,10
$
118.17
$
106.16
11
%
Net hardware units shipped11
4.2
3.9
7
%
Average Selling Price (ASP)12,13
$
12.25
$
13.72
(11
)
%
Global MAU increased 20% YoY to approximately 95.8 million, with Q4'25 net additions of 4.2 million, delivering the largest Q4 user net additions in the Company's history. U.S. MAU increased 16% YoY, with Q4'25 net adds of 1.8 million. International MAU increased 26% YoY, with Q4'25 net adds of 2.4 million.
Q4'25 global Paying Circle net additions of 132 thousand, driven by strong U.S. and international performance. U.S. Paying Circles increased 23% YoY driven by improved conversion metrics. International Paying Circles maintained strong momentum, up 32% YoY.
Q4'25 global ARPPC increased 6% YoY. U.S. ARPPC increased 5% YoY, benefiting from price increases for new and existing annual subscribers implemented in the second half of 2024 and continuing into 2025, as well as a shift in product mix towards higher-priced offerings. Q4'25 international ARPPC increased 16% YoY, reflecting the benefit of legacy subscriber price increases, the introduction of higher-priced membership tiers in non-Triple Tier markets, and continued growth in existing Triple Tier markets.
Q4'25 net hardware units shipped increased 3% YoY primarily driven by increased online retail demand. The Average Selling Price of hardware units shipped decreased 20% YoY primarily due to a shift in channel mix and an increase in discounts.
December 2025 AMR increased 30% YoY, benefitting from continued subscriber growth as well as an increase in other recurring revenue.
Operating Results
Revenue
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
($ millions)
(unaudited)
Subscription revenue
$
102.5
$
78.8
$
369.3
$
277.8
U.S. subscription revenue
84.9
66.9
308.8
240.6
International subscription revenue
17.6
11.8
60.4
37.3
Hardware revenue
19.3
23.8
51.8
57.6
Other revenue
24.2
13.0
68.4
36.0
Total revenue
$
146.0
$
115.5
$
489.5
$
371.5
Q4'25 total subscription revenue increased 30% YoY to $102.5 million, primarily driven by growth in Paying Circles.
Q4'25 hardware revenue decreased 19% YoY to $19.3 million as higher unit shipments were more than offset by increased promotional and competitive discounts and lower revenue related to bundled offerings.
Q4'25 other revenue increased 86% YoY to $24.2 million due to increases in data and partnership revenue, which includes advertising revenue, and is primarily due to an increased number of partners and higher spend under existing arrangements.
Core Subscription Revenue
Core subscription revenue is defined as GAAP subscription revenue derived from the Life360 mobile application and excludes non-core subscription revenue, which we define as GAAP subscription revenue from other hardware related subscription offerings, for the reported period. Core subscription revenue represents revenue derived from, and the overall success of, our core product offering. Q4'25 core subscription revenue increased 33% YoY primarily driven by a 26% YoY increase in Paying Circles and a 6% higher ARPPC.14
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
($ millions)
(unaudited)
Subscription revenue
$
102.5
$
78.8
$
369.3
$
277.8
Non-Core subscription revenue
(5.2
)
(5.7
)
(22.2
)
(22.6
)
Core subscription revenue15
$
97.3
$
73.1
$
347.1
$
255.2
Gross Profit
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
($ millions, except percentages)
(unaudited)
Gross Profit
$
109.7
$
85.5
$
380.8
$
279.2
Gross Margin
75
%
74
%
78
%
75
%
Gross Margin (Subscription Only)
87
%
86
%
86
%
85
%
Q4'25 gross margin increased to 75% from 74% in the prior year, driven by a higher mix of subscription and other revenue as well as year-over-year margin improvement in both categories.
Operating Expenses
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
($ millions)
(unaudited)
Research and development
$
33.3
$
29.8
$
128.4
$
113.1
Sales and marketing
41.8
33.5
155.0
113.4
General and administrative
25.6
16.5
78.6
60.7
Total operating expenses
$
100.7
$
79.8
$
362.0
$
287.1
Total operating expenses as % of revenue
69
%
69
%
74
%
77
%
Q4'25 operating expenses, excluding commissions, increased 26% YoY, while operating expenses as a percentage of revenue remained flat at 69%. For the full year, operating expenses, excluding commissions, increased 25% YoY, while operating expenses as a percentage of revenue decreased 3% YoY. These results demonstrate our ongoing focus on cost discipline and operational efficiency.
Q4'25 research and development costs increased 12% YoY, primarily driven by higher personnel-related and technology costs due to Company growth.
Q4'25 sales and marketing costs increased 25% YoY, primarily driven by higher commissions, which represent nearly half of total sales and marketing expense and increased in line with subscription revenue growth, as well as a strategic increase in growth media spend to support new initiatives.
Q4'25 general and administrative expenses increased 55% YoY, primarily driven by higher personnel-related costs due to Company growth, as well as professional and outside services costs related to acquisitions.
Cash Flow
Three Months Ended December 31,
Year EndedDecember 31,
2025
2024
2025
2024
($ millions)
(unaudited)
Net cash provided by operating activities
$
36.8
$
12.3
$
88.6
$
32.6
Net cash used in investing activities
(1.4
)
(6.8
)
(35.3
)
(10.1
)
Net cash provided by (used in) financing activities
3.2
(5.2
)
282.1
67.3
Net Increase in Cash, Cash Equivalents, and Restricted Cash
38.6
0.3
335.4
89.7
Cash, Cash Equivalents, and Restricted Cash at the End of the Period
$
495.8
$
160.5
$
495.8
$
160.5
Life360 ended Q4'25 with cash, cash equivalents and restricted cash of $495.8 million, an increase of $38.6 million from Q3'25.
Q4'25 operating cash flow was $36.8 million. This was offset by $1.4 million used in investing activities primarily for internally developed software. Additionally, $3.2 million was provided by financing activities primarily from the exercise of stock options.
Q4'25 net cash provided by operating activities of $36.8 million was higher than Adjusted EBITDA of $32.4 million primarily due to the timing of receipts and payables. See the Adjusted EBITDA section below for the definition and reconciliation of Adjusted EBITDA.
Cash, cash equivalents and restricted cash increased $335.4 million YoY. The increase was primarily driven by $275.4 million related to the June 2025 convertible notes and $88.6 million in positive operating cash flow. This was primarily offset by a $25.0 million investment in the Aura convertible notes.
Adjusted EBITDA
To supplement our consolidated financial statements prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. For more information, see the "Supplementary and Non-GAAP Financial Information" section below.
Non-GAAP financial measures include adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) and Adjusted EBITDA Margin. Adjusted EBITDA is defined as net income (loss), excluding (i) convertible notes and derivative liability fair value adjustments, (ii) gains and losses on the settlement of convertible notes and derivative liabilities, (iii) gain (loss) on change in fair value of investments, (iv) benefit from income taxes, (v) depreciation and amortization, (vi) interest income, (vii) other expense, net, (viii) acquisition and investment related transaction costs, (ix) stock-based compensation, (x) warehouse relocation costs, (xi) IPO-related transaction costs, including secondary offering costs, and (xii) workplace restructuring costs. These items are excluded from Adjusted EBITDA because they are non-cash in nature, because the amount and timing of these items are unpredictable, or because they are not driven by core results of operations and render comparisons with prior periods and competitors less meaningful.
The following table presents a reconciliation of Net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA:
Three Months Ended December 31,
Year EndedDecember 31,
2025
2024
2025
2024
($ thousands, except percentages)
Net income (loss)
$
129,655
$
8,498
$
150,832
$
(4,555
)
Net income (loss) margin
89
%
7
%
31
%
(1
)
%
Add (deduct):
Convertible notes fair value adjustment16
—
—
—
608
Derivative liability fair value adjustment16
—
—
—
1,707
Loss on settlement of convertible notes17
—
—
—
440
Gain on settlement of derivative liability
—
—
—
(1,924
)
Gain (loss) on change in fair value of investments18
1,481
—
(609
)
(5,389
)
Benefit from income taxes1
(117,994
)
(2,217
)
(118,173
)
(71
)
Depreciation and amortization19
3,470
2,720
13,329
9,778
Interest income
(4,666
)
(10,223
)
