The Life360 share price just surged 15%. Here's why

ASX investors are piling into Life360 shares today. But why?

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The Life360 Inc (ASX: 360) share price is racing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) tech stock, which develops family-oriented software for location sharing, closed yesterday trading for $37.82. In earlier trade, shares just jumped to $43.34 each, up 14.6%.

After some likely profit-taking, in mid-morning trade on Tuesday, shares are changing hands for $41.00 apiece, up 8.4%.

For some context, the ASX 200 is up 0.3% at this same time.

This outperformance follows the release of Life360's unaudited second-quarter financial results for the three months ending June 30 (Q2 2025).

Here's what's sparking ASX investor interest.

(*Note, all figures below in US dollars unless otherwise stated.)

Life360 share price leaps on revenue growth

Investors are bidding up the Life360 share price after the company reported a 36% year-on-year increase in quarterly revenue to $115.4 million. Subscription revenue of $88.6 million was up 35%, and core subscription revenue of $82.9 million was up 38% from Q2 2024.

Also growing strongly was annualised monthly revenue (AMR) of $416.1 million, which was up 36% year on year.

And the Life360 share price is likely getting a lift today, with the company's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $20.3 million increasing by 85%.

This helped deliver a 303% increase in operating cash flow during the quarter to $13.3 million.

In other core metrics, the company's monthly active users reached some 88.0 million, up 25% year on year.

On the balance sheet, Life360 ended the quarter with cash, cash equivalents, and restricted cash of $434.2 million, an increase of 59.5% from Q2 2024. The company said this was primarily due to the capital it raised from the issuance of the June 2025 convertible notes.

What did management say?

Today, Life360 also announced that Lauren Antonoff has been appointed CEO. Antonoff succeeds co-founder Chris Hulls, who will continue with the company as executive chairman.

Commenting on the results sending the Life360 share price soaring today, Antonoff said, "Life360 continued its strong performance in Q2, with another quarter of impressive growth across our core metrics."

Antonoff added:

We're seeing the rise of what we call the Anxiety Economy—a shift where families are making more values-based decisions and prioritizing peace of mind in how they spend. That's driving sustained demand for services like ours that help people feel safer, more connected, and in control.

Alongside strong subscription growth, we're expanding our high-margin advertising platform with new location-based formats that enhance value without compromising the member experience.

What's ahead for the Life360 share price?

Looking at what could impact the ASX 200 tech stock in the months ahead, Life360 raised its full-year 2025 guidance.

The company said it now expects to deliver consolidated revenue of $462 million to $482 million, up from prior guidance of $450 million to $480 million.

And full year adjusted EBITDA is now forecast to be in the range of $72 million to $82 million, up from $65 million to $75 million previously.

"As we raise guidance for both revenue and Adjusted EBITDA, we remain focused on balancing top-line momentum with margin expansion—positioning Life360 to deliver in a volatile macro environment," Life360 CFO Russell Burke said.

With today's intraday lift factored in, the Life360 share price is up 134.9% since this time last year.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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