Life360 posts strong Q3 profit and revenue growth as users surge

Life360's third quarter profit jumped as revenue, active users, and average subscription value all rose strongly.

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Key points

  • Life360 reported third-quarter revenue of US$124.5 million, a 34% increase year-on-year, with net profit rising to US$9.8 million and gross profit up 39% to US$97.1 million.
  • The company saw significant user growth, with 91.6 million monthly active users and a 23% increase in paying Circles, alongside a successful US$320 million convertible note raising.
  • Looking forward, Life360 plans to expand its product offerings and international presence, with upcoming investments and acquisitions supporting continued strong revenue and earnings growth, as shares have surged 102% over the past year.

The Life360 Inc (ASX: 360) share price is in focus after the company posted third quarter revenue of US$124.5 million, up 34% year-on-year. Net profit rose to US$9.8 million for the quarter, while gross profit climbed 39% to US$97.1 million.

What did Life360 report?

  • Q3 revenue: US$124.5 million, up 34% year-on-year
  • Net profit: US$9.8 million (Q3 2024: US$7.7 million)
  • Gross profit: US$97.1 million, 39% higher than the prior corresponding period
  • Subscription revenue: US$96.3 million, up 34%
  • Hardware revenue: US$11.3 million (down 4%)
  • Other revenue (mainly advertising and data): US$16.9 million, up 82%

What else do investors need to know?

Life360 saw strong user growth, reporting 91.6 million monthly active users (up 19% year-on-year) and 2.7 million paying Circles, a 23% increase. Average Revenue per Paying Circle (ARPPC) rose 8% year-on-year to US$137.63, reflecting both higher pricing and a shift towards premium subscriptions.

The company entered a US$25 million convertible note investment with Aura and completed the acquisition of Fantix's assets. Life360 also closed the quarter with a solid cash balance of US$455.7 million, boosted by a successful US$320 million convertible note raising.

What did Life360 management say?

Lauren Antonoff, Chief Executive Officer said:

Our growth in both revenue and active users underscores the continued relevance of Life360's platform for families worldwide. We remain focused on supporting our members and delivering innovative new features.

What's next for Life360?

Looking ahead, Life360 expects to maintain growth by investing in its product suite and international expansion. The company plans to close its US$120 million cash-and-stock acquisition of Nativo in early 2026, aiming to accelerate the development of its advertising roadmap.

Management says strong member retention, rising subscription value, and new partnerships are expected to support ongoing revenue and earnings growth. Life360 remains well funded to pursue its strategy.

Life360 share price snapshot

Over the past 12 months, Life360 shares have soared 102%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

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Motley Fool contributor Laura Stewart 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 positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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