Life360 Inc (ASX: 360) shares are on the move on Tuesday morning.
At the time of writing, the family safety technology company's shares are up 15% to $28.45.
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Why are Life360 shares jumping?
Investors have been buying the company's shares this morning after it released its fourth quarter and full-year results.
According to the release, Life360 delivered a 26% increase in revenue to US$146 million for the three months. This reflects a 30% jump in total subscription revenue to US$102.5 million.
This led to Life360 ending the period with record annualised monthly revenue (AMR) of US$478 million, which is up 30% on the prior corresponding period.
Also growing strongly was its adjusted EBITDA, which lifted 53% to US$32.4 million in the fourth quarter. For FY 2025, adjusted EBITDA was up 19% to a record of US$93.2 million.
What were the drivers of this strong result?
Management advised that this was driven by record-breaking results across key metrics, including monthly active users (MAU), paying circles, and global net additions.
MAUs reached approximately 95.8 million in FY 2025, up 20% year-on-year. Paying circles increased by 576,000 to reach a total of 2.8 million.
Commenting on the year, Life360's CEO, Lauren Antonoff, said:
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. 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.
AI adoption
Antonoff also revealed how artificial intelligence (AI) is changing Life360 for the better. She shared:
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.
Outlook
Life360 has reiterated its guidance for FY 2026. It continues to expect MAU growth of 20% and consolidated revenue of US$640 million to US$680 million, which represents 31% to 39% growth, and adjusted EBITDA of US$128 million to US$138 million.
Antonoff also spoke about Life360's longer term aspirations. She said:
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%.
