The ASX tech stock Life360 Inc (ASX: 360) could be one of Australia's top shares to buy today, given its outlook and how far it has fallen.
Of course, I should say it's an ASX share rather than an Australian business because it's not headquartered in Australia, though it does have a presence here.
Life360 describes itself as a family connection and safety company, keeping people close to the ones they love.
The company says it has a category-leading mobile app and hardware tracking devices that empower members to stay connected to the people, pets, and things they care about most, including location sharing and safe driver reports.
It's the location sharing that people may particularly know/use the business for. Let's take a look at why it could be a leading contender to be one of Australia's top shares to buy right now.
Image source: Getty Images
The ASX tech stock is much better value
The business has fallen sharply, making its valuation much more appealing and significantly reducing the forward price-to-earnings (P/E) ratio.
As the chart below shows, the Life360 share price is down 31% over the past year and has fallen more than 50% since early October, at the time of writing.
Warren Buffett, one of the world's greatest investors, once famously said investors should be fearful when others are greedy and greedy when others are fearful. I think that's sound advice during times like this with one of Australia's top shares.
I think the business has been caught up in market fear relating to potential AI disruption to software business models. However, I don't think every business will be affected evenly.
I believe the Life360 share price could rebound as the business reports ongoing growth.
The leadership has identified that the business appears undervalued after announcing a share buyback of up to $225 million a few months ago. The company said this decision reflected the board's confidence in the durability of its model, disciplined capital allocation, and its ability to generate consistent long-term cash flow.
Strong growth from one of Australia's top shares
The first quarter of 2026 demonstrated the strong growth of the business.
The 2026 first quarter saw revenue growth of 38% year over year to $143.1 million. Within that, total subscription revenue grew 32% to $108.2 million, and advertising revenue increased 329% to $19.7 million.
With the advertising revenue growing strongly, it shows that the business can benefit from free user growth, not just paying user growth. In the 2026 first quarter, monthly active users (MAU) grew by 17% year over year to 97.8 million.
Global paying circles rose 27% to 3 million, US paying circles rose 24% to 2.1 million, and international paying circles rose 32% to 0.9 million. Pleasingly, the average revenue per paying circle (ARPPC) rose 7% to $143.03, thanks to a shift towards higher-priced offerings and price increases.
The business expects to report operating profit (EBITDA) of between $130 million and $140 million in 2026, up from $93.2 million in 2025 (representing growth of between 39.5% to 50%). Profit growth of that level makes it one of Australia's top shares to consider, in my view.
The FY26 revenue is expected to grow by 33% to 40%, to a range of $650 million to $685 million.
As we can see, revenue is expected to grow strongly, and profit is expected to increase even faster thanks to the power of operating leverage.
At this lower valuation level, I think the business just needs to grow earnings to justify good shareholder returns.
