Life360 Inc (ASX: 360) shares have crashed 16% in early morning trade on Tuesday.
At the time of writing, the shares are changing hands for $24.70 a piece. Today's drop means the shares are now down around 24% for the year to date and are roughly down 35% from trading levels seen this time last year.
Today's tumble comes off the back of the company's second-quarter FY26 update, that it posted on the ASX ahead of the market open this morning.
Life360 recorded a 38% increase in revenue, to US$159 million, and a 53% increase in adjusted EBITDA, to US$31.1 million.
Global monthly active users increased by 4.6 million in the quarter, bringing the total to approximately 102.4 million – up 16% compared to the previous year.
But, Life360 also revealed that the company ended the quarter with US$467.7 million in cash, cash equivalents, restricted cash, and short-term investments. Its operating expenses were 43% higher compared to the same quarter last year, primarily due to company growth and costs around its Nativo acquisition.
Looking ahead, Life360 still expects FY26 revenue growth to accelerate around 33 to 40% year on year to between US$650 million and US$685 million. Adjusted EBITDA is also still expected to be between US$130 million to US$140 million.
Clearly, investors aren't too thrilled with the result. And it looks like many expected another uplift in FY26 revenue guidance.
I'm expecting to see broker and analyst outlook updates in the coming days. But let's find out what the experts forecast from Life360 right now. Is this a temporary crash? Or is it possible that the shares rebound again?
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What do brokers tip for Life360 shares next?
According to market data at the time of writing, there could still be upside ahead for Life360 over the next 12 months.
Market Index shows that brokers currently agree to a buy rating on the shares. The $32.51 average target price implies a potential 30% upside, at the time of writing.
TradingView data shows something similar. Out of 13 analysts, 12 currently hold a buy/strong buy rating on Life360 shares. The average target price is $32.97, which also implies around potential 30% upside at the time of writing. However, some think the shares could climb 62% to $40.99 a piece over the next 12 months.
Bell Potter recently confirmed its buy rating and $35 price target on the location technology company's shares. Ahead of the results and share price crash, the broker said it thinks the stock is trading at reasonable value.
The team at Macquarie agree. They also thinks Life360 shares present the potential for high reward thanks to its subscription-based business model. The broker has a buy rating and $31.10 target price on the shares, at the time of writing.
