Life360 reported first-quarter 2026 revenue up 38% to USD 143 million, driven by 36% growth in core subscription revenue and a 329% surge in advertising following the Nativo acquisition. Sales and EBITDA guidance was raised by 1% at midpoint despite technical issues in the quarter. Shares fell 11%.
Life360's 2025 underlying EBITDA doubled to USD 93 million, driven by 33% growth in core subscription revenue and a 90% increase in other revenue, which includes advertising. But a corresponding uplift in marketing spending suggests user growth is becoming more expensive. Shares fell 18% on the day.
Life360 grew third-quarter revenue 34% on the prior year, driven by 37% growth in core subscription revenue. Full-year guidance is raised across the board. Despite this, shares fell about 7% with the company now planning to buy Nativo, an advertising technology company.
Life360 reported second-quarter results, with revenue growth accelerating to 36% on the prior year, driven by 38% growth in core subscription revenue. Founder Chris Hulls announced his resignation as CEO of the company he founded, with Lauren Antonoff taking over the role.
Life360's first-quarter revenue increased 32% on the first quarter last year. Life360 subscription revenue, its largest segment, grew 37%, while the "other revenue" segment, which contains the nascent advertising business, nearly doubled.
We increase our fair value for no-moat Life 360 by 4% to AUD 18.70, with full-year results. The company had a strong 2024, growing revenue at 22%, with international and advertising driving the result.
We raise our fair value estimate for no-moat Life360 by 3% to AUD 18 per share, following its third-quarter fiscal 2024 results. At current prices, Life360 shares screen as materially overvalued, as the market appears to be overly optimistic about the potential of the company’s nascent advertising business.
We raise our fair value estimate for no-moat Life360 by 13% to AUD 17.50, following its second-quarter results. The company continues to demonstrate decreasing cost per-incremental monthly active user, which we view as a key metric for growth and efficiency. We estimate Life360 spent less than $3 per-incremental MAU during the quarter, which is less than half of what it spent two years ago. We think Life360 is in a strong position to continue to grow rapidly and build its competitive advantage. But it’s priced accordingly and shares screen as fairly valued.