Life360 Q1 revenue rises on subscription growth

Life360

11/05/2026 21:25

Overview

US family safety app's Q1 revenue rose 38% yr/yr, beating analyst expectations

Adjusted EBITDA for Q1 beat consensus, up 7% yr/yr

Gross margin declined to 77% from 81% due to product mix and hardware discounts

Outlook

Life360 raises FY'26 consolidated revenue guidance to $650 mln-$685 mln from $640 mln-$680 mln

Company increases FY'26 subscription revenue forecast to $470 mln-$475 mln from $460 mln-$470 mln

Life360 expects revenue growth acceleration in H2 2026, driven by subscriptions and advertising

Result Drivers

SUBSCRIPTION GROWTH - 27% increase in Paying Circles and 7% higher average revenue per Paying Circle, driven by product mix shift to higher-priced offerings, especially internationally

ADVERTISING PLATFORM - 329% rise in advertising revenue, primarily from growth in managed advertising after Nativo acquisition

HARDWARE REVENUE DECLINE - 49% drop in hardware revenue due to fewer units shipped and increased discounts linked to exit from brick-and-mortar retail

Company press release: ID:nGNX7xCcB

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$143.10 mln
$137.31 mln (9 Analysts)
Q1 Adjusted EBITDA
Beat
$17.10 mln
$15.57 mln (9 Analysts)
Q1 Gross Margin
77.00%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Life360 Inc is $65.15, about 47.9% above its May 8 closing price of $44.05

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 41 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)