Life360 NASDAQ: LIF executives used the company’s fourth-quarter and full-year 2025 earnings call to highlight what CEO Lauren Antonoff described as a “landmark year,” pointing to profitability milestones, continued subscription expansion, and a growing emphasis on advertising and devices as part of its broader “Family Super App” strategy.
2025 results: profitability milestone and expanding user base
Antonoff said 2025 marked the first year in company history that Life360 produced annual net income of more than $32 million even when excluding a one-time non-cash tax benefit. For the full year, the company reported revenue growth of 32% to nearly $490 million, while adjusted EBITDA more than doubled to more than $93 million. Life360 ended the year with 95 million monthly active users (MAUs) and 2.8 million Paying Circles.
CFO Russell Burke said full-year 2025 revenue totaled $489.5 million, gross margin expanded to 78% (up three points from 2024), and operating expenses grew 26% but declined as a percentage of revenue, driving operating leverage. Net income for 2025 was $150.8 million, compared with a $4.6 million loss in 2024; Burke noted results reflected a one-time non-cash tax benefit. Adjusted EBITDA rose to $93.2 million, with margin expanding from 12% in 2024 to 19% in 2025.
Q4: subscription growth, advertising gains, and hardware trade-offs
In the fourth quarter, Burke said revenue increased 26% year-over-year to $146 million. Subscription revenue rose 30% to $102.5 million, while core Life360 subscription revenue (excluding hardware subscriptions) increased 33% to $97.3 million, driven by a 26% increase in global Paying Circles and 6% higher average revenue per paying circle (ARPPC). Burke said Q4 subscriber net additions hit a new record.
“Other revenue” climbed 86% year-over-year to $24.2 million, which Burke attributed to continued scaling of the advertising platform and growth in data partnerships. He said the increase reflected ramping advertising capabilities and rising advertiser demand. December annualized monthly revenue reached $478 million, up 30% year-over-year.
Hardware revenue in Q4 was $19.3 million, down 19% year-over-year due to promotional pricing and product mix, though device unit shipments increased 3% as the company integrates hardware more deeply into the subscription experience. Burke reiterated that hardware is intended to expand the member experience and drive subscriber growth rather than optimize near-term device margins.
Gross profit in Q4 rose 28% to $109.7 million, with gross margin at 75%. Burke added that Pet GPS device margins were negative because the product was priced for market penetration, and he said the company expects device margins to fluctuate between breakeven and negative during 2026. Life360 posted Q4 net income of $129.7 million, including a one-time non-cash tax benefit of $118.4 million, and adjusted EBITDA of $32.4 million, up 53% year-over-year, with adjusted EBITDA margin expanding to 22%—the company’s highest quarterly margin to date.
Strategic focus: AI, international expansion, and building an ad platform
Antonoff emphasized that Life360 views AI as a platform shift that can strengthen its competitive position. She argued the company’s “durable” core use case is anchored in real-world family and pet location needs and services such as crash detection, emergency response, and roadside assistance. She also said AI increases the value of Life360’s real-time, “perishable” data and can deepen engagement by enabling more proactive assistance for families.
Antonoff said organization-wide AI adoption rose from roughly 25% to almost 95% over the past year, which she said is improving execution speed and supporting the company’s confidence in achieving its 2026 MAU target.
On international growth, Antonoff told analysts that improving penetration outside the U.S. will require both product and marketing investments, citing work on Android improvements, localization, and market-tailored features paired with increased awareness efforts.
Advertising and devices: Nativo integration, Place Ads, Pet GPS, and Tile distribution changes
Management positioned advertising as a major long-term growth engine alongside subscriptions. Antonoff said prior acquisitions helped Life360 build ad-tech and measurement capabilities, including Place Ads and Uplift, and that the January 2026 close of the Nativo acquisition creates a “full stack” advertising platform with relationships spanning hundreds of advertisers and thousands of publishers.
Antonoff said Nativo expands Life360’s reach beyond in-app inventory, enabling the company to use its first-party family location data to deliver off-site advertising across publisher networks while keeping data within its ecosystem. She said this helps extend reach from approximately 40 million ad-eligible U.S. users in-app to “over 95%” of ad-eligible U.S. adults through publisher distribution, including connected TV. Burke later said that even with broader stack economics, the advertising business should remain high-margin, describing gross margins in the “mid-seventies” range.
In Q&A, Antonoff said Life360 has seen early traction integrating Nativo and expressed optimism about team alignment. She said the company expects efficiencies from having its own audience and deterministic data, though it has not yet focused heavily on pricing uplift.
On devices, Antonoff said devices are meant to drive subscriptions, not operate as standalone hardware businesses. Burke said Life360 will exit physical retail distribution in 2026 and focus on direct-to-consumer and online channels such as Amazon. Unit volumes are expected to decline year-over-year as retail channels are eliminated and pricing is optimized in digital channels where Life360 controls the customer journey.
Antonoff highlighted early signs of opportunity in pets, noting nearly 5 million pets have been registered in the Pet Finder Network, with nearly 90% in free circles—an audience Life360 intends to educate and convert over time. She said the company is taking a multi-year approach rather than maximizing near-term device sales.
2026 outlook: growth and margin expansion with a back-half weighting
For 2026, Life360 guided to 20% annual MAU growth and consolidated revenue of $640 million to $680 million. The company expects subscription revenue of $460 million to $470 million, other revenue of $140 million to $160 million (driven by scaling its ad platform following the Nativo acquisition), and hardware revenue of $40 million to $50 million. Adjusted EBITDA is expected to be $128 million to $138 million, implying approximately a 20% adjusted EBITDA margin, which management said is another step toward its longer-term margin target of 35%+.
Burke cautioned that quarterly performance is expected to be uneven in 2026, with strategic investments front-loaded in the first half and advertising growth more heavily weighted to the second half due to seasonality and timing of ad platform margin contributions. He said first-quarter adjusted EBITDA margin is expected to be in the low double digits due to ad platform timing, Pet GPS promotional pricing, and front-loaded marketing, while hardware revenue in Q1 is expected to be about 50% lower than Q1 last year due to the brick-and-mortar exit and hardware gross margin is expected to be negative.
Burke also provided context on Nativo’s scale, saying its unaudited 2025 revenue was approximately $63 million at effectively break-even adjusted EBITDA, and that Life360 expects a majority of that revenue base to carry forward into 2026, with incremental growth at higher adjusted EBITDA margins as integration completes and cross-platform campaigns ramp in the second half.
On capital and liquidity, Burke said Life360 ended 2025 with $495.8 million in cash, cash equivalents, and restricted cash, up from $160.5 million a year earlier, driven by operating cash flow and net proceeds from a June 2025 convertible notes offering. Operating cash flow was $36.8 million in Q4 and $88.6 million for the full year.
About Life360 NASDAQ: LIF
Life360, Inc NASDAQ: LIF operates a location-based safety and communication platform designed to help families stay connected and secure. Through its flagship mobile application, Life360 offers real-time location sharing, check-in alerts and geofencing tools that enable users to monitor the whereabouts of family members or other trusted circles. The company's services extend to emergency response features, including SOS alerts, 24/7 roadside assistance and crash detection capabilities powered by machine-learning algorithms, all aimed at enhancing user safety on the road and at home.
The Life360 platform is offered under a freemium model, with a basic no-cost tier providing essential location sharing and alerts.
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