Life360 (360) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $103.6 million, up 32% year-over-year, driven by 33% subscription growth and 99% growth in other revenue, while hardware revenue declined 13%.

• Net income was $4.4 million, reversing a $9.8 million loss in Q1 2024, with improved operating leverage and gross profit.

• Monthly active users reached 83.7 million (+26% YoY), with paying circles up 26% to 2.4 million and record net additions of 137,000.

• Adjusted EBITDA rose to $15.9 million (15% margin), marking the tenth consecutive quarter of positive Adjusted EBITDA and eighth of positive operating cash flow.

• Announced partnerships with AccuWeather for weather alerts and Aura for employee benefits and advertising channels.

Financial highlights

• Subscription revenue grew 33% year-over-year to $81.9 million, with core subscription (excluding hardware) up 37%.

• Hardware revenue declined 13% year-over-year to $8.9 million due to retail softness and increased discounts.

• Other revenue (advertising and data) grew 99% year-over-year to $12.8 million.

• Gross profit increased 39% to $83.5 million; gross margin expanded to 81% from 77% last year.

• Cash and cash equivalents stood at $170.4 million at quarter-end, with positive operating cash flow for the eighth consecutive quarter.

Outlook and guidance

• FY 2025 consolidated revenue expected at $450–$480 million, with subscription revenue of $355–$365 million, hardware revenue of $40–$50 million, and other revenue of $55–$65 million.

• Positive Adjusted EBITDA forecasted at $65–$75 million for FY 2025.

• Q2 expected to be the trough for adjusted EBITDA due to higher sales and marketing investment, with profitability rebounding in the second half.

• Management remains confident in continued profitability and resilience despite macroeconomic pressures.