Life360 (360) Q4 2025 earnings summary

Executive summary

• Achieved record FY2025 results with revenue of $489.5 million, up 32% year-over-year, and first-ever annual net income of $150.8 million, or $32.5 million excluding a one-time non-cash tax benefit.

• Adjusted EBITDA more than doubled to $93.2 million (19% margin), with 95.8 million MAUs (+20% YoY) and 2.8 million Paying Circles (+26% YoY).

• Significant platform investments included Pet GPS launch, Nativo and Fantix acquisitions, and expansion of the Family Super App.

• AI adoption reached 95% organization-wide, accelerating product delivery and operational efficiency.

• Strategic focus on user growth, scaling paid offerings, expanding advertising, and international penetration.

Financial highlights

• Q4 2025 revenue rose 26% year-over-year to $146 million; subscription revenue up 30% to $102.5 million.

• Core subscription revenue (excluding hardware) increased 33% to $97.3 million, driven by 26% Paying Circles growth and 6% higher ARPPC.

• Other revenue in Q4 surged 86% to $24.2 million, reflecting advertising platform scaling.

• Q4 gross profit was $109.7 million (28% increase), with gross margin at 75%.

• Full-year 2025 revenue was $489.5 million (+32%), gross margin 78%, net income $150.8 million (vs. $4.6 million loss in 2024), Adjusted EBITDA $93.2 million (margin 19%).

Outlook and guidance

• FY2026 guidance: 20% MAU growth, revenue of $640–$680 million, subscription revenue $460–$470 million, other revenue $140–$160 million, hardware revenue $40–$50 million.

• Adjusted EBITDA expected at $128–$138 million (~20% margin), with margin expansion targeted toward 35%+ over multi-year horizon.

• Investments and revenue growth are front- and back-loaded, respectively, causing quarterly variability.

• Q1 2026: Lower device revenue (down ~50% YoY), negative hardware margins, and lower MAU growth than full-year rate.

• Nativo expected to contribute majority of its $63 million 2025 revenue at higher margins post-integration.