Life360 (NASDAQ:LIF) reported second-quarter revenue growth of 38% to a record $159 million, as the family-safety platform surpassed 100 million monthly active users and posted its strongest second-quarter subscription additions on record.
Chief Executive Officer Lauren Antonoff said the company added 4.6 million active members during the quarter, ending with more than 102 million monthly active users. Net subscription additions totaled 185,000 paying circles, while paying circles increased 27% year over year.
User Growth and International Expansion
International monthly active users rose 20% year over year, while U.S. MAUs grew 14%. Antonoff attributed the growth to improved brand awareness, marketing-funnel efficiencies and the utility Life360 provides to families.
U.S. unaided brand awareness rose four percentage points during a quarter in which the company spent less on marketing, Antonoff said. The company also introduced go-to-market initiatives in Brazil and Mexico, where unaided awareness increased from 9% to 14% in Brazil and from 10% to 16% in Mexico.
Antonoff said both markets have reached roughly 3% penetration, a level where Life360 has historically seen growth accelerate. The company also cited a partnership with AT&T Mexico, which featured Life360 in a back-to-school campaign across television, radio, cinema, retail and digital channels. In Germany, Life360 launched local campaigns in Berlin and Cologne and said it saw a measurable increase in registrations.
Management said the company ended the quarter back on its MAU “glide path” after a slower start to the year. Antonoff pointed to momentum heading into the back-to-school season, while Chief Financial Officer Russell Burke said MAU growth accelerated through the quarter, making the exit rate higher than the quarterly average.
Subscriptions, Pets and Product Development
Subscription revenue increased 31% to $115.6 million. Core subscription revenue grew 34%, driven by 27% growth in paying circles and a 5% increase in average revenue per paying circle, or ARPPC. U.S. subscription revenue rose 28%, while international subscription revenue climbed 45%, with strength in the U.K., Australia and New Zealand, and Canada.
Life360 raised its full-year subscription revenue outlook to between $475 million and $480 million, from its prior range of $470 million to $475 million.
The company is preparing to relaunch its Pet GPS offering with a bundled model that begins at the Silver subscription tier. The Silver Pet GPS bundle will cost $99 annually. Antonoff said the strategy prioritizes subscription scale over near-term monetization, while Burke said Life360 expects Pet GPS devices to initially produce a loss at the device gross-profit level.
Antonoff said more than 8 million pets have been registered through the company’s Pet Finder Network, exceeding internal expectations. Life360 plans to add more features for pet owners on its free tier, with additional value available to subscribers.
The company is also testing an Apple Watch app in beta. Antonoff said the product is intended for the free tier rather than as a direct subscription driver, with the goal of helping families include more members and life stages on the Life360 platform.
Advertising Business Builds Momentum
Advertising revenue totaled $22 million in the quarter, growing sequentially and substantially from a year earlier. Burke said the results reflected expanded managed-service offerings, both on and off the Life360 app, as well as programmatic advertising contributions.
Life360 said it has largely completed the integration of its advertising platform and is shifting its focus toward commercialization. Chief Revenue Officer James Selby said the company is seeing demand from advertisers in categories tied to real-world activity, including automotive, quick-service restaurants, travel and retail.
The company said tests showed campaigns using Life360 audience data generated call-to-action rates up to 47% higher than campaigns using third-party targeting. Antonoff cited a campaign for a major grocery chain that produced more than a 40% lift in store visits, including strong performance among consumers ages 21 to 24.
Selby said Life360’s Uplift measurement product has been a differentiator because it measures whether advertising influences real-world actions, such as visiting a gas station or coffee shop. He also said Life360’s device graph and proprietary data now enable the company to address nearly 100% of the U.S. addressable advertising market across its platform.
Advertising gross margin was 57%, down from the prior year as Life360 builds its managed-services operation. Burke said the company expects advertising gross margin to normalize toward 65% to 70% on a GAAP basis by the fourth quarter of 2026, though margins will continue to have seasonal effects.
Margins, Cash Position and Outlook
Gross margin increased to 80% from 78% a year earlier. Subscription gross margin rose to 87% from 85%. Hardware revenue declined 20% to $9.8 million, reflecting Life360’s exit for Tile from brick-and-mortar retail and temporary Pet GPS inventory constraints tied to a production-line move.
Hardware gross margin was 43%, aided largely by a $3.6 million tariff refund. Excluding that refund, hardware gross margin would have been closer to 7%, Burke said.
GAAP net income was $5.1 million, including a $4 million tax benefit, and diluted earnings per share were $0.06. Adjusted EBITDA increased 53% to $31.1 million, representing a 20% margin. Operating cash flow rose 79% to $23.8 million.
Life360 ended the quarter with $467.7 million in cash equivalents, restricted cash and short-term investments. The company repurchased $13.2 million of stock during the quarter under its authorized multiyear repurchase program, leaving $212 million available.
The company reiterated full-year revenue guidance of $650 million to $685 million and adjusted EBITDA guidance of $130 million to $140 million. It lowered hardware revenue guidance to $35 million to $45 million while leaving advertising revenue guidance unchanged at $98 million to $150 million and other revenue guidance unchanged at $42 million to $45 million.
Burke said Life360 expects an adjusted EBITDA margin of about 18% in the third quarter, excluding the tariff benefit, and expects fourth-quarter adjusted EBITDA margin to exceed the 22% margin reported in the fourth quarter of 2025.
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.
