Life360 (NASDAQ:LIF) Issues Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Life360 (NASDAQ:LIF) announced its earnings results on Monday. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.21 by $0.05, FiscalAI reports. Life360 had a return on equity of 5.66% and a net margin of 25.73%. The firm had revenue of $174.14 million during the quarter, compared to analysts’ expectations of $171.53 million.

Here are the key takeaways from Life360’s conference call:

• Q3 revenue grew 40% to $174.1 million, with subscription revenue up 29% and core subscriptions up 32%. Monthly active users reached more than 107 million, while paying circles grew 26% to 3.4 million.
• The company raised its full-year revenue outlook to $665 million–$681 million and increased subscription guidance, while narrowing its Adjusted EBITDA outlook to $132 million–$138 million. Q3 Adjusted EBITDA rose 41% to $34.6 million, and its 20% margin exceeded guidance.
• Advertising revenue was $25.4 million, below expectations, and the company lowered the high end of its full-year advertising outlook; hardware guidance was also reduced. Management cited delays in refining ad sales and member experience, but expects advertising growth to strengthen in 2027.
• U.S. price increases are producing churn in line with expectations, but management expects Q4 net paying-circle additions in the U.S. to be about half the level they otherwise would have been. It expects growth to return to a more normal pace in Q1.
• Management highlighted pets and AI as longer-term growth opportunities, including early retention benefits from Pet GPS bundles and AI tools that are improving conversion to higher-priced plans and web billing. It cautioned that monetization of third-party AI agents is still too early to predict.

Life360 Stock Performance

Shares of NASDAQ LIF opened at $45.02 on Tuesday. The company has a quick ratio of 5.46, a current ratio of 5.60 and a debt-to-equity ratio of 0.51. The business’s 50 day moving average is $42.87 and its two-hundred day moving average is $46.91. The company has a market cap of $3.67 billion, a P/E ratio of 26.33 and a beta of 2.17. Life360 has a 12 month low of $37.01 and a 12 month high of $95.98.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Weiss Ratings upgraded shares of Life360 from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, September 4th. DA Davidson reiterated a “neutral” rating and issued a $40.00 target price on shares of Life360 in a research note on Tuesday, September 29th. Wall Street Zen upgraded shares of Life360 from a “sell” rating to a “hold” rating in a report on Saturday, September 19th. Morgan Stanley set a $65.20 target price on shares of Life360 in a report on Wednesday, August 12th. Finally, Bank of America boosted their target price on shares of Life360 from $60.00 to $66.00 and gave the stock a “buy” rating in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Life360 currently has an average rating of “Moderate Buy” and a consensus price target of $59.93.

Key Stories Impacting Life360

Here are the key news stories impacting Life360 this week:

• Positive Sentiment: Q3 revenue rose 40% year over year to $174.1 million, beating analyst expectations of $171.5 million. EPS of $0.26 also topped the $0.21 consensus estimate. Life360 Reports Q3 2026 Results
• Positive Sentiment: User and subscriber growth was robust: Life360 added a record 188,000 paying Circles in the quarter, bringing the total to 3.4 million, while monthly active users reached 107.7 million. Subscription and advertising growth are supporting the business, with management raising subscription revenue guidance. Life360: Still Growing Fast, With More Opportunities Ahead
• Neutral Sentiment: FY 2026 revenue guidance is $665 million–$681 million, broadly around the $672.3 million analyst estimate. Management reaffirmed its full-year outlook while trimming hardware revenue guidance, a shift toward higher-margin software subscriptions. Life360: Still Growing Fast, With More Opportunities Ahead
• Negative Sentiment: Despite the earnings beat, reports indicate the stock fell after the results. Investors may be cautious about whether strong growth can translate into advertising margins and may be sensitive to Life360’s premium valuation—risks highlighted by analysts. Life360 shares have plunged on results

Insider Buying and Selling

In other news, Director Chris Hulls sold 250,000 shares of the firm’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $46.84, for a total value of $11,710,000.00. Following the sale, the director owned 382,056 shares in the company, valued at approximately $17,895,503.04. This trade represents a 39.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director James Synge sold 27,466 shares of the firm’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $44.31, for a total transaction of $1,217,018.46. Following the completion of the sale, the director owned 191,694 shares in the company, valued at approximately $8,493,961.14. The trade was a 12.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 419,089 shares of company stock valued at $18,880,975 in the last ninety days. Company insiders own 6.80% of the company’s stock.

Life360 Company Profile

Life360 operates a family safety and location-sharing platform. Its mobile app helps families and other groups share locations, coordinate their activities and receive alerts about arrivals, departures and other events. The service also includes features such as driving insights, roadside assistance and emergency support.

The company’s offerings include the Life360 app and Tile, its line of Bluetooth tracking devices and related services for finding everyday items. Together, these products provide location and safety tools for people, pets and belongings.

Founded in 2008, Life360 serves users in markets around the world, including North America, Europe and the Asia-Pacific region.