Life360 (NASDAQ:LIF) reported 40% third-quarter revenue growth as its subscription business expanded and an advertising acquisition boosted sales, although advertising revenue fell short of management’s expectations.
The family safety and location-sharing company raised the low end of its full-year revenue outlook while lowering the high end of its advertising forecast. Management also said U.S. price increases are expected to slow paying-circle additions in the fourth quarter before growth returns to more normal levels in early 2027.
Subscribers and users grow
Life360 added 5.3 million monthly active users in the quarter, bringing its global total above 107 million, CEO Lauren Antonoff said. International users surpassed 50 million, while the U.S. total approached 56 million.
Paying circles rose 26% year over year to 3.4 million after 188,000 net additions. Average revenue per paying circle increased 4%, primarily because more customers selected higher-priced offerings, with an early contribution from U.S. price increases, CFO Russell Burke said.
U.S. subscription revenue grew 27%, while international subscription revenue increased 40%. Antonoff said growth was strongest in English-speaking markets, where retention and conversion to paid subscriptions are among the company’s highest.
Life360 is extending its price changes to existing members in the fourth quarter. Burke said the monthly price of its Gold tier, which accounts for the largest proportion of paid members, increased by $2, or about 13%. The increase begins to affect revenue in late November, with the full impact expected next year.
Burke said U.S. net paying-circle additions in the fourth quarter are likely to be about half what they otherwise would have been, largely because of a one-time churn event. Churn has been in line with expectations, he said, and the company anticipates a return to normal growth in the first quarter of 2027.
On monthly active users, Antonoff said Life360 continues to trend toward the lower end of its 17% to 20% annual growth outlook following technical issues earlier in the year. She said fourth-quarter additions are generally lower than in the third quarter.
Advertising forecast reduced
Life360 now expects full-year advertising revenue of $98 million to $102 million, down from its previous range of $98 million to $115 million. Management expects a seasonal fourth-quarter increase, though less than previously forecast.
Antonoff said the company paused programmatic advertising for a period during the third quarter while it improved ad quality. She said the pause was not prompted by evidence of user disengagement; rather, the company wanted to prevent inappropriate ads from reaching its audience.
The CEO also said an early emphasis on selling in-app advertising distracted from off-app sales before the company was ready to scale its in-app capabilities. By the time Life360 had combined the sales efforts, it was late to secure some 2026 advertising budgets.
Life360 has hired Donna Sharp to lead its advertising business. Antonoff said the company expects stronger advertising growth in 2027, both on and off its app.
Profit and full-year outlook
Third-quarter net income was $22.5 million, including a $17.8 million gain from an increase in the value of Life360’s investment in Hubble. Adjusted EBITDA rose 41% to $34.6 million, and its 20% margin exceeded the company’s 18% guidance, partly because high-margin partnership revenue arrived earlier than expected.
Hardware revenue fell 20% to $9 million, reflecting lower shipments and a larger-than-expected effect from Life360’s exit from brick-and-mortar retail channels. Other revenue rose 61% to $15.5 million, including partnership revenue. Burke said a $3.7 million inflow in the quarter partly represented a catch-up for three quarters.
For the full year, Life360 forecast revenue of $665 million to $681 million, compared with $650 million to $685 million previously. It raised its subscription revenue outlook to $483 million to $488 million and narrowed its adjusted EBITDA forecast to $132 million to $138 million from $130 million to $140 million.
The company ended the quarter with $465 million in cash and short-term investments. It had repurchased $44.4 million of shares through the end of September, leaving approximately $180.6 million available under its program.
International markets, pets and AI
Antonoff said Life360 is directing more marketing toward Germany, where it has seen stronger retention, while focusing on product localization before scaling marketing further in markets such as Mexico and Brazil. She said the company is shifting international marketing attention rather than broadly reducing it.
Life360 is also investing in pet-related products and services. Members have created more than 10 million pet profiles, Antonoff said. Burke said early results indicate improved retention from the Pet GPS bundle, although it is too soon to quantify the longer-term effect.
The company recently opened its Family Intelligence platform to third-party AI agents. Antonoff said access is initially open as Life360 studies how customers use it, and that it is too early to predict monetization. Separately, Burke said AI tools are helping direct some new subscribers toward web-based billing and higher-priced Platinum subscriptions.
About Life360 (NASDAQ:LIF)
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.
