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

Life360 (NASDAQ:LIF) posted its earnings results on Monday. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.05, FiscalAI reports. The firm had revenue of $174.14 million during the quarter, compared to analysts’ expectations of $171.53 million. Life360 had a return on equity of 7.35% and a net margin of 25.71%.

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

NASDAQ:LIF traded up $1.35 during trading hours on Wednesday, reaching $43.33. 280,963 shares of the company’s stock were exchanged, compared to its average volume of 953,341. The firm has a market capitalization of $3.53 billion, a price-to-earnings ratio of 23.30 and a beta of 2.17. The company has a 50-day moving average of $42.85 and a 200 day moving average of $46.85. The company has a quick ratio of 5.46, a current ratio of 5.60 and a debt-to-equity ratio of 0.51. Life360 has a 1-year low of $37.01 and a 1-year high of $80.51.

Insider Buying and Selling

In other news, Director John Coghlan sold 4,000 shares of the stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $45.80, for a total transaction of $183,200.00. Following the completion of the sale, the director owned 8,431 shares in the company, valued at approximately $386,139.80. This represents a 32.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Alex Haro sold 50,000 shares of the stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $41.44, for a total transaction of $2,072,000.00. Following the sale, the director owned 1,010,303 shares of the company’s stock, valued at $41,866,956.32. This trade represents a 4.72% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 419,089 shares of company stock valued at $18,880,975 in the last quarter. Corporate insiders own 6.80% of the company’s stock.

More Life360 News

Investors following LIF have been watching these news items:

• Positive Sentiment: Third-quarter revenue increased 40% year over year to $174.1 million, beating expectations, while adjusted earnings of $0.26 per share topped the $0.21 consensus. Life360 also added a record 188,000 paying circles and 5.3 million monthly active users. Q3 2026 results
• Neutral Sentiment: FY2026 revenue guidance of $665 million–$681 million is broadly in line with the $672.3 million analyst consensus. Commentary also points to stronger subscription expectations and lower hardware revenue, shifting the mix toward software, though execution remains important. FY2026 earnings guidance
• Negative Sentiment: Bank of America cut its rating on Life360 from “buy” to “neutral” and reduced its price target from $60 to $45. The lower target implies only about 6% upside from the cited $42.39 share price and may weigh on sentiment. Bank of America downgrade

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on LIF. UBS Group set a $45.00 price objective on shares of Life360 in a research report on Wednesday. Weiss Ratings raised shares of Life360 from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday, September 4th. Citigroup cut their price target on shares of Life360 from $60.10 to $60.00 and set a “buy” rating on the stock in a research note on Friday, October 30th. Bank of America cut Life360 from a “buy” rating to a “neutral” rating and decreased their target price for the company from $60.00 to $45.00 in a research report on Wednesday. Finally, DA Davidson restated a “neutral” rating and set a $40.00 price target on shares of Life360 in a research note on Tuesday, September 29th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, Life360 presently has an average rating of “Moderate Buy” and an average price target of $55.93.

About Life360

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.