Life360 (360) investor relations material

Executive summary

• Achieved 102.4 million MAU (+16% YoY) and 3.2 million paying circles (+27% YoY), with 185,000 net subscription adds and record Q2 revenue of $159.0 million (+38% YoY), driven by strong subscription and advertising growth.

• International MAU grew 20% YoY, U.S. MAU up 14%, with international revenue up 79% in top markets; strong engagement from global campaigns and partnerships (Uber, AT&T México, Hubble, AccuWeather).

• Advertising revenue hit $22.0 million (+315% YoY), driven by the Nativo acquisition and new B2B partnerships, with campaigns showing up to 47% higher call-to-action rates using first-party data.

• AI-powered monetization and engagement engines are driving improved conversion and retention, with ongoing investment in AI capabilities and acquisition of SuperDuper's team and technology; organization-wide AI adoption at ~95%.

• Ended Q2 with $467.7 million in cash, cash equivalents, restricted cash, and short-term investments.

Financial highlights

• Subscription revenue rose 31% YoY to $115.6 million, with core subscription up 34% and ARPPC up 5%; advertising revenue reached $22.0 million (+315% YoY); hardware revenue was $9.8 million (-20% YoY).

• Gross margin improved to 80% (from 78% YoY); subscription gross margin: 87%; advertising gross margin: 57%; hardware gross margin: 43% (boosted by tariff refund).

• Adjusted EBITDA was $31.1 million (20% margin), up 53% YoY; GAAP net income was $5.1 million (net income margin 3%), down from $7.0 million YoY.

• Operating expenses rose 43% YoY to $127.0 million, driven by R&D, sales/marketing, and acquisition integration.

• Operating cash flow was $23.8 million (+79% YoY); annualized monthly revenue: $537.2 million (+29% YoY).

Outlook and guidance

• FY'26 guidance: MAU growth of 17–20%; consolidated revenue of $650–$685 million (+33–40% YoY); subscription revenue $475–$480 million; hardware $35–$45 million; advertising $98–$115 million; adjusted EBITDA $130–$140 million (~20% margin).

• Q3 adjusted EBITDA margin expected at ~18%, with Q4 margin to exceed 22% from Q4 2025.

• Revenue growth acceleration expected in H2 2026, with continued investment in international expansion, advertising, AI labs, and product innovation.