Life360 (360) investor relations material

Executive summary

• Achieved record Q1 2026 results with 38% year-over-year revenue growth to $143.1 million, driven by strong subscription and advertising performance, including a 329% surge in advertising revenue following the Nativo acquisition.

• Global MAUs reached 97.8 million (+17% YoY), with 3.0 million Paying Circles (+27% YoY) and ARPPC at an all-time high.

• Adjusted EBITDA was $17.1 million (12% margin), up 7% YoY, while net income was $2.8 million, down from $4.4 million in Q1 2025 due to higher operating expenses and investment revaluation losses.

• Technical issues temporarily suppressed MAU growth, particularly on Android, but fixes are in place and recovery is expected by Q3.

• Ended Q1 with $459 million in cash and equivalents, including proceeds from convertible notes and strong operating cash flow.

Financial highlights

• Total revenue grew 38% YoY to $143.1 million; subscription revenue rose 32% to $108.2 million, with ARPPC up 7%.

• Advertising revenue reached $19.7 million (+329% YoY), with growth driven by the Nativo acquisition.

• Hardware revenue declined 49% YoY to $4.5 million due to a strategic exit from brick-and-mortar retail.

• Gross margin was 77% (down from 81% YoY); subscription margin at 87%, advertising at 60%, hardware at -91%.

• Operating expenses increased 46% YoY, mainly from R&D and sales/marketing investments.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $650–$685 million (33–40% YoY growth), with subscription revenue expected at $470–$475 million and advertising at $98–$115 million.

• Adjusted EBITDA guidance increased to $130–$140 million (approx. 20% margin), with profitability and growth weighted to H2 2026.

• MAU growth projected at 17–20% for FY26, with recovery to planned trajectory by Q3.