Life360, Inc.

Q2 revenue was a record $159 million, up 38% year over year. Subscription revenue was $115.6 million, up 31%, driven by 27% Paying Circle growth and 5% higher ARPPC; advertising revenue was $22 million; hardware revenue was $9.8 million, down 20%; and other revenue was $11.6 million, up 25%. Gross margin was 80% versus 78% in Q2 last year; subscription gross margin was 87% versus 85%; advertising gross margin was 57%; and hardware gross margin was 43%, helped by a $3.6 million tariff refund. GAAP net income was $5.1 million, EPS was $0.06, adjusted EBITDA was $31.1 million at a 20% margin, and operating cash flow was $23.8 million. The company ended with $467.7 million in cash, cash equivalents, restricted cash and short-term investments. Full-year guidance is unchanged for total revenue at $650 million-$685 million and adjusted EBITDA at $130 million-$140 million, while subscription revenue guidance was raised to $475 million-$480 million from $470 million-$475 million; hardware guidance was lowered to $35 million-$45 million from $40 million-$50 million, and advertising and other guidance stayed at $98 million-$150 million and $42 million-$45 million, respectively. Management said Q3 adjusted EBITDA margin should be approximately 18%, and Q4 adjusted EBITDA margin should exceed the 22% margin delivered in Q4 2025; advertising gross margin is expected to normalize toward 65%-70% on a GAAP basis in Q4 as the company exits 2026.

Lauren Antonoff said the quarter showed disciplined execution, with Life360 crossing 100 million monthly active users and returning to its MAU glide path. She emphasized stronger brand awareness, improved funnel efficiency, and international momentum in Brazil, Mexico and Germany, while also pointing to new initiatives in ads, pets and AI as longer-term growth engines. Her tone was upbeat but measured, repeatedly framing the company’s targets of 150 million MAU and $1 billion in revenue as now within sight but still dependent on continued execution.

Russell Burke focused on the financial bridge from growth to margins. He highlighted record revenue of $159 million, gross margin of 80%, adjusted EBITDA of $31.1 million, operating cash flow of $23.8 million, and cash of $467.7 million, while explaining that advertising gross margin was lower at 57% because the company is scaling a managed-service model and that hardware margin was flattered by a one-time $3.6 million tariff refund. He said Q2 operating expenses were $127 million, with R&D at $47.4 million, sales and marketing at $52.3 million, and G&A at $27.2 million, and noted that Q2 SBC will be the highest quarter of the year before normalizing in Q3 and Q4. He also said the board authorized a $225 million repurchase program, of which $13.2 million was used in the quarter, leaving $212 million available.

Analysts focused on whether MAU growth is truly back on track, what is driving the raised subscription outlook, how quickly advertising can scale, and whether pricing changes and Pet GPS bundling would affect growth. Management said the MAU exit rate was stronger than the quarterly average because growth built through the quarter, and pointed to back-to-school, international brand awareness and new product launches as reasons for confidence. On pricing, Russell said the higher Silver and Gold prices are for new U.S. subscribers only and are intended to test and support pet-driven subscriber growth rather than maximize near-term revenue. On ads, James Selby said the first half was mostly integration work and that the business is now shifting to scaling go-to-market, with strong traction in verticals like automotive, QSR, travel and retail and with Uplift measurement helping prove real-world lift.