Life360, Inc.

Q2 total revenue grew 38% year over year to a record $159 million. Subscription revenue grew 31% to $115.6 million, advertising revenue was $22 million, hardware revenue was $9.8 million, and other revenue grew 25% to $11.6 million. Gross margin was 80%, up from 78% in Q2 last year; subscription gross margin rose to 87% from 85%, advertising gross margin was 57%, and hardware gross margin was 43% versus 17% a year ago, though management said hardware would have been closer to 7% excluding a $3.6 million tariff refund. GAAP net income was $5.1 million, EPS was $0.06, adjusted EBITDA was $31.1 million with 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. For the full year, management reiterated revenue guidance of $650 million to $685 million and adjusted EBITDA guidance of $130 million to $140 million, while raising subscription revenue guidance to $475 million to $480 million from $470 million to $475 million and lowering hardware revenue guidance to $35 million to $45 million from $40 million to $50 million. Advertising and other revenue guidance were unchanged at $98 million to $150 million and $42 million to $45 million, respectively; Q3 adjusted EBITDA margin is expected to be about 18%, and Q4 adjusted EBITDA margin is expected to exceed the 22% margin delivered in Q4 2025.

Lauren Antonoff framed the quarter as proof that Life360 is regaining its MAU glide path and scaling beyond its core subscription business. She highlighted more than 102 million MAU, record paying-circle growth, improving brand awareness, stronger international momentum in Brazil, Mexico and Germany, and early traction from brand partnerships and cultural campaigns. Her tone was upbeat but disciplined, emphasizing that pets, advertising, Apple Watch and AI are being built as long-term growth drivers rather than near-term monetization plays.

Russell Burke emphasized broad-based financial strength and explained the moving pieces behind margins and guidance. He cited 38% revenue growth to $159 million, 80% gross margin, $31.1 million of adjusted EBITDA, $23.8 million of operating cash flow, and $467.7 million of liquidity, while noting that advertising gross margin was 57% and is expected to normalize toward 65% to 70% on a GAAP basis in Q4 as the business mix evolves. He also said Q2 SBC was the highest quarter of the year due to performance grants, that Q3 marketing will step up seasonally and from intentional timing shifts, and that the board authorized up to $225 million of repurchases, with $13.2 million bought back in the quarter and $212 million still available.

Analysts pressed on MAU recovery, pricing changes, advertising ramp, Pet GPS economics, and the path to the second-half EBITDA guide. Management said the MAU recovery was on track because the quarter’s exit rate was stronger than the average and because back-to-school, brand awareness, and international initiatives should help in H2. On ads, management said the first half was about integration and the next phase is scaling to market, with Q4 seasonally strongest and revenue expected to be about double Q1; on Pet GPS, they reiterated that the new bundle is designed to drive adoption, not near-term device margin. They also said the ad stack now includes a device graph reaching close to 100% of the U.S. addressable ad market and that first-party, consented data reduces regulatory risk.