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Life360, Inc. (LIF)·Q2 2025 Earnings Summary

Executive Summary

  • Revenue beat with raised FY outlook; Q2 revenue $115.4m vs $109.9m consensus*, up 36% YoY, driven by 35% subscription growth and a doubling of high‑margin “Other” revenue; Adjusted EBITDA rose to $20.3m (18% margin) and net income reached $7.0m . Revenue consensus from S&P Global: $109.95m* (9 ests). Values retrieved from S&P Global.
  • Management raised FY25 guidance across all lines: consolidated revenue to $462–$482m (from $450–$480m), subscription to $363–$367m, other to $57–$65m, hardware to $42–$50m, and Adjusted EBITDA to $72–$82m .
  • Key operational drivers: MAUs +25% YoY to ~88.0m and Paying Circles +25% to ~2.5m (Q2 net adds 136k record for Q2); ARPPC +8% YoY; June AMR +36% YoY to $416.1m .
  • Strategic updates: launch of Place Ads and Uplift attribution; AccuWeather alerts with high engagement; Tile device activation now inside the Life360 app; pet tracker on track for holiday launch as a paid, subsidized product .
  • Leadership transition announced: Lauren Antonoff named CEO; founder Chris Hulls becomes Executive Chairman; board changes disclosed; transition framed as succession to scale operations and product innovation .

What Went Well and What Went Wrong

What Went Well

  • Strong top-line and profitability: Q2 revenue +36% YoY to $115.4m; Adjusted EBITDA $20.3m (+85% YoY) with margin up to 18%; net income of $7.0m .
  • High-margin mix expanding: “Other” revenue (ads/data) doubled YoY to $14.5m; gross margin rose to 78% (from 75% LY), driven by mix shift; June AMR up 36% YoY to $416.1m .
  • User and subscriber momentum: MAUs +4.3m QoQ to ~88.0m (+25% YoY), Paying Circles +136k in Q2 to ~2.5m (+25% YoY), ARPPC +8% YoY; international MAUs +34% YoY .
  • Quote: “We launched Place Ads and Uplift…proof of concept campaigns with multiple quick serve restaurants and mass retailers” .

What Went Wrong

  • Hardware headwinds/tariffs: Hardware revenue +3% YoY to $12.3m with promotions; tariffs affected revenue and costs despite partial exemptions; ASP down 7% YoY; hardware remains a lower-margin mix element .
  • Operating expense timing: OpEx up 34% YoY due to front‑loaded marketing/personnel; management flagged typical Q3 EBITDA margin dip from seasonal spend (back-to-school) .
  • Estimates visibility: Street EPS consensus not available; S&P EBITDA consensus exists but isn’t directly comparable to the company’s Adjusted EBITDA (non‑GAAP), creating cross‑metric comparability issues* . Values retrieved from S&P Global.

Financial Results

Summary P&L and Profitability

MetricQ2 2024Q1 2025Q2 2025
Revenue ($m)84.9 103.6 115.4
Gross Margin (%)75% 81% 78%
Net Income ($m)(11.0) 4.4 7.0
Adjusted EBITDA ($m)11.0 15.9 20.3
Adjusted EBITDA Margin (%)13% 15% 18%
Annualized Monthly Revenue ($m)304.8 393.0 416.1

EPS (YoY comparison)

MetricQ2 2024Q2 2025
Diluted EPS ($)(0.15) 0.08

Segment Revenue

Metric ($m)Q2 2024Q1 2025Q2 2025
Subscription65.7 81.9 88.6
Hardware11.9 8.9 12.3
Other7.3 12.8 14.5

KPIs

KPIQ2 2024Q1 2025Q2 2025
Global MAUs (m)70.6 83.7 88.0
U.S. MAUs (m)40.5 45.3 47.5
International MAUs (m)30.1 38.4 40.5
Paying Circles (m)2.0 2. resid 2.4 2.5
ARPPC ($)125.96 133.42 135.42
AMR ($m)304.8 393.0 416.1
Net Hardware Units (m)0.7 0.5 0.8
ASP ($)15.92 16.99 14.81

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Revenue ($m)FY 2025450–480 462–482 Raised
Subscription Revenue ($m)FY 2025355–365 363–367 Raised
Hardware Revenue ($m)FY 202540–50 42–50 Raised (low end)
Other Revenue ($m)FY 202555–65 57–65 Raised (low end)
Adjusted EBITDA ($m)FY 202565–75 72–82 Raised

Management noted Q3 Adjusted EBITDA margin typically dips seasonally on back‑to‑school marketing and R&D timing .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24/Q1’25)Current Period (Q2’25)Trend
Advertising platformAlpha of geo‑contextual formats; Uber case study (12% CTR, 60k+ rides); building off‑site targeting/measurement Launched Place Ads (location push) and Uplift (footfall measurement); POCs with QSRs/retailers; privacy‑safe audiences; AccuWeather alerts with high CTR Accelerating
Pet trackerPivot initial rollout to international due to tariffs; on track for Q4 launch; integration strategy On track for holiday launch; paid, “subsidized” pricing to drive conversion; bundling with subscriptions; channel details pending On track; monetization clarified
App Store payments/web billingBegan web‑based checkout tests post court rulings; long‑term unit economics upside First iOS‑approved web billing test launched in June; potential to improve economics over time Early tests; long‑term positive
International expansion/localizationTriple‑tier expansion; price increases; strong Intl growth Intl MAUs +34% YoY; Paying Circles +28% YoY; EU emergency dispatch rollout; localized pricing/value tiers Strengthening
Tariffs/macroTariffs impacted hardware; strategy pivot for pets; hardware softness at retail Partial tariff exemptions; impact persists on revenue/costs; hardware margin stable YoY Managed headwind
Brand/marketing“I Think of You Dying” campaign launched; focus on free‑to‑paid conversion Large multinational back‑to‑school push; viral creative doubled unaided awareness; front‑loaded spend Increased spend & impact
Data/partnersAccuWeather partnership; Aura benefits channel; Hubble enterprise prospects AccuWeather alerts live; Hubble SmartPin enterprise tracker launched; expanding B2B revenue streams Expanding
Hardware integration (Tile)Activation moving inside Life360 app Tile can now be activated in the Life360 app; unified member journey live Completed milestone

Management Commentary

  • “Q2 2025 was another record quarter…all‑time highs in MAUs and paying circles…adding 4.3m MAUs to reach 88m; paying circles up 25% with a Q2 record net add of 136k.”
  • “Place Ads and Uplift…help brands reach families in real‑world moments and measure offline impact…early traction with QSRs and mass retailers.”
  • “Tile devices can now be activated directly within the Life360 app…laying the foundation for a more unified member journey.”
  • “Net income was $7m…Adjusted EBITDA $20.3m…11th consecutive quarter of positive Adjusted EBITDA.”
  • “We are raising our full‑year 2025 guidance…revenue $462m–$482m; Adjusted EBITDA $72m–$82m.”

Q&A Highlights

  • Pet tracker launch/pricing: On track for holiday season; details withheld for launch; it will be a paid, “subsidized” product—used as a marketing/customer acquisition lever with quick payback; bundled with subscription options .
  • Ads monetization and products: Place Ads deliver in‑app location‑triggered messages; Uplift offers privacy‑safe foot traffic attribution. Early stage, small initially, but designed as high‑value units aligned with member experience .
  • Penetration/churn with ads: No significant drop‑off in MAUs from ad rollout; runway remains long in U.S. and internationally .
  • EBITDA surprised vs prior frame: Despite signaling Q2 margin pressure earlier in the year, strength in subscription mix and savings elsewhere drove better‑than‑expected Q2 Adjusted EBITDA .
  • OpEx seasonality: Expect higher S&M in Q3 to capitalize on back‑to‑school; operating leverage trend to resume by year‑end as expenses normalize .

Estimates Context

  • Revenue: Consensus $109.95m*, Actual $115.38m → beat by $5.43m (+4.9%). Number of revenue estimates: 9 (Values retrieved from S&P Global).
  • EPS: Primary EPS consensus unavailable*; reported diluted EPS $0.08 . Values retrieved from S&P Global.
  • EBITDA: S&P Global EBITDA consensus $14.14m* vs S&P Global “actual” EBITDA $5.06m*; company reported Adjusted EBITDA $20.3m (non‑GAAP, not directly comparable) . Values retrieved from S&P Global.

Key Takeaways for Investors

  • Beat-and-raise quarter: Top-line outperformed consensus and management lifted FY revenue and Adjusted EBITDA ranges; narrative strengthened by net income inflection and 18% Adjusted EBITDA margin .
  • Mix upgrade continues: High‑margin “Other” revenue (ads/data) doubled YoY, lifting gross margin to 78%; further scale in Place Ads/Uplift could compound margin expansion over time .
  • Durable subscriber engine: MAUs and Paying Circles both +25% YoY with ARPPC +8% YoY; June AMR +36% YoY underpins forward revenue visibility .
  • Hardware a strategic funnel amid tariffs: Hardware revenue grew modestly with stable gross margins; remains a lower‑margin on‑ramp into subscriptions; pet tracker bundling should support conversion and ARPU .
  • Near-term modeling: Expect Q3 margin dip from seasonal brand and growth investments; trajectory to resume thereafter per management .
  • Structural tailwinds: Web billing tests could reduce app store take rates over time; privacy‑safe first‑party data supports a differentiated retail/attribution ad offering .
  • Leadership continuity: CEO transition to Lauren Antonoff formalizes an already-operating model; strategic priorities unchanged with heightened focus on scaling systems and ads .

Notes:

  • Values retrieved from S&P Global.