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Life360, Inc. (LIF)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered record results: revenue $124.5M (+34% YoY), Adjusted EBITDA $24.5M (+174% YoY), MAUs ~91.6M (+19% YoY), Paying Circles 2.7M (+23% YoY) .
  • Strong beat vs S&P Global consensus: revenue $124.5M vs $119.7M estimate; Primary EPS $0.284 vs $0.059 estimate; company-reported diluted EPS $0.11 (YoY +$0.02) . Estimates marked with * (S&P Global)*.
  • Raised FY25 guidance across revenue and Adjusted EBITDA; announced definitive agreement to acquire Nativo (~$120M), accelerating ads roadmap and offsite reach .
  • Hardware revenue fell 4% YoY and hardware margin was pressured by tariffs; ASP down 6% YoY, though unit shipments rose 15% YoY and promotional Pet GPS launch supports subscription conversion .
  • Catalyst set-up: guidance raise, accelerating ads with Nativo, record net subscriber adds (170k), and back-to-school engagement; near-term watch items include tariff mitigation and ads execution ramp .

What Went Well and What Went Wrong

What Went Well

  • Record subscriber growth: 170k net Paying Circle adds (all-time record) and Paying Circles up 23% YoY to 2.7M; MAUs ~91.6M (+19% YoY) .
  • Revenue mix lift: other revenue up 82% YoY to $16.9M (ads and partnerships), driving gross margin to 78% (vs 75% prior year) .
  • Operating leverage and profitability: Adjusted EBITDA $24.5M (+174% YoY) and margin 20% (vs 10% prior year) as opex as % revenue fell to 73% .
  • Management quote: “Revenue grew 34% YoY to $124.5 million and Adjusted EBITDA rose 174% YoY to $24.5 million… we’re raising full-year guidance” — CFO Russell Burke .
  • Strategic expansion: announced acquisition of Nativo to build end-to-end ads stack and expand offsite reach (premium publishers, SSP/DSP integrations) .

What Went Wrong

  • Hardware headwinds: standalone hardware gross profit/margin impacted by tariffs; hardware revenue down 4% YoY; ASP down 6% YoY due to mix/discounts .
  • MAU growth moderated vs unusually strong comps; focus shifted to higher-intent cohorts for conversion (still strong net adds, but lower overall MAU growth pace vs last year’s exceptional burst) .
  • Elevated sales & marketing for seasonal campaigns and Pet GPS launch, muting near-term opex leverage trajectory (still improved vs revenue) .

Financial Results

Revenue and Segment Breakdown ($USD Millions)

MetricQ3 2024Q2 2025Q3 2025
Total Revenue$92.9 $115.4 $124.5
Subscription Revenue$71.8 $88.6 $96.3
Hardware Revenue$11.7 $12.3 $11.3
Other Revenue$9.3 $14.5 $16.9

EPS, Margins, Profitability

MetricQ3 2024Q2 2025Q3 2025
Diluted EPS (GAAP) ($)$0.09 —$0.11
Gross Margin %75% 78% 78%
Adjusted EBITDA ($M)$9.0 $20.3$24.5
Adjusted EBITDA Margin %10% 18%20%
Net Income ($M)$7.7 $7.0 $9.8

KPIs

KPIQ3 2024Q2 2025Q3 2025
MAUs (Millions)76.9 88.0 91.6
Paying Circles (Millions)2.2 2.5 2.7
ARPPC ($)$127.57 $135.42 $137.63
Subscriptions (Millions)2.8 3.1 3.3
ARPPS ($)$106.27 $116.06 $119.33
Net Hardware Units Shipped (Millions)0.8 0.8 0.9
ASP ($)$12.69 $14.81 $11.99
AMR ($M)$336.2 $416.1 $446.7

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Revenue ($M)FY 2025$462–$482 $474–$485 Raised
Subscription Revenue ($M)FY 2025$363–$367 $366–$368 Raised
Hardware Revenue ($M)FY 2025$42–$50 $46–$50 Raised
Other Revenue ($M)FY 2025$57–$65 $62–$67 Raised
Adjusted EBITDA ($M)FY 2025$72–$82 $84–$88 Raised

Note: CFO on the call referenced Adjusted EBITDA $82–$88; the 8-K exhibits show $84–$88 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Advertising & MonetizationUber case study; geo-contextual notifications alpha; AccuWeather partnership; building privacy-first audiences Place Ads and Uplift launched; ads ~half of “other revenue”; partnerships with Aura; ramp via programmatic Announced Nativo acquisition to create end-to-end ads platform; offsite reach across premium publishers; accretive to Adjusted EBITDA Accelerating
Hardware/Pet GPSPivot launch sequencing amid tariffs; device integrated within Life360; conversion tool for free members Preparing launch; hardware units up; promotional pricing; strategic funnel into subscriptions Launched Pet GPS in US/CA/UK/ANZ; stronger-than-expected demand; subsidized device to drive Gold/Platinum subs Scaling (device launch)
Tariffs/Supply ChainTariff mitigation planning; international focus for initial pet rollout Partial exemptions; ongoing impacts; hardware gross margin stable YoY in Q2 despite tariffs Hardware margin impacted; steps taken to mitigate; expect negative single-digit hardware GM in FY25 Continued headwind, managed
App Store PaymentsTesting web-based checkout post ruling; long-term margin opportunity Early iOS-approved web billing tests; long-term potential to improve unit economics Long-term benefit expected; Apple Pay usage uncertainty; cautious near-term impact Structural tailwind long-term
International ExpansionTriple-tier pricing uplift; emergency dispatch expansion; strong international ARPPC growth Strong MAU and PC growth; localization; rising international contribution International MAUs +24% YoY; international PCs +29% YoY; continued pricing strategy Broadening
Product EngagementMap refresh; free experience enhancements; nurturing conversion engine Brand + performance blend; DAU/MAU engagement improvements Back-to-school activation; AccuWeather alerts to whole circle; no-show alerts feature adoption Strengthening

Management Commentary

  • CEO: “Life360 delivered another record quarter in Q3… Our strategy… continues to deliver—expanding from location and safety into richer everyday experiences… launch of our Pet GPS… we’re just getting started.” — Lauren Antonoff .
  • CFO: “Adjusted EBITDA rose 174% YoY to $24.5 million… while standalone hardware gross profit and margin were affected by tariff-related costs, we have taken steps to mitigate that impact… raising full-year guidance.” — Russell Burke .
  • Executive Chairman: “The Nativo acquisition… enabling third parties to use our location intelligence… indirect revenue could one day rival subscriptions.” — Chris Hulls .

Q&A Highlights

  • Nativo scale and accretion: Nativo’s revenue run-rate is roughly 2x Life360’s 2025 advertising revenue (ex data); expected to be Adjusted EBITDA accretive from day one; positive synergy ramp in 2026 .
  • Pet GPS conversion strategy: Early demand beat expectations; focus on existing and free members; subsidized hardware to drive paid Gold/Platinum memberships and subscription LTV; pricing experimentation ongoing; promotional pricing removed in most territories .
  • Ads mix: Advertising approaching ~50% of “other revenue”; Aura partnership ads contribution largely in Q4; Q3 other revenue growth primarily driven by ads .
  • Margin trajectory: Path to 35%+ Adjusted EBITDA margins driven by scale and mix shift toward higher-margin revenue, especially advertising .
  • MAU targeting: Focused on higher-intent cohorts; exceptional prior-year international comps; record net Paying Circle adds reflect conversion strength .

Estimates Context

MetricS&P Global Consensus (Q3 2025)Actual (Q3 2025)Surprise
Revenue ($USD Millions)119.671*124.497 +$4.826 (+4.0%)
Primary EPS ($USD)0.0589*0.2842*+0.2253*
  • Company-reported diluted EPS was $0.11 (vs $0.09 in Q3 2024) .
  • Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Life360 executed a high-quality beat on revenue and EPS, with record net subscriber adds and margin expansion; FY25 guidance was raised across all major lines — supportive of estimate revisions upward .
  • Ads monetization is inflecting: other revenue +82% YoY, Nativo acquisition adds full-stack capabilities and offsite reach; watch 2026 synergy realization and ads share of total revenue .
  • Hardware is strategically a funnel to subscriptions; despite tariff pressure and ASP declines, Pet GPS is unlocking conversion and engagement in paid tiers .
  • Operating leverage intact: opex as % revenue down to 73%; Adjusted EBITDA margin up to 20%; management reaffirmed path to 35%+ over time .
  • International remains a growth lever with pricing and tiering strategies; international PCs +29% YoY and ARPPC uplift support sustained top-line growth .
  • Structural margin tailwind from app store payments could materialize over multi-year horizon; near-term impact is uncertain pending Apple Pay and conversion dynamics .
  • Near-term trading: positive setup from guidance raise and strategic acquisition; monitor ad ramp execution, tariff mitigation, and Q4 holiday season effects .

Additional Documents Read

  • Q3 2025 8-K with Exhibit 99.1 (earnings release), Exhibit 99.2 (investor presentation), Exhibit 99.3 (Nativo acquisition press release) .
  • Q3 2025 earnings call transcript –.
  • Prior quarters’ earnings call transcripts for Q2 2025 and Q1 2025 for trend analysis – –.