Life360 reported third‑quarter 2025 revenue of $124.5 million, a 34% year‑over‑year increase from $92.9 million in Q3 2024. Monthly active users climbed to 91.6 million, up 19% from 76.9 million a year earlier, while the company added 170,000 new paying circles to reach a total of 2.7 million. Annualized monthly revenue rose to $446.7 million, reflecting a 33% jump driven by higher subscription and advertising‑partner income.
The revenue mix shifted in favor of higher‑margin subscription and other revenue streams. Subscription revenue grew 34% to $96.3 million, while other revenue—primarily advertising and data partnerships—expanded 82% to $16.9 million. Hardware revenue fell 4% to $11.3 million, a modest decline that was offset by the stronger subscription and other segments. The mix shift and higher conversion rates in the back‑to‑school season helped lift overall top‑line growth.
Gross margin improved to 78% in Q3 2025 from 75% a year earlier, driven by the favorable mix toward subscription and other revenue, which carry higher margins than hardware. Operating expenses were kept in check through disciplined cost management, allowing the company to maintain a healthy margin profile even as it invested in new product launches and the acquisition of advertising‑technology firm Nativo.
Management raised its full‑year 2025 revenue guidance to $4.396 billion–$4.400 billion, up from the prior $4.14 billion–$4.15 billion range, and lifted adjusted EBITDA guidance to $24.5 million, reflecting confidence in continued demand for its platform and the expected synergies from the Nativo acquisition. The guidance signals a belief that the company can sustain high growth while preserving margin expansion.
CEO Lauren Antonoff said the quarter “delivered another record performance as families integrated Life360 into daily routines during the back‑to‑school season, driving strong gains in paying circles.” CFO Russell Burke highlighted disciplined expense management and a resilient balance sheet, noting that “revenue grew 34% YoY to $124.5 million and adjusted EBITDA rose 174% YoY to $24.5 million.” Both executives emphasized the company’s focus on platform expansion and international growth.
Market reaction was mixed. Investors weighed the strong earnings against the $120 million Nativo acquisition, which, while expected to boost advertising revenue, added integration risk and short‑term cost pressure. The company’s robust fundamentals—high user growth, margin expansion, and raised guidance—remain a positive sign, but the acquisition’s impact tempered the immediate market response.
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