Life360 (360) Q4 2025 earnings summary

Executive summary

• Achieved FY2025 revenue of $489.5 million, up 32% year-over-year, with net income of $150.8 million (including a one-time non-cash tax benefit) and Adjusted EBITDA more than doubling to $93.2 million (19% margin).

• Ended 2025 with 95.8 million MAU (+20% YoY) and 2.8 million Paying Circles (+26% YoY), reflecting strong global user growth.

• Significant platform investments, including Pet GPS launch, Nativo and Fantix acquisitions, and 95%+ AI adoption, position the company for AI-driven and advertising-led growth.

• Expanded international presence and product offerings, including new B2B partnerships and enhanced advertising capabilities.

• First full year of profitability, with net income excluding the tax benefit at $32.5 million.

Financial highlights

• Q4 2025 revenue was $146 million (+26% YoY); subscription revenue $102.5 million (+30% YoY); core subscription revenue up 33% to $97.3 million.

• Other revenue (mainly advertising) grew 86% YoY in Q4 to $24.2 million; hardware revenue declined 19% YoY to $19.3 million.

• Full-year 2025 revenue reached $489.5 million (+32%), gross margin expanded to 78%, and Adjusted EBITDA margin was 19%.

• Operating cash flow for 2025 was $88.6 million, up 172% YoY; ended 2025 with $495.8 million in cash and equivalents.

• Operating expenses as a percentage of revenue remained flat at 69% in Q4 2025.

Outlook and guidance

• FY2026 guidance: revenue of $640–$680 million (31–39% YoY growth), subscription revenue $460–$470 million, other revenue $140–$160 million, hardware revenue $40–$50 million, Adjusted EBITDA $128–$138 million (~20% margin), and 20% MAU growth.

• Adjusted EBITDA expected to be weighted toward the second half of FY2026 due to investment timing and seasonality; Q1 margins expected in low double digits, Q4 margin to exceed 22%.

• Nativo expected to contribute majority of its $63 million 2025 revenue at higher margins post-integration.

• Targeting above 35% Adjusted EBITDA margin long-term.