Life360 slumps despite positive full-year earnings
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More news: Shares in Life360 fell in morning trade. It was among the worst performers across the ASX 200 despite the company posting a higher year-on-year earnings for the year ended December 2025.
Shares slumped 7.24% to $22.93 at 12:17pm AEDT.
RBC Capital Markets analyst Wei-Weng Chen maintained a positive view on the stock and has set a price target of $51, citing solid results that exceeded analysts’ expectations, despite the pre-guiding in January. He expects this result to provide some relief for the company.
Life360 records first year of profitability as revenue jumps 32%
The news: App developer Life360 reported its first year of profitability with net income of USD150.8 million ($212.7 million) in the 12 months to December, after the company added a record number of new active users in the fourth quarter.
The numbers: Full-year revenue grew 32% to USD489.5 million. Adjusted EBITDA more than doubled year on year to USD93.2 million.
Global monthly active users (MAU) in the fourth quarter increased by 20% year on year to 95.8 million. The company has guided for global MAU growth of 20% in 2026.
It has also guided consolidated revenue of USD640 million to USD680 million, marking year-on-year growth of 31-39%. It will target adjusted EBITDA of USD128 million to USD138 million.
The context: Life360 said it expects to accelerate revenue growth in 2026, driven by its core subscription business and the scaling of its advertising platform.
The company is aiming to invest in strategic initiatives, including international expansion, advertising platform scaling, and continued product innovation.
What they said: “2025 was a landmark year for Life360. For the first time in company history, we achieved annual net income, reflecting both the fundamental strength of our freemium model and the operating discipline we’ve built over the past several years,” said Life360 chief executive Lauren Antonoff.
The source: Life360 earnings release
