Q3’26 highlights: revenue up 40% to $174.1 million
In its Q3’26 results for the quarter ended 30 September 2026, Life360 recorded total revenue growth of 40% year-on-year to $174.1 million. The company also delivered its highest-ever net Paying Circle additions for a third quarter. All figures are in US dollars.
Key metrics for the quarter included:
- Adjusted EBITDA of $34.6 million, up 41% from $24.5 million in Q3’25, at a 20% margin
- Net income of $22.5 million, up 130% year-on-year, including a $17.5 million net gain on the fair value of investments
- Net Paying Circle additions of 188 thousand, taking total Paying Circles to approximately 3.4 million, up 26% year-on-year
- Monthly Active User (MAU) additions of 5.3 million, reaching approximately 107.7 million, up 17% year-on-year
Revenue growth accelerated in the quarter, as foreshadowed in the Q2’26 results. Operating expenses were 72% of revenue, against 73% in Q3’25 and 80% in Q2’26, pointing to improving operating leverage.
The Q2 2026 results set up this acceleration, with the quarter marking the first time global MAU crossed 100 million and advertising growth running above 300%.
Lauren Antonoff, Chief Executive Officer
“Our subscription engine continues to get even stronger, and early results from our U.S. price changes are encouraging.”
Chief Financial Officer Russell Burke said:
Russell Burke, Chief Financial Officer
“As foreshadowed in our Q2’26 results, Q3’26 delivered revenue growth acceleration, along with moderating operating expense growth following a period of investment in the first half…”
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Revenue performance across subscriptions, advertising and other streams
Subscription and advertising lead growth
Subscription revenue was $124.2 million, up 29%, while core subscription revenue reached $119.9 million, up 32%. Average Revenue Per Paying Circle (ARPPC) rose 4%, primarily due to a shift in product mix toward higher-priced offerings and the early impact of U.S. price increases.
Advertising revenue rose 250% to $25.4 million, primarily driven by growth in managed advertising revenue following the acquisition of Nativo. Other revenue increased 61% to $15.5 million, primarily on higher partnership revenue and higher data revenue.
Hardware revenue fell 20% to $9.0 million, primarily driven by a 32% decrease in net hardware units shipped due to the strategic exit of the brick-and-mortar retail channel.
| Revenue stream ($M) | Q3’25 | Q3’26 | % YoY |
|---|---|---|---|
| Subscription | 96.3 | 124.2 | 29% |
| Hardware | 11.3 | 9.0 | (20)% |
| Advertising | 7.3 | 25.4 | 250% |
| Other | 9.6 | 15.5 | 61% |
| Total | 124.5 | 174.1 | 40% |
Audience and Paying Circle growth
U.S. MAU reached 55.8 million, up 14%. International MAU was 51.9 million, up 21%, crossing over the 50 million mark.
Paying Circles in the UK, ANZ and CA grew 34% year-on-year, while other international Paying Circles grew 29%. The presentation noted that U.S. Paying Circle net adds increased 7% year-on-year, with the quarter-on-quarter dip reflecting the impact of the recent price increase.
Margins, cash position and capital returns
Gross margin was 77%, down from 78%, primarily due to lower advertising gross margin following the expansion of the advertising platform through the Nativo acquisition. Operating expenses rose 38% to $126.0 million, primarily reflecting higher personnel-related costs, app store commissions and growth media spend.
Cash and capital items for the quarter:
- Operating cash flow of $27.2 million, up 3% year-on-year
- Quarter-end cash, cash equivalents, restricted cash and short-term investments of $465.0 million, up $7.8 million from Q3’25, after the Nativo acquisition and share repurchases
The multi-year $225.0 million share repurchase program was announced in May 2026. Life360 repurchased 666,336 treasury shares for $31.2 million in Q3’26, bringing the aggregate to $44.4 million, with approximately $180.6 million remaining available. The company plans to offset dilution measured by stock-based compensation expense on a rolling 12 month basis from the launch of the program.
Strategic momentum: AI agents, advertising and pricing
Life360 is making its “family intelligence” available to third-party AI agents, and members decide whether to share their Circle’s information with an agent. Antonoff said, “We believe AI agents are a meaningful opportunity to increase the value we deliver.”
The presentation described the recent U.S. price change as seeing good conversion to paid and solid uptake of higher tiers. It also cited recent wins of a “~2x share of new subs to Platinum” from its AI monetisation engine.
Advertising was described as a foundation built in 2026 and ready to scale in 2027. Antonoff said growing proof points from leading brands provide “positive signals for 2027.”
FY26 guidance and what happens next
Life360 lifted or narrowed several components of its FY26 guidance. Revenue of $665 million to $681 million implies year-on-year growth of 36% to 39%, and MAU growth of 17% to 20% is unchanged.
| FY26 metric | Previous | Updated |
|---|---|---|
| Revenue | $650-685 million | $665-681 million |
| Subscription | $475-480 million | $483-488 million |
| Hardware | $35-45 million | $35-40 million |
| Advertising | $98-115 million | $98-102 million |
| Other | $42-45 million | $49-51 million |
| Adjusted EBITDA | $130-140 million | $132-138 million (margin of approximately 20%) |
For Q4’26, Burke said the company expects continued revenue momentum underpinned by recent subscription price increases and the seasonal uplift in advertising, combined with cost efficiency and seasonally lower growth media spend. He also said the company expects strengthening operating leverage.
- An investor conference call was scheduled for release day, Monday 9 November 2026 at 2 p.m. US PST (5 p.m. US EST), which is Tuesday 10 November 2026 at 9 a.m. AEDT. A replay will be available after the call at investors.life360.com.
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