Life360 Hits $143M Revenue and Raises Guidance as Ads Business Surges 329%
Life360 (ASX: 360) delivers record Q1 2026 results as revenue surges 38% and paying circles hit 3 million
Life360, Inc. (ASX: 360) reported record Q1 2026 results on 11 May 2026, with total revenue climbing 38% year-over-year to $143.1 million for the quarter ended 31 March 2026. Global Monthly Active Users (MAU) reached 97.8 million (up 17% YoY), while Paying Circles surpassed the 3.0 million milestone, growing 27% YoY with a record 201 thousand net additions in a single quarter.
Notably, this was the first quarter advertising revenue was disclosed as a separate line item, reaching $19.7 million, up 329% YoY, signalling the rapid maturation of Life360’s advertising business following the Nativo acquisition.
Lauren Antonoff, Chief Executive Officer
“Life360 has become a meaningful part of everyday family life for more than 97 million people who use Life360 to keep their families safe and connected… And with AI, we’re moving faster than ever to transform Life360 into the super app that makes everyday family better.”
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Q1 2026 by the numbers — a quarter of records across the board
The table below presents Life360’s key financial and operating metrics for Q1 2026 against the prior corresponding period, offering a clear view of the company’s growth trajectory.
| Metric | Q1 2026 | Q1 2025 | Change | Why It Matters |
|---|---|---|---|---|
| Total Revenue | $143.1M | $103.6M | +38% YoY | Broad-based growth across all revenue lines |
| Subscription Revenue | $108.2M | $81.9M | +32% YoY | Core business remains the dominant growth engine |
| Core Subscription Revenue | $103.5M | $76.2M | +36% YoY | Reflects underlying mobile app performance, excluding non-core offerings |
| Advertising Revenue | $19.7M | $4.6M | +329% YoY | Now a material revenue line, disclosed separately for the first time |
| Annualized Monthly Revenue (AMR) | $517.9M | $393.0M | +32% YoY | Forward-looking indicator of revenue trajectory heading into H2 FY26 |
| Adjusted EBITDA | $17.1M | $15.9M | +7% YoY | Profitable at the operating level while continuing to invest in growth |
| Operating Cash Flow | $17.2M | $12.1M | +42% YoY | Business is self-funding at the operating level |
| Global MAU | 97.8M | 83.7M | +17% YoY | Large and growing user base underpins the advertising platform’s scale |
| Paying Circles | 3.0M | 2.4M | +27% YoY | Record net additions signal strengthening free-to-paid conversion |
Overall gross margin contracted to 77% in Q1 2026 from 81% in the prior year. Management attributed this to the inclusion of a broader mix of advertising products following the Nativo acquisition, as well as hardware channel restructuring costs. Subscription gross margin remained elevated at 87%, indicating the compression is not a structural deterioration of the core subscription business.
The Nativo effect — how advertising became a material revenue line
Advertising revenue of $19.7 million in Q1 2026 represents the first quarter this metric has been disclosed as a standalone line item. The primary driver is the Nativo acquisition, which powered growth in managed advertising revenue. The sequential quarterly progression illustrates just how rapidly this revenue stream has scaled:
- Q2 FY25: $5.3 million
- Q3 FY25: $7.3 million
- Q4 FY25: $13.9 million
- Q1 FY26: $19.7 million
Russell Burke, Chief Financial Officer
“We are disclosing our Advertising Revenue separately for the first time this quarter, which reached $19.7 million in the quarter and was up 329% year-over-year, as the Life360 Advertising Platform took flight following the closing of the Nativo acquisition.”
What is Annualized Monthly Revenue — and why it matters for Life360 investors
Annualized Monthly Revenue (AMR) is a forward-looking metric that takes the most recent month’s revenue run rate and annualises it. Put simply, it reflects where the business is headed on an annual basis rather than what it has already recorded, making it a leading indicator of future performance rather than a historical summary.
Life360’s AMR reached $517.9 million in March 2026, up 32% YoY. This figure suggests the business is tracking well ahead of its FY26 consolidated revenue guidance midpoint, and this measurement was taken before advertising seasonality typically strengthens in the second half of the calendar year.
For investors, AMR provides a useful lens on the compounding effect of subscriber growth and pricing improvements. When AMR is growing faster than quarterly reported revenue, as is the case here, it generally signals that momentum is building into future periods.
Strong balance sheet and raised guidance underpin the growth outlook
$459 million in cash provides strategic optionality
Life360 ended Q1 FY26 with $459.0 million in cash, cash equivalents, restricted cash, and short-term investments, up $288.6 million from $170.4 million at the same point in the prior year. This increase was primarily driven by net proceeds from the June 2025 convertible notes offering and cumulative positive operating cash flows generated over the preceding twelve months.
With operating cash flow of $17.2 million in the quarter alone (up 42% YoY), the business is demonstrably self-funding at the operating level. Management has indicated the balance sheet will support continued investment across international expansion, advertising platform scaling, and product innovation.
FY26 guidance upgraded across subscription and EBITDA
Life360 raised its FY26 guidance across several key metrics following the strong Q1 result. The updated outlook is as follows:
- Total consolidated revenue: $650M–$685M (raised from $640M–$680M), representing 33%–40% YoY growth
- Subscription revenue: $470M–$475M (raised from $460M–$470M)
- Hardware revenue: $40M–$50M (unchanged)
- Advertising revenue: $98M–$115M (unchanged)
- Other revenue: $42M–$45M (unchanged)
- Adjusted EBITDA: $130M–$140M (raised from $128M–$138M), representing an approximately 20% margin
- MAU growth: 17%–20%, weighted toward H2
Management has stated it expects revenue growth to accelerate into the back half of 2026, driven by both the core subscription business and the advertising platform entering its strongest seasonal window. Adjusted EBITDA is also expected to be heavily weighted toward H2, consistent with the company’s disclosed investment timing and typical seasonality.
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The bigger picture — Life360’s path to becoming the family super app
Life360’s Q1 2026 results point to a multi-engine growth model now operating in parallel: a proven, high-margin subscription base (subscription gross margin of 87%), a rapidly scaling advertising platform, and a growing international user base with improving monetisation (international ARPPC up 23% YoY). Each of these growth drivers is reinforcing the others, with more users feeding a larger advertising audience, and advertising revenue helping to fund further product investment.
The 97.8 million MAU across more than 180 countries gives the Life360 Ads platform access to extensive first-party location data, an increasingly scarce asset in a privacy-focused digital advertising market. Record Paying Circle net additions of 201 thousand in a single quarter also indicate that free-to-paid conversion is accelerating, not plateauing, suggesting the subscriber growth story has further to run.
With AI investment cited by the CEO as a key accelerant for product development and the advertising platform yet to enter its seasonally strongest period, the next material investor catalyst is likely H2 FY26 performance as the full weight of advertising seasonality and subscriber growth compound together.
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