Life360 crosses 100 million users as Q2 2026 revenue hits record $159 million
In its second quarter of 2026 results, Life360, Inc. (NASDAQ: LIF, ASX: 360) reported that total Monthly Active Users (MAU) reached approximately 102.4 million, crossing the 100 million threshold for the first time during the quarter ended 30 June 2026.
Total revenue grew 38% year-on-year to a record $159.0 million, while the family safety and connection app delivered record Q2 Paying Circle net additions of 185 thousand. That lifted total Paying Circles to 3.2 million, up 27% year-on-year.
All figures throughout are reported in US dollars, reflecting Life360’s US domicile despite its dual listing on the NASDAQ and ASX.
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Q2 2026 financial highlights
The company recorded broad-based growth across its revenue lines, with advertising emerging as the standout contributor alongside continued subscription momentum.
| Metric | Q2 2026 | Q2 2025 | YoY Change |
|---|---|---|---|
| Total revenue | $159.0M | $115.4M | +38% |
| Total subscription revenue | $115.6M | $88.6M | +31% |
| Core subscription revenue | $111.1M | $82.9M | +34% |
| Advertising revenue | $22.0M | $5.3M | +315% |
| Annualized Monthly Revenue (AMR) | $537.2M | $416.1M | +29% |
| Adjusted EBITDA | $31.1M | $20.3M | +53% |
| Operating cash flow | $23.8M | $13.3M | +79% |
The company ended the quarter with a strengthened balance sheet and improved margins:
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Cash, cash equivalents, restricted cash and short-term investments of $467.7 million, an increase of $33.5 million from Q2 2025.
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Gross margin improved to 80%, up from 78% in the prior year.
The most striking figures came from the newer and more profitable revenue streams. Advertising revenue surged 315% year-on-year, while Adjusted EBITDA rose 53%, pointing to profitable and increasingly diversified growth.
The advertising surge builds on a structural shift that became visible in Life360’s full-year 2025 results, when the company recorded its first full-year profit in company history alongside a 105% jump in Adjusted EBITDA, confirming the freemium model had reached profitable scale.
Operating performance — user and subscriber growth
The financial result was underpinned by strong operational momentum across every major geographic region. Global MAU increased 16% year-on-year to approximately 102.4 million, with quarterly net additions of 4.6 million.
Management noted that MAU returned to the growth trajectory the company outlined last quarter. Paying Circles grew 27% year-on-year to 3.2 million, while Average Revenue Per Paying Circle (ARPPC) increased 5% year-on-year, reflecting a product mix shift toward higher-priced offerings.
The momentum follows a similarly strong Q1 2026 results period in which Paying Circles surpassed 3 million for the first time and advertising revenue came in at $19.7 million, up 329% year-on-year, establishing the ads platform as a material revenue line before Q2 accelerated it further.
Regional growth highlights included:
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U.S. MAU up 14% year-on-year with net additions of 2.2 million; Paying Circles up 25%.
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UK, ANZ and Canada MAU up 24% year-on-year with net additions of 0.7 million; Paying Circles up 34%.
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Other international MAU up 18% year-on-year with net additions of 1.7 million; Paying Circles up 31%.
Net hardware units shipped decreased 18% year-on-year. The company attributed this to the strategic exit of its brick-and-mortar retail channel and a decline in online retail sales.
CEO Commentary
“This quarter, Life360 crossed 100 million monthly active users—proof of the trust millions of families place in us to stay connected, coordinated, and safe. Disciplined execution drove strong Paying Circle growth and put MAU back on the growth trajectory we outlined last quarter. With the Life360 Ads Platform integration largely complete, we’re now focused on building awareness and commercial momentum. In Q3, we’re furthering our commitment to serve all life stages—from pet parents to kids and aging adults—reinforcing our position as the platform that makes everyday family life better,” said Lauren Antonoff, Chief Executive Officer.
Understanding Life360’s revenue engine
For investors newer to the business, Life360 generates income across three distinct pillars. Understanding how each contributes helps clarify why the quarter’s results matter.
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Subscriptions form the core, recurring engine, generating predictable revenue from paying members of the Life360 mobile application.
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Advertising is the fast-growing newer stream, boosted by the acquisition of Nativo, which enabled new advertising offerings.
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Hardware covers the sale of physical tracking devices.
A Paying Circle is a group of Life360 members on a paid subscription that has been billed at period end, making it a key indicator of monetisation and growth. Annualized Monthly Revenue (AMR) provides a forward-looking view of the scale of recurring revenue, based on the most recent month’s performance.
The takeaway for investors is that recurring subscription revenue provides predictability, while advertising adds high-margin optionality as the platform scales.
Financial position and cash flow
The company generated operating cash flow of $23.8 million during the quarter, up 79% year-on-year, demonstrating the cash-generative nature of its subscription base.
Total cash declined year-on-year, but this reflected deliberate capital deployment rather than operational weakness. The company directed $214.1 million into short-term investments, paid $55.6 million net for the Nativo acquisition, and repurchased $13.2 million in treasury shares.
These purchases were made under the approved multi-year $225.0 million share repurchase program, with $211.8 million remaining available under the authorisation. Strong operating cash generation is funding both growth investment and shareholder returns concurrently.
FY26 guidance and outlook
Life360 reiterated much of its full-year 2026 guidance while raising its subscription revenue outlook. The company expects to deliver:
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MAU growth of 17% to 20%, weighted toward the second half of the year (unchanged).
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Consolidated revenue of $650 million to $685 million, representing year-on-year growth of 33% to 40%.
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Subscription revenue of $475 million to $480 million, increased from the prior range of $470 million to $475 million.
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Advertising revenue of $98 million to $115 million (unchanged).
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Hardware revenue of $35 million to $45 million, reduced from $40 million to $50 million.
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Adjusted EBITDA of $130 million to $140 million (unchanged), representing a margin of approximately 20%.
CFO Commentary
“Looking ahead, we expect revenue growth acceleration into the back half of 2026. Continued strength in our core subscription business and our advertising platform entering its strongest seasonal window will drive Total Revenue growth. We will continue to invest in strategic initiatives including international expansion, advertising platform scaling, our AI labs and product innovation, while remaining committed to balancing growth investment with margin expansion,” said Russell Burke, Chief Financial Officer.
Management outlined its strategic priorities as international expansion, scaling the advertising platform, developing its AI labs, and continued product innovation. The company reaffirmed its focus on balancing investment in growth with margin expansion as it enters the seasonally stronger second half of the year.
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