Life360 — Q2 2026 Earnings Summary

Financial Performance

• Total revenue reached $159.0 million for the quarter, a 38% year-over-year increase.
• Subscription revenue was $115.6 million, up 31% year-over-year; core subscription revenue was $111.1 million, up 34% year-over-year.
• Advertising revenue hit a record $22.0 million, representing a 315% year-over-year increase.
• Hardware revenue decreased 20% year-over-year to $9.8 million.
• Annualized Monthly Revenue (AMR) increased 29% year-over-year to $537.2 million.
• Adjusted EBITDA was $31.1 million, an increase of 53% from $20.3 million in Q2 2025, with a margin of 20%.
• Operating cash flow was positive $23.8 million, up 79% year-over-year.
• Gross margin improved to 80% from 78% in the prior year period.
• Total operating expenses increased 43% year-over-year to $127.0 million, rising to 80% of revenue from 77% in the prior year.
• Net income was $5.1 million, compared to $7.0 million in Q2 2025.
• Cash, cash equivalents, restricted cash, and short-term investments totaled $467.7 million at quarter-end.

Guidance and Future Outlook

• Full-year 2026 consolidated revenue is expected to be between $650 million and $685 million, reflecting 33% to 40% year-over-year growth.
• Full-year 2026 subscription revenue guidance was raised to $475 million to $480 million (previously $470 million to $475 million).
• Full-year 2026 hardware revenue guidance was reduced to $35 million to $45 million (previously $40 million to $50 million).
• Full-year 2026 advertising revenue guidance remains $98 million to $115 million.
• Full-year 2026 Adjusted EBITDA guidance remains $130 million to $140 million, representing approximately 20% margin.
• Full-year 2026 MAU growth is expected to be 17% to 20%, weighted toward the second half of the year.
• Management expects revenue growth acceleration in the back half of 2026, driven by core subscription strength and the advertising platform's seasonal window.
• Future investment focus includes international expansion, advertising platform scaling, AI labs, and product innovation.

Business Segments and Product Lines

• Global Monthly Active Users (MAU) reached 102.4 million, up 16% year-over-year, with 4.6 million net additions in the quarter.
• Global Paying Circles grew 27% year-over-year to 3.2 million, with 185 thousand net additions in the quarter.
• Average Revenue Per Paying Circle (ARPPC) increased 5% year-over-year to $142.56, driven by a shift toward higher-priced offerings in international markets.
• International Paying Circles grew 32% year-over-year, with UK, ANZ, and CA regions growing 34% and Other International growing 31%.
• Net hardware units shipped decreased 18% year-over-year to 0.7 million, attributed to the strategic exit of the brick-and-mortar retail channel.
• Average Selling Price (ASP) for hardware decreased 1% year-over-year to $14.70.
• The Life360 Ads Platform integration is largely complete, with revenue growth driven by new offerings following the Nativo acquisition.
• Other revenue increased 25% year-over-year to $11.6 million, driven by higher data volumes and partnership revenue.

Market and Competitive Landscape

• Life360 serves approximately 102.4 million monthly active users across more than 180 countries.
• The company positions itself as the market-leading family connection and safety mobile application.
• The business is expanding its focus to serve all life stages, including pet parents, kids, and aging adults.
• The company is transitioning to an AI-Native organization.

Risks and Challenges

• Hardware revenue declined due to the strategic exit of the brick-and-mortar retail channel and decreased online retail sales.
• Operating expenses as a percentage of revenue increased due to higher personnel costs, app store commissions, and amortization from the Nativo acquisition.
• Advertising gross margin was partially offset by a shift in margin mix following the expansion of the advertising platform.
• Forward-looking statements carry risks related to macroeconomic considerations, including tariffs and trade barriers.
• Actual results may differ from projections due to risks such as product performance, capital needs, and the preliminary nature of financial results.

Management Commentary and Tone

• CEO Lauren Antonoff stated the company crossed 100 million monthly active users, citing trust from families and disciplined execution driving Paying Circle growth.
• CFO Russell Burke highlighted strong growth in subscription and advertising revenue, noting the advertising platform is gaining momentum post-integration.
• Management expressed confidence in returning MAU to a growth trajectory and balancing growth investment with margin expansion.
• The tone reflects optimism regarding the completion of the Nativo integration and the potential for AI-driven product innovation.

Other Key Points

• The company acquired Nativo, which drove the significant increase in advertising revenue.
• The company acquired Fantix, Inc., incurring acquisition-related transaction and integration costs.
• Treasury stock repurchases totaled $13.2 million in Q2 2026 (314,762 shares) under a $225.0 million multi-year program, with $211.8 million remaining available.
• The company incurred non-recurring costs related to channel restructuring (exit of brick-and-mortar retail), workplace restructuring (AI-Native transition), and warehouse relocation.
• The company received tariff refund claims, which contributed to gross margin improvements.
• A conference call was held on August 10, 2026, to discuss results.