Monthly Active Users Reached Approximately 91.6 million; Up 19% Year-Over-Year
All-time record Global Net Additions of 170 thousand Paying Circles, Reaching 2.7 million Total
Total Quarterly Revenue Increased 34% Year-Over-Year to $124.5 million
Annualized Monthly Revenue Increased 33% Year-Over-Year to $446.7 million
Raising Full-Year Outlook for Revenue and Adjusted EBITDA
SAN FRANCISCO, Nov. 10, 2025 (GLOBE NEWSWIRE) -- Life360, Inc. (Life360 or the Company) (NASDAQ: LIF, ASX: 360), the provider of the market leading family safety and connection mobile application, today announced unaudited financial results for the third quarter (Q3) ended September 30, 2025.
Life360 delivered record results across multiple key metrics, including Monthly Active Users (MAUs), Paying Circles, Net Paying Circle Additions, Subscription Revenue, and Annualized Monthly Revenue $(AMR)$. The Company also reported continued margin expansion and raised full-year guidance for both revenue and Adjusted EBITDA.
The Company also announced today in a separate press release that it has entered into an agreement to acquire Nativo, an advertising technology company, for approximately $120 million in a combination of cash and stock, subject to customary closing conditions.
Life360 Chief Executive Officer Lauren Antonoff stated: "Life360 delivered another record quarter in Q3 as more families made us part of their daily routines during the back-to-school season, driving strong gains in Paying Circles. Our strategy to build a platform that's relevant to more families in more ways continues to deliver-- expanding from location and safety into richer everyday experiences that keep families connected and protected. We're leaning into momentum across the U.S. and international markets with the launch of our Pet GPS that puts furry family members on the map in the U.S., Canada, the U.K., Australia and New Zealand as we head into the holiday gifting season. With significant runways for growth and innovation ahead, we're just getting started."
Life360 Chief Financial Officer Russell Burke added: "Revenue grew 34% year-over-year (YoY) to $124.5 million and Adjusted EBITDA rose 174% YoY to $24.5 million, reflecting disciplined expense management and durable unit economics. While Q3 standalone hardware gross profit and margin were affected by tariff-related costs, we have taken steps to mitigate that impact going forward. With strong core subscription performance, a resilient balance sheet, and our tenth consecutive quarter of positive operating cash flow, we're raising full-year guidance for both revenue and Adjusted EBITDA."
Q3'25 Financial Highlights
-- Total Q3'25 revenue of $124.5 million, a YoY increase of 34%, with total
subscription revenue of $96.3 million, up 34% YoY and core subscription
revenue1 of $90.7 million, up 37% YoY.
-- Annualized Monthly Revenue (AMR) of $446.7 million, up 33% YoY.
-- Q3'25 Net Income of $9.8 million, up 27% YoY.
-- Adjusted EBITDA2 of $24.5 million increased 174% over $9.0 million in
Q3'24.
-- Positive Operating Cash Flow of $26.4 million, up 319% YoY.
-- Quarter-end cash, cash equivalents and restricted cash of $457.2 million,
an increase of $297.0 million from Q3'24, which was primarily the result
of net capital raised from the issuance of the June 2025 convertible
notes.
Q3'25 Operating Highlights
-- Q3'25 global MAU net additions of 3.7 million lifted total MAUs to
approximately 91.6 million, up 19% YoY.
-- Q3'25 global Paying Circle net additions totaled 170 thousand, setting an
all-time record. Total Paying Circles grew 23% YoY to 2.7 million.
-- Average Revenue Per Paying Circle (ARPPC) increased 8% YoY primarily due
to U.S. price increases for new and existing annual subscribers
implemented in the second half of 2024 and continuing into 2025, a shift
in product mix toward higher-priced offerings, and the introduction of
higher-priced membership tiers across select international markets
throughout 2024.
Key Performance Indicators
(in millions, except ARPPC,
ARPPS, ASP, and
percentages) Q3 2025 Q2 2025 Q3 2024 %QoQ % YoY
--------------------------- ------- ------- ------- ------- -------
Core(3)
Monthly Active Users (MAU)
- Global(4) 91.6 88.0 76.9 4% 19%
U.S. 48.7 47.5 42.2 3% 15%
International 42.9 40.5 34.7 6% 24%
ANZ 3.2 3.1 2.5 5% 28%
Paying Circles - Global(5) 2.7 2.5 2.2 7% 23%
U.S. 1.9 1.8 1.6 6% 21%
International 0.8 0.7 0.6 9% 29%
Average Revenue per Paying
Circle (ARPPC)(6) (,) (7) $137.63 $135.42 $127.57 2% 8%
Life360 Consolidated
Subscriptions(8) 3.3 3.1 2.8 5% 16%
Average Revenue per Paying
Subscription (ARPPS)(7)
(,) (9) $119.33 $116.06 $106.27 3% 12%
Net hardware units
shipped(10) 0.9 0.8 0.8 15% 15%
Average Selling Price
(ASP)(11) (,) (12) $ 11.99 $ 14.81 $ 12.69 (19)% (6)%
Annualized Monthly Revenue
(AMR) $ 446.7 $ 416.1 $ 336.2 7% 33%
-- Global MAUs increased 19% YoY to approximately 91.6 million, with Q3'25
net additions of 3.7 million. U.S. MAUs increased 15% YoY, with Q3'25 net
adds of 1.2 million. International MAUs increased 24% YoY, with Q3'25 net
adds of 2.4 million.
-- Q3'25 global Paying Circle net additions of 170 thousand, an all-time
record, were driven by strong U.S. and international performance. U.S.
Paying Circles increased 21% YoY on the back of improved conversion
metrics. International Paying Circles maintained strong momentum, up 29%
YoY.
-- Q3'25 global ARPPC increased 8% YoY. U.S. ARPPC increased 5% YoY,
benefiting from price increases for new and existing annual subscribers
implemented in the second half of 2024 and continuing into 2025, as well
as a shift in product mix towards higher-priced offerings. Q3'25
international ARPPC increased 29% YoY, reflecting the benefit of legacy
subscriber price increases, the introduction of higher-priced membership
tiers in non-Triple Tier markets, and continued growth in existing Triple
Tier markets.
-- Q3'25 net hardware units shipped increased 15% YoY primarily driven by
increased online retail demand. The Average Selling Price of hardware
units shipped decreased 6% YoY primarily due to a shift in channel mix
and an increase in discounts.
-- September 2025 AMR increased 33% YoY, benefitting from continued
subscriber growth as well as an increase in other revenue.
Operating Results
Revenue
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ---------------------
2025 2024 2025 2024
------ -------
($ millions) (unaudited)
Subscription revenue $ 96.3 $ 71.8 $ 266.8 $ 199.1
U.S. subscription
revenue 80.0 61.8 224.0 173.7
International
subscription
revenue 16.3 10.1 42.8 25.4
Hardware revenue 11.3 11.7 32.5 33.8
Other revenue 16.9 9.3 44.3 23.0
--------- ------ ------- -------
Total revenue $ 124.5 $ 92.9 $ 343.5 $ 256.0
-- Q3'25 total subscription revenue increased 34% YoY to $96.3 million,
primarily driven by growth in Paying Circles.
-- Q3'25 hardware revenue decreased 4% YoY to $11.3 million as higher unit
shipments were more than offset by increased discounts and lower revenue
related to bundled offerings.
-- Q3'25 other revenue increased 82% YoY to $16.9 million due to increases
in data and partnership revenue, which includes advertising revenue, and
is primarily due to an increased number of partners and higher spend
under existing arrangements.
Core Subscription Revenue
-- Core subscription revenue is defined as GAAP subscription revenue derived
from the Life360 mobile application and excludes non-core subscription
revenue, which we define as GAAP subscription revenue from other hardware
related subscription offerings, for the reported period. Core
subscription revenue represents revenue derived from, and the overall
success of, our core product offering. Q3'25 core subscription revenue
increased 37% YoY primarily driven by a 23% YoY increase in Paying
Circles and an 8% higher ARPPC.13
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ----------------------
2025 2024 2025 2024
----- ------
($ millions) (unaudited)
Subscription
revenue $ 96.3 $ 71.8 $ 266.8 $ 199.1
Non-Core
subscription
revenue (5.6) (5.6) (17.0) (16.9)
----- ----- ----- ------
Core
subscription
revenue(14) $ 90.7 $ 66.2 $ 249.8 $ 182.2
Gross Profit
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2025 2024 2025 2024
----- -----
($ millions,
except
percentages) (unaudited)
Gross Profit $ 97.1 $ 70.0 $ 271.2 $193.7
Gross Margin 78% 75% 79% 76%
Gross Margin
(Subscription
Only) 85% 85% 86% 85%
-- Q3'25 gross margin increased to 78% from 75% in the prior year period,
primarily due to an increased proportion of higher margin other revenue.
Operating Expenses
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ -------------------------
2025 2024 2025 2024
----- -----
($ millions) (unaudited)
Research and
development $ 32.4 $ 29.0 $ 95.1 $ 83.3
Sales and
marketing 39.0 30.7 113.2 79.8
General and
administrative 20.0 15.2 53.0 44.2
---- ----- ----- -----
Total operating
expenses $ 91.4 $ 75.0 $ 261.3 $207.3
Total operating
expenses as %
of revenue 73% 81% 76% 81%
-- Q3'25 operating expenses, excluding commissions, increased 20% YoY, while
operating expenses as a percentage of revenue decreased 8%. These results
demonstrate our ongoing focus on cost discipline and operational
efficiency.
-- Q3'25 research and development costs increased 12% YoY, primarily driven
by higher personnel-related and technology costs due to Company growth.
-- Q3'25 sales and marketing costs increased 27% YoY, primarily due to an
increase in commissions, in line with the increase in subscription
revenue, and an increase in growth media spend to support strategic
initiatives.
-- Q3'25 general and administrative expenses increased 31% YoY, primarily
driven by higher personnel-related costs due to Company growth.
Cash Flow
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- -----------------------
2025 2024 2025 2024
------ ------
($ millions) (unaudited)
Net cash
provided by
operating
activities $ 26.4 $ 6.3 $ 51.8 $ 20.3
Net cash used
in investing
activities (1.8) (1.0) (33.9) (3.3)
Net cash
provided by
(used in)
financing
activities (1.6) (7.2) 278.9 72.5
------- ------ ------ ------
Net Increase
(Decrease)
in Cash,
Cash
Equivalents,
and
Restricted
Cash 23.0 (1.8) 296.8 89.5
Cash, Cash
Equivalents,
and
Restricted
Cash at the
End of the
Period $ 457.2 $ 160.2 $ 457.2 $ 160.2
-- Life360 ended Q3'25 with cash, cash equivalents and restricted cash of
$457.2 million, an increase of $23.0 million from Q2'25.
-- Q3'25 operating cash flow was $26.4 million. This was offset by
$1.8 million used in investing activities for internally developed
software and construction in progress, and $1.6 million used in financing
activities related to costs associated with the issuance of the June 2025
convertible notes.
-- Q3'25 net cash provided by operating activities of $26.4 million was
higher than Adjusted EBITDA of $24.5 million primarily due to the timing
of receipts and payables. See the Adjusted EBITDA section below for the
definition and reconciliation of Adjusted EBITDA.
Adjusted EBITDA
To supplement our condensed consolidated financial statements prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. For more information, see the "Supplementary and Non-GAAP Financial Information" section below.
Non-GAAP financial measures include adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) and Adjusted EBITDA Margin. Adjusted EBITDA is defined as net income (loss), excluding (i) convertible notes, derivative liability, and investment fair value adjustments, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization, (iv) interest income (v) other income, net, (vi) acquisition, investment, and IPO related transaction costs, (vii) stock-based compensation, (viii) workplace restructuring costs, and (ix) gains and losses on the settlement of convertible notes and derivative liabilities. These items are excluded from Adjusted EBITDA because they are non-cash in nature, because the amount and timing of these items are unpredictable, or because they are not driven by core results of operations and render comparisons with prior periods and competitors less meaningful.
The following table presents a reconciliation of Net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA:
Three Months Ended Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
------ ------ ------ -------
($ thousands,
except
percentages)
Net income (loss) $ 9,793 $ 7,689 $21,177 $(13,053)
Net income (loss)
margin 8% 8% 6% (5)%
Add (deduct):
Convertible notes
fair value
adjustment(15) -- -- -- 608
Derivative
liability fair
value
adjustment(15) -- -- -- 1,707
Loss on
settlement of
convertible
notes(16) -- -- -- 440
Gain on
settlement of
derivative
liability -- -- -- (1,924)
Gain on change in
fair value of
investments(17) (821) (5,389) (2,090) (5,389)
Provision for
(benefit from)
income taxes 427 (4,727) (179) 2,146
Depreciation and
amortization(18) 3,928 2,397 9,859 7,058
Interest income (4,710) (2,069) (9,039) (4,214)
Other income
(expense), net 1,002 (457) 3 415
Acquisition and
investment
related
transaction
costs(19) -- -- 1,050 --
Stock-based
compensation 14,866 11,460 39,985 30,507
IPO-related
transaction
costs, including
secondary
offering costs -- -- -- 5,784
Workplace
restructuring
costs(20) -- 48 -- 153
Adjusted EBITDA $24,485 $ 8,952 $60,766 $ 24,238
====== ====== ====== =======
Adjusted EBITDA
margin 20% 10% 18% 9%
-- Q3'25 delivered a positive Adjusted EBITDA contribution of $24.5 million
versus $9.0 million in Q3'24 as a result of continued strong subscription
and other revenue growth as well as improved operating leverage.
2025 Earnings Guidance(21)
For FY'25, Life360 now expects to deliver:
-- Consolidated revenue of $474 million to $485 million, increased from
prior guidance of $462 million to $482 million, comprised of:
-- Subscription revenue of $366 million to $368 million, increased
from $363 million to $367 million;
-- Hardware revenue of $46 million to $50 million, increased from $42
million to $50 million;
-- Other revenue of $62 million to $67 million, increased from $57
million to $65 million; and
-- Positive Adjusted EBITDA22 of $84 million to $88 million, increased from
$72 million to $82 million previously.
Investor Conference Call
A conference call will be held today as follows:
US PDT: Monday 10 November 2025 at 2 p.m.
US EDT: Monday 10 November 2025 at 5 p.m.
AEDT: Tuesday 11 November 2025 at 9 a.m.
The call will be held as a Zoom audio webinar.
Participants wishing to ask a question should register and join via their browser here. Participants joining via telephone will be in listen only mode.
Dial in details
U.S.: +1 669 444 9171
Australia: +61 2 8015 6011
Other countries: details
Meeting ID: 940 3054 2373
A replay will be available after the call at https://investors.life360.com.
Authorization
Lauren Antonoff, Director and Chief Executive Officer of Life360, authorized this announcement being given to ASX.
About Life360
Life360, a family connection and safety company, keeps people close to the ones they love. The category-leading mobile app and Tile tracking devices empower members to stay connected to the people, pets, and things they care about most, with a range of services, including location sharing, safe driver reports, and crash detection with emergency dispatch. As a remote-first company based in the San Francisco Bay Area, Life360 serves approximately 91.6 million monthly active users (MAU), as of September 30, 2025, across more than 180 countries. Life360 delivers peace of mind and enhances everyday family life in all the moments that matter, big and small. For more information, please visit life360.com.
Contacts
For U.S. investor inquiries: For U.S. media inquiries: Raymond (RJ) Jones Lynnette Bruno rjones@life360.com press@life360.com For Australian investor inquiries: For Australian media inquiries: Jolanta Masojada, +61 417 261 367 Giles Rafferty, +61 481 467 903 jmasojada@life360.com grafferty@firstadvisers.com.au
Forward-looking statements
This announcement and the accompanying presentation and conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Life360 intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements regarding Life360's intentions, objectives, plans, expectations, assumptions and beliefs about future events, including Life360's expectations with respect to the financial and operating performance of its business, including subscription revenue, hardware revenue, other revenue and consolidated revenue and ability to create new revenue streams; the resiliency of Life360's core subscription business; the ability of Life360 to adapt to and mitigate the impact of macroeconomic considerations including tariffs and trade barriers; its ability to deliver contextually relevant advertisements that enhance the user experience by leveraging its extensive first-party location data; Adjusted EBITDA, and operating cash flow; expectations regarding MAUs and other member metrics; its capital position; future growth and market opportunities; plans to launch new features and products; the impact of price increases and expansion of product offerings in the UK, Australia and New Zealand on future results of operations; its expectations of growth in its data business; its expectation of a new enterprise revenue stream and enhanced location capabilities of its hardware devices as a result of its partnership with Hubble; its focus on developing a GPS lineup, built on Jiobit technology, the timing of new devices, and the potential for the next generation of hardware to drive a new wave of subscription growth; as well as Life360's expectations of any changes to the information disclosed herein. The words "anticipate", "believe", "expect", "project", "predict", "will", "forecast", "estimate", "likely", "intend", "outlook", "should", "could", "may", "target", "plan" and other similar expressions can generally be used to identify forward-looking statements. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements. Investors and prospective investors are cautioned not to place undue reliance on these forward-looking statements as they involve inherent risk and uncertainty (both general and specific) and should note that they are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. There is a risk that such predictions, forecasts, projections and other forward-looking statements will not be achieved. Subject to any continuing obligations under applicable law, Life360 does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement, to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based.
Although Life360 believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, Life360 can give no assurance that such expectations and assumptions will prove to be correct and, actual results may vary in a materially positive or negative manner. Forward-looking statements are subject to known and unknown risks, uncertainty, assumptions and contingencies, many of which are outside Life360's control, and are based on estimates and assumptions that are subject to change and may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include risks related to the preliminary nature of financial results, risks related to Life360's business, market risks, Life360's need for additional capital, and the risk that Life360's products and services may not perform as expected, as described in greater detail under the heading "Risk Factors" in Life360's ASX and SEC filings, including its Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2025, Quarterly Reports on Form 10-Q, and other reports filed with the SEC. To the maximum extent permitted by law, responsibility for the accuracy or completeness of any forward-looking statements whether as a result of new information, future events or results or otherwise is disclaimed. This announcement should not be relied upon as a recommendation or forecast by Life360. Past performance information given in this document is given for illustrative purposes only and is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward-looking statements, forecast financial information, future share price performance or any underlying assumptions. Nothing contained in this document nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Life360.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Dollars in U.S. $, in thousands, except share and per share data)
(unaudited)
Three Months Ended September Nine Months Ended September
30, 30,
------------------------------ ----------------------------
2025 2024 2025 2024
Subscription revenue $ 96,300 $ 71,833 $ 266,756 $ 199,090
Hardware revenue 11,312 11,744 32,485 33,833
Other revenue 16,885 9,288 44,261 23,032
---------- ---------- ---------- ----------
Total revenue 124,497 92,865 343,502 255,955
Cost of subscription
revenue 14,003 10,659 37,193 30,367
Cost of hardware
revenue 11,700 11,213 30,491 29,147
Cost of other revenue 1,659 981 4,633 2,790
---------- ---------- ---------- ----------
Total cost of
revenue 27,362 22,853 72,317 62,304
Gross profit 97,135 70,012 271,185 193,651
Operating expenses:
Research and
development 32,410 29,012 95,071 83,283
Sales and
marketing 39,024 30,722 113,205 79,818
General and
administrative 20,010 15,229 53,037 44,243
---------- ---------- ---------- ----------
Total operating
expenses 91,444 74,963 261,313 207,344
---------- ---------- ---------- ----------
Income (loss) from
operations 5,691 (4,951) 9,872 (13,693)
Other income
(expense):
Convertible
notes fair
value
adjustment -- -- -- (608)
Derivative
liability fair
value
adjustment -- -- -- (1,707)
Loss on
settlement of
convertible
notes -- -- -- (440)
Gain on
settlement of
derivative
liability -- -- -- 1,924
Gain on change
in fair value
of
investments 821 5,389 2,090 5,389
Interest income 4,710 2,069 9,039 4,214
Other income
(expense),
net (1,002) 455 (3) (5,986)
---------- ---------- ---------- ----------
Total other income
(expense), net 4,529 7,913 11,126 2,786
---------- ---------- ---------- ----------
Income (loss) before
income taxes 10,220 2,962 20,998 (10,907)
Provision for
(benefit from)
income taxes 427 (4,727) (179) 2,146
---------- ---------- ---------- ----------
Net income (loss) 9,793 -- 7,689 21,177 (13,053)
========== ========== ========== ==========
Net income (loss) per
share, basic $ 0.13 $ 0.10 $ 0.28 $ (0.18)
Net income (loss)
per share,
diluted 0.11 0.09 0.25 (0.18)
Weighted-average
shares used in
computing net
income (loss) per
share, basic 77,736,272 74,232,140 76,752,859 71,187,103
Weighted-average
shares used in
computing net income
(loss) per share,
diluted 85,794,178 82,083,976 84,760,161 71,187,103
Comprehensive income
(loss)
Net income (loss) 9,793 7,689 21,177 (13,053)
Change in foreign
currency translation
adjustment 185 -- 85 (3)
---------- ---------- ---------- ----------
Total
comprehensive
income (loss) $ 9,978 $ 7,689 $ 21,262 $ (13,056)
========== ========== ========== ==========
Condensed Consolidated Balance Sheets
(Dollars in U.S. $, in thousands)
(unaudited)
September 30, December 31,
2025 2024
--------------- ----------------
Assets
Current Assets:
Cash and cash equivalents $ 455,733 $ 159,238
Accounts receivable, net 66,062 57,997
Inventory 14,135 8,057
Costs capitalized to obtain
contracts, net 1,255 1,098
Prepaid expenses and other
current assets 19,804 14,599
---------- ---------
Total current assets 556,989 240,989
Restricted cash, noncurrent 1,494 1,221
Property and equipment, net 3,175 1,779
Costs capitalized to obtain
contracts, noncurrent 946 1,049
Prepaid expenses and other
assets, noncurrent 49,811 21,611
Operating lease right-of-use
asset 424 683
Intangible assets, net 39,996 40,574
Goodwill 134,619 133,674
---------- ---------
Total Assets $ 787,454 $ 441,580
========== =========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable 8,891 $ 5,463
Accrued expenses and other
current liabilities 27,002 32,015
Deferred revenue, current 46,050 39,860
---------- ---------
Total current liabilities 81,943 77,338
Convertible notes, net,
noncurrent 309,842 --
Deferred revenue, noncurrent 4,155 5,338
Other liabilities, noncurrent 67 359
---------- ---------
Total Liabilities $ 396,007 $ 83,035
========== =========
Commitments and Contingencies
Stockholders' Equity
Common stock 78 75
Additional paid-in capital 659,761 648,124
Accumulated deficit (268,521) (289,698)
Accumulated other comprehensive
income 129 44
---------- ---------
Total stockholders' equity 391,447 358,545
========== =========
Total Liabilities and Stockholders'
Equity $ 787,454 $ 441,580
========== =========
Condensed Consolidated Statements of Cash Flows
(Dollars in U.S. $, in thousands)
(unaudited)
Nine Months Ended September 30,
---------------------------------------
2025 2024
------------
Cash Flows from Operating
Activities:
Net income (loss) $ 21,177 $ (13,053)
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Depreciation and
amortization 9,859 7,058
Amortization of costs
capitalized to obtain
contracts 932 974
Amortization of operating
lease right-of-use asset 259 247
Stock-based compensation
expense, net of amounts
capitalized 39,985 30,507
Non-cash interest expense,
net 727 59
Convertible notes fair
value adjustment -- 608
Derivative liability fair
value adjustment -- 1,707
Loss on settlement of
convertible notes -- 440
Gain on settlement of
derivative liability -- (1,924)
Gain on change in fair
value of investments (2,090) (5,389)
Non-cash revenue from
investments (905) (965)
Provision for credit losses 825 --
Changes in operating assets and
liabilities, net of acquisition:
Accounts receivable, net (8,890) (6,670)
Prepaid expenses and other
assets (6,314) 3,506
Inventory (6,078) (9,689)
Costs capitalized to obtain
contracts, net (986) (1,287)
Accounts payable 3,540 12,058
Accrued expenses and other
current liabilities (5,830) (2,736)
Deferred revenue 5,913 5,108
Other liabilities,
noncurrent (294) (270)
------------- ------------
Net cash provided by
operating activities 51,830 20,289
------------- ------------
Cash Flows from Investing
Activities:
Cash paid for acquisition (2,825) --
Internally developed
software (4,538) (3,228)
Purchase of property and
equipment (1,565) (63)
Convertible note investment (25,000) --
------------- ------------
Net cash used in investing
activities (33,928) (3,291)
------------- ------------
Cash Flows from Financing
Activities:
Proceeds related to tax
withholdings on restricted
stock settlements and the
exercise of stock options
and warrants 50,770 5,564
Taxes paid related to net
settlement of equity
awards (47,292) (23,371)
Proceeds from issuance of
common stock in U.S.
initial public offering,
net of underwriting
discounts and commissions -- 93,000
Payments of U.S. initial
public offering issuance
costs -- (2,719)
Proceeds from issuance of
convertible senior notes 320,000 --
Payments of debt issuance
costs (10,884) --
Purchase of capped calls (33,728) --
------------- ------------
Net cash provided by
financing activities 278,866 72,474
------------- ------------
Net Increase in Cash, Cash
Equivalents, and Restricted
Cash 296,768 89,472
Cash, Cash Equivalents and
Restricted Cash at the Beginning
of the Period 160,459 70,713
------------- ------------
Cash, Cash Equivalents, and
Restricted Cash at the End of
the Period $ 457,227 $ 160,185
============= ============
Supplementary and Non-GAAP Financial Information
We report our financial results in accordance with GAAP, however, management believes that certain non-GAAP financial measures, such as Adjusted EBITDA, and the other measures presented in the tables below provide useful information to investors and others in understanding and evaluating our results of operations, as well as providing useful measures for period-to-period comparisons of our business performance. Moreover, we have included non-GAAP financial measures in this media release because they are key measurements used by our management team internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.
Our non-GAAP financial measures are presented for supplemental informational purposes only, may not be comparable to similarly titled measures used by other companies and should not be used as substitutes for analysis of, or superior to, our operating results as reported under GAAP. Additionally, we do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP. As such, you should consider these non-GAAP financial measures in addition to other financial performance measures presented in accordance with GAAP, including various cash flow metrics, net income (loss) and our other GAAP results.
Non-GAAP cost of revenue is presented to understand margin economically and non-GAAP operating expenses are presented to understand operating efficiency. Non-GAAP cost of revenue and Non-GAAP operating expenses present direct and indirect expenses adjusted for non-cash expenses, such as stock-based compensation, depreciation and amortization, and non-recurring expenses, such as workplace restructuring costs, and transaction costs related to acquisitions, investments, and our IPO. A reconciliation of GAAP financial information to Non-GAAP financial information for cost of revenue and operating expenses has been provided as supplementary information below.
GAAP Cost of Revenue to Non-GAAP Cost of Revenue Reconciliation(23)
Three Months Ended Nine Months Ended September
September 30, 30,
-------------------------- ----------------------------
2025 2024 2025 2024
---- ----
(in millions)
Cost of
subscription
revenue,
GAAP $ 14.0 $ 10.7 $ 37.2 $ 30.4
Less:
Depreciation
and
amortization,
GAAP (1.7) (0.4) (3.3) (1.1)
Less:
Stock-based
compensation,
GAAP (0.5) (0.2) (1.3) (0.6)
Total cost of
subscription
revenue,
Non-GAAP $ 11.8 $ 10.1 $ 32.5 $ 28.7
==== ==== === ==== === ====
Cost of
hardware
revenue,
GAAP $ 11.7 $ 11.2 $ 30.5 $ 29.1
Less:
Depreciation
and
amortization,
GAAP (1.0) (0.9) (2.9) (2.7)
Less:
Stock-based
compensation,
GAAP (0.4) (0.2) (1.1) (0.6)
Total cost of
hardware
revenue,
Non-GAAP $ 10.3 $ 10.1 $ 26.5 $ 25.8
==== ==== === ==== === ====
Cost of other
revenue,
GAAP $ 1.7 $ 1.0 $ 4.6 $ 2.8
Less:
Depreciation
and
amortization,
GAAP (0.2) -- (0.4) --
Total cost of
other
revenue,
Non-GAAP $ 1.5 $ 1.0 $ 4.2 $ 2.8
==== ==== === ==== === ====
Cost of
revenue,
GAAP $ 27.4 $ 22.9 $ 72.3 $ 62.3
Less:
Depreciation
and
amortization,
GAAP (2.9) (1.3) (6.6) (3.8)
Less:
Stock-based
compensation,
GAAP (0.9) (0.4) (2.4) (1.2)
Total cost of
revenue,
Non-GAAP $ 23.6 $ 21.1 $ 63.3 $ 57.3
==== ==== === ==== === ====
GAAP Operating expenses to Non-GAAP Operating Expenses Reconciliation(24)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2025 2024 2025 2024
----- ----- ----- -----
(in millions)
Research and
development
expense, GAAP $ 32.4 $ 29.0 $ 95.1 $ 83.3
Less:
Depreciation
and
amortization,
GAAP -- -- -- (0.1)
Less:
Stock-based
compensation,
GAAP (7.3) (6.6) (20.8) (18.4)
Less: Other,
GAAP -- -- (0.7) --
----- ----- ----- -----
Total Research
and
development,
Non-GAAP $ 25.1 $ 22.4 $ 73.5 $ 64.8
===== ===== ===== =====
Sales and
marketing
expense, GAAP $ 39.0 $ 30.7 $113.2 $ 79.8
Less:
Depreciation
and
amortization,
GAAP (1.1) (1.1) (3.2) (3.2)
Less:
Stock-based
compensation,
GAAP (2.1) (0.9) (5.4) (2.3)
Total Sales and
marketing
expense,
Non-GAAP $ 35.9 $ 28.8 $104.6 $ 74.4
===== ===== ===== =====
General and
administrative
expense, GAAP $ 20.0 $ 15.2 $ 53.0 $ 44.2
Less:
Stock-based
compensation,
GAAP (4.7) (3.6) (11.4) (8.7)
Less: Other,
GAAP -- -- (0.3) --
----- ----- ----- -----
Total General
and
administrative
expense,
Non-GAAP $ 15.4 $ 11.6 $ 41.4 $ 35.6
===== ===== ===== =====
Total Operating
expenses,
GAAP $ 91.4 75.0 261.3 207.3
Less:
Depreciation
and
amortization,
GAAP (1.1) (1.1) (3.2) (3.2)
Less:
Stock-based
compensation,
GAAP (14.0) (11.1) (37.6) (29.3)
Less: Other,
GAAP -- -- (1.0) --
Total Operating
expenses,
Non-GAAP $ 76.4 $ 62.8 $-- $219.5 $174.8
===== ===== ===== =====
Footnotes
1 Core subscription revenue is defined as subscription
revenue derived from the Life360 mobile application
and excludes non-core subscription revenue which relates
to other hardware related subscription offerings.
For more information, including the use of this measure,
refer to the "Core subscription revenue" section above.
2 Adjusted EBITDA is a Non-GAAP measure. For more information,
including the definition of Adjusted EBITDA, the use
of this non-GAAP measure, as well as a reconciliation
of Net Income (Loss) to Adjusted EBITDA, refer to
the "Adjusted EBITDA" and "Supplementary and Non-GAAP
Financial Information" sections above.
3 Core metrics relate solely to the Life360 mobile application.
4 An MAU is defined as a unique member who engages with
our Life360 branded services each month, which includes
both paying and non-paying members, and excludes certain
members who have a delayed account setup.
5 A Paying Circle is defined as a group of Life360 members
with a paying subscription that has been billed as
of the end of a period.
6 ARPPC is defined as annualized subscription revenue
recognized and derived from the Life360 mobile application,
excluding certain revenue adjustments related to bundled
Life360 subscription and hardware offerings, for the
reported period divided by the Average Paying Circles
during the same period.
7 Excludes revenue related to bundled Life360 subscription
and hardware offerings of $(0.1) million and $(0.8)
million for the three and nine months ended September
30, 2025, respectively, and $(1.4) million and $(4.0)
million for the three and nine months ended September
30, 2024, respectively.
8 Subscriptions are defined as the number of paying
subscribers associated with the Life360, Jiobit and
Tile brands who have been billed as of the end of
the period.
9 ARPPS is defined as annualized total subscription
revenue recognized and derived from Life360, Tile
and Jiobit subscriptions, excluding certain revenue
adjustments related to bundled Life360 subscription
and hardware offerings, for the reported period divided
by the average number of paying subscribers during
the same period.
10 Net hardware units shipped represent the number of
tracking devices sold during the period, excluding
hardware units related to bundled Life360 subscription
and hardware offerings, net of returns by our retail
partners and direct consumers.
11 Excludes revenue related to bundled Life360 subscription
and hardware offerings of $0.1 million and $0.7 million
for the three and nine months ended September 30,
2025, respectively, and $1.4 million and $3.9 million
the three and nine months ended September 30, 2024,
respectively.
12 To determine the net ASP of a unit, we divide hardware
revenue recognized, excluding revenue related to bundled
Life360 subscription and hardware offerings, for the
reported period by the number of net hardware units
shipped during the same period.
13 Refer to the 'Key Performance Indicators' section
for additional information regarding the impact of
bundled offerings on KPI calculations for the periods
presented.
14 Beginning with the second quarter of 2024, the definition
of Core subscription revenue was updated and calculated
in accordance with GAAP.
15 To reflect the change in fair value of the September
2021 Convertible Notes and derivative liability associated
with the July 2021 Convertible Notes.
16 Relates to the settlement of the July 2021 Convertible
Notes and September 2021 Convertible Notes.
17 Relates to the changes in fair value of the Related
Party Investment and the Convertible Note Investment.
Refer to the Q3'25 10-Q for the definition and additional
information on the Related Party Investment and Convertible
Note Investment.
18 Includes depreciation on fixed assets and amortization
of intangible assets.
19 Relates to costs incurred in connection with the Convertible
Note Investment and the asset acquisition of Fantix,
Inc., including one-time bonus payments.
20 Relates to non-recurring personnel and severance related
expenses.
21 With respect to forward looking non-GAAP guidance,
we are not able to reconcile the forward-looking non-GAAP
Adjusted EBITDA measure to the closest corresponding
GAAP measure without unreasonable efforts because
we are unable to predict the ultimate outcome of certain
significant items, which are fluid and unpredictable
in nature. In addition, the Company believes such
a reconciliation would imply a degree of precision
that may be confusing or misleading to investors.
These items include, but are not limited to, litigation
costs and fair value adjustments. These items may
be material to our results calculated in accordance
with GAAP.
22 Adjusted EBITDA is a non-GAAP measure. For more information,
including the definition of Adjusted EBITDA, the use
of this non-GAAP measure, as well as a reconciliation
of Net Income (Loss) to Adjusted EBITDA, refer to
the "Adjusted EBITDA" and "Supplementary and Non-GAAP
Financial Information" sections above.
23 For the definition of cost of revenue, Non-GAAP, refer
to the "Supplementary and Non-GAAP Financial Information"
section above.
24 For the definition of operating expenses, Non-GAAP,
refer to the "Supplementary and Non-GAAP Operating
Information" section above.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
(END) Dow Jones Newswires
November 10, 2025 16:05 ET (21:05 GMT)
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