Life360, Inc. (LIF)

Price$44.17Cached quoteAs of 2026-09-05 05:54 UTC

AI: Overvalued

Price checkThe shares still demand strong future growth and margin gains, leaving little room for disappointment.

At the observed market value of about $3.6 billion, Life360 trades near 5.4 times the midpoint of 2026 revenue guidance and about 26 times the midpoint of adjusted EBITDA, management's profit measure before interest, taxes, depreciation and certain excluded costs. That is not a classic value multiple. The headline earnings multiple also flatters profitability because 2025 net income included a $118.4 million one-time, non-cash tax benefit; removing it leaves about $32.5 million. The price therefore assumes rapid growth and sustained margin expansion. Yahoo Finance+2Life360 Investors+2

Big pictureRevenue is compounding quickly, but accounting profit and cash quality still lag the growth story.

Revenue rose from $371.5 million in 2024 to $489.5 million in 2025, then grew 38% year over year in Q2 2026. Subscription revenue rose 31%, paying circles 27%, and advertising revenue 315% in that quarter. Trailing operating cash flow, cash generated by day-to-day operations, is about $104 million. However, trailing stock compensation, pay delivered in shares rather than cash, is about $69 million, roughly two-thirds of that cash generation, while standard operating profit was only about $6.5 million. Growth is strong; owner economics are less mature. Pasted text Life360 Investors+1

Business strengthSubscriptions are growing with pricing power, while liquid reserves protect the company from near-term financing stress.

Subscriptions provide the strongest base: Q2 paying circles reached 3.2 million, up 27%, while average revenue per paying circle rose 5%. Life360 also had $467.7 million of cash, restricted cash and short-term U.S. Treasury investments against about $311.6 million of debt, leaving roughly $156 million of net liquid resources. The debt is mostly zero-interest convertible notes due 2030 with an initial conversion price near $81. Advertising broadens monetization, but hardware is shrinking and advertising is more seasonal than subscriptions. SEC+3Life360 Investors+3SEC+3

What could change the storyFaster user growth and cleaner cash earnings could justify the premium; dilution or weaker guidance would not.

The bull case needs 2026 revenue near or above the $650 million to $685 million range, 17% to 20% user growth, and adjusted EBITDA near $130 million to $140 million, followed by margin expansion. The roughly $104 million Nativo acquisition must also turn advertising growth into durable cash. The bear case is dilution: shares increased about 7.7% from year-end 2024 to Q2 2026, while first-half stock compensation of $39.1 million nearly matched $41.0 million of operating cash flow. Q2 buybacks of $13.2 million only partly offset that pressure. SEC+3Life360 Investors+3SEC+3

AI: News

Q2 guidance disappointmentStrong quarterly growth could not offset unchanged full-year targets, and investors repriced the stock sharply lower.

On August 10, Life360 reported Q2 revenue of $159.0 million, up 38%, adjusted EBITDA of $31.1 million, up 53%, and 3.2 million paying circles, up 27%. It kept full-year revenue at $650 million to $685 million and adjusted EBITDA at $130 million to $140 million, even while nudging subscription guidance higher and hardware lower. The shares fell about 25% the next session. Financial reporting linked the selloff to unchanged targets and worries about the required second-half acceleration; timing alone does not prove causation. Life360 Investors+1

Q1 user-growth stumbleRecord revenue and higher guidance were overshadowed by registration problems that slowed user growth and hurt confidence.

On May 11, Q1 revenue reached $143.1 million, up 38%, and advertising revenue reached $19.7 million, up 329% after the Nativo acquisition. Paying circles rose 27%, but monthly active user growth was 17%, below the company's plan because of Android registration and onboarding problems. Management raised full-year revenue and adjusted EBITDA guidance, yet the shares fell about 11% the next day. Reporting attributed investor concern mainly to slower user growth and execution uncertainty; the company said fixes were implemented late in the quarter. Life360 Inc.+1

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$489.5M	$371.5M	$304.5M	$228.3M	$112.6M	$80.7M
Gross profit	$380.8M	$279.2M	$222.6M	$148.6M	$89.9M	$65.3M
Gross margin	77.81%	75.15%	73.11%	65.09%	79.79%	80.91%
Research & development	$128.4M	$113.1M	$101.0M	$102.5M	$51.0M	$39.6M
Operating expenses	$362.0M	$287.1M	$252.6M	$243.0M	$122.1M	$81.9M
Operating income	$18.8M	−$8.0M	−$30.0M	−$94.4M	−$32.3M	−$16.7M
Operating margin	3.85%	−2.15%	−9.85%	−41.35%	−28.64%	−20.64%
EBITDA	$32.2M	$1.8M	−$20.8M	−$85.2M	−$31.4M	−$16.0M
EBITDA margin	6.57%	0.49%	−6.84%	−37.32%	−27.86%	−19.83%
Net income	$150.8M	−$4.6M	−$28.2M	−$91.6M	−$33.6M	−$16.3M
Net profit margin	30.81%	−1.23%	−9.25%	−40.13%	−29.79%	−20.25%
Basic EPSper basic share	$1.95	-$0.06	-$0.42	-$1.47	-$0.65	-$0.33
Diluted EPSper diluted share	$1.77	-$0.06	-$0.42	-$1.50	-$0.65	-$0.33

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

11.41%of listed shares

BlackRock, Inc.9.27M shares · Jun 30, 2026

View holders

Top 20 reported holders of LIF
Holder	% owned
BlackRock, Inc.	11.41%9.27M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	6.59%5.35M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.32%3.51M shares
STATE STREET CORP	2.80%2.27M shares
GEODE CAPITAL MANAGEMENT, LLC	1.58%1.28M shares
Haro Alex	≈1.24%1.01M shares
Hulls Chris	≈1.22%992.84K shares
UBS Group AG	1.13%915.43K shares
NORGES BANK	0.92%749.53K shares
ALLSTATE CORP	0.89%725K shares
BANK OF AMERICA CORP /DE/	0.81%658.95K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.81%655.49K shares
MORGAN STANLEY	0.65%525.73K shares
VANGUARD FIDUCIARY TRUST CO	0.64%519.19K shares
PRINCIPAL FINANCIAL GROUP INC	0.59%483.01K shares
NORTHERN TRUST CORP	0.59%481.06K shares
Invesco Ltd.	0.37%299.93K shares
Antonoff Lauren	≈0.36%288.65K shares
DIMENSIONAL FUND ADVISORS LP	0.35%286.99K shares
Bank of New York Mellon Corp	0.35%280.83K shares

Percentages use 81.22M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)130$123.50M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 18, 2026Form 4 · 10b5-1	Hulls ChrisDirector	SellCommon Stock	16.0K	$47.07	$755.1K	406.9K
Jun 15, 2026Form 4 · 10b5-1	Prober Charles J.Director	SellCommon stock	7.9K	$46.07	$365.3K	109.9K
Jun 1, 2026Form 4	COGHLAN JOHN PHILIPDirector	SellCommon stock · indirect	204	$44.64	$9.1K	28.4K
Jun 1, 2026Form 4	COGHLAN JOHN PHILIPDirector	SellCommon stock · indirect	3.8K	$43.95	$166.8K	28.6K
May 28, 2026Form 4 · 10b5-1	Hulls ChrisDirector	SellCommon Stock	16.4K	$40.34	$660.7K	403.5K