Citi analyst Siraj Ahmed says Life360 Inc. (ASX:360) has delivered another beat-and-raise result, with the family-tracking app smashing earnings forecasts by 30%. Ahmed says adjusted earnings (Adjusted EBITDA) of US$24.5 million came in well above expectations, driven by stronger revenue and tight cost control. On Citi’s numbers, topline outperformed by about 4% versus consensus while operating costs landed roughly US$2 million below forecasts, combining to produce the sizable earnings beat.
The quarterly print offers plenty of detail behind that outcome.
Life360 reported Q3 FY25 revenue of US$124.5 million, up 34% year on year, supported by subscription revenue of US$96.3 million (+34% YoY) and core subscription revenue of US$90.7 million (+37% YoY).
Annualised Monthly Revenue (AMR) rose 33% to US$446.7 million, highlighting momentum in the recurring base. The company booked Q3 net income of US$9.8 million (+27% YoY) and generated operating cash flow of US$26.4 million (+319% YoY). Quarter-end liquidity remained strong, with cash, cash equivalents and restricted cash totaling US$457.2 million, bolstered in part by net capital raised from June 2025 convertible notes.
User and monetisation metrics were similarly constructive. Paying Circles increased 23% over the year to 2.7 million, with a record 170,000 net additions in the quarter. Average revenue per paying circle (ARPPC) rose 8% year on year to US$137.60, around 2% above forecasts, reflecting price adjustments in the US, a mix shift toward higher-priced offerings and the rollout of premium tiers in select international markets through 2024–2025. Monthly active users (MAUs) reached approximately 91.6 million, up 19% year on year, as Q3 global MAU net adds of 3.7 million benefited from the back-to-school season.
Against those positives, Ahmed flags two pressure points.
- First, user growth missed forecasts by about 2%, with MAUs coming in below expectations across both the US and international regions.
- Second, hardware profitability lagged: hardware gross margin of 9% fell short of Ahmed’s 15% forecast, with management pointing to tariff-related costs in the quarter. The company says it has taken steps to mitigate those tariff impacts going forward.
“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 CEO Lauren Antonoff said.
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.”
Management lifted full-year guidance on the back of the result
Revenue guidance rose by 2% to US$479.5 million at the midpoint, while Adjusted EBITDA guidance increased 12% to US$86 million. Ahmed notes the 12% earnings upgrade is roughly 9% above the market’s prior consensus, adding to the “beat and raise” narrative after the 30% quarterly earnings beat. The guidance move is underpinned by durable unit economics, disciplined expense control and ongoing subscription growth, with Q3 marking the tenth consecutive quarter of positive operating cash flow.
Strategically, Life360 also announced an agreement to acquire advertising technology firm Nativo for approximately US$120 million in a mix of cash and stock, subject to customary closing conditions. The company views the deal as complementary to its platform, adding an additional monetization pathway alongside subscriptions.
“Given the result beat and guidance upgrade, we expect the share price to outperform today,” Ahmed says.