Life360 Overview Life360 demonstrates global scale, durable growth, and expanding profitability, highlighted by significant year-over-year increases in revenue and Adjusted EBITDA, alongside a large global user base and extensive miles driven with crash detection [Life360 at a Glance](index=5&type=section&id=Life360%20at%20a%20glance) Life360 demonstrates global scale, durable growth, and expanding profitability, highlighted by significant year-over-year increases in revenue and Adjusted EBITDA, alongside a large global user base and extensive miles driven with crash detection Q2'25 Key Achievements | Metric | Q2'25 Value | YoY Change | | :-------------------------------- | :---------- | :--------- | | Revenue | $115.4 million | +36% | | Adjusted EBITDA | $20.3 million | - | | Adjusted EBITDA Margin | 18% | - | | Global Monthly Active Users (MAU) | ~88.0 million | - | | Global Paying Circles | ~2.5 million | - | | Global Monthly Miles driven with Life360 Crash Detection | 428 billion | - | | Safe arrival notifications | 70 billion | - | | Tile devices | 10.4 million+ | - | | Countries | 180+ | - | | U.S. Penetration | 11-17% | - | | Top Social Networking App (by DAU in U.S.) | 4 | - | [Product Offering & Value Proposition](index=6&type=section&id=Product%20Offering%20%26%20Value%20Proposition) Life360 positions itself as a 'super-app' for families, offering peace of mind through comprehensive safety and connection features. Its distinctive product suite includes real-time location sharing, driving safety, item tracking, emergency dispatch, and family messaging, catering to diverse family needs - Life360 makes everyday family life better through safety and connection, offering location sharing, market-leading driving safety, and premium safety services[18](index=18&type=chunk)[19](index=19&type=chunk) - The platform provides a comprehensive offering including effortless daily coordination with advanced location sharing and item tracking, digital safety for protection and prevention, and expert emergency assistance anytime, anywhere[23](index=23&type=chunk)[25](index=25&type=chunk) [Competitive Moat & Differentiation](index=8&type=section&id=Competitive%20Moat%20%26%20Differentiati) Life360 maintains a competitive advantage by uniquely focusing on family safety, integrating a proprietary technology platform, and offering a holistic experience that combines mobile premium services and devices, unlike isolated point solutions from competitors - Life360's competitive moat is built on its unique focus on family safety, providing peace of mind and connection, supported by proprietary technology and cross-platform solutions[26](index=26&type=chunk)[27](index=27&type=chunk) - Life360 offers a one-stop holistic experience, combining mobile premium services and devices, which differentiates it from competitors that provide only isolated point solutions[30](index=30&type=chunk)[31](index=31&type=chunk) [User Engagement & Retention](index=10&type=section&id=User%20Engagement%20%26%20Retention) Life360 demonstrates strong user engagement and retention, ranking among the highest DAUs across all apps in the U.S. and outperforming the social media average in app retention, indicating significant product stickiness driven by its core safety features US Lifestyle App Rankings by DAU (June 2025) | Rank | App Name | | :--- | :--- | | 1 | Life360: Stay Connected & Safe | | 2 | Pinterest | | 3 | Walmart: Shopping & Savings | | 4 | Ring - Always Home | | 5 | SHEIN | US Social Networking App Rankings by DAU (June 2025) | Rank | App Name | | :--- | :--- | | 1 | Facebook | | 2 | WhatsApp Messenger | | 3 | Messenger | | 4 | Life360: Stay Connected & Safe | | 5 | Discord | - Life360's app retention consistently outperforms social media peers, with a **1.5x higher retention rate after 90 days**, driven by its strong value proposition and core feature set providing peace of mind[50](index=50&type=chunk) [Addressable Market & Monetization Opportunities](index=13&type=section&id=Addressable%20Market%20%26%20Monetization%20Opportunities) Life360 identifies substantial addressable market opportunities across various sectors, including family financial services, auto insurance, elderly monitoring, advertising, and pet/item tracking. The company plans to monetize these markets through subscription services, devices, and indirect advertising, leveraging its first-party data Addressable Market Opportunities | Market Segment | Estimated Market Size ($) | | :----------------------- | :-------------------- | | Family Financial Services | ~$83 billion | | Auto Insurance | ~$80 billion | | Elderly Monitoring | ~$75 billion | | Advertising | $75 billion | | Pet Tracking | Item Tracking Subscription Services | | Item Tracking | Item Tracking Subscription Services | - Monetization strategies include subscription services (ID theft protection, roadside assistance, crash detection, medical assistance, SOS, emergency dispatch, driver reports, disaster response, stolen phone, travel support), devices, and indirect advertising for free members based on first-party data[56](index=56&type=chunk) [Member Base Expansion & Freemium Model](index=15&type=section&id=Member%20Base%20Expansion%20%26%20Freemium%20Model) Life360 is expanding its member base beyond traditional parents with teens, targeting broader demographics. Its freemium model, featuring triple-tier membership bundles (Silver, Gold, Platinum) in key markets, provides diverse benefits focused on driving and digital safety, enabling monetization across different user needs - Life360 is expanding its member base beyond parents with teens, recognizing an opportunity to grow within its current member base[58](index=58&type=chunk)[59](index=59&type=chunk) U.S. Paying Circles by Membership Tier (as of June 30, 2025) | Membership Tier | % of US Paying Circles | | :---------------- | :--------------------- | | Silver | 4% | | Gold | 84% | | Platinum | 12% | [Market Penetration & International Opportunity](index=17&type=section&id=Market%20Penetration%20%26%20International%20Opportunity) Life360 demonstrates significant remaining growth potential in U.S. penetration, with states experiencing high growth rates. Internationally, penetration is expanding but still trails the U.S., presenting a large upside opportunity, particularly in high-income markets with driving cultures where Triple Tier offerings are being rolled out - States with over **6% penetration in 2020** experienced an average of over **163% penetration growth from June 2020 to June 2025**, indicating substantial remaining runway in the U.S. market[66](index=66&type=chunk) International Penetration by Region (2020 vs 2025) | Region | 2020 Penetration | 2025 Penetration | | :--------------- | :--------------- | :--------------- | | Canada | 1% | 4% | | United Kingdom | 11% | - | | Europe | 0.4% | 1.8% | | Australia & New Zealand | 6% | 15% | | Rest of World | 3% | - | Top 10 International MAU and Revenue Countries (Q2'25) | Rank | Top 10 International MAU Countries | Top 10 International Revenue Countries | | :--- | :--------------------------------- | :----------------------------------- | | 1 | United Kingdom | United Kingdom | | 2 | Brazil | Australia | | 3 | Mexico | Canada | | 4 | Australia | Brazil | | 5 | Italy | Mexico | | 6 | Philippines | Germany | | 7 | Malaysia | Japan | | 8 | Canada | South Africa | | 9 | Spain | Netherlands | | 10 | Thailand | Malaysia | [Advertising Opportunity](index=20&type=section&id=Advertising%20Opportunity) Life360 is leveraging its differentiated audience and first-party data to create new monetization opportunities through advertising, indicating long-term growth potential. Its dynamic suite of in-app and offsite ad products, including context-aware place ads, effectively closes the measurement gap in retail advertising and drives strong campaign performance with brand partnerships like Uber and Accuweather - Life360's differentiated audience, characterized by valuable targeting opportunities based on user insights and location, has the potential to deliver significant value to B2B data providers and advertisers while maintaining user privacy[80](index=80&type=chunk)[81](index=81&type=chunk) - Life360's ad solutions, including Place Pins, Map Banners, Place Ads, and Audiences, close the measurement gap in retail advertising by providing context-aware, footfall-driving media, leveraging self-identified demographics and continuity of location signal[88](index=88&type=chunk)[89](index=89&type=chunk) - High-impact advertising brand partnerships, such as with Uber and Accuweather, demonstrate strong performance with high click-through rates, amplified by Life360's valuable user base of highly engaged members with high-disposable incomes[93](index=93&type=chunk)[95](index=95&type=chunk) Life360 Strategy Life360's strategy focuses on audience growth, scaling paid offerings, expanding revenue streams, and increasing profitability to become the leading global family brand [Strategic Pillars](index=25&type=section&id=Strategic%20Pillars) Life360's strategy is built on four key pillars: growing its audience, scaling paid offerings, expanding revenue streams, and increasing profitability. These pillars are designed to drive long-term growth by enhancing member value, meeting diverse family needs, and balancing growth investments with financial discipline - The core strategy involves growing the audience, scaling paid offerings through increased value and retention, expanding revenue streams by meeting family needs, and creating new revenue streams by building a leading global family brand, all while expanding profitability through financial discipline[97](index=97&type=chunk)[98](index=98&type=chunk) [Freemium Flywheel & Business Model](index=26&type=section&id=Freemium%20Flywheel%20%26%20Business%20Model) Life360's freemium business model leverages network effects to drive growth, with virality and referrals fueling new member acquisition. A growing free user base creates a competitive moat, increases the premium member acquisition pool, and provides indirect monetization opportunities like advertising, supported by efficient digital economics for scaling - The freemium flywheel drives growth through virality and referrals, leading to more users, better engagement, and better features, which in turn fuels the free user base, paid user base, and indirect monetization through ad revenue[99](index=99&type=chunk)[100](index=100&type=chunk) - Strong word-of-mouth drives organic growth and efficient customer acquisition. Digital economics enable efficient scaling of the user base with low-cost, high-margin subscription services. The growing free member base creates a competitive moat, increases the premium member acquisition pool, and offers indirect monetization opportunities, including advertising[105](index=105&type=chunk) [Aspirational Goals](index=28&type=section&id=Aspirational%20Goals) Life360 has set aspirational long-term goals to become the leading brand for everyday family life, aiming for over 150 million Monthly Active Users (MAU) and achieving more than 35% Adjusted EBITDA margins - Long-term aspirational goals include becoming the brand for everyday family life, achieving **150 million+ Monthly Active Users**, and reaching **35%+ Adjusted EBITDA margins**[107](index=107&type=chunk)[109](index=109&type=chunk)[111](index=111&type=chunk) Financial Update Q2'25 Life360 delivered strong Q2'25 financial results, with significant revenue and Adjusted EBITDA growth, driven by subscription momentum and expanding operating leverage, while establishing new advertising revenue streams [Q2'25 Achievements](index=30&type=section&id=Q2%2725%20Achievements) Life360 achieved significant growth in Q2'25, cementing its market-leading position with substantial increases in global MAU, revenue, and paying circles. The company also established initial infrastructure for advertising revenue and expanded profitability with strong Adjusted EBITDA growth Q2'25 Key Achievements | Metric | Q2'25 Value | YoY Growth | | :-------------------------------- | :---------- | :--------- | | Global Monthly Active Users (MAU) | ~88.0 million | +25% | | Revenue | $115.4 million | +36% | | Global Paying Circles | ~2.5 million | +25% | | Adjusted EBITDA | $20.3 million | - | | Adjusted EBITDA Margin | 18% | - | | International MAU Growth | - | 34% | | Quarterly net adds (Paying Circles) | 136k | - | - Initial infrastructure established to build advertising revenue stream and new B2B partnerships are being formed to drive indirect monetization[115](index=115&type=chunk) [Q2'25 Results Summary](index=31&type=section&id=Q2%2725%20Results%20Summary) Life360 delivered strong Q2'25 financial results, with total revenue increasing by 36% YoY, driven by robust subscription and other revenue growth. The company achieved positive net income and significantly expanded Adjusted EBITDA, reflecting increased operating leverage and cost discipline Q2'25 Financial Results Summary | Metric | Q2'25 ($ million) | Q2'24 ($ million) | $ Change ($ million) | % ch YoY | | :-------------------------- | :---- | :---- | :------- | :------- | | Subscription Revenue | 88.6 | 65.7 | 22.9 | 35% | | Hardware Revenue | 12.3 | 11.9 | 0.4 | 3% | | Other Revenue | 14.5 | 7.3 | 7.2 | 100% | | **Total Revenue** | **115.4** | **84.9** | **30.5** | **36%** | | Annualized Monthly Revenue (AMR) | 416.1 | 304.8 | 111.3 | 36% | | Operating Expenses | 88.5 | 66.0 | 22.5 | 34% | | Net Income (Loss) | 7.0 | (11.0) | 18.0 | (164)% | | Adjusted EBITDA (Non-GAAP) | 20.3 | 11.0 | 9.3 | 85% | | Cash and cash equivalents | 434.2 | 162.0 | 272.2 | 168% | | Operating cash flow | 13.3 | 3.3 | 10.1 | 310% | - Subscription revenue momentum continued strong, up **35% including hardware subscriptions**, and **38% for Life360 subscriptions**. Other revenue increased **100%** due to data, partnership, and advertising revenue[120](index=120&type=chunk) - Adjusted EBITDA expansion was driven by strong subscription revenue growth and increased operating leverage, with operating expenses declining as a percentage of revenue[120](index=120&type=chunk) [Annualized Monthly Revenue (AMR)](index=32&type=section&id=Annualized%20Monthly%20Revenue%20(AMR)) Life360's Annualized Monthly Revenue (AMR) continued its strong upward trajectory, reaching $416.1 million in June 2025, representing a 36% year-over-year growth, demonstrating consistent revenue momentum - Quarterly Annualized Monthly Revenue (AMR) reached **$416.1 million in Q2'25**, marking a **36% YoY growth**[122](index=122&type=chunk) [Consolidated Revenue Breakdown](index=33&type=section&id=Consolidated%20Revenue%20Breakdown) In Q2'25, Life360's consolidated revenue of $115 million was primarily driven by subscription revenue (76%), with hardware and other revenue contributing 11% and 13% respectively, reflecting a diversified revenue base with a strong subscription core Q2'25 Quarterly Revenue Breakdown | Revenue Type | Q2'23 ($ million) | Q2'24 ($ million) | Q2'25 ($ million) | | :------------- | :---- | :---- | :---- | | Subscription | $53 | $66 | $89 | | Hardware | $12 | $12 | $12 | | Other | $6 | $7 | $15 | | **Total** | **$71** | **$85** | **$115** | Q2'25 Total Consolidated Revenue Breakdown by Percentage | Revenue Type | Percentage | | :------------- | :--------- | | Subscription | 76% | | Hardware | 11% | | Other | 13% | [Global MAU Growth](index=34&type=section&id=Global%20MAU%20Growth) Life360's Global Monthly Active Users (MAU) grew by 25% year-over-year in Q2'25, reaching 88.0 million, with significant contributions from organic channels and strong growth in international Triple Tier launch countries - Global MAU grew **25% YoY in Q2'25**, with International Triple Tier launch countries MAU growing **43% YoY** and US MAU growing **17% YoY**[130](index=130&type=chunk) [Subscription Revenue & ARPPC](index=35&type=section&id=Subscription%20Revenue%20%26%20ARPPC) Subscription revenue saw a 35% YoY growth in Q2'25, underpinned by a 25% YoY increase in Paying Circles and an 8% YoY increase in Average Revenue Per Paying Circle (ARPPC). This growth was further supported by price increases and a shift towards higher-priced products Consolidated Quarterly Subscription Revenue | Quarter | 2023 ($ million) | 2024 ($ million) | 2025 ($ million) | | :------ | :--- | :--- | :--- | | Q1 | $51.7 | $61.6 | $81.9 | | Q2 | $52.7 | $65.7 | $88.6 | | Q3 | $56.6 | $71.8 | - | | Q4 | $59.8 | $78.8 | - | - Core Life360 subscription revenue grew **38% YoY in Q2'25**, benefiting from strong Paying Circles growth (**25% YoY**) and price increases in the U.S. for new and existing annual subscribers in 2024, alongside a shift in product mix[134](index=134&type=chunk) - Additional uplift from international regions throughout 2024 was due to legacy subscriber price increases and the launch of higher-priced membership tiers in non-Triple Tier markets, as well as continued growth in existing Triple Tier markets[134](index=134&type=chunk) [Paying Circles Growth](index=36&type=section&id=Paying%20Circles%20Growth) Life360's Paying Circles grew by 25% year-over-year in Q2'25, reaching 2.5 million globally. This growth was observed across both U.S. and international markets, with international Triple Tier launch countries showing particularly strong growth - Global Paying Circles grew **25% YoY in Q2'25**, with US Paying Circles growing **23% YoY** and International Triple Tier launch countries Paying Circles growing **62% YoY**[136](index=136&type=chunk) [Average Revenue Per Paying Circle (ARPPC)](index=37&type=section&id=Average%20Revenue%20Per%20Paying%20Circle%20(ARPPC)) Average Revenue Per Paying Circle (ARPPC) increased by 8% YoY globally in Q2'25, driven by successful Triple Tier launches and annual subscription price increases in both the U.S. and international markets Average Revenue Per Paying Circle (ARPPC) ($) | Quarter | Q2'23 | Q2'24 | Q2'25 | | :------ | :---- | :---- | :---- | | Global ARPPC | $128 | $126 | $135 | | International Triple Tier launch countries revenue | $43 | $59 | $76 | - Global ARPPC increased **8% YoY**, while International Triple Tier launch countries revenue increased **35% YoY**, and International ARPPC increased **92% YoY**[139](index=139&type=chunk) - The uplift to global ARPPC was tempered by a **3% increase** in the weighting of international Paying Circles as a percentage of global Paying Circles, reflecting faster growth in international regions that have lower pricing relative to the U.S.[140](index=140&type=chunk) [User Engagement & Retention](index=38&type=section&id=User%20Engagement%20%26%20Retention) Life360 demonstrates strong user engagement and retention, with both Monthly Active Users (MAUs) and Paying Circles consistently increasing across member registration years. This indicates effective long-term conversion of free members to paid and a net subscription revenue retention rate of approximately 100% - MAUs and Paying Circles by member registration year have increased over time, demonstrating strong retention dynamics and the ability to convert free members to paid over the long-term[143](index=143&type=chunk) - Consistent historical net subscriber retention across member registration years drives a net subscription revenue retention rate of approximately **100%**[143](index=143&type=chunk) [Hardware Revenue](index=39&type=section&id=Hardware%20Revenue) Hardware revenue increased by 3% YoY in Q2'25, primarily driven by a 21% YoY increase in net hardware units shipped, despite a decrease in Average Sale Price (ASP). The company observed continued growth in Tile sales to Life360 users, with full integration of premium Tile features expected to further boost this trend Quarterly Hardware Revenue and Units Shipped | Quarter | Q2'24 ($ million) | Q3'24 ($ million) | Q4'24 ($ million) | Q1'25 ($ million) | Q2'25 ($ million) | | :------ | :---- | :---- | :---- | :---- | :---- | | Hardware Revenue | $11.9 | $11.7 | $13.0 | $11.6 | $12.3 | | HW Units Shipped (million) | 0.7 | 0.8 | 1.9 | 0.5 | 0.8 | | ASP ($) | $15.92 | $12.69 | $12.56 | $16.99 | $14.81 | - Q2'25 hardware revenue increased **3% YoY**, driven by a **21% YoY increase in net hardware units shipped** due to online retail channel sales, despite a **7% YoY decrease in ASP**[147](index=147&type=chunk) - Continued growth in Tiles sold into the Life360 user base is expected to continue with full integration of premium Tile features into the Life360 app[147](index=147&type=chunk) [Other Revenue](index=40&type=section&id=Other%20Revenue) Other revenue experienced a significant 100% YoY growth in Q2'25, primarily driven by the ramp-up of advertising revenue and a renegotiated data agreement. This segment continues to expand as a percentage of total revenue, positively impacting gross margin and indicating substantial long-term growth potential Quarterly Other Revenue and as % of Total Revenue | Quarter | Q1'23 ($ million) | Q2'23 ($ million) | Q3'23 ($ million) | Q4'23 ($ million) | Q1'24 ($ million) | Q2'24 ($ million) | Q3'24 ($ million) | Q4'24 ($ million) | Q1'25 ($ million) | Q2'25 ($ million) | | :------ | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | | Other Revenue | $6.1 | $6.5 | $6.5 | $6.5 | $7.3 | $7.3 | $9.3 | $13.0 | $12.8 | $14.5 | | % of Total Revenue | - | - | - | - | - | 9% | 10% | 11% | 12% | 13% | - Q2'25 Other revenue growth of **100% YoY** reflects increases in data and partnership revenue, primarily driven by advertising revenue contribution and a renegotiated data agreement with Placer.ai[152](index=152&type=chunk) - Other revenue continues to expand as a percentage of total revenue, driving positive impacts on gross margin and is expected to have significant long-term growth potential as part of the broader advertising and free user monetization strategy[152](index=152&type=chunk) [Expanding Profitability](index=41&type=section&id=Expanding%20Profitability) Life360 demonstrated expanding profitability in Q2'25, with operating expenses declining as a percentage of revenue to 77%, showcasing strong operating leverage. Adjusted EBITDA margin expanded to 18%, driven by robust subscription revenue growth and increased operational efficiency Operating Expenses as % of Revenue | Quarter | Q1 | Q2 | Q3 | Q4 | | :------ | :-- | :-- | :-- | :-- | | 2023 | 95% | 85% | 83% | 82% | | 2024 | 81% | 79% | 78% | 77% | | 2025 | 74% | 69% | - | - | Adjusted EBITDA & Margin | Quarter | Q1'23 ($ million) | Q2'23 ($ million) | Q3'23 ($ million) | Q4'23 ($ million) | Q1'24 ($ million) | Q2'24 ($ million) | Q3'24 ($ million) | Q4'24 ($ million) | Q1'25 ($ million) | Q2'25 ($ million) | | :------ | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | | Adjusted EBITDA | $0.5 | $4.3 | $5.5 | $5.7 | $8.9 | $11.0 | $15.9 | $21.2 | $20.3 | $20.3 | | Margin (%) | 1% | 7% | 8% | 10% | 13% | 15% | 18% | 18% | - | - | - Operating expenses as a percentage of revenue declined to **77% in Q2'25**, demonstrating continued strong operating leverage. Adjusted EBITDA margin expanded to **18% in Q2'25**, driven by strong subscription revenue growth and increased operating leverage[156](index=156&type=chunk) FY'25 Outlook Life360 has increased its FY'25 outlook, now expecting consolidated revenue between $462 million and $482 million, with upward revisions across subscription, hardware, and other revenue segments, and raised Adjusted EBITDA guidance [FY'25 Guidance](index=43&type=section&id=FY%2725%20Guidance) Life360 has increased its FY'25 outlook, now expecting consolidated revenue between $462 million and $482 million, with upward revisions across subscription, hardware, and other revenue segments. The company also raised its Adjusted EBITDA guidance to a range of $72 million to $82 million FY'25 Outlook (Revised Guidance) | Metric | New Guidance ($ million) | Prior Guidance ($ million) | | :-------------------- | :------------------- | :------------------- | | Consolidated Revenue | $462 to $482 | $450 to $480 | | Subscription Revenue | $363 to $367 | $355 to $365 | | Hardware Revenue | $42 to $50 | $40 to $50 | | Other Revenue | $57 to $65 | $55 to $65 | | Adjusted EBITDA | $72 to $82 | $65 to $75 | Appendix The appendix provides detailed operating metrics, unaudited consolidated financial statements, GAAP to Non-GAAP reconciliations, and a competitive landscape analysis [Operating Metrics](index=45&type=section&id=Operating%20Metrics) The operating metrics appendix provides detailed quarterly data for Life360 Core and Consolidated metrics, including Monthly Active Users (MAU), Paying Circles, Average Revenue per Paying Circle (ARPPC), Average Revenue per Paying Subscription (ARPPS), net hardware units shipped, Average Sale Price (ASP), Annualized Monthly Revenue (AMR), and various subscription revenue breakdowns Operating Metrics (Q2 2024 - Q2 2025) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | :------ | | MAU - Global (million) | 88.0 | 83.7 | 79.6 | 76.9 | 70.6 | | MAU - U.S. (million) | 47.5 | 45.3 | 43.7 | 42.2 | 40.5 | | MAU - International (million) | 40.5 | 38.4 | 36.0 | 34.7 | 30.1 | | Paying Circles - Total (million) | 2.5 | 2.4 | 2.3 | 2.2 | 2.0 | | ARPPC ($) | 135.42 | 133.42 | 131.76 | 127.57 | 125.96 | | Subscriptions (million) | 3.1 | 3.0 | 2.9 | 2.8 | 2.7 | | ARPPS ($) | 116.06 | 112.98 | 110.43 | 106.27 | 104.00 | | Net hardware units shipped (million) | 0.8 | 0.5 | 1.9 | 0.8 | 0.7 | | ASP ($) | 14.81 | 16.99 | 12.56 | 12.69 | 15.92 | | AMR ($ million) | 416.1 | 393.0 | 367.6 | 336.2 | 304.8 | | Subscription revenue ($ million) | 88.6 | 81.9 | 78.8 | 71.8 | 65.7 | | Core subscription revenue ($ million) | 82.9 | 76.2 | 73.1 | 66.2 | 60.2 | [Financials](index=46&type=section&id=Financials) This section provides the unaudited consolidated financial statements, including the Income Statement for the three months ended June 30, 2025 and 2024, the Balance Sheet as of June 30, 2025 and December 31, 2024, and the Cash Flow Statement for the six months ended June 30, 2025 and 2024 Income Statement (Three Months Ended June 30, $M) | Metric | 2025 ($ million) | 2024 ($ million) | | :-------------------------------- | :--- | :--- | | Total Revenue | 115.4 | 84.9 | | Gross Profit | 90.5 | 63.6 | | Total Operating Expenses | 88.5 | 66.0 | | Income (loss) from operations | 2.0 | (2.4) | | Net income (loss) | 7.0 | (11.0) | | Net income (loss) per share, basic | 0.09 | (0.15) | | Net income (loss) per share, diluted | 0.08 | (0.15) | Balance Sheet (As of June 30, 2025 and December 31, 2024, $M) | Metric | June 30, 2025 ($ million) | December 31, 2024 ($ million) | | :-------------------------------- | :------------ | :---------------- | | Total Current Assets | 521.2 | 241.0 | | Total Assets | 753.6 | 441.6 | | Total Current Liabilities | 73.0 | 77.3 | | Total Liabilities | 386.9 | 83.0 | | Total Stockholders' Equity | 366.7 | 358.5 | Cash Flow (Six Months Ended June 30, $M) | Metric | 2025 ($ million) | 2024 ($ million) | | :-------------------------------- | :--- | :--- | | Net cash provided by operating activities | 25.4 | 13.9 | | Net cash used in investing activities | (32.1) | (2.3) | | Net cash provided by financing activities | 280.5 | 79.7 | | Net Increase in Cash, Cash Equivalents, and Restricted Cash | 273.8 | 91.3 | | Cash, Cash Equivalents, and Restricted Cash at the End of the Period | 434.2 | 162.0 | [GAAP to Non-GAAP Reconciliations & Non-GAAP Financial Measures](index=48&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations%20%26%20Non-GAAP%20Financial%20Measures) This section provides reconciliations of GAAP to Non-GAAP financial measures, specifically for Cost of Revenue, Operating Expenses, and Adjusted EBITDA. It defines Adjusted EBITDA and explains its use by management for evaluating financial performance and resource allocation, while noting it should not be considered a substitute for GAAP measures Adjusted EBITDA Reconciliation (Three Months Ended June 30, $M) | Metric | 2025 ($ million) | 2024 ($ million) | | :------------------------------------------ | :--- | :--- | | Net income (loss) | 7.0 | (11.0) | | Add (deduct): | | | | Loss on settlement of convertible notes | 1.1 | 0.4 | | Gain on settlement of derivative liability | - | (1.9) | | Gain on change in fair value of investment | (1.3) | - | | Provision for (benefit from) income taxes | (0.4) | 5.5 | | Depreciation and amortization | 3.1 | 2.4 | | Other income, net | (3.4) | (1.0) | | Investment related transaction costs | 0.1 | - | | Stock-based compensation | 15.2 | 10.8 | | IPO-related transaction costs | - | 5.8 | | **Adjusted EBITDA** | **20.3** | **11.0** | - Adjusted EBITDA is defined as net income (loss) excluding specific non-cash or non-core items such as loss on settlement of convertible notes, gain on settlement of derivative liability, gain on change in fair value of investments, income taxes, depreciation and amortization, other income, investment related transaction costs, stock-based compensation, and IPO-related transaction costs[173](index=173&type=chunk) - Adjusted EBITDA is used by management to evaluate financial performance, determine resource allocation, and for period-to-period comparisons, but it is a supplemental measure and not a substitute for GAAP financial information[174](index=174&type=chunk) [Competitive Landscape](index=50&type=section&id=Competitive%20Landscape) The competitive landscape appendix provides a comparative analysis of Life360's features and pricing against various competitors, highlighting its comprehensive offering across family safety, roadside assistance, SOS alerts, driver reports, and item tracking Competitive Feature Comparison | Feature | Life360 | Apple Find My | Google Maps | LifeLock | OnStar | ADT | Car Guardian | Noonlight | Family Link | Find My Kids | AAA | | :-------------------------- | :------ | :------------ | :---------- | :------- | :----- | :-- | :----------- | :-------- | :---------- | :------------ | :-- | | Monthly Price | $14.99 | Free | Free | $7.99 | $14.99 | $79.99 | $4.99 | $34.99 | Free | $10.00 | $14.99 | | Membership | Family circle | Individual | Individual | Family | Individual | Family | Individual | Family | Individual | Individual | Individual | | Available on iOS & Android | √ | √ | √ | √ | √ | √ | √ | √ | √ | √ | √ | | Roadside Assistance | √ | | | √ | | | | √ | | | √ | | SOS Alert | √ | | | | | | √ | √ | | √ | √ | | Driver Reports | √ | | | | √ | | | | | | √ | | Stolen Phone Reimbursement | √ | | | √ | | | | | | | | | Credit Monitoring | Platinum Only | √ | | | | √ | | | | | | | ID Theft Protection | √ | √ | | | | √ | | | | | | | Crash Detection | √ | | | | √ | | √ | √ | | | √ | | Disaster Assistance | Platinum Only | | | | | | | √ | | | | | Travel Assistance | Platinum Only | √ | | | | | | | | | | | Location Sharing | √ | √ | √ | √ | √ | | | √ | √ | √ | √ | | Stolen Funds Reimbursement | √ | √ | | | | √ | | | | | | | Item Tracking | √ | | √ | | | | | | | | | | In-App Messaging | √ | | | | | | | | √ | | | | Pet Tracking | √ | | | | | | | | | | |

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Life360, Inc.'s unaudited condensed consolidated financial statements and accompanying notes are presented for the periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets significantly increased due to higher cash and convertible notes, mirroring a substantial rise in total liabilities from new convertible note issuances | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change (in millions) | % Change | | :--------------------------------- | :---------------------------- | :------------------------------ | :------------------- | :------- | | **Assets** | | | | | | Cash and cash equivalents | $432.7 | $159.2 | $273.5 | 171.7% | | Total current assets | $521.2 | $241.0 | $280.2 | 116.3% | | Total Assets | $753.6 | $441.6 | $312.0 | 70.7% | | **Liabilities** | | | | | | Total current liabilities | $73.0 | $77.3 | $(4.4) | (5.7)% | | Convertible notes, net, noncurrent | $309.3 | — | $309.3 | N/A | | Total Liabilities | $386.9 | $83.0 | $303.9 | 366.0% | | **Stockholders' Equity** | | | | | | Total stockholders' equity | $366.7 | $358.5 | $8.1 | 2.3% | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The company transitioned from a net loss to net income for Q2 and H1 2025, driven by strong revenue growth across all segments and favorable changes in other income/expense | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Subscription revenue | $88.6 | $65.7 | 35% | $170.5 | $127.3 | 34% | | Hardware revenue | $12.3 | $11.9 | 3% | $21.2 | $22.1 | (4)% | | Other revenue | $14.5 | $7.3 | 100% | $27.4 | $13.7 | 99% | | **Total revenue** | **$115.4** | **$84.9** | **36%** | **$219.0** | **$163.1** | **34%** | | Gross profit | $90.5 | $63.6 | 42% | $174.1 | $123.6 | 41% | | Income (loss) from operations | $2.0 | $(2.4) | 184% | $4.2 | $(8.7) | 148% | | Total other income (expense), net | $4.6 | $(3.1) | 248% | $6.6 | $(5.1) | 229% | | Income (loss) before income taxes | $6.6 | $(5.5) | 221% | $10.8 | $(13.9) | 178% | | Provision for (benefit from) income taxes | $(0.4) | $5.5 | (107)% | $(0.6) | $6.9 | (109)% | | **Net income (loss)** | **$7.0** | **$(11.0)** | **164%** | **$11.4** | **$(20.7)** | **155%** | | Net income (loss) per share, basic | $0.09 | $(0.15) | | $0.15 | $(0.30) | | | Net income (loss) per share, diluted | $0.08 | $(0.15) | | $0.14 | $(0.30) | | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total equity increased, primarily from net income and stock-based compensation, partially offset by capped call purchases and taxes on equity award settlements | Metric (in millions) | Balance at December 31, 2024 | Balance at June 30, 2025 | | :------------------------------------ | :--------------------------- | :----------------------- | | Total Stockholders' Equity | $358.5 | $366.7 | | Net income | N/A | $11.4 | | Stock-based compensation expense | N/A | $25.8 | | Purchase of capped calls | N/A | $(33.7) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash significantly increased, primarily from financing activities, including convertible note issuance, which offset cash used in investing activities | Cash Flow Activity (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $25.4 | $13.9 | | Net cash used in investing activities | $(32.1) | $(2.3) | | Net cash provided by financing activities | $280.5 | $79.7 | | **Net Increase in Cash, Cash Equivalents, and Restricted Cash** | **$273.8** | **$91.3** | | Cash, Cash Equivalents and Restricted Cash at the End of the Period | $434.2 | $162.0 | - Proceeds from issuance of convertible senior notes in 2025 amounted to **$320.0 million**, significantly boosting financing cash flow[30](index=30&type=chunk) - Investing activities in 2025 included a **$25.0 million** convertible note investment and **$2.8 million** cash paid for an acquisition[30](index=30&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering significant accounting policies, financial components, and related transactions [Note 1. Nature of Business](index=11&type=section&id=Note%201.%20Nature%20of%20Business) Life360, Inc. operates a leading technology platform focused on family connectivity and safety, offering a 'freemium' mobile application with features like location sharing and driving safety, alongside hardware tracking devices (Tile and Jiobit), and completed its U.S. IPO on June 6, 2024 - Life360's core offering is a 'freemium' mobile application with subscription options, complemented by hardware tracking devices (Tile, Jiobit)[35](index=35&type=chunk)[36](index=36&type=chunk) - The company completed its U.S. IPO on June 6, 2024, issuing 3,703,704 shares of common stock and receiving net proceeds of **$93.0 million**[38](index=38&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=11&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis of presentation for the unaudited condensed consolidated financial statements, emphasizing conformity with GAAP and SEC requirements for interim reporting, detailing the use of estimates, discussing recent accounting pronouncements, and highlighting concentrations of risk - The financial statements are prepared in conformity with GAAP for interim periods and SEC requirements, with certain footnotes condensed or omitted[41](index=41&type=chunk) - Significant estimates and judgments are made for revenue recognition, credit losses, inventory valuation, stock-based awards, legal contingencies, and fair value measurements[45](index=45&type=chunk)[50](index=50&type=chunk) **Major Customer Revenue Concentration:** | Channel Partner | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Apple | 54% | 55% | 55% | 56% | | Google | 19% | 18% | 19% | 18% | **Major Customer Accounts Receivable Concentration:** | Channel Partner | As of June 30, 2025 | As of December 31, 2024 | | :-------------- | :------------------ | :---------------------- | | Apple | 57% | * | | Google | 12% | 49% | | Data Partner A | 10% | 11% | | Retail Partner A| 12% | 17% | - The company outsources hardware manufacturing to a sole contract manufacturer, but believes alternative suppliers are available[52](index=52&type=chunk) [Note 3. Segment and Geographic Revenue](index=13&type=section&id=Note%203.%20Segment%20and%20Geographic%20Revenue) Life360 operates as a single operating segment, with financial performance evaluated on a consolidated basis, and the majority of its revenue is generated from North America, particularly the United States - The Company operates as one operating segment, with the CEO evaluating financial information and resources on a consolidated basis[55](index=55&type=chunk) **Revenue by Geographic Region (in millions):** | Region | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | North America | $100.1 | $74.9 | $191.5 | $145.2 | | Europe, Middle East and Africa | $8.8 | $6.3 | $15.4 | $10.9 | | Other international regions | $6.4 | $3.6 | $12.1 | $6.9 | | **Total revenue** | **$115.4** | **$84.9** | **$219.0** | **$163.1** | **U.S. Revenue as Percentage of Total Revenue:** | Period | 2025 | 2024 | | :--------------------------- | :--- | :--- | | Three months ended June 30 | 85% | 87% | | Six months ended June 30 | 85% | 87% | [Note 4. Deferred Revenue](index=14&type=section&id=Note%204.%20Deferred%20Revenue) Deferred revenue primarily consists of advance payments for subscription services, recognized over the contractual term, with a significant portion of prior year's deferred revenue recognized in current periods and substantial remaining performance obligations - Deferred revenue primarily arises from advance payments for subscription services, recognized ratably over the contract term[57](index=57&type=chunk) **Revenue Recognized from Prior Deferred Revenue (in millions):** | Period | 2025 | 2024 | | :--------------------------- | :--- | :--- | | Three months ended June 30 | $8.6 | $7.8 | | Six months ended June 30 | $31.6| $26.2| - Remaining performance obligations totaled **$234.6 million** as of June 30, 2025, with **38%** expected to be recognized within the next twelve months[59](index=59&type=chunk) [Note 5. Fair Value Measurements](index=14&type=section&id=Note%205.%20Fair%20Value%20Measurements) The company measures certain assets and liabilities at fair value using a three-level hierarchy, with significant changes including a new $25.0 million Convertible Note Investment in Aura and the conversion of a Related Party SAFE to an investment, resulting in a $0.9 million gain - Fair value measurements are categorized into Level 1 (quoted prices), Level 2 (observable inputs), and Level 3 (unobservable inputs)[61](index=61&type=chunk)[62](index=62&type=chunk) **Recurring Fair Value Measurements (in millions):** | Asset | As of June 30, 2025 (Level 1) | As of June 30, 2025 (Level 3) | As of June 30, 2025 (Total) | As of December 31, 2024 (Level 1) | As of December 31, 2024 (Total) | | :-------------------------- | :---------------------------- | :---------------------------- | :-------------------------- | :-------------------------------- | :------------------------------ | | Money market funds | $384.7 | — | $384.7 | $134.0 | $134.0 | | Convertible Note Investment | — | $25.4 | $25.4 | — | — | | **Total assets** | **$384.7** | **$25.4** | **$410.1** | **$134.0** | **$134.0** | - A **$25.0 million** Convertible Note Investment in Aura was made in May 2025, measured at fair value using a scenario-based, probability-weighted option pricing model (Level 3)[64](index=64&type=chunk)[65](index=65&type=chunk) - The conversion of a Related Party SAFE to a Related Party Investment in April 2025 resulted in a **$0.9 million** gain on change in fair value[67](index=67&type=chunk)[68](index=68&type=chunk) [Note 6. Business Combinations](index=16&type=section&id=Note%206.%20Business%20Combinations) On February 27, 2025, Life360 acquired certain assets of Fantix, Inc. for $4.5 million, consisting of cash and common stock, resulting in the recognition of $3.6 million in intangible assets and $0.9 million in goodwill - Life360 acquired assets from Fantix, Inc. for **$4.5 million** (**$3.5 million** cash, **$1.0 million** common stock) on February 27, 2025[69](index=69&type=chunk) - The acquisition resulted in **$3.6 million** in intangible assets and **$0.9 million** in goodwill, reflecting anticipated synergies and growth opportunities[70](index=70&type=chunk) [Note 7. Balance Sheet Components](index=16&type=section&id=Note%207.%20Balance%20Sheet%20Components) This note provides a detailed breakdown of various balance sheet components, including accounts receivable, inventory, prepaid expenses, property and equipment, noncurrent assets, leases, goodwill, and intangible assets, highlighting changes and related expenses **Accounts Receivable, Net (in millions):** | Metric | As of June 30, 2025 | As of December 31, 2024 | | :---------------------- | :------------------ | :---------------------- | | Accounts receivable | $58.9 | $58.4 | | Allowance for credit losses | $(0.1) | $(0.4) | | **Total accounts receivable, net** | **$58.9** | **$58.0** | **Inventory (in thousands):** | Metric | As of June 30, 2025 | As of December 31, 2024 | | :-------------- | :------------------ | :---------------------- | | Raw materials | $50 | $24 | | Finished goods | $9,623 | $8,033 | | **Total inventory** | **$9,673** | **$8,057** | **Prepaid Expenses and Other Current Assets (in millions):** | Metric | As of June 30, 2025 | As of December 31, 2024 | | :----------------------------------- | :------------------ | :---------------------- | | Prepaid expenses | $14.9 | $11.1 | | Other receivables | $3.8 | $3.5 | | **Total prepaid expenses and other current assets** | **$18.7** | **$14.6** | **Property and Equipment, Net (in millions):** | Metric | As of June 30, 2025 | As of December 31, 2024 | | :----------------------------------- | :------------------ | :---------------------- | | Total property and equipment, gross | $4.3 | $2.8 | | Less: accumulated depreciation | $(1.2) | $(1.0) | | **Total property and equipment, net** | **$3.0** | **$1.8** | - Depreciation expense for property and equipment increased from **$49 thousand** (Q2 2024) to **$95 thousand** (Q2 2025) and from **$95 thousand** (H1 2024) to **$190 thousand** (H1 2025)[76](index=76&type=chunk) **Prepaid Expenses and Other Assets, Noncurrent (in millions):** | Metric | As of June 30, 2025 | As of December 31, 2024 | | :----------------------------------- | :------------------ | :---------------------- | | Prepaid expenses, noncurrent | $3.2 | $1.8 | | Convertible Note Investment | $25.4 | — | | Data Revenue Partner Warrant | $10.9 | $10.9 | | Related Party Investment | $5.9 | — | | Related Party Warrant | $3.9 | $3.9 | | Related Party SAFE | — | $5.0 | | **Total prepaid expenses and other assets, noncurrent** | **$49.2** | **$21.6** | **Goodwill and Intangible Assets, Net (in millions):** | Metric | As of June 30, 2025 | As of December 31, 2024 | | :----------------------------------- | :------------------ | :---------------------- | | Total Intangible assets, net | $42.5 | $40.6 | | Goodwill | $134.6 | $133.7 | - Amortization expense for intangible assets increased from **$2.3 million** (Q2 2024) to **$2.9 million** (Q2 2025) and from **$4.6 million** (H1 2024) to **$5.7 million** (H1 2025)[87](index=87&type=chunk) - Goodwill increased by **$0.9 million** due to the Fantix, Inc. acquisition[90](index=90&type=chunk) [Note 8. Convertible Notes](index=20&type=section&id=Note%208.%20Convertible%20Notes) In June 2025, Life360 issued $320.0 million in 0.00% convertible senior notes due 2030, which are senior unsecured obligations, and entered into capped call transactions to mitigate dilution, recorded as a reduction to additional paid-in capital - Issued **$320.0 million** aggregate principal amount of 0.00% convertible senior notes due June 1, 2030, in June 2025[92](index=92&type=chunk) - The notes are convertible into common stock under specific conditions, with an initial conversion price of approximately **$80.97 per share**[92](index=92&type=chunk)[93](index=93&type=chunk) - The net carrying amount of the June 2025 Convertible Notes was **$309.3 million** as of June 30, 2025, with an effective interest rate of **0.68%**[98](index=98&type=chunk) - Entered into capped call transactions for **$33.7 million** to reduce potential dilution, recorded as a reduction to additional paid-in capital[101](index=101&type=chunk)[102](index=102&type=chunk) [Note 9. Commitments and Contingencies](index=22&type=section&id=Note%209.%20Commitments%20and%20Contingencies) Life360 has non-cancellable purchase commitments with its cloud platform provider and contract manufacturer totaling $74.0 million through 2027 and is involved in various legal proceedings, including a settled patent infringement claim and a pending class action lawsuit, but currently has no material litigation reserves **Future Non-Cancellable Purchase Commitments (in millions):** | Year | Amount | | :---------------- | :----- | | Remainder of 2025 | $22.5 | | 2026 | $25.5 | | 2027 | $26.0 | | **Total** | **$74.0**| - A patent infringement claim against Tile was settled at no cost on August 5, 2025, following a summary judgment of non-infringement and statutory disclaimer of the patent[107](index=107&type=chunk) - A putative class action lawsuit alleging misuse of Tile trackers is pending, but a loss is not probable or estimable, and no legal accrual has been recorded[108](index=108&type=chunk) [Note 10. Common Stock](index=23&type=section&id=Note%2010.%20Common%20Stock) The company has reserved a significant number of common stock shares for issuance under its stock incentive plan, stock options, and restricted stock units, totaling over 25 million shares as of June 30, 2025 **Common Stock Reserved for Issuance:** | Category | As of June 30, 2025 | As of December 31, 2024 | | :---------------------------------------- | :------------------ | :---------------------- | | Issuances under stock incentive plan, stock options | 4,816,119 | 5,673,947 | | Issuances upon exercise of common stock warrants | 7,761 | 7,761 | | Issuances upon vesting of restricted stock units | 5,216,444 | 5,091,601 | | Shares reserved for shares available to be granted but not granted yet | 15,324,977 | 12,815,029 | | **Total** | **25,365,301** | **23,588,338** | [Note 11. Warrants](index=23&type=section&id=Note%2011.%20Warrants) As of June 30, 2025, Life360 had 7,761 outstanding warrants to purchase common stock at an exercise price of $6.44, expiring in September 2025, with automatic exercise if not prior to expiration - **7,761** warrants to purchase common stock were outstanding as of June 30, 2025, with an exercise price of **$6.44** and a September 2025 expiry date[112](index=112&type=chunk) [Note 12. Equity Incentive Plan](index=24&type=section&id=Note%2012.%20Equity%20Incentive%20Plan) The company's equity incentive plan allows for grants of RSUs and stock options, with significant unrecognized compensation costs for both, and stock-based compensation expense increased significantly across all functional areas - Unrecognized compensation cost for outstanding RSUs was **$120.9 million** as of June 30, 2025, to be recognized over approximately **2.9 years**[116](index=116&type=chunk) - Unrecognized compensation cost for outstanding stock options was **$1.1 million** as of June 30, 2025, to be recognized over approximately **0.5 years**[118](index=118&type=chunk) **Stock-based Compensation Expense (in millions):** | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------ | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Cost of revenue | $1.2 | $0.4 | 170% | $1.6 | $0.8 | 101% | | Research and development | $7.8 | $6.5 | 20% | $13.5 | $11.8 | 14% | | Sales and marketing | $2.0 | $0.8 | 164% | $3.4 | $1.4 | 140% | | General and administrative| $4.2 | $3.1 | 36% | $6.7 | $5.1 | 32% | | **Total** | **$15.2** | **$10.8** | **41%** | **$25.1** | **$19.0** | **32%** | [Note 13. Income Taxes](index=25&type=section&id=Note%2013.%20Income%20Taxes) Life360 recorded a benefit from income taxes for the three and six months ended June 30, 2025, a shift from a provision in the prior year, primarily due to estimated growth in the annual effective tax rate in the U.S., while maintaining a full valuation allowance on deferred tax assets **Income Tax Provision (Benefit) (in millions):** | Period | 2025 | 2024 | | :--------------------------- | :---- | :--- | | Three months ended June 30 | $(0.4) | $5.5 | | Six months ended June 30 | $(0.6) | $6.9 | - The shift from a tax provision to a tax benefit is due to estimated growth in the U.S. annual effective tax rate[120](index=120&type=chunk)[121](index=121&type=chunk) - A full valuation allowance is maintained on federal and state deferred tax assets, as their realization is not considered more likely than not[120](index=120&type=chunk) [Note 14. Related-Party Transactions](index=26&type=section&id=Note%2014.%20Related-Party%20Transactions) Life360 entered into a strategic partnership with Hubble Network, Inc., involving a technology exclusivity and revenue share agreement, a Related Party SAFE (which converted to an investment), and a Related Party Warrant, and paid $5.5 million in U.S. IPO expenses on behalf of selling securityholders - Strategic partnership with Hubble Network, Inc. includes a technology exclusivity and revenue share agreement, a Related Party SAFE, and a Related Party Warrant[122](index=122&type=chunk) - The Related Party SAFE converted to a **$5.9 million** Related Party Investment in April 2025, resulting in a **$0.9 million** gain[125](index=125&type=chunk) - The Related Party Warrant, valued at **$3.9 million**, generated **$0.2 million** and **$0.5 million** in other revenue for the three and six months ended June 30, 2025, respectively[124](index=124&type=chunk) - Life360 paid **$5.5 million** in U.S. IPO expenses on behalf of selling securityholders, including executive officers and board members, recorded as Other income (expense), net[129](index=129&type=chunk)[130](index=130&type=chunk) [Note 15. Net Income (Loss) Per Share](index=27&type=section&id=Note%2015.%20Net%20Income%20(Loss)%20Per%20Share) The company calculates basic and diluted net income (loss) per share, with diluted EPS at $0.08 (three months) and $0.14 (six months) for the periods ended June 30, 2025, reflecting the dilutive effect of options, RSUs, and warrants, but not the June 2025 Convertible Notes **Net Income (Loss) Per Share:** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $7.0 million | $(11.0) million | $11.4 million | $(20.7) million | | Weighted-average shares outstanding: Basic | 76,797,385 | 70,760,080 | 76,254,119 | 69,647,853 | | Diluted | 84,476,048 | 70,760,080 | 83,980,695 | 69,647,853 | | Net income (loss) per share: Basic | $0.09 | $(0.15) | $0.15 | $(0.30) | | Net income (loss) per share: Diluted | $0.08 | $(0.15) | $0.14 | $(0.30) | - The June 2025 Convertible Notes were not dilutive for the three and six months ended June 30, 2025, as the average stock price did not exceed the conversion price[133](index=133&type=chunk) [Note 16. Subsequent Events](index=28&type=section&id=Note%2016.%20Subsequent%20Events) Subsequent events include the enactment of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, which may impact future tax rates, and a change in executive leadership effective August 11, 2025, with Lauren Antonoff appointed CEO and Chris Hulls becoming Executive Chairman - The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, with potential future impacts on financial statements and disclosures due to changes in tax provisions[135](index=135&type=chunk) - Lauren Antonoff was appointed CEO and Chris Hulls became Executive Chairman of the Board, effective August 11, 2025[136](index=136&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Life360's financial condition and operational results, highlighting key factors affecting performance, detailed revenue and expense analysis, and key performance indicators, while also discussing liquidity, capital resources, and critical accounting policies [Overview](index=29&type=section&id=Overview) Life360 is a leading technology platform for family connectivity and safety, offering a 'freemium' mobile application with subscription options and hardware tracking devices (Jiobit and Tile), aiming to provide a vertically integrated, cross-platform solution - Life360 is a leading technology platform for family connectivity and safety, offering a 'freemium' mobile application and hardware tracking devices (Jiobit and Tile)[138](index=138&type=chunk) [Key Factors Affecting Our Performance](index=29&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) Key factors influencing Life360's performance include maintaining brand trust, attracting and retaining members, efficient member acquisition, growth in hardware sales, expanding platform offerings, talent acquisition, seasonality, and international expansion - Performance is affected by brand trust, member attraction/retention, efficient acquisition, hardware sales growth, platform expansion, talent, seasonality, and international expansion[139](index=139&type=chunk) [Key Components of Our Results of Operations](index=29&type=section&id=Key%20Components%20of%20Our%20Results%20of%20Operations) This section details the various revenue streams (subscription, hardware, other) and cost components (cost of revenue, operating expenses, other income/expense) that constitute Life360's financial results, explaining how each component is generated, recognized, and influenced by trends - Revenue is categorized into direct (subscription, hardware) and indirect (data, partnership, advertising)[141](index=141&type=chunk) - Subscription revenue is recognized ratably over the contractual term, while hardware revenue is recognized upon product delivery[142](index=142&type=chunk)[143](index=143&type=chunk) - Other revenue includes data and partnership revenue, such as location-based analytics and advertising, and revenue from the Related Party Warrant[144](index=144&type=chunk) - Operating expenses comprise research and development, sales and marketing, and general and administrative costs, with continued investment planned for growth[150](index=150&type=chunk)[151](index=151&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - Other income (expense) includes fair value adjustments for convertible notes and derivatives (historical), gains on investments, and interest income/expense[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Life360 achieved significant financial improvements for the three and six months ended June 30, 2025, transitioning from a net loss to net income, driven by strong revenue growth across all segments, particularly subscription and other revenue, and improved gross margins, with operating expenses increasing in absolute dollars but decreasing as a percentage of revenue | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Total revenue | $115.4 | $84.9 | 36% | $219.0 | $163.1 | 34% | | Gross profit | $90.5 | $63.6 | 42% | $174.1 | $123.6 | 41% | | Income (loss) from operations | $2.0 | $(2.4) | 184% | $4.2 | $(8.7) | 148% | | Net income (loss) | $7.0 | $(11.0) | 164% | $11.4 | $(20.7) | 155% | **Results of Operations as a Percentage of Total Revenue:** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gross profit | 78% | 75% | 79% | 76% | | Total operating expenses | 77% | 78% | 78% | 81% | | Income (loss) from operations | 2% | (3)% | 2% | (5)% | | Net income (loss) | 6% | (13)% | 5% | (13)% | [Revenue](index=35&type=section&id=Revenue) Total revenue increased significantly, driven by strong subscription revenue growth (35% for Q2, 34% for H1) due to increased Paying Circles and price increases, while other revenue doubled, and hardware revenue saw modest Q2 growth but a slight H1 decline due to increased discounts and bundled offerings **Revenue (in millions):** | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :---------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Subscription revenue | $88.6 | $65.7 | 35% | $170.5 | $127.3 | 34% | | Hardware revenue | $12.3 | $11.9 | 3% | $21.2 | $22.1 | (4)% | | Other revenue | $14.5 | $7.3 | 100% | $27.4 | $13.7 | 99% | | **Total revenue** | **$115.4** | **$84.9** | **36%** | **$219.0** | **$163.1** | **34%** | - Subscription revenue growth was primarily due to **25% growth in Paying Circles** and **18% growth in total subscriptions**, along with price increases for Life360 subscriptions[168](index=168&type=chunk)[171](index=171&type=chunk) - Other revenue increased due to a **$4.9 million** (Q2) / **$9.4 million** (H1) increase in partnership revenue (including advertising) and a **$2.3 million** (Q2) / **$4.2 million** (H1) increase in data revenue from the Placer.ai agreement[170](index=170&type=chunk)[173](index=173&type=chunk) [Cost of Revenue, Gross Profit, and Gross Margin](index=36&type=section&id=Cost%20of%20Revenue,%20Gross%20Profit,%20and%20Gross%20Margin) Gross profit increased significantly, with subscription gross margin improving due to price increases, while hardware gross margin decreased in H1 2025 due to increased discounts and tariff costs, despite flat Q2 performance, and other gross margin improved as revenue growth outpaced cost increases **Cost of Revenue and Gross Profit (in millions):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :---------------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Cost of subscription revenue | $13.0 | $10.4 | 26% | $23.2 | $19.7 | 18% | | Cost of hardware revenue| $10.2 | $9.9 | 3% | $18.8 | $17.9 | 5% | | Cost of other revenue | $1.6 | $0.9 | 78% | $3.0 | $1.8 | 64% | | **Total cost of revenue** | **$24.9** | **$21.2** | **17%** | **$45.0** | **$39.5** | **14%** | | **Gross profit** | **$90.5** | **$63.6** | **42%** | **$174.1** | **$123.6** | **41%** | **Gross Margin:** | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Subscription | 85% | 84% | 86% | 85% | | Hardware | 17% | 17% | 11% | 19% | | Other | 89% | 87% | 89% | 87% | - Subscription cost of revenue increased due to higher personnel-related costs, stock-based compensation, and technology expenses, as well as amortization of internally developed software[177](index=177&type=chunk)[183](index=183&type=chunk) - Hardware gross margin decline in H1 2025 was primarily due to a **$2.2 million** increase in discounts, increased freight costs, and higher tariff costs[186](index=186&type=chunk) [Research and Development](index=37&type=section&id=Research%20and%20Development) Research and development expenses increased by 19% for Q2 and 15% for H1 2025, primarily driven by higher personnel-related and stock-based compensation costs, and increased technology expenses, reflecting continued investment in platform development **Research and Development Expenses (in millions):** | Period | 2025 | 2024 | % Change | | :--------------------------- | :---- | :---- | :------- | | Three months ended June 30 | $32.3 | $27.0 | 19% | | Six months ended June 30 | $62.7 | $54.3 | 15% | - Increases were mainly due to **$4.3 million** (Q2) / **$6.9 million** (H1) in personnel-related and stock-based compensation costs and **$1.1 million** (Q2) / **$2.1 million** (H1) in technology and other costs[189](index=189&type=chunk)[190](index=190&type=chunk) [Sales and Marketing](index=37&type=section&id=Sales%20and%20Marketing) Sales and marketing expenses increased substantially (60% for Q2, 51% for H1 2025), primarily due to increased growth media spend and higher commissions paid to Channel Partners, aligning with the growth in subscription revenue **Sales and Marketing Expenses (in millions):** | Period | 2025 | 2024 | % Change | | :--------------------------- | :---- | :---- | :------- | | Three months ended June 30 | $38.9 | $24.4 | 60% | | Six months ended June 30 | $74.2 | $49.1 | 51% | - Key drivers were increases in growth media spend (**$5.2 million** Q2 / **$8.6 million** H1) and commissions to Channel Partners (**$4.2 million** Q2 / **$8.0 million** H1)[191](index=191&type=chunk)[192](index=192&type=chunk) [General and Administrative](index=38&type=section&id=General%20and%20Administrative) General and administrative expenses increased by 19% for Q2 and 14% for H1 2025, mainly due to higher personnel-related and stock-based compensation costs and increased technology expenses, partially offset by lower professional and outside services spend **General and Administrative Expenses (in millions):** | Period | 2025 | 2024 | % Change | | :--------------------------- | :---- | :---- | :------- | | Three months ended June 30 | $17.4 | $14.6 | 19% | | Six months ended June 30 | $33.0 | $29.0 | 14% | - Increases were primarily due to **$3.3 million** (Q2) / **$4.9 million** (H1) in personnel-related and stock-based compensation costs and **$0.5 million** (Q2) / **$1.3 million** (H1) in technology and other expenses[193](index=193&type=chunk)[194](index=194&type=chunk) - Partially offset by a **$0.9 million** (Q2) / **$1.9 million** (H1) decrease in professional and outside services, mainly due to lower Sarbanes-Oxley compliance costs[193](index=193&type=chunk)[194](index=194&type=chunk) [Convertible Notes Fair Value Adjustment](index=38&type=section&id=Convertible%20Notes%20Fair%20Value%20Adjustment) No gain or loss was recorded for convertible notes fair value adjustment in Q2 and H1 2025, as the September 2021 and July 2021 Convertible Notes were converted to common stock in 2024 - No convertible notes fair value adjustment was recorded in Q2 and H1 2025 due to the conversion of prior convertible notes in 2024[195](index=195&type=chunk) [Derivative Liability Fair Value Adjustment](index=38&type=section&id=Derivative%20Liability%20Fair%20Value%20Adjustment) No gain or loss was recorded for derivative liability fair value adjustment in Q2 and H1 2025, as the embedded derivative liability related to the July 2021 Convertible Notes was settled in June 2024 - No derivative liability fair value adjustment was recorded in Q2 and H1 2025 due to the settlement of the embedded derivative liability in June 2024[196](index=196&type=chunk) [Loss on Settlement of Convertible Notes](index=38&type=section&id=Loss%20on%20Settlement%20of%20Convertible%20Notes) No gain or loss was recorded on the settlement of convertible notes in Q2 and H1 2025, as the September 2021 and July 2021 Convertible Notes were converted to common stock in 2024 - No loss on settlement of convertible notes was recorded in Q2 and H1 2025 due to the conversion of prior convertible notes in 2024[197](index=197&type=chunk) [Gain on Settlement of Derivative Liability](index=39&type=section&id=Gain%20on%20Settlement%20of%20Derivative%20Liability) No gain or loss was recorded on the settlement of derivative liability in Q2 and H1 2025, as the derivative liability related to the July 2021 Convertible Notes was settled in June 2024 - No gain on settlement of derivative liability was recorded in Q2 and H1 2025 due to the settlement of the derivative liability in June 2024[198](index=198&type=chunk) [Gain on Change in Fair Value of Investments](index=39&type=section&id=Gain%20on%20Change%20in%20Fair%20Value%20of%20Investments) Life360 recorded a total gain of $1.3 million for Q2 and H1 2025 from changes in fair value of investments, including a $0.9 million gain from the conversion of a Related Party SAFE and a $0.4 million gain from the Convertible Note Investment in Aura - A **$0.9 million** gain was recorded for Q2 and H1 2025 from the conversion of the Related Party SAFE to a Related Party Investment[199](index=199&type=chunk) - An additional **$0.4 million** gain was recorded for Q2 and H1 2025 from the change in fair value of the Convertible Note Investment in Aura[200](index=200&type=chunk) [Other Income (Expense), Net](index=39&type=section&id=Other%20Income%20(Expense),%20Net) Other income (expense), net, significantly increased by $8.0 million (Q2) and $9.6 million (H1) in 2025, primarily due to a decrease in U.S. IPO transaction costs, an increase in dividend and interest income from higher cash balances, and a favorable change in currency revaluation - Other income (expense), net, increased by **$8.0 million** (**173%**) for Q2 2025 and **$9.6 million** (**224%**) for H1 2025[202](index=202&type=chunk)[203](index=203&type=chunk) - Key drivers include a **$5.6 million** decrease in U.S. IPO transaction costs and a **$1.4 million** (Q2) / **$2.4 million** (H1) increase in dividend and interest income[202](index=202&type=chunk)[203](index=203&type=chunk) - A favorable **$1.2 million** (Q2) / **$1.6 million** (H1) change in currency revaluation also contributed to the increase[202](index=202&type=chunk)[203](index=203&type=chunk) [Provision for (benefit from) Income Taxes](index=39&type=section&id=Provision%20for%20(benefit%20from)%20Income%20Taxes) Life360 recorded a benefit from income taxes in Q2 and H1 2025, a significant improvement from a provision in the prior year, driven by estimated growth in the U.S. annual effective tax rate, while continuing to maintain a full valuation allowance on its deferred tax assets - Benefit from income taxes increased by **$5.9 million** (Q2) and **$7.5 million** (H1) in 2025, compared to a provision in 2024[204](index=204&type=chunk) - This change is attributed to estimated growth in the U.S. annual effective tax rate[204](index=204&type=chunk) - A full valuation allowance is maintained on federal and state deferred tax assets[204](index=204&type=chunk) [Key Performance Indicators](index=40&type=section&id=Key%20Performance%20Indicators) Life360 demonstrated strong growth across its key performance indicators, including Annualized Monthly Revenue (AMR), Monthly Active Users (MAUs), Paying Circles, and Average Revenue per Paying Circle (ARPPC), with subscriptions and Net Hardware Units Shipped also increasing, while Net Average Sales Price (ASP) saw a slight decrease **Key Operating Metrics (in millions, except ARPPC, ARPPS and ASP):** | Metric | As of and for the Three Months Ended June 30, 2025 | As of and for the Three Months Ended June 30, 2024 | % Change | As of and for the Six Months Ended June 30, 2025 | As of and for the Six Months Ended June 30, 2024 | % Change | | :------------------------ | :------------------------------------------------- | :------------------------------------------------- | :------- | :------------------------------------------------ | :------------------------------------------------ | :------- | | AMR | $416.1 | $304.8 | 36% | $416.1 | $304.8 | 36% | | MAUs | 88.0 | 70.6 | 25% | 88.0 | 70.6 | 25% | | Paying Circles | 2.5 | 2.0 | 25% | 2.5 | 2.0 | 25% | | ARPPC | $135.42 | $125.96 | 8% | $134.49 | $124.41 | 8% | | Subscriptions | 3.1 | 2.7 | 18% | 3.1 | 2.7 | 18% | | ARPPS | $116.06 | $104.00 | 12% | $114.57 | $102.60 | 12% | | Net hardware units shipped| 0.8 | 0.7 | 21% | 1.3 | 1.2 | 8% | | ASP | $14.81 | $15.92 | (7)% | $15.64 | $16.18 | (3)% | [Annualized Monthly Revenue](index=40&type=section&id=Annualized%20Monthly%20Revenue) Annualized Monthly Revenue (AMR) increased by 36% year-over-year to $416.1 million as of June 30, 2025, primarily driven by continued subscriber growth - AMR increased **36%** year-over-year to **$416.1 million** as of June 30, 2025, driven by subscriber growth[209](index=209&type=chunk) [Monthly Active Users](index=40&type=section&id=Monthly%20Active%20Users) Monthly Active Users (MAUs) on the Life360 platform grew by 25% year-over-year to 88.0 million as of June 30, 2025, reflecting strong new member growth and retention - MAUs increased **25%** year-over-year to **88.0 million** as of June 30, 2025, due to strong new member growth and retention[210](index=210&type=chunk) [Paying Circles](index=40&type=section&id=Paying%20Circles) Paying Circles increased by 25% year-over-year to 2.5 million as of June 30, 2025, driven by converting free members to subscribers and retaining them with high-quality services - Paying Circles increased **25%** year-over-year to **2.5 million** as of June 30, 2025[212](index=212&type=chunk) [Average Revenue per Paying Circle](index=41&type=section&id=Average%20Revenue%20per%20Paying%20Circle) Average Revenue per Paying Circle (ARPPC) increased by 8% year-over-year to $135.42 for Q2 2025 and $134.49 for H1 2025, benefiting from price increases for new and existing subscribers and a shift towards higher-priced product mixes in both U.S. and international markets - ARPPC increased **8%** year-over-year to **$135.42** (Q2 2025) and **$134.49** (H1 2025)[214](index=214&type=chunk) - Growth was driven by price increases for new and existing Life360 subscriptions and a shift to higher-priced product mixes in U.S. and international markets[215](index=215&type=chunk) [Subscriptions](index=41&type=section&id=Subscriptions) Total paid subscriptions across Life360, Tile, and Jiobit brands increased by 18% year-over-year to 3.1 million as of June 30, 2025, driven by hardware sales and conversion/retention of free members - Total paid subscriptions increased **18%** year-over-year to **3.1 million** as of June 30, 2025[216](index=216&type=chunk) [Average Revenue per Paying Subscription](index=41&type=section&id=Average%20Revenue%20per%20Paying%20Subscription) Average Revenue per Paying Subscription (ARPPS) increased by 12% year-over-year to $116.06 for Q2 2025 and $114.57 for H1 2025, primarily due to price increases for U.S. annual subscribers and a shift towards higher-priced product tiers - ARPPS increased **12%** year-over-year to **$116.06** (Q2 2025) and **$114.57** (H1 2025)[219](index=219&type=chunk) - This increase was a result of price increases for new and existing annual U.S. subscribers and a shift towards higher-priced products and tiers in international markets[220](index=220&type=chunk) [Net Hardware Units Shipped](index=41&type=section&id=Net%20Hardware%20Units%20Shipped) Net hardware units shipped increased by 21% for Q2 and 8% for H1 2025, driven by an increase in online retail sales - Net hardware units shipped increased **21%** (Q2) and **8%** (H1) year-over-year, primarily due to increased online retail sales[222](index=222&type=chunk) [Net Average Sales Price (ASP)](index=42&type=section&id=Net%20Average%20Sales%20Price%20(ASP)) Net Average Sales Price (ASP) per unit decreased by 7% for Q2 and 3% for H1 2025, primarily due to a shift in channel mix and an increase in promotional discounts - Net ASP per unit decreased **7%** (Q2) and **3%** (H1) year-over-year, mainly due to a shift in channel mix and increased promotional discounts[224](index=224&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) Life360's cash and cash equivalents significantly increased to $432.7 million as of June 30, 2025, from $159.2 million at December 31, 2024, with the company believing its current liquidity is sufficient for the next 12 months, driven by a substantial net increase in cash from financing activities, particularly the issuance of convertible notes **Cash and Cash Equivalents (in millions):** | Metric | As of June 30, 2025 | As of December 31, 2024 | | :---------------------- | :------------------ | :---------------------- | | Cash and cash equivalents | $432.7 | $159.2 | | Restricted cash | $1.5 | $1.2 | - Existing cash and cash equivalents are believed to be sufficient for working capital and capital expenditures for at least the next **12 months**[226](index=226&type=chunk) - Net cash provided by financing activities was **$280.5 million** for H1 2025, primarily from **$320.0 million** in convertible notes proceeds[234](index=234&type=chunk) [Cash Flows](index=42&type=section&id=Cash%20Flows) Operating activities provided $25.4 million in cash for H1 2025, driven by net income and non-cash adjustments, despite cash used by changes in operating assets and liabilities, while investing activities used $32.1 million, mainly for a convertible note investment and software capitalization, and financing activities provided $280.5 million, primarily from convertible note issuance **Cash Flow Activities (in millions):** | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $25.4 | $13.9 | | Net cash used in investing activities | $(32.1) | $(2.3) | | Net cash provided by financing activities | $280.5 | $79.7 | | **Net Increase in Cash, Cash Equivalents, and Restricted Cash** | **$273.8** | **$91.3** | - Operating cash flow for H1 2025 was positively impacted by net income of **$11.4 million** and **$30.4 million** in non-cash adjustments[230](index=230&type=chunk) - Investing cash flow for H1 2025 included a **$25.0 million** Convertible Note Investment and **$3.5 million** in internally developed software capitalization[232](index=232&type=chunk) - Financing cash flow for H1 2025 was primarily driven by **$320.0 million** from convertible senior notes issuance, offset by **$9.6 million** in debt issuance costs and **$33.7 million** for capped calls[234](index=234&type=chunk) [Obligations and Other Commitments](index=43&type=section&id=Obligations%20and%20Other%20Commitments) Life360's principal commitments include operating leases for office space and non-cancellable purchase commitments with its cloud platform provider and contract manufacturer, as detailed in the financial statement notes - Principal commitments include operating leases and non-cancellable purchase commitments with cloud platform and contract manufacturers[236](index=236&type=chunk) [Critical Accounting Policies and Significant Management Estimates](index=44&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Management%20Estimates) The preparation of financial statements requires significant estimates and assumptions, which could materially differ from actual results, and no significant changes were made to these policies during the six months ended June 30, 2025 - Financial statements rely on estimates and assumptions, which may differ from actual results[237](index=237&type=chunk) - No significant changes to critical accounting policies occurred during the six months ended June 30, 2025[237](index=237&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Life360 is exposed to market risks primarily from fluctuations in interest rates and foreign currency exchange rates, but does not believe a hypothetical 10% change in interest rates or a 1,000 basis-point change in foreign exchange rates would materially impact its financial statements, and it does not currently engage in active hedging - Market risk exposure primarily stems from interest rate and foreign currency exchange rate fluctuations[238](index=238&type=chunk) - A hypothetical **10%** change in interest rates or a **1,000 basis-point** change in foreign currency exchange rates is not expected to have a material impact[239](index=239&type=chunk)[240](index=240&type=chunk) - The company does not currently use active hedging arrangements for foreign currency risk[240](index=240&type=chunk) - Inflation has not had a material effect on the business, but significant inflationary pressures could pose future risks[241](index=241&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that Life360's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter, while acknowledging inherent limitations in control systems - Disclosure controls and procedures were effective as of June 30, 2025[242](index=242&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[243](index=243&type=chunk) - Control systems have inherent limitations and can only provide reasonable, not absolute, assurance against errors and fraud[244](index=244&type=chunk) [Part II - Other Information](index=46&type=section&id=Part%20II%20-%20Other%20Information) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) Life360 is involved in various legal proceedings, including regulatory inquiries related to data protection and consumer rights, and claims such as patent infringement and class action lawsuits, which the company vigorously defends, and for which no material litigation reserve has been recorded - The company is subject to legal proceedings, claims, and government investigations, including those related to data protection and consumer rights[246](index=246&type=chunk) - A patent infringement claim against Tile was settled at no cost, and a class action lawsuit is pending, but no material litigation reserve has been recorded[247](index=247&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[110](index=110&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section updates previously disclosed risk factors, focusing on new risks related to legal and regulatory changes concerning subscription renewals and taxation in multiple jurisdictions, as well as risks associated with the company's indebtedness, particularly the June 2025 Convertible Notes and related capped call transactions [Risks Related to Legal Matters and Our Regulatory Environment](index=46&type=section&id=Risks%20Related%20to%20Legal%20Matters%20and%20Our%20Regulatory%20Environment) New risks include potential adverse impacts from evolving laws regulating subscription and auto-payment renewals, and taxation risks in multiple jurisdictions due to changing global tax laws (e.g., digital services taxes, Pillar II global minimum tax, OBBBA in the U.S.) - Changes in laws regulating subscription and auto-payment renewals could adversely affect the business, reputation, financial condition, and results of operations[249](index=249&type=chunk) - The company is subject to taxation risks in multiple U.S. and foreign jurisdictions, with potential challenges from tax authorities and impacts from new laws like digital services taxes, Pillar II global minimum tax, and the U.S. OBBBA[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk) [Risks Related to Our Indebtedness](index=47&type=section&id=Risks%20Related%20to%20Our%20Indebtedness) Risks related to indebtedness include the significant cash required to service $320.0 million in June 2025 Convertible Notes, potential inability to repurchase notes upon a fundamental change or maturity, and the impact of capped call transactions on common stock value, which could limit cash flow, restrict operations, and dilute existing stockholders - Servicing **$320.0 million** in June 2025 Convertible Notes requires significant cash flow, potentially limiting funds for operations and exposing the company to adverse economic conditions[254](index=254&type=chunk)[255](index=255&type=chunk) - The company may be unable to raise funds to repurchase convertible notes following a fundamental change or pay cash amounts due upon maturity or conversion, which could lead to default[258](index=258&type=chunk) - Capped call transactions,

Core Insights - Life360 reported a significant increase in Monthly Active Users (MAUs), reaching approximately 88.0 million, which is a 25% year-over-year growth [1][11] - The company achieved record net additions of 136 thousand Paying Circles in Q2, bringing the total to 2.5 million, also reflecting a 25% year-over-year increase [1][11] - Total quarterly revenue surged by 36% year-over-year to $115.4 million, with subscription revenue contributing $88.6 million, up 35% year-over-year [1][20] - The annualized monthly revenue (AMR) rose to $416.1 million, marking a 36% increase year-over-year [1][7] - Life360 raised its full-year revenue and Adjusted EBITDA guidance based on strong year-to-date performance [1][36] Financial Performance - Q2'25 net income was reported at $7.0 million, which includes $4.6 million from other income sources [7][28] - Adjusted EBITDA for Q2 reached $20.3 million, an 85% increase from $11.0 million in Q2'24 [4][33] - Operating cash flow was positive at $13.3 million, reflecting a 303% year-over-year increase [7][25] - The company maintained disciplined expense management, with total operating expenses growing at a slower rate than revenue [4][24] Operational Highlights - The average revenue per Paying Circle (ARPPC) increased by 8% year-over-year to $135.42, driven by price increases and a shift towards higher-priced offerings [11][20] - Life360's gross profit for Q2 was $90.5 million, with a gross margin of 78%, up from 75% in the prior year [19][21] - The company successfully completed a $320.0 million convertible notes offering, enhancing its long-term capital flexibility [5][25] Market Trends - Life360 is experiencing growth in what is termed the "Anxiety Economy," where families prioritize safety and connection, driving demand for its services [4][6] - The company is expanding its high-margin advertising platform with new location-based formats, enhancing value for users [4][6] Future Outlook - Life360 expects to deliver consolidated revenue between $462 million and $482 million for FY'25, an increase from previous guidance [36][34] - The company anticipates subscription revenue to be between $363 million and $367 million, also raised from earlier estimates [36][34]

Leadership Transition - Lauren Antonoff has been promoted to Chief Executive Officer, succeeding co-founder Chris Hulls, who will become Executive Chairman of the Board [1][2] - This leadership change is part of a long-term succession plan initiated nearly two years ago, coinciding with Life360's expansion into new product categories and global markets [2][7] Company Growth and Performance - Life360 is progressing towards $1 billion in revenue, with 88 million monthly active users as of June 30, 2025 [2][10] - Under Antonoff's leadership as Chief Operating Officer, the company achieved a record-breaking 36% year-over-year revenue increase in the most recent quarter [3] Leadership Background - Antonoff has over three decades of experience in technology companies, previously serving as President of GoDaddy's US small business segment and holding product leadership roles at Microsoft [4] - Chris Hulls has been instrumental in shaping Life360's vision and product innovation since its founding, emphasizing a values-driven culture [5][6] Future Vision - The company aims to evolve into a family super app that integrates location sharing, device-based trackers, and safety services, targeting billions of families worldwide [9] - Hulls and Antonoff share a bold vision for Life360, focusing on enhancing family life through innovative products [6]

Company Overview - Life360 (LIF) is anticipated to report a year-over-year decline in earnings of 33.3%, with expected earnings of $0.02 per share for the quarter ended June 2025 [3] - The company is projected to achieve revenues of $109.4 million, reflecting a year-over-year increase of 28.9% [3] Earnings Estimates and Revisions - The consensus EPS estimate for Life360 has been revised 11.11% higher in the last 30 days, indicating a positive reassessment by analysts [4] - Life360 has a positive Earnings ESP of +200.00%, suggesting a strong likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Life360 exceeded expectations by delivering earnings of $0.05 per share against an anticipated loss of $0.04, resulting in a surprise of +225.00% [13] - The company has successfully beaten consensus EPS estimates in all of the last four quarters [14] Industry Context - SoundThinking (SSTI), a competitor in the Zacks Security and Safety Services industry, is expected to report a loss of $0.09 per share, marking a year-over-year decline of 28.6% [18] - SoundThinking's revenues are projected to decrease by 2.4% to $26.32 million for the same quarter [18] - Despite a recent positive Earnings ESP of +22.22%, SoundThinking's Zacks Rank of 4 (Sell) complicates predictions of an earnings beat [19]

Core Viewpoint - Life360 (LIF) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][8]. Earnings Estimate Revisions - The current quarter's earnings estimate is $0.02 per share, reflecting a decrease of 33.3% compared to the previous year [5]. - The Zacks Consensus Estimate for Life360 has increased by 11.11% over the last 30 days, with one estimate raised and no negative revisions [5]. - For the full year, the expected earnings are $0.29 per share, showing a substantial year-over-year increase of 583.3% [6]. - There has been a positive trend in estimate revisions for the current year, with one estimate moving up and no negative revisions [6]. Analyst Sentiment - There is strong consensus among analysts in raising earnings estimates for Life360, contributing to a significant increase in consensus estimates for both the next quarter and the full year [3][6]. - The rising trend in estimate revisions reflects growing analyst optimism regarding the company's earnings prospects [2]. Zacks Rank - Life360 currently holds a Zacks Rank 1 (Strong Buy), indicating a favorable outlook based on the positive estimate revisions [7]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3][7]. Stock Performance - Life360's stock has gained 19.5% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [8].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Life360 (LIF) - Life360 currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3][4]. - The stock has shown significant price increases, with a 3.27% rise over the past week and a 19.52% increase over the past month, outperforming the Zacks Security and Safety Services industry, which saw a 0.19% and 0.54% increase respectively [6][7]. Performance Metrics - Over the past quarter, Life360 shares have risen by 70.38%, and over the last year, they have increased by 127.72%, significantly outperforming the S&P 500, which rose 14.59% and 18.48% in the same periods [7]. - The average 20-day trading volume for Life360 is 666,028 shares, indicating a bullish sentiment as the stock is rising with above-average volume [8]. Earnings Outlook - Recent earnings estimate revisions for Life360 have been positive, with one estimate moving higher for the current fiscal year, increasing the consensus estimate from $0.24 to $0.29 [10]. - For the next fiscal year, two estimates have moved upwards, with no downward revisions, suggesting a favorable earnings outlook [10]. Conclusion - Considering the strong performance metrics and positive earnings outlook, Life360 is positioned as a promising investment opportunity with a Momentum Score of B and a Zacks Rank of 1 (Strong Buy) [12].

Core Viewpoint - Life360 (LIF) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Life360, the recent upgrade reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5][10]. Earnings Estimate Revisions - Life360 is projected to earn $0.29 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for Life360 has increased by 45%, indicating a significant upward revision in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Life360's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9][10].

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting that price movements should be supported by strong fundamentals and positive earnings estimates [1][2]. Group 1: Stock Performance - Life360 (LIF) has shown a solid price increase of 70.4% over the past 12 weeks, indicating strong investor interest and potential upside [4]. - In the last four weeks, LIF's price has increased by 19.5%, suggesting that the upward trend is still intact [5]. - LIF is currently trading at 96.1% of its 52-week high-low range, indicating a potential breakout [6]. Group 2: Fundamental Strength - LIF holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock also has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like LIF that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are other stocks passing through the same screen, providing additional investment opportunities for those looking to capitalize on current market trends [8].

Core Insights - The article does not provide specific company or industry insights, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2] Group 1 - There are no stock, option, or similar derivative positions held by the analyst in any mentioned companies, nor plans to initiate such positions within the next 72 hours [1] - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2] - Seeking Alpha's analysts include both professional and individual investors who may not be licensed or certified by any regulatory body [2]