Strong Subscriber Growth, Revenue Jump, and Positive Outlook Drive Investor Optimism
Shares of Life360 Inc. (ASX:360) soared 13.17% today to $26.99, following the release of its Q1 2025 results, which surpassed expectations and reaffirmed investor confidence in the company’s long-term trajectory. The stock is now trading close to its 52-week high of $28.20, capping off a 44.7% rise over the past month and an impressive 75.36% increase year-on-year.
The San Francisco-based company, known for its family safety and location-sharing technology, reported record financial and user growth figures for the quarter ending 31 March 2025. The standout numbers and strong guidance have made Life360 one of the top-performing tech stocks on the ASX this year.
Snapshot of Life360 Q1, 2025 results [Life360]
Revenue Hits Record $103.6 Million, Up 32% Year-on-Year
Life360 posted total Q1 revenue of $103.6 million, representing a 32% year-on-year (YoY) increase. Subscription revenue — the company’s core income stream — rose 33% YoY to $81.9 million, supported by a steady increase in paying circles, which are family groups using the paid version of the Life360 app.
International markets proved to be a key growth engine. International subscription revenue rose 72% to $12.2 million, while U.S. subscription revenue increased 28% to $69.6 million.
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The company’s Annualised Monthly Revenue (AMR) reached $393 million, a 38% YoY jump, reflecting strong subscriber retention and higher pricing across multiple markets.
The CFO of Life360, Mr. Russell Burke has mentioned, “Life360 demonstrated continued strong growth and meaningful margin expansion in Q1, with total revenue of $103.6 million — up 32% year-over-year — while keeping total operating expense growth to 23% YoY, This operational discipline drove Net Income of $4.4 million, our tenth consecutive quarter of positive Adjusted EBITDA , and our eighth consecutive quarter of positive Operating Cash Flow.”
Life360 Monthly Active Users Reach 83.7 Million
Life360’s global user base grew significantly in Q1. Monthly Active Users (MAUs) rose 26% YoY to 83.7 million, with 4.1 million net additions during the quarter. Of these, 1.7 million came from the U.S. and 2.4 million from international markets, highlighting Life360’s expanding global footprint.
Paying Circles — a key performance metric — rose to 2.4 million, up 26% YoY, driven by strong adoption in both domestic and overseas markets.
The company’s Average Revenue Per Paying Circle (ARPPC) rose by 8% YoY to $133.42, aided by price increases in the U.S., product tier upgrades, and growing demand in high-value markets such as Australia, the UK, and Canada.
Life360’s total addressable market (TAM) has grown from $75 billion to $83 billion with the addition of advertising, item and pet tracking — and the company sees future opportunities in family financial services, auto insurance, and elderly monitoring [Life360]
Profitability and Cash Flow Improvements
A major positive for investors was the company’s progress on profitability. Net income for the quarter came in at $4.4 million, compared to a loss of $9.8 million in the same period last year. Life360 also recorded its tenth consecutive quarter of positive Adjusted EBITDA, delivering $15.9 million, up from $4.3 million in Q1 2024.
Operating cash flow also remained strong at $12.1 million, up 13% YoY, despite increased investment in product development and marketing. The company ended the quarter with $170.4 million in cash and equivalents, bolstered by capital raised during its 2024 U.S. IPO.
Margin Expansion Despite Rising Costs
While operating expenses rose 23% to $81.4 million, they were outpaced by revenue growth, leading to improved operating leverage. Gross profit increased to $83.5 million, up from $60 million in Q1 2024, pushing the gross margin to 81%, compared to 77% a year earlier.
Sales and marketing expenses increased significantly (+43%) due to higher commissions and media spend, reflecting aggressive user acquisition efforts. Meanwhile, R&D expenses rose 12%, reflecting continued investment in Life360’s expanding product ecosystem.
Hardware and Other Revenue
Although hardware revenue dipped 13% to $8.9 million due to lower enterprise sales and fewer bundled offerings, “Other Revenue” nearly doubled, growing 99% YoY to $12.8 million. This segment includes data and advertising revenues, areas the company has flagged for further growth in 2025.
Despite an 8% YoY drop in hardware units shipped, the average selling price (ASP) increased 3% due to a more favourable sales mix and fewer product returns.
Full-Year Guidance Reaffirmed
Life360 reaffirmed its FY25 revenue guidance of $450 million to $480 million, with expectations for:
- Subscription revenue of $355–$365 million
- Hardware revenue of $40–$50 million
- Other revenue of $55–$65 million
- Positive Adjusted EBITDA of $65–$75 million
The company said it expects to continue delivering profitability throughout 2025 despite broader economic pressures. CFO Russell Burke noted that Life360 has largely mitigated any potential impact from global tariffs, helping preserve margins.
Market Reaction and Outlook
Today’s 13% jump in Life360’s share price reflects strong investor enthusiasm for the company’s growth narrative. With a market capitalisation now at $5.47 billion, Life360 is quickly cementing its position as a standout performer on the ASX tech board.
The company’s clear path to profitability, global user growth, and strong retention metrics are particularly appealing in a macro environment where many tech firms are still chasing breakeven.
Looking ahead, Life360 is focused on leveraging its ecosystem of services — including the Life360 app, Tile trackers, and Jiobit devices — to expand recurring revenue and improve customer lifetime value. The company also plans to further develop its advertising business and hardware partnerships, including enhanced GPS capabilities through its collaboration with Hubble.
Conclusion
Life360 has delivered a strong start to 2025, combining robust subscriber growth, margin expansion, and positive cash flow. With its Q1 results, the company has not only beat expectations but also validated its business model amid tightening consumer spending.
Investors appear convinced. And if Life360 can sustain this momentum through 2025, its current rally may be just the beginning.
