Life360 Reports 38% Revenue Growth to $143.1 Million in Q1 2026

Life360, Inc. reported significant financial results for the first quarter of 2026, with total revenue reaching $143.1 million, a 38% increase from $103.6 million in the same period last year. The growth was primarily driven by a 32% rise in subscription revenue, which amounted to $108.2 million, up from $81.9 million in Q1 2025. The company also saw a substantial increase in advertising revenue, which surged by 329% to $19.7 million, compared to $4.6 million in the prior year. However, hardware revenue declined by 49% to $4.5 million, attributed to a decrease in net hardware units shipped and increased discounts as part of a strategic exit from the brick-and-mortar retail channel.

In terms of profitability, Life360 reported a net income of $2.8 million for the quarter, down 37% from $4.4 million in Q1 2025. The decrease in net income was influenced by increased operating expenses, which rose by 46% to $118.6 million, driven by higher costs in research and development, sales and marketing, and general administrative expenses. The company’s operating loss was $8.1 million, a significant decline from an operating income of $2.2 million in the previous year. The gross profit margin also decreased slightly to 77% from 81% year-over-year, reflecting the impact of rising costs associated with the acquisition of Nativo, an advertising technology company.

Life360's operational metrics showed positive trends, with Monthly Active Users (MAUs) increasing by 17% to approximately 97.8 million, and Paying Circles growing by 27% to 3.0 million. The company attributed some of the MAU growth to the resolution of technical issues that had previously affected user registration, particularly among Android users. The Average Revenue per Paying Circle (ARPPC) also increased by 7% to $143.03, reflecting a shift towards higher-priced offerings and improved monetization strategies.

Strategically, Life360 completed the acquisition of Nativo in January 2026 for approximately $104 million, which is expected to enhance its advertising capabilities and revenue streams. The acquisition has already begun to contribute to the company's advertising revenue growth. Additionally, Life360 has made significant investments in research and development, with expenses rising by 29% to $39.3 million, as the company focuses on enhancing its platform and expanding its service offerings.

Looking ahead, Life360 anticipates continued growth in its subscription and advertising revenues, with expectations of recovering Monthly Active User growth following the recent technical challenges. The company has revised its full-year MAU growth forecast to approximately 17% to 20%, aiming to return to its planned growth trajectory by the third quarter of 2026. Life360 remains committed to leveraging its technology platform to connect families and enhance safety, while also exploring opportunities for geographic expansion and product innovation.