Why Are Life360 Investors Running After Q3 Revenue Reaching A$124 million

Life360 Extends Its Lead in Family Tracking with 80% YTD Surge and Bold A$120M Ad-Tech Bet

Life360 (ASX:360) has quickly become the modern version of “Find My Phone” on steroids, a revamped location-sharing app that has taken the ASX by storm, delivering an impressive 80% return so far this year. However, the company’s share price fell 10% today following two major updates: its Q3 results and the announcement of a A$120 million acquisition of Nativo, aimed at accelerating its advertising roadmap and adding a new revenue stream to the business.

Total revenue for the quarter reached A$124 million, up 34%, while subscription revenue rose to A$96 million, also up 34%, driven by a steady influx of new paying users. When analysing app-based subscription models, one of the most telling metrics is monthly active users (MAU) a direct indicator of the platform’s engagement and value to consumers. Life360’s MAU climbed 19% to 91 million, marking an all-time record of 170,000 net additions during the quarter. Management also highlighted the upcoming launch of its Pet GPS feature ahead of the holiday season, which is expected to act as a new customer hook and encourage upgrades to higher-tier subscription plans.

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Life360 Delivers Strong Profit Growth and Ten Straight Quarters of Positive Cash Flow

Looking at how Life360’s strong topline growth is translating into profitability, the company reported an adjusted EBITDA margin of 20%, with adjusted EBITDA rising to A$24 million from A$9 million a year earlier. Net income increased to A$9.8 million, up 27%, reflecting solid earnings momentum. The business has been effectively converting revenue gains into meaningful profitability, supported by lower operating expenses as a percentage of sales. This operational efficiency also drove strong cash flow performance, marking the company’s tenth consecutive quarter of positive operating cash flow.

The key drivers of value this quarter were management’s strategic focus on shifting more users toward higher-tier subscription plans, where margins are stronger, and expanding the product mix with new offerings like Pet GPS. This approach not only deepens user engagement but also enhances the platform’s recurring revenue potential heading into the next growth cycle.

What does the future look like for Life360

The next key question for investors is what the future looks like for Life360 following its acquisition of Nativo. This deal is set to accelerate revenue growth and diversify the company’s business model by adding a new advertising-driven income stream. In essence, Life360 is evolving into a full-scale family engagement and advertising platform. Nativo brings advanced ad-rendering technology, proprietary targeting and measurement tools, and rapid deployment capabilities typically within two weeks with performance claims of boosting eCPM by as much as 275% compared to standard display formats.

The Investors Takeaway for LIF

Reflecting confidence in this growth trajectory, management has upgraded full-year guidance, now expecting revenue between A$474 million and A$485 million (up from A$462 million to A$482 million) and adjusted EBITDA between A$84 million and A$88 million (up from A$72 million to A$82 million). This clear uplift signals strong execution and visibility across the business.

In summary, Life360 has positioned itself as a sticky, daily-use family safety network that monetises through high-margin subscriptions, now layering in advertising as a new growth engine. With expanding user engagement and multiple monetisation levers, this is a company worth keeping firmly on the watchlist.