Life360 (ASX:360) User Engine Accelerates Delivering Best Quarter Yet

From Sell Off to Surge Life360’s Q4 Confirms Operating Momentum

Life360 (ASX:360) delivered a very strong Q4 result, and the market reaction has been immediate.

After a sharp sell off that dragged the share price down to around A$26, the stock surged roughly 30% today. That move has put Life360 back on investors’ radars, and for good reason. This quarter helped rebuild confidence that the operating momentum is real, not just a short term bounce.

In this note, we will break down the key Q4 numbers and explain why the market is starting to take a fresh look at the stock.

The core value driver we have focused on in prior updates remains the same: growing monthly active users. On that front, Life360 just posted its best quarter yet, reaching 95.8 million monthly active users.

Even more important, FY25 net adds of new users came in at 16.2 million, showing the product is still expanding its footprint at scale.

This is also well timed. As the user base grows, it sets the platform up for the next phase of monetisation, particularly as advertising revenue and related synergies begin to contribute more meaningfully.

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Nativo Deal Builds Life360’s Advertising Engine

For investors who are not familiar with the acquisition or why it matters, Nativo is an important part of Life360’s growth strategy.
Life360 acquired Nativo for roughly A$120 million, funded mainly with cash and a smaller equity component.

Nativo generates around A$60 million in annual revenue and is EBITDA positive. On the numbers alone, that is a meaningful asset, but the real value is what Nativo adds to Life360’s advertising capability.

In simple terms, Nativo gives Life360 the infrastructure to monetise its growing user base more effectively through advertising. As monthly active users continue to climb, Life360 has a larger audience and more engagement to work with. Nativo’s platform helps convert that scale into revenue, rather than relying solely on subscriptions or slow, in house ad buildouts. (The bullish case)

Nativo also comes with real distribution and customer relationships. It has an established network of around 400 premium customers and integrations across roughly 20,000 websites and apps. Building that kind of network organically would likely have taken years, plus significant capital and execution risk.

Profitable Growth Accelerates as International Momentum Builds

Life360’s full year revenue guidance in the report came in at A$486 million to A$489 million, implying roughly 31% to 32% growth year on year. Profitability is also moving in the right direction, with EBITDA margin guided to 18% to 19%, which equates to A$87 million to A$92 million in EBITDA.

Management also guided to 20% monthly active user growth in 2026. In our view, that combination of strong top line growth and expanding profitability supports the case that the business is entering a phase where synergies, particularly from advertising and platform monetisation, can start to show through more clearly.

Looking at user growth by region helps explain where the next leg of momentum is likely to come from. US monthly active users reached 50.6 million, up 16% year on year. The US is a more mature market for Life360, but it is still delivering solid double digit growth and should continue to provide a more stable base of recurring cash flow.

International monthly active users reached 45.0 million, and this is the faster growing segment. This is where the upside is, both in terms of expanding the addressable user base and extending the growth runway. If Life360 can maintain strong international expansion while using the US as a stable foundation, it strengthens the overall growth profile and keeps the long term thesis intact.