Life360 (ASX:360) 95.8m Users, Positive Operating Income, The Setup Changes

Revenue Up 32%, Profit Up Faster, The Market Missed It

Life360 has been one of the names caught up in the broader SaaS multiple compression, with the stock falling 55% from its highs. But when you step back and look at the full-year result, the business itself delivered an exceptional 2025.

This is a company we have been covering closely for a while, and it is exactly why we have remained bullish. While the market has pulled the multiple down, the underlying operating performance has continued to strengthen, and that disconnect is what stands out to me.

Life360 now has 95.8 million monthly active users, which is a powerful reminder of the scale the platform has reached. That kind of user base gives the company a very strong foundation, not just in terms of engagement, but in terms of long-term monetisation potential as well.

What makes the story even more interesting is the Natovo acquisition. that deal meaningfully expands the opportunity set by giving Life360 another lever to convert active users into advertising revenue.

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The Core Engine Is Working

Life360’s FY25 result was strong, with revenue rising 32% to US$489.5 million and gross profit increasing 36% to US$380 million. that is an important signal for investors because it shows the business is not just scaling revenue, it is also scaling profitability alongside it, which is exactly what you want to see from a high-quality SaaS platform.

Another major milestone was that operating income turned positive, reaching US$18.8 million. That is a meaningful step forward for a business of Life360’s size, especially given it was still loss-making in FY24. It tells us the company is moving into a new phase where scale is beginning to translate into real operating leverage.

The key takeaway is that the core engine is working well. Revenue is growing strongly, profitability is growing even faster, and the company is still continuing to invest for future growth. That balance is what makes the result stand out.

Subscription revenue, which remains the core value driver, rose 33% to US$369 million. At the same time, monthly active users grew 20% to 95.8 million. that reinforces the idea that families and parents continue to find real value in the app, and that utility is what underpins the long-term strength of the platform. In absolute terms, Life360 added 16.2 million users in just one year, which is a very strong result.

What is also encouraging is that international monthly active users are growing at an accelerating rate. That matters because it suggests the growth story is no longer just tied to one core market, with the platform gaining broader traction globally.

Scale Is Now Showing Up in Profits

If you look at how operating leverage is starting to work through the business, the result becomes even more compelling. Total operating expenses only grew 26% against revenue growth of 32%, which tells us that each new dollar of revenue is being added at a lower incremental cost.

At the same time, Life360 is still investing heavily for future growth. Research and development reached US$128 million, with spending focused on AI-driven product safety systems and its pet GPS hardware ecosystem. That matters because it shows the company is not simply harvesting margin, it is still reinvesting behind new products and future monetisation opportunities.

Nativo Adds a New Monetisation Lever

The revenue beat shows a business that is executing well, and adjusted EBITDA almost doubled, which reinforces the strength of the underlying model.

It is also encouraging to see the international Triple Tier markets continuing to accelerate, with paying circles up 45% in Canada and 27% in the UK year over year. That adds another layer of confidence to the growth story.

What investors should watch, though, is that net income of US$150 million was inflated by one-off tax adjustments, so it does not reflect the true underlying operating performance. Nativo also still needs to be executed well before the full strategic value is proven.

Even with that in mind, we remain long and bullish on Life360.