San Francisco, August 10, 2026, 19:45 EDT – Life360 NASDAQ:LIF stock dropped 24% after the company posted record-breaking revenue figures, but its 2026 guidance failed to reassure investors.
- Shares of Life360 dropped 24.0% in after-hours trading to $49.10.
- Revenue for the second quarter increased by 38%, reaching a record high of $159.0 million.
- Guidance for full-year revenue and adjusted EBITDA remained steady.
- Advertising revenue increased fourfold, while operating expenses rose by 43%.
Shares in Life360 Inc. NASDAQ:LIF dropped 24.0% in after-hours trade on Monday as the family-safety platform’s record second-quarter revenue did not boost its overall 2026 guidance.
The report indicated robust gains in users, subscriptions and advertising. The full-year revenue midpoint remained at $667.5 million, roughly $4.2 million under the FactSet consensus.
The investor concern relates to the composition. Life360 increased subscription guidance by $5 million at the midpoint, while reducing hardware guidance by an equal amount. There was no change to total revenue or adjusted EBITDA ranges.
| Market measure | Regular close | After hours | Change |
|---|---|---|---|
| Share price | $64.61 | $49.10 | -$15.51 (-24.0%) |
| Implied equity value | $7.10 billion | About $5.40 billion | Decrease of about $1.70 billion |
| Distance from 52-week low | 74.6% | 32.7% | Now 41.9 percentage points closer |
The equity valuation reflects a 24.0% drop from Life360’s closing market cap of $7.10 billion. The after-hours share price stayed $12.09 higher than the 52-week low of $37.01.
Revenue reached $159.0 million, surpassing analysts’ forecast of $156.7 million. Diluted earnings declined to 6 cents per share compared to 8 cents per share in the same period last year.
| Second-quarter measure | 2026 | 2025 | Change |
|---|---|---|---|
| Total revenue | $159.0 million | $115.4 million | up 38% |
| Subscription revenue | $115.6 million | $88.6 million | increased by 31% |
| Advertising revenue | $22.0 million | $5.3 million | jumped 315% |
| Operating expenses | $127.0 million | $88.5 million | rose 43% |
| Adjusted EBITDA | $31.1 million | $20.3 million | up 53% |
| GAAP net income | $5.1 million | $7.0 million | dropped 28% |
Gross margin increased to 80%, up from 78%. Adjusted EBITDA margin climbed to 20% compared with 18% previously, while GAAP net margin slipped to 3% from 6%.
Chief Executive Lauren Antonoff said, “This quarter, Life360 crossed 100 million monthly active users—proof of the trust millions of families place in us to stay connected, coordinated, and safe.” Life360
Monthly active users climbed to 102.4 million, marking a 16% increase. Paying Circles – groups of billed subscribers on Life360 – grew by 27% to 3.2 million. The average revenue per Paying Circle was up 5%.
Advertising drove the most rapid shift in revenue mix, accounting for 13.8% of quarterly sales compared with 4.6% a year earlier. Subscription revenue made up 72.7% of the total, down from 76.8% previously.
| Full-year 2026 outlook | Current range | Prior range | Midpoint change |
|---|---|---|---|
| Total revenue | $650 million-$685 million | $650 million-$685 million | No change |
| Subscription revenue | $475 million-$480 million | $470 million-$475 million | +$5 million (+1.1%) |
| Hardware revenue | $35 million-$45 million | $40 million-$50 million | -$5 million (-11.1%) |
| Advertising revenue | $98 million-$115 million | $98 million-$115 million | No change |
| Adjusted EBITDA | $130 million-$140 million | $130 million-$140 million | No change |
Life360 maintains its forecast of an approximately 20% adjusted EBITDA margin for the full year. The company also reiterated its outlook for monthly active-user growth, projecting an increase of 17% to 20%, with gains expected to be more pronounced in the second half.
Chief Financial Officer Russell Burke stated, “Advertising Revenue reached a record $22.0 million in the quarter as the Life360 Advertising Platform continues to gain momentum post integration.” Life360
Cash generation was stronger. Operating cash flow increased by 79% to $23.8 million. Life360 closed out June holding $467.7 million in cash, restricted cash and short-term investments.
The analyst recommendations listed below were issued before Monday’s report, reflecting the heightened expectations that existed ahead of the after-hours adjustment.
| Analyst | Firm | Recommendation | Price target | Date |
|---|---|---|---|---|
| James Bales | Morgan Stanley NYSE:MS | Buy | $66.24 | July 20 |
| Nitin Bansal | Bank of America NYSE:BAC | Buy | $66.00 | July 16 |
| Siraj Ahmed | Citi NYSE:C | Buy | $66.65 | July 6 |
| Wyatt Swanson | D.A. Davidson | Hold | $42.00 | June 22 |
| Mark Mahaney | Evercore ISI NYSE:EVR | Buy | $68.00 | May 12 |
| Stephen Ju | UBS NYSE:UBS | Buy | $64.00 | May 12 |
| Mark Kelley | Stifel Nicolaus NYSE:SF | Hold | $56.00 | May 12 |
| Maria Ripps | Canaccord Genuity (TSX:CF) | Buy | $72.00 | May 12 |
Six analysts have buy ratings on the shares, while two recommend holding. The average price target stood at $62.61 ahead of the earnings release, representing a 27.5% premium to the after-hours price of $49.10. The lowest target among them, $42, suggested a possible decrease of 14.5%.
Risks: Advertising expansion might decelerate now that recent acquisitions have driven its increase. Rising operating expenses could constrain margin improvements, and hardware demand remains sluggish. Shares may decline further should user growth in the second half come in below the 17% to 20% goal.
The next key question is if the peak season for advertising will push total revenue beyond its stable range. In the absence of that boost, Monday’s $1.70 billion adjustment puts the pressure on margins and an increase in users.
