Life360, Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report and our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025 (“Annual Report”). In addition to historical financial information, the following discussion contains forward-looking statements that are based upon current plans, expectations and beliefs that involve risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements as a result of a variety of factors, including but not limited to those discussed in “Risk Factors” under Part II, Item 1A in this Quarterly Report, Part II, Item 1A in our previous Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and Part I, Item 1A in our Annual Report.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report and our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025 (“Annual Report”). In addition to historical financial information, the following discussion contains forward-looking statements that are based upon current plans, expectations and beliefs that involve risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements as a result of a variety of factors, including but not limited to those discussed in “Risk Factors” under Part II, Item 1A in this Quarterly Report, Part II, Item 1A in our previous Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025, and Part I, Item 1A in our Annual Report.

Previous wording

Our general and administrative expenses consist primarily of employee-related costs for our legal, finance, human resources, and other administrative teams, as well as certain executive officers. In addition, general and administrative expenses include allocated overhead, outside legal, accounting and other professional fees, and non-income-based taxes. We expect our general and administrative expenses will increase in absolute dollars as our business grows.

Current wording

Our general and administrative expenses consist primarily of employee-related costs for our legal, finance, human resources, and other administrative teams, as well as certain executive officers. In addition, general and administrative expenses include allocated overhead, outside legal, accounting and other professional fees, and non-income-based taxes. We expect general and administrative expenses will increase in absolute dollars as our business grows.

Previous wording

Other income (expense), net consists of interest income earned on our cash and cash equivalents balances, foreign currency exchange gains/(losses) related to the remeasurement of certain assets and liabilities of our foreign subsidiaries that are denominated in currencies other than the functional currency of the subsidiary and foreign exchange transactions gains/(losses), and interest expense primarily related to the Convertible Notes.

Current wording

Other income (expense), net consists of foreign currency exchange gains/(losses) related to the remeasurement of certain assets and liabilities of our foreign subsidiaries that are denominated in currencies other than the functional currency of the subsidiary, foreign exchange transactions gains/(losses), and interest expense primarily related to convertible notes.

Previous wording

The following tables set forth our condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024 (in thousands, except percentages).

Current wording

The following tables set forth our condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2025 and 2024 (in thousands, except percentages).

Previous wording

Subscription revenue increased $22.9 million, or 35%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to 25% growth in Paying Circles (as defined below) and 18% growth in total subscriptions. Additionally, subscription revenue in the current period benefited from price increases for new and existing Life360 subscriptions implemented during the second half of 2024 and continuing into 2025.

Current wording

Subscription revenue increased $24.5 million, or 34%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to 23% growth in Paying Circles (as defined below) and 16% growth in total subscriptions. Additionally, subscription revenue in the current period benefited from an 8% uplift in Average Revenue per Paying Circle (as defined below).

Previous wording

Hardware revenue increased $0.4 million, or 3%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. This was driven by a $2.7 million increase in revenue primarily from online retail sales, which was in line with a 21% increase in net hardware units shipped. This increase was partially offset by a $1.1 million reduction in revenue related to bundled offerings, a $1.0 million increase in discounts, and a $0.2 million increase in returns.

Current wording

Hardware revenue decreased $0.4 million, or 4%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. Hardware revenue before discounts increased $2.5 million, driven by a 15% increase in net hardware units shipped. This was more than offset by a $1.6 million increase in discounts and a $1.3 million reduction in revenue related to bundled offerings.

Previous wording

Other revenue increased $7.2 million, or 100%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to a $4.9 million increase in partnership revenue, which includes advertising revenue, and a $2.3 million increase in data revenue, which was primarily attributable to the Amended and Restated Data Services and License Agreement with Placer.ai we entered into in July 2024.

Current wording

Other revenue increased $7.6 million, or 82%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This was primarily due to a $6.6 million increase in partnership revenue, which includes advertising revenue, and reflects growth in advertising activity from both existing arrangements and an increased number of partners. In addition, data revenue increased $1.0 million, which was primarily attributable to the Amended and Restated Data Services and License Agreement with Placer.ai we entered into in July 2024.

Previous wording

Subscription revenue increased $43.2 million, or 34%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to 25% growth in Paying Circles and 18% growth in total subscriptions. Additionally, subscription revenue in the current period benefited from price increases for new and existing Life360 subscriptions implemented during the second half of 2024 and continuing into 2025.

Current wording

Subscription revenue increased $67.7 million, or 34%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to 23% growth in Paying Circles and 16% growth in total subscriptions. Additionally, subscription revenue in the current period benefited from an 8% uplift in Average Revenue per Paying Circle.

Previous wording

Hardware revenue decreased $0.9 million, or 4%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The decline was primarily driven by a $2.2 million increase in discounts and a $1.9 million reduction in revenue related to bundled offerings. These impacts were partially offset by a $2.7 million increase in revenue primarily from online retail sales, in line with an 8% increase in net hardware units shipped, and a $0.5 million decrease in returns.

Current wording

Hardware revenue decreased $1.3 million, or 4%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. Hardware revenue before discounts increased $5.7 million, driven by an 11% increase in net hardware units shipped. This was more than offset by a $3.8 million increase in discounts and a $3.2 million reduction in revenue related to bundled offerings.

Previous wording

Other revenue increased $13.6 million, or 99%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, due to a $9.4 million increase in partnership revenue, which includes advertising revenue, and a $4.2 million increase in data revenue, which was primarily attributable to the Amended and Restated Data Services and License Agreement with Placer.ai we entered into in July 2024.

Current wording

Other revenue increased $21.2 million, or 92%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This was primarily due to a $16.0 million increase in partnership revenue, which includes advertising revenue, and reflects growth in advertising activity from both existing arrangements and an increased number of partners. In addition, data revenue increased $5.2 million due to the Amended and Restated Data Services and License Agreement with Placer.ai we entered into in July 2024.

Previous wording

Hardware gross margin remained flat at 17% during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

Current wording

Subscription gross margin remained flat at 85% during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.

Previous wording

Cost of other revenue increased $0.7 million, or 78%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to increases of $0.5 million in technology and other related expenses to support the existing customer base, and $0.2 million in costs associated with the growth in partnership revenue, which includes advertising revenue.

Current wording

Cost of other revenue increased $0.7 million, or 69%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to increases of $0.7 million in technology and other related expenses to support the existing customer base.

Previous wording

Other gross margin increased to 89% during the three months ended June 30, 2025 from 87% during the three months ended June 30, 2024, primarily due to revenue outpacing the increase in costs.

Current wording

Other gross margin increased to 90% during the three months ended September 30, 2025 from 89% during the three months ended September 30, 2024, primarily due to revenue outpacing the increase in costs.

Previous wording

Cost of subscription revenue increased $2.7 million, or 26%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to increases of $1.7 million in personnel-related and stock-based compensation costs and $0.7 million in technology expenses, attributable to Company growth. In addition, amortization of capitalized internally developed software increased $0.5 million due to the release of new features on our platform. These increases were partially offset by a $0.2 million decrease in costs associated with premium membership offerings.

Current wording

Cost of subscription revenue increased $6.8 million, or 22%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024,primarily due to increases of $3.0 million in personnel-related and stock-based compensation costs, $2.1 million in amortization of internally developed software related to the release of new features and significant updates on our platform, and $2.1 million in technology expenses attributable to Company growth. The increases were partially offset by a $0.4 million decrease in costs associated with premium membership offerings.

Previous wording

Subscription gross margin increased to 86% during the six months ended June 30, 2025 from 85% during the six months ended June 30, 2024, primarily due to price increases for new and existing Life360 subscriptions implemented during the second half of 2024.

Current wording

Subscription gross margin increased to 86% during the nine months ended September 30, 2025 from 85% during the nine months ended September 30, 2024, primarily due to price increases for new and existing Life360 subscriptions implemented during the second half of 2024 and continuing into 2025.

Previous wording

Cost of hardware revenue increased $0.9 million, or 5%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. This increase was primarily driven by increases of $1.1 million in personnel-related and stock-based compensation costs and $0.3 million in technology and other costs, attributable to Company growth, and $0.8 million in tariff costs. These increases were partially offset by a $1.3 million decrease in fulfillment and product costs associated with a shift in channel mix.

Current wording

Cost of hardware revenue increased $1.3 million, or 5%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This was primarily driven by increases of $2.0 million in tariff costs, $1.7 million in personnel-related and stock-based compensation costs, and $0.6 million in technology and other costs, attributable to Company growth. The increases were partially offset by decreases of $1.1 million in freight costs, $1.0 million in product costs, and $0.9 million in fulfillment costs, all associated with a shift in channel mix.

Previous wording

Cost of other revenue increased $1.2 million, or 64%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, due to increases of $0.7 million in technology and other related expenses to support the existing customer base and $0.5 million in costs associated with the growth in partnership revenue, which includes advertising revenue.

Current wording

Cost of other revenue increased $1.8 million, or 66%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, due to increases of $1.8 million in technology and other related expenses to support the existing customer base.

Previous wording

Other gross margin increased to 89% during the six months ended June 30, 2025 from 87% during the six months ended June 30, 2024, primarily due to revenue outpacing the increase in costs.

Current wording

Other gross margin increased to 90% during the nine months ended September 30, 2025 from 88% during the nine months ended September 30, 2024, primarily due to revenue outpacing the increase in costs.

Previous wording

Research and development expenses increased $5.2 million, or 19%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. This was primarily due to a $4.3 million increase in personnel-related and stock-based compensation costs, and a $1.1 million increase in technology and other costs, attributable to company growth. In addition, capitalized construction in progress costs decreased $0.5 million, in line with our product development roadmap. The increases were partially offset by a $0.6 million increase in capitalized internally developed software related to the development of new features and enhancements to our platform, and a $0.1 million decrease in contractor spend.

Current wording

Research and development expenses increased $3.4 million, or 12%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This was primarily due to a $3.7 million increase in personnel-related and stock-based compensation costs and a $0.8 million increase in technology and other costs attributable to company growth. The increases were partially offset by a $0.5 million decrease in contractor spend, higher capitalized costs of $0.5 million related to construction in progress in line with our product development roadmap, and $0.1 million of higher capitalized costs for internally developed software related to the development of new features and significant updates to our platform.

Previous wording

Sales and marketing expenses increased $14.5 million, or 60%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. This was primarily due to increases of $5.2 million in growth media spend and $4.2 million in commissions to the Company’s third-party platforms and distribution channels (each a “Channel Partner”), in line with the increase in subscription revenue. Additional increases included $3.3 million in personnel-related and stock-based compensation costs, $1.4 million in other marketing spend, and $0.4 million in technology costs, attributable to Company growth.

Current wording

Sales and marketing expenses increased $8.3 million, or 27%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This was primarily due to increases of $4.6 million in commissions to the Company’s Channel Partners, in line with the increase in subscription revenue, $3.8 million in growth media spend, and $0.5 million in personnel-related and stock-based compensation costs, all attributable to Company growth. These increases were partially offset by a $0.3 million decrease in other marketing spend and a $0.3 million decrease in professional and outside services.

Previous wording

Sales and marketing expenses increased $25.1 million, or 51%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. This increase was primarily due to increases of $8.6 million in growth media spend and $8.0 million in commissions to the Company’s Channel Partners, which is in line with the increase in subscription revenue. Additional increases include $5.2 million in personnel-related and stock-based compensation costs, $2.5 million in other marketing spend, and $0.8 million in technology costs, attributable to Company growth.

Current wording

Sales and marketing expenses increased $33.4 million, or 42%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This was primarily due to increases of $12.5 million in commissions to the Company’s Channel Partners, in line with the increase in subscription revenue, and $12.4 million in growth media spend. Additional increases include $5.9 million in personnel-related and stock-based compensation costs, $1.5 million in marketing spend related to production and public relations, and $1.1 million in technology expenses, all attributable to Company growth.

Previous wording

General and administrative expenses increased $2.8 million, or 19%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. This was primarily due to increases of $3.3 million in personnel-related and stock-based compensation costs and $0.5 million in technology and other expenses, attributable to Company growth. These increases were partially offset by a $0.9 million decrease in professional and outside services, driven by lower Sarbanes-Oxley related compliance costs, and a $0.1 million increase in capitalized internally developed software.

Current wording

General and administrative expenses increased $8.8 million, or 20%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This was primarily due to increases of $8.0 million in personnel-related and stock-based compensation costs, $1.1 million related to travel and entertainment costs for the Company’s annual event, $0.6 million in technology expenses, and $0.5 million in insurance costs, all attributable to Company growth. These increases were partially offset by a $1.4 million decrease in professional and outside services spend, primarily driven by lower Sarbanes-Oxley related compliance costs.

Previous wording

In April and June 2024, the September 2021 Convertible Notes and the July 2021 Convertible Notes, respectively, were converted to common stock. As a result, the Company recorded no gain or loss associated with the Convertible Notes fair value adjustment for both the three and six months ended June 30, 2025. For the three and six months ended June 30, 2024, the Company recorded a loss associated with the Convertible Notes fair value adjustment of zero and $0.6 million, respectively.

Current wording

In April and June 2024, the September 2021 Convertible Notes and the July 2021 Convertible Notes, respectively, were converted to common stock. As a result, the Company recorded no gain or loss associated with the Convertible Notes fair value adjustment for both the three and nine months ended September 30, 2025. The Company recorded no gain or loss and a $0.6 million loss associated with the Convertible Notes fair value adjustment for the three and nine months ended September 30, 2024, respectively.

Previous wording

In June 2024, the holders of the July 2021 Convertible Notes converted their notes and accrued interest to common stock and the embedded derivative liability was settled as a result of the conversion. As such, the Company recorded no gain or loss associated with the derivative liability fair value adjustment for the three and six months ended June 30, 2025. For the three and six months ended June 30, 2024, the Company recorded a loss associated with the derivative liability fair value adjustment of zero and $1.7 million respectively.

Current wording

In June 2024, the holders of the July 2021 Convertible Notes converted their notes and accrued interest to common stock and the embedded derivative liability was settled as a result of the conversion. As such, the Company recorded no gain or loss associated with the derivative liability fair value adjustment for the three and nine months ended September 30, 2025. The Company recorded no gain or loss and a $1.7 million loss associated with the derivative liability fair value adjustment for the three and nine months ended September 30, 2024, respectively.

Previous wording

In April and June 2024, the September 2021 Convertible Notes and the July 2021 Convertible Notes, respectively, were converted to common stock. As a result, the Company recorded no gain or loss related to the settlement of the September 2021 Convertible Notes and July 2021 Convertible Notes for both the three and six months ended June 30, 2025. For the three and six months ended June 30, 2024, the Company recorded a loss of $0.4 million related to the settlement of the July 2021 Convertible Notes and the September 2021 Convertible Notes, which were converted to common stock during the three months ended June 30, 2024.

Current wording

In April and June 2024, the September 2021 Convertible Notes and the July 2021 Convertible Notes, respectively, were converted to common stock. As a result, the Company recorded no gain or loss related to the settlement of the September 2021 Convertible Notes and July 2021 Convertible Notes for both the three and nine months ended September 30, 2025. The Company recorded no gain or loss and a $0.4 million loss related to the settlement of the July 2021 Convertible Notes and the September 2021 Convertible Notes for the three and nine months ended September 30, 2024, respectively.

Previous wording

In June 2024, the holders of the July 2021 Convertible Notes converted their notes and accrued interest to common stock and the derivative liability was settled as a result of the conversion. As a result, the Company recorded no gain or loss related to the settlement of the derivative liability upon conversion of the July 2021 Convertible Notes for the three and six months ended June 30, 2025. For both the three and six months ended June 30, 2024, the Company recorded a gain of $1.9 million associated with the settlement of the derivative liability.

Current wording

In June 2024, the holders of the July 2021 Convertible Notes converted their notes and accrued interest to common stock and the derivative liability was settled as a result of the conversion. As a result, the Company recorded no gain or loss related to the settlement of the derivative liability upon conversion of the July 2021 Convertible Notes for the three and nine months ended September 30, 2025. The Company recorded no gain or loss and a $1.9 million gain related to the settlement of the derivative liability upon conversion of the July 2021 Convertible Notes for the three and nine months ended September 30, 2024, respectively.

Previous wording

In addition, in May 2025, the Company entered into a series of transactions with Aura Consolidated Group, Inc (“Aura”), which included a $25.0 million convertible note investment by the Company into Aura (the “Convertible Note Investment”), The Company elected to apply the fair value option in accordance with ASC 825, Financial Instruments. As a result, the Company recorded a gain associated with the change in fair value of the Convertible Note Investment of $0.4 million for both the three and six months ended June 30, 2025.

Current wording

In addition, in May 2025, the Company entered into a series of transactions with Aura Consolidated Group, Inc. (“Aura”), which included a $25.0 million convertible note investment by the Company into Aura (the “Convertible Note Investment”). The Company elected to apply the fair value option in accordance with ASC 825, Financial Instruments. As a result, a $0.8 million and $1.2 million gain related to the revaluation of the Convertible Note Investment was recognized during the three and nine months ended September 30, 2025, respectively.

Previous wording

In April 2025, an observable price change took place related to the conversion of the Related Party SAFE into the Related Party Investment. The observable price change resulted in a fair value adjustment and gain of $0.9 million for both the three and six months ended June 30, 2025.

Current wording

In July 2024, an observable price change related to our investment in warrants held to purchase shares of preferred stock of a data revenue partner took place. The observable price change resulted in a fair value adjustment and gain of $5.4 million recorded for the three and nine months ended September 30, 2024.

Previous wording

Other income (expense), net includes interest income, dividend income, foreign exchange gains and losses, and interest expense associated with the July 2021 and June 2025 Convertible Notes.

Current wording

Other income (expense), net includes foreign exchange gains and losses, and interest expense associated with the July 2021 and June 2025 Convertible Notes.

Previous wording

Other income (expense), net increased $8.0 million, or 173%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. This was primarily driven by a $5.6 million decrease in transaction costs incurred in connection with our U.S. IPO and a $1.4 million increase in dividend and interest income resulting from higher average gross yields primarily due to an increased cash and cash equivalents balance. In addition, a $1.2 million favorable change in the impact of currency revaluation contributed to the increase and was partially offset by a $0.2 million increase in interest expense.

Current wording

Other income (expense), net increased $6.0 million, or 100%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This was primarily driven by a $5.7 million decrease in transaction costs incurred in the prior period in connection with our U.S. IPO, a $0.7 million increase in foreign exchange gains, and a $0.2 million decrease in other costs. This was partially offset by a $0.6 million increase in interest expense.

Previous wording

Benefit from income taxes increased $5.9 million during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Benefit from income taxes increased $7.5 million during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The changes are due to the estimated growth in the Company’s annual estimated effective tax rate in the U.S. Provision for income taxes which consists of U.S. federal and state income taxes in jurisdictions in which we conduct business. The annual estimated effective tax rate in any quarter may be subject to fluctuations during the year as new information is obtained, which may positively or negatively affect the assumptions used to estimate the annual effective tax rate. We maintain a full valuation allowance on our federal and state deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized.

Current wording

Provision for income taxes increased $5.2 million during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. Benefit from income taxes increased $2.3 million during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The changes are due to the estimated growth in the Company’s annual estimated effective tax rate in the U.S. Provision for income taxes which consists of U.S. federal and state income taxes in jurisdictions in which we conduct business. The annual estimated effective tax rate in any quarter may be subject to fluctuations during the year as new information is obtained, which may positively or negatively affect the assumptions used to estimate the annual effective tax rate. We maintain a full valuation allowance on our federal and state deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S., introducing several changes to the U.S. Internal Revenue Code of 1986, as amended. While the enactment of the OBBBA had no impact on our financial results for the three and six months ended June 30, 2025, we are currently evaluating its potential future impact on our condensed consolidated financial statements and related disclosures.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S., introducing several changes to the U.S. Internal Revenue Code of 1986, as amended. As a result of the tax law, we currently estimate no federal taxes and reduced state taxes, resulting in expected cash tax savings for the 2025 fiscal year. We continue to evaluate the tax and other provisions of the OBBBA and the potential effects on our financial position, results of operations, and cash flows.

Previous wording

(1) Excludes revenue related to bundled Life360 subscription and hardware offerings of $(0.3) and $(0.7) for the three and six months ended June 30, 2025, respectively, and $(1.3) and $(2.6) for the three and six months ended June 30, 2024, respectively.

Current wording

(1) Excludes revenue related to bundled Life360 subscription and hardware offerings of $(0.1) and $(0.8) for the three and nine months ended September 30, 2025, respectively, and $(1.4) and $(4.0) for the three and nine months ended September 30, 2024, respectively.

Previous wording

(2) Excludes revenue related to bundled Life360 subscription and hardware offerings of $0.3 and $0.6 for the three and six months ended June 30, 2025, respectively, and $1.3 and $2.5 for the three and six months ended June 30, 2024, respectively.

Current wording

(2) Excludes revenue related to bundled Life360 subscription and hardware offerings of $0.1 and $0.7 for the three and nine months ended September 30, 2025, respectively, and $1.4 and $3.9 for the three and nine months ended September 30, 2024, respectively.

Previous wording

We use Annualized Monthly Revenue (“AMR”) to identify the annualized monthly value of active customer agreements at the end of a reporting period. AMR includes the annualized monthly value of subscription, data and partnership agreements. All components of these agreements that are not expected to recur are excluded. This does not represent revenue under GAAP on an annualized basis, as the operating metric can be impacted by start and end dates and renewal rates. AMR as of June 30, 2025, and 2024 was $416.1 million and $304.8 million, respectively, representing an increase of 36% year-over-year, which is largely attributable to continued subscriber growth.

Current wording

We use Annualized Monthly Revenue (“AMR”) to identify the annualized monthly value of active customer agreements at the end of a reporting period. AMR includes the annualized monthly value of subscription, data and partnership agreements. All components of these agreements that are not expected to recur are excluded. This does not represent revenue under GAAP on an annualized basis, as the operating metric can be impacted by start and end dates and renewal rates. AMR as of September 30, 2025, and 2024 was $446.7 million and $336.2 million, respectively, representing an increase of 33% year-over-year, which is largely attributable to continued subscriber growth as well as an increase in other revenue.

Previous wording

We have a large and growing global member base as of June 30, 2025. A Life360 monthly active user (“MAU”) is defined as a unique member who engages with our Life360 branded services each month, which includes both paying and non-paying members, and excludes certain members who have a delayed account setup. As of June 30, 2025 and 2024, we had approximately 88.0 million and approximately 70.6 million MAUs on the Life360 platform, respectively, representing an increase of 25% year-over-year. We believe this has been driven by continued strong new member growth and retention.

Current wording

We have a large and growing global member base as of September 30, 2025. A Life360 monthly active user (“MAU”) is defined as a unique member who engages with our Life360 branded services each month, which includes both paying and non-paying members, and excludes certain members who have a delayed account setup. As of September 30, 2025 and 2024, we had approximately 91.6 million and approximately 76.9 million MAUs on the Life360 platform, respectively, representing an increase of 19% year-over-year. We believe this has been driven by continued strong new member growth and retention.

Previous wording

As of June 30, 2025 and 2024, we had approximately 2.5 million and 2.0 million paid subscribers to services under our Life360 brand, respectively, representing an increase of 25% year-over-year. We grow the number of Paying Circles by increasing our free member base, converting free members to subscribers, and retaining them over time with the provision of high-quality family connectivity and safety services.

Current wording

As of September 30, 2025 and 2024, we had approximately 2.7 million and 2.2 million paid subscribers to services under our Life360 brand, respectively, representing an increase of 23% year-over-year. We grow the number of Paying Circles by increasing our free member base, converting free members to subscribers, and retaining them over time with the provision of high-quality family connectivity and safety services.

Previous wording

For the three months ended June 30, 2025 and 2024, our ARPPC was $135.42 and $125.96, respectively, representing an 8% increase year-over-year. For the six months ended June 30, 2025 and 2024, our ARPPC was $134.49 and $124.41, respectively, representing an 8% increase year-over-year.

Current wording

For the three months ended September 30, 2025 and 2024, our ARPPC was $137.63 and $127.57, respectively, representing an 8% increase year-over-year. For the nine months ended September 30, 2025 and 2024, our ARPPC was $135.05 and $124.63, respectively, representing an 8% increase year-over-year.

Previous wording

ARPPC is a key indicator utilized by the Company to determine our effectiveness at monetizing Paying Circles through tiered product offerings. U.S. ARPPC has benefited from price increases for new and existing annual subscribers implemented in September 2024 and October 2024, respectively, as well as a shift in product mix towards higher priced products. International ARPPC also benefited from price increases for legacy subscribers, as well as the launch of higher priced tiers across select international markets throughout 2024.

Current wording

ARPPC is a key indicator utilized by the Company to determine our effectiveness at monetizing Paying Circles through tiered product offerings. The year-over-year growth in ARPPC primarily reflects U.S. price increases for new and existing annual subscribers implemented in the second half of 2024 and continuing into 2025, a shift in product mix toward higher-priced offerings, and the introduction of higher-priced membership tiers across select international markets throughout 2024.

Previous wording

As of June 30, 2025 and 2024, we had approximately 3.1 million and 2.7 million paid subscribers, respectively, to services under the Life360, Tile, and Jiobit brands, representing an increase of 18% year-over-year.

Current wording

As of September 30, 2025 and 2024, we had approximately 3.3 million and 2.8 million paid subscribers, respectively, to services under the Life360, Tile, and Jiobit brands, representing an increase of 16% year-over-year.