Life360, Inc.
For the period ended Mar 31, 2026. Filed May 11, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 11, 2026
LIF$47.37+1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001581760-25-000224
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001581760-26-000078
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 157 previous paragraphs and 131 current paragraphs.
55 unchanged; 48 reworded; 27 added; 51 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
Advertising Revenue
Current report
Advertising revenue consists of fees earned from the placement of third-party advertisements across our own properties and third-party publisher networks. We generate advertising revenue through both direct relationships with brands and advertisers as well as through programmatic advertising networks. Advertisements are displayed to users in the form of in-app display advertisements and sponsored placements. Advertising revenue is driven primarily by the number of impressions delivered and the rates at which those impressions are sold.
Current report
Cost of Advertising Revenue
Current report
Cost of advertising revenue includes cloud-based hosting costs supporting our advertising technology platform, amortization of acquired intangibles and internally-developed software, third-party data and content licensing costs, personnel-related costs, and allocated overhead, such as facilities, including rent and utilities, and shared information technology costs. For advertising revenue recognized on a gross basis, cost of advertising revenue includes traffic acquisition costs, which represent amounts paid to third-party publishers for advertising placements and inventory access. Personnel-related expenses include salaries, bonuses, benefits, and stock-based compensation for advertising operations personnel.
Current report
Loss on Change in Fair Value of Investment
Current report
Benefit from Income Taxes
Current report
Benefit from income taxes consists of U.S. federal and state income taxes and foreign income taxes in jurisdictions in which we conduct business. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Current report
Advertising revenue increased $15.1 million, or 329%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. This was primarily driven by a $12.6 million increase in managed advertising revenue and a $2.5 million increase in other advertising revenue, both primarily attributable to the acquisition of Nativo. We expect advertising revenue to grow as we continue to integrate Nativo's platform, expand advertiser relationships, and increase advertising inventory across the Life360 platform.
Current report
Other revenue increased $2.5 million, or 30%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. This was due to a $2.0 million increase in data revenue, which was primarily attributable to increased data volumes resulting from user growth, and a $0.5 million increase in partnership revenue, primarily driven by higher revenue share from an existing partner.
Current report
Cost of hardware revenue remained flat during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. Although we saw a decline in net units shipped, hardware product costs increased $0.6 million due to a shift in product mix. These increases were partially offset by a $0.6 million decrease in inventory reserves and other costs primarily related to the strategic exit of the brick-and-mortar retail channel.
Current report
Hardware gross margin decreased to (91)% during the three months ended March 31, 2026 from 3% during the three months ended March 31, 2025, primarily due to an increase in discounts and returns largely attributable to the Company's strategic exit from brick-and-mortar retail channel, as well as changes in product mix. We continue to prioritize hardware as a driver of subscription growth by optimizing pricing and bundling to increase subscription attachment over standalone hardware margin.
Current report
Cost of advertising revenue increased $7.7 million, or 2,929%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The increase was primarily driven by increases of $2.6 million in traffic acquisition costs, $2.5 million in technology and hosting costs, $1.4 million in personnel-related and stock-based compensation costs, $0.7 million in third-party data and content licensing costs, and $0.5 million in amortization of acquired technology, all attributable to the acquisition of Nativo.
Current report
Advertising gross margin decreased to 60% during the three months ended March 31, 2026 from 94% during the three months ended March 31, 2025, primarily due to higher costs associated with the acquisition of Nativo, which outpaced the growth in total advertising revenue. The acquisition of Nativo has expanded the Company's advertising capabilities, resulting in a shift in margin mix relative to our existing advertising offerings.
Current report
Other gross margin decreased to 86% during the three months ended March 31, 2026 from 87% during the three months ended March 31, 2025, primarily due to costs outpacing revenue growth.
Current report
Research and development
Current report
General and administrative expenses increased $6.7 million, or 43%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. This was primarily due to increases of $5.8 million in personnel-related and stock-based compensation costs and $0.7 million in technology and other expenses, both attributable to Company growth. Additional increases include $0.6 million in warehouse relocation costs related to the move of certain hardware manufacturing operations and $0.5 million in Nativo integration costs. These increases were partially offset by a $0.9 million decrease in professional and outside services.
Current report
Loss on Change in Fair Value of Investment
Current report
Benefit from Income Taxes
Current report
Benefit from income taxes increased $11.5 million during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to changes in the Company’s annual estimated effective tax rate and discrete tax benefits. For the three months ended March 31, 2026, we recorded a total income tax benefit of $11.7 million, consisting of a $2.7 million benefit based on the annual estimated effective tax rate, primarily due to the loss before income tax for the period, and $9.0 million of discrete tax benefits, primarily related to stock-based compensation.
Current report
Key Performance Indicators
Current report
(1) Excludes revenue related to bundled Life360 subscription and hardware offerings, which was immaterial for the three months ended March 31, 2026, and $(0.4) million for the three months ended March 31, 2025.
Current report
(2) Excludes revenue related to bundled Life360 subscription and hardware offerings, which was immaterial for the three months ended March 31, 2026, and $0.4 million for the three months ended March 31, 2025.
Current report
As of March 31, 2026, MAU growth reflected a suppressed registration funnel resulting from a series of Android-driven technical issues that limited our ability to capture new users. A number of interconnected technical issues impacted Android users on lower-end devices before they fully onboarded. Management identified and resolved these root causes by March 2026, with all issues simultaneously cleared as of April 2026. Overall, we fell 3 percentage points below our planned annual growth trajectory for the three months ended March 31, 2026. The shortfall was concentrated in Android-heavy markets which do not contribute substantially to revenue, and we have determined the reasons why, beyond normal quarterly variation. As a result, we have revised our full-year 2026 MAU growth expectation to approximately 17% to 20% and expect to return to our planned growth trajectory by the third quarter of 2026. Refer to the "Forward-Looking Statements" section above.
Current report
For the three months ended March 31, 2026 and 2025, our ARPPC was $143.03 and $133.42, respectively, representing a 7% increase year-over-year.
Current report
ARPPS for the three months ended March 31, 2026 and 2025 was $127.15 and $112.98, respectively, representing an increase of 13% year-over-year.
Current report
For the three months ended March 31, 2026 and 2025, Life360 sold approximately 0.4 million units and 0.5 million units, respectively, representing a decrease of 25% year-over-year. The decrease in Net hardware units shipped was primarily due to a decrease in online retail sales and the strategic exit of the brick-and-mortar retail channel.
Current report
Net Average Sales Price
Removed paragraphs (51)
Previous report
The Company generates revenue from direct and indirect streams. Direct revenue includes subscription and hardware revenue, while indirect revenue consists of all other revenue sources, such as data and partnership, which includes advertising.
Previous report
Convertible Notes Fair Value Adjustment
Previous report
The Company issued convertible notes to investors in July 2021 (the “July 2021 Convertible Notes”), and as part of the purchase consideration related to the acquisition of Jiobit in September 2021 (the “September 2021 Convertible Notes” and together with the July 2021 Convertible Notes, the “Convertible Notes”). The September 2021 Convertible Notes were recorded at fair value and revalued at each reporting period prior to their conversion to common stock in April 2024.
Previous report
Derivative Liability Fair Value Adjustment
Previous report
Derivative liability fair value adjustment relates to the change in the fair value of the embedded conversion and redemption features associated with the July 2021 Convertible Notes prior to their conversion to common stock in June 2024.
Previous report
Loss on Settlement of Convertible Notes
Previous report
Loss on settlement of convertible notes relates to the conversion of the July 2021 Convertible Notes into common stock, which resulted in a loss recognized upon settlement.
Previous report
Gain on Settlement of Derivative Liability
Previous report
Gain on settlement of derivative liability relates to the conversion by the holders of the July 2021 Convertible Notes, which settled the embedded share-settled redemption features bifurcated from the Company’s July 2021 Convertible Notes.
Previous report
Gain on Change in Fair Value of Investments
Previous report
Gain on change in fair value of investments relates to the change in fair value associated with the Convertible Note Investment and the observable price change upon the conversion of the Related Party SAFE into the Related Party Investment.
Previous report
Provision for (Benefit from) Income Taxes
Previous report
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 report
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 report
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 report
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 report
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 report
Cost of hardware revenue increased $0.5 million, or 4%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This was primarily driven by increases of $1.1 million in tariff costs and $0.6 million in personnel-related and stock-based compensation costs attributable to Company growth. The increases were partially offset by decreases of $0.7 million in freight costs, $0.3 million in fulfillment costs, and $0.2 million in product costs, all associated with a shift in channel mix.
Previous report
Hardware gross margin decreased to (3)% during the three months ended September 30, 2025 from 5% during the three months ended September 30, 2024, primarily due to an increase in discounts and tariff costs.
Previous report
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 report
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 report
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 report
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 report
Hardware gross margin decreased to 6% during the nine months ended September 30, 2025 from 14% during the nine months ended September 30, 2024, primarily due to an increase in discounts and tariff costs.
Previous report
Research and development expenses increased $11.8 million, or 14%, 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 $10.9 million in personnel-related and stock-based compensation costs, and $2.1 million in technology expenses, attributable to Company growth. The increases were partially offset by higher capitalized costs of $1.2 million for internally developed software related to the development of new features and significant updates to our platform.
Previous report
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 report
General and administrative expenses increased $4.8 million, or 31%, 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 $3.0 million in personnel-related and stock-based compensation costs, $0.8 million related to travel and entertainment costs for the Company’s annual event, $0.5 million in professional and outside services, and $0.3 million in other administrative costs, all attributable to Company growth. In addition, $0.2 million of the increase was attributable to lower capitalized costs related to internally developed software.
Previous report
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 report
Convertible Notes Fair Value Adjustment
Previous report
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 report
Derivative Liability Fair Value Adjustment
Previous report
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 report
Loss on Settlement of Convertible Notes
Previous report
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 report
Gain on Settlement of Derivative Liability
Previous report
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 report
Gain on Change in Fair Value of Investments
Previous report
In April 2025, an observable price change related to the conversion of the Related Party SAFE into the Related Party Investment took place. As a result, a $0.9 million gain related to the observable price change was recognized during the nine months ended September 30, 2025. No observable price changes were recorded during the three months ended September 30, 2025.
Previous report
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 report
Other income (expense), net includes foreign exchange gains and losses, and interest expense associated with the July 2021 and June 2025 Convertible Notes.
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Reworded paragraphs (48)
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 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.
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, 2025, filed with the SEC on March 2, 2026 (“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 I, Item 1A in our Annual Report.
Previous wording
Life360 is a leading technology platform used to locate the people, pets and things that matter most to families. Life360 is creating a new category at the intersection of family, technology, and safety to help keep families connected and safe. Our core offering, the Life360 mobile application, includes features that range from communications to driving safety and location sharing. The Life360 mobile application operates under a “freemium” model where its core offering is available to members at no charge, with three membership subscription options that are available but not required. We also generate revenue through hardware subscription services and the sale of hardware tracking devices. By offering devices and integrated software to members, we have expanded our addressable market to provide members of all ages with a vertically integrated, cross-platform solution of scale.
Current wording
Life360 is a leading technology platform used to locate the people, pets, and things that matter most to families. Life360 is creating a new category at the intersection of family, technology, and safety to help keep families connected and safe. Our core offering, the Life360 mobile application, includes features that range from communications to driving safety and location sharing. The Life360 mobile application operates under a “freemium” model where its core offering is available to members at no charge, with additional membership subscription options that are available but not required. We also generate revenue through hardware subscription services and the sale of hardware tracking devices. By offering devices and integrated software to members, we have expanded our addressable market to provide members of all ages with a vertically integrated, cross-platform solution of scale. We also generate advertising revenue through the placement of third-party advertisements on our platform and across third-party publisher networks through our advertising technology platform, and other revenue through partnerships and the sale of aggregated, non-personally identifiable data for data insight purposes.
Previous wording
We believe that our results of operations are affected by a number of factors, such as: the ability to remain a trusted brand; attracting, retaining, and converting members; maintaining efficient member acquisition; the ability to attract new and repeat purchasers of our hardware tracking devices; growth in Average Revenue per Paying Circle (“ARPPC”); expanding offerings on our platform; attracting and retaining talent; seasonality; and international expansion. We discuss each of these factors in more detail under the heading “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Performance” in our Annual Report. While we do not have control of all factors affecting our results from operations, we work diligently to influence and manage those factors which we can impact to enhance our results of operations.
Current wording
We believe that our results of operations are affected by a number of factors, such as: the ability to remain a trusted brand; attracting, retaining, and converting members; maintaining efficient member acquisition; the ability to attract new and repeat purchasers of our hardware tracking devices; growth in Average Revenue per Paying Circle (“ARPPC”); expanding the offerings on our platform; attracting and retaining talent; seasonality; international expansion; and growth and monetization of advertising offerings. We discuss each of these factors in more detail under the heading “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Performance” in our Annual Report. While we do not have control of all factors affecting our results from operations, we work diligently to influence and manage those factors which we can impact to enhance our results of operations.
Previous wording
The following discussion describes certain line items in our condensed consolidated statements of operations and comprehensive income (loss).
Current wording
The following discussion describes certain line items in our condensed consolidated statements of operations and comprehensive income.
Previous wording
We generate revenue primarily from sales of subscriptions on our platform, including Life360, Jio, Inc. (“Jiobit”) and Tile, Inc. (“Tile”). Revenue is recognized ratably over the related contractual term generally beginning on the date that our platform is made available to a customer. Our subscription agreements typically have monthly or annual contractual terms. Our agreements are generally non-cancellable during the contract term. We typically bill in advance for monthly and annual contracts. Amounts that have been billed are initially recorded as deferred revenue until the revenue is recognized.
Current wording
We generate revenue primarily from sales of subscriptions on our platform, including Life360 and Tile. Revenue is recognized ratably over the related contractual term generally beginning on the date that our platform is made available to a customer. Our subscription agreements typically have monthly or annual contractual terms. Our agreements are generally non-cancellable during the contract term. We typically bill in advance for monthly and annual contracts. Amounts that have been billed are initially recorded as deferred revenue until the revenue is recognized.
Previous wording
We generate our hardware revenue from the sale of Jiobit and Tile hardware tracking devices and related accessories. For hardware and accessories, revenue is recognized at the time products are delivered. We sell hardware tracking devices and accessories through a number of channels including our websites, brick and mortar retail, and online retail.
Current wording
We generate our hardware revenue from the sale of hardware tracking devices and related accessories. For hardware and accessories, revenue is recognized at the time products are delivered. We sell hardware tracking devices and accessories through a number of channels including our website and online retail.
Previous wording
Other revenue consists of data and partnership revenue, which includes advertising revenue. We generate data revenue primarily through an arrangement with a key data partner that provides location-based analytics to customers in the retail and real estate sectors, municipalities, and other private and public organizations. The agreement permits commercialization of certain aggregated and de-identified data and provides for fixed and variable monthly revenue amounts. We generate partnership revenue through agreements with third parties which grant them access to anonymized data insights or advertising on the Company’s mobile platform, and through the recognition of revenue related to the Related Party Warrant.
Current wording
Other revenue consists of data and partnership revenue. We generate data revenue primarily through an arrangement with a key data partner that provides location-based analytics to customers in the retail and real estate sectors, municipalities, and other private and public organizations. The agreement permits commercialization of certain aggregated and de-identified data and provides for fixed and variable monthly revenue amounts. We generate partnership revenue through agreements with third parties which grant them access to anonymized data insights or through the recognition of revenue related to a warrant to purchase common stock of a related party (“Related Party Warrant”).
Previous wording
Cost of subscription revenue primarily consists of expenses related to hosting our services and providing support to our free and paying subscribers. These expenses include personnel-related costs associated with our cloud-based infrastructure and our customer support organization, third-party hosting fees, software, and maintenance costs, outside services associated with the delivery of our subscription services, amortization of acquired intangibles and allocated overhead, such as facilities, including rent, utilities, depreciation on equipment shared by all departments, credit card and transaction processing fees, and shared information technology costs. Personnel-related expenses include salaries, bonuses, benefits, and stock-based compensation for operations personnel.
Current wording
Cost of subscription revenue primarily consists of expenses related to hosting our services and providing support to our free and paying subscribers. These expenses include personnel-related costs associated with our cloud-based infrastructure and our customer support organization, third-party hosting fees, software and maintenance costs, outside services associated with the delivery of our subscription services, amortization of acquired intangibles and internally developed software, allocated overhead, such as facilities, including rent, utilities, depreciation on equipment shared by all departments, credit card and transaction processing fees, and shared information technology costs. Personnel-related expenses include salaries, bonuses, benefits, and stock-based compensation for operations personnel.
Previous wording
Cost of hardware revenue consists of product costs, including hardware production, contract manufacturers for production, shipping and handling, packaging, fulfillment, personnel-related expenses, manufacturing and equipment depreciation, warehousing, tariff costs, customer support costs, credit card and transaction processing fees, warranty replacement, and write-downs of excess and obsolete inventory. Personnel-related expenses include salaries, bonuses, benefits, and stock-based compensation for operations personnel.
Current wording
Cost of hardware revenue consists of product costs, including hardware production, contract manufacturers for production, shipping and handling, packaging, fulfillment, personnel-related expenses, manufacturing and equipment depreciation, warehousing, tariff costs, customer support costs, credit card and transaction processing fees, warranty replacement, write-downs of excess and obsolete inventory, amortization of acquired intangibles, and allocated overhead, such as facilities, including rent and utilities, and shared information technology costs. Personnel-related expenses include salaries, bonuses, benefits, and stock-based compensation for operations personnel.
Previous wording
Cost of other revenue includes cloud-based hosting costs, as well as costs of product operations functions and personnel-related costs associated with our data and advertising platforms. Personnel-related expenses include salaries, bonuses, benefits, and stock-based compensation for operations personnel.
Current wording
Cost of other revenue includes cloud-based hosting costs as well as costs of product operations functions and personnel-related costs associated with our data platforms.
Previous wording
Our operating expenses consist of research and development, selling and marketing, and general and administrative expenses.
Current wording
Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses.
Previous wording
Our sales and marketing expenses consist primarily of commissions to the Company’s third-party platforms (each a “Channel Partner”), personnel-related costs, brand marketing costs, lead generation costs, sales incentives, sponsorships and amortization of acquired intangibles, bad debt expense, and allocated overhead. Commission payments to Channel Partners in connection with annual subscription sales of the Company’s mobile application on third-party store platforms are considered to be incremental and recoverable costs of obtaining a contract with a customer and are deferred and typically amortized over an estimated period of benefit of two to three years depending on the subscription type.
Current wording
Our sales and marketing expenses consist primarily of commissions to our third-party platforms (each a “Channel Partner”), personnel-related costs, brand marketing costs, lead generation costs, growth media and other marketing spend to support strategic initiatives, sales incentives, sponsorships, amortization of acquired intangibles, bad debt expense, and allocated overhead. Commission payments to Channel Partners in connection with annual subscription sales of our mobile application on third-party store platforms are considered to be incremental and recoverable costs of obtaining a contract with a customer and are expensed as incurred or deferred and amortized over an estimated period of benefit of three years depending on the subscription type.
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. In addition, in May 2025, the Company entered into a series of transactions with Aura Consolidated Group, Inc (“Aura”), which included a convertible note investment by the Company into Aura (“Convertible Note Investment”). The Company elected to apply the fair value option in accordance with ASC 825, Financial Instruments.
Current wording
In May 2025, we entered into a series of transactions with Aura Consolidated Group, Inc. (“Aura”), which included a convertible note investment into Aura (“Convertible Note Investment”). We elected to apply the fair value option in accordance with ASC 825, Financial Instrumentsand as a result, the Loss on change in fair value of investment relates to the change in fair value associated with the Convertible Note Investment.
Previous wording
Interest income consists of interest earned on our cash and cash equivalents balances received from bank deposits and our investments in money market funds.
Current wording
Interest income consists of interest earned on our cash and cash equivalents balances received from bank deposits, money market funds, and short-term investments.
Previous 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.
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 and the deferred purchase price liability related to the acquisition of Nativo, Inc. (“Nativo”).
Previous 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).
Current wording
The following tables set forth our condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2026 and 2025 (in thousands, except percentages).
Previous 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.
Current wording
Subscription revenue increased $26.3 million, or 32%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to 27% growth in Paying Circles and 17% growth in total subscriptions. Additionally, subscription revenue in the current period benefited from a 7% uplift in ARPPC. Please refer to the “Key Performance Indicators” section for definitions of key performance indicators (“KPIs”).
Previous 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.
Current wording
Hardware revenue decreased $4.4 million, or 49%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The decline was primarily driven by a 25% decrease in Net hardware units shipped, contributing to a $1.2 million decrease in hardware revenue. This decrease was also impacted by a $1.9 million increase in discounts and a $0.9 million increase in returns, of which $1.0 million and $0.5 million, respectively, were directly attributable to the strategic exit of the brick-and-mortar retail channel, and a $0.4 million reduction in revenue related to bundled offerings.
Previous wording
Cost of subscription revenue increased $3.3 million, or 31%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to increases of $1.3 million in personnel-related and stock-based compensation costs and $1.2 million in amortization of internally developed software related to the release of new features and significant updates on our platform. In addition, technology expenses increased $0.5 million, attributable to Company growth, and costs associated with premium membership offerings increased $0.3 million.
Current wording
Cost of subscription revenue increased $4.4 million, or 43%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to increases of $1.9 million in technology expenses, $1.3 million in personnel-related and stock-based compensation costs, and $0.2 million in amortization of internally developed software related to the release of new features and significant updates on our platform, all attributable to Company growth. In addition, costs associated with premium membership offerings increased $1.0 million.
Previous 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.
Current wording
Subscription gross margin decreased to 87% during the three months ended March 31, 2026 from 88% during the three months ended March 31, 2025, primarily due to higher personnel costs attributable to Company growth.
Previous 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.
Current wording
Cost of other revenue increased $0.4 million, or 39%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, due to an increase of $0.4 million in technology and other related expenses to support the existing customer base.
Previous 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.
Current wording
Research and development expenses increased $8.9 million, or 29%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to increases of $6.4 million in personnel-related and stock-based compensation costs, including those related to the acquisition of Nativo, $1.3 million in technology and other expenses, and $0.9 million in professional and outside services. Additionally, a $0.8 million decrease in capitalized construction in progress costs, in line with our product development roadmap, contributed to the increase. These increases were partially offset by $0.5 million of higher capitalized internally developed software costs related to the development of new features and significant updates to our platform.
Previous 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.
Current wording
Sales and marketing expenses increased $21.7 million, or 62%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. This was primarily due to increases of $7.8 million in growth media and other marketing spend to support strategic initiatives, and $5.1 million in commissions to the Company’s Channel Partners, in line with the increase in subscription revenue. The increase was also driven by $5.1 million in personnel-related and stock-based compensation costs and $1.8 million in amortization of acquired intangible assets, each primarily attributable to the acquisition of Nativo. Additional increases include $0.9 million in technology and other expenses attributable to Company growth, $0.6 million in Nativo integration costs, and $0.4 million in severance costs related to the strategic exit of the brick-and-mortar retail channel.
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, 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.
Current wording
In May 2025, the Company entered into a series of transactions with Aura, which included the $25.0 million Convertible Note Investment. The Company elected to apply the fair value option in accordance with ASC 825, Financial Instruments. As a result, a $3.9 million loss related to the revaluation of the Convertible Note Investment was recognized during the three months ended March 31, 2026.
Previous wording
Interest income increased $2.6 million, or 128%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, resulting from higher average gross yields attributable to an increased cash and cash equivalents balance.
Current wording
Interest income increased $2.0 million, or 114%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, resulting from higher average gross yields attributable to increased cash and cash equivalents and short-term investment balances.
Previous wording
Other income (expense), net decreased $1.5 million, or 320%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This was primarily driven by a $0.9 million increase in foreign exchange losses, and a $0.6 million increase in interest expense.
Current wording
Other income (expense), net decreased $1.0 million, or 515%, during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. This was primarily driven by a $0.5 million increase in interest expense related to the June 2025 Convertible Notes, a $0.3 million increase in foreign exchange losses, and a $0.2 million increase in interest expense related to the deferred purchase price liability from the acquisition of Nativo. Refer to Note 7, "Business Combinations" and Note 8, "Balance Sheet Components" for additional information on the acquisition of Nativo and the related deferred purchase price liability.
Previous 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.
Current wording
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 California state tax credits and Canadian Scientific Research and Experimental Development credits as we have concluded that it is not more likely than not that the deferred tax assets will be realized.
Previous wording
We review several operating metrics, including the following key performance indicators, to evaluate our business, measure our performance, identify trends affecting our business, develop financial forecasts, and make strategic decisions. We believe these key performance indicators are useful to investors because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and they may be used by investors to help analyze the health of our business. Key operating metrics are presented in millions, except ARPPC, Average Revenue per Paying Subscription (“ARPPS”) and Average Sales Price (“ASP”), however percentage changes are calculated based on actual results. As a result, percentage changes may not recalculate based on figures presented due to rounding. Please refer to “Results of Operations” for additional metrics management reviews in conjunction with the condensed consolidated financial statements.
Current wording
We review several operating metrics, including the following Key Performance Indicators (“KPIs”), to evaluate our business, measure our performance, identify trends affecting our business, develop financial forecasts, and make strategic decisions. We believe these KPIs are useful to investors because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and they may be used by investors to help analyze the health of our business. KPIs are presented in millions, except ARPPC, Average Revenue per Paying Subscription (“ARPPS”) and Average Sales Price (“ASP”); however, percentage changes are calculated based on actual results. As a result, percentage changes may not recalculate based on figures presented due to rounding. Please refer to “Results of Operations” for additional metrics management reviews in conjunction with the condensed consolidated financial statements.
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 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.
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 March 31, 2026, and 2025 was $517.9 million and $393.0 million, respectively, representing an increase of 32% year-over-year, which is largely attributable to continued subscriber growth and an increase in other recurring revenue.
Previous 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.
Current wording
We have a large and growing global member base as of March 31, 2026. 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 March 31, 2026 and 2025, we had approximately 97.8 million and approximately 83.7 million MAUs on the Life360 platform, respectively, representing an increase of 17% year-over-year. We believe this has been driven by continued strong new member growth and retention.
Previous 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.
Current wording
As of March 31, 2026 and 2025, we had approximately 3.0 million and 2.4 million paid subscribers to services under our Life360 brand, respectively, representing an increase of 27% 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
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.
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 a shift in product mix toward higher-priced offerings and price increases across select international markets throughout 2025.
Previous wording
We define Subscriptions as the number of paying subscribers associated with the Life360, Tile, and Jiobit brands who have been billed as of the end of the period.
Current wording
We define Subscriptions as the number of paying subscribers associated with the Life360 and Tile brands who have been billed as of the end of the period.
Previous 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.
Current wording
As of March 31, 2026 and 2025, we had approximately 3.5 million and 3.0 million paid subscribers, respectively, to services under the Life360 and Tile brands, representing an increase of 17% year-over-year.
Previous wording
We define ARPPS as annualized total subscription revenue recognized and derived from Life360, Tile and Jiobit subscriptions, excluding revenue related to bundled Life360 subscription and hardware offerings, for the reported period divided by the average number of paying subscribers during the same period. The average number of paying subscribers is calculated by adding the number of paying subscribers as of the beginning of the period to the number of paying subscribers as of the end of the period, and then dividing by two. Paying subscribers represent subscribers who have been billed as of the end of the period.
Current wording
We define ARPPS as annualized total subscription revenue recognized and derived from Life360 and Tile subscriptions, excluding revenue related to bundled Life360 subscription and hardware offerings, for the reported period divided by the average number of paying subscribers during the same period. The average number of paying subscribers is calculated by adding the number of paying subscribers as of the beginning of the period to the number of paying subscribers as of the end of the period, and then dividing by two. Paying subscribers represent subscribers who have been billed as of the end of the period.
Previous wording
ARPPS has increased year-over-year as a result of 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 towards higher-priced offerings, and the introduction of higher-priced membership tiers across select international markets throughout 2024.
Current wording
ARPPS has increased year-over-year as a result of a shift in product mix towards higher-priced offerings and price increases across select international markets throughout 2025.
Previous wording
Net hardware units shipped represents the number of tracking devices sold during a period, excluding certain hardware units related to bundled Life360 subscription and hardware offerings, net of returns by our retail partners and direct consumers. Selling units contributes to hardware revenue and ultimately increases the number of members eligible for a Tile or Jiobit subscription.
Current wording
Net hardware units shipped represents the number of tracking devices sold during a period, excluding certain hardware units related to bundled Life360 subscription and hardware offerings, net of returns by our retail partners and direct consumers. Selling units contributes to hardware revenue and ultimately increases the number of members eligible for a subscription.
Previous wording
For the three months ended September 30, 2025 and 2024, the net ASP per unit was $11.99 and $12.69, respectively, representing a decrease of 6% year-over-year. For the nine months ended September 30, 2025 and 2024, the net ASP per unit was $14.12 and $14.78, respectively, representing a decrease of 4% year-over-year. The decrease in net ASP for both periods was primarily due to a shift in channel mix and an increase in discounts.
Current wording
For the three months ended March 31, 2026 and 2025, the Net ASP per unit was $11.88 and $16.99, respectively, representing a decrease of 30% year-over-year. The decrease in Net ASP was primarily due to an increase in discounts, which were primarily driven by the strategic exit of the brick-and-mortar retail channel.
Previous wording
As of September 30, 2025, we had cash and cash equivalents of $455.7 million and restricted cash of $1.5 million. As of December 31, 2024, we had cash and cash equivalents of $159.2 million and restricted cash of $1.2 million.
Current wording
As of March 31, 2026, we had cash and cash equivalents of $351.2 million, restricted cash of $1.7 million, and short-term investments of $106.1 million. As of December 31, 2025, we had cash and cash equivalents of $494.3 million and restricted cash of $1.6 million, and no short-term investments.
Previous wording
We believe our existing cash and cash equivalents and cash provided by sales of our subscriptions and hardware devices will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months. We may from time to time seek to raise additional capital based on a variety of factors, including our capital requirements and the relative favorability of conditions in the capital markets. If we are unable to raise additional capital on terms acceptable to us or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, financial condition and results of operations.
Current wording
We believe our existing cash and cash equivalents and short-term investments, together with cash generated from subscriptions, hardware tracking devices, advertising activities, and partnerships, including the sale of aggregated, non-personally identifiable data for data insight purposes, will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months. We may from time to time seek to raise additional capital based on a variety of factors, including our capital requirements and the relative favorability of conditions in the capital markets. If we are unable to raise additional capital on terms acceptable to us or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, financial condition and results of operations.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
For the three months ended March 31, 2025, net cash provided by financing activities was $2.2 million, which is primarily related to $10.6 million of taxes paid for the net settlement of equity awards, offset by $12.8 million of proceeds related to tax withholdings on restricted stock settlements and the exercise of stock options and warrants.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Provision for (benefit from) income taxes consists of U.S. federal and state income taxes and foreign income taxes in jurisdictions in which we conduct business. 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 report — wording carried elsewhere
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 report — wording carried elsewhere
Interest income increased $4.8 million, or 114%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, resulting from higher average gross yields attributable to an increased cash and cash equivalents balance.