Life360 upgraded its full-year EBITDA outlook and revenue guidance on the back of a powerful March quarter, yet its stock still dived in afternoon trade. The family and pet-tracking app operator now expects EBITDA between USD130 million and USD140 million, above its earlier USD128 million to USD138 million range.
Revenue guidance has also lifted, with consolidated 2026 revenue forecast at USD650 million to USD685 million and subscription revenue tipped at USD470 million to USD475 million. Shares slid more than 11% on Tuesday morning to $17.76, extending a year-to-date decline of about 45% for the $4.5 billion ASX-listed group.
Investors’ unease centres on user growth and technical disruption, rather than the earnings beat. Life360 added only 1.9 million users in the March quarter, far short of the roughly 3 million gain analysts expected, and now guides 2026 monthly active user growth to 17-20%, below market assumptions of about 19.5%.
The company blames a temporary technical problem early in the year that blocked new users from installing the app, with normalisation not expected until the third quarter. The issue has been fixed on iOS, but related complications on Android triggered a global drop in Life360’s visibility on the Google Play Store during its key first-quarter marketing window.
Financially, the quarter looked strong. Total revenue jumped 38% year on year to USD143.1 million, with advertising revenue soaring 329% to USD19.7 million, helped by the Nativo acquisition.
Adjusted EBITDA climbed 7% to USD17.1 million, up from USD15.9 million a year earlier, and operating cash flow improved 42% to USD17.2 million. Management points to solid subscription momentum across paying “circles” and rising average revenue per paying circle tiers, alongside higher partnership income, as the main drivers behind the upgraded full-year guidance.
Broader sentiment around software and artificial intelligence adds another layer of pressure. Life360, which has around 100 million users globally, is heavily used by parents to track children’s locations and driving speeds, yet the stock has been caught in a sell-off across growth tech.
Investors worry AI tools could eventually make it easier for customers to build their own tracking solutions, even as Life360’s core metrics improve. Analysts at RBC Capital Markets still rate the company outperform and set a $36 price target, but the clash between robust financial performance and concerns over user growth and AI disruption is driving the current volatility.
