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Life360 Q3 revenue, adjusted EBITDA beat estimates on subscription growth

By Reuters News


Overview

  • U.S. family safety app's Q3 revenue grew 40% yr/yr, beating analyst expectations

  • Adjusted EBITDA for Q3 rose 41% yr/yr and beat analyst expectations

  • Company repurchased $31.2 mln in shares under its buyback program


Outlook

  • Life360 narrows FY'26 consolidated revenue outlook to $665 mln-$681 mln from $650 mln-$685 mln

  • Company lifts FY'26 subscription revenue guidance to $483 mln-$488 mln from $475 mln-$480 mln

  • Life360 narrows FY'26 adjusted EBITDA forecast to $132 mln-$138 mln from $130 mln-$140 mln


Result Drivers

  • SUBSCRIPTION GROWTH - Subscription revenue rose 29% yr/yr to $124.2 mln, driven by 26% growth in Paying Circles and a 4% increase in average revenue per Paying Circle

  • ADVERTISING EXPANSION - Advertising revenue rose 250% yr/yr to $25.4 mln, mainly reflecting managed advertising growth following the Nativo acquisition

  • HARDWARE DECLINE - Hardware revenue fell 20% yr/yr, mainly due to a 32% decrease in hardware units shipped as a result of exiting brick-and-mortar retail


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$174.10 mln

$172.15 mln (8 Analysts)

Q3 Net Income

$22.50 mln

Q3 Adjusted EBITDA

Beat

$34.60 mln

$32.09 mln (8 Analysts)

Q3 Gross Margin

77.00%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Life360, Inc. is $62.00, about 30.9% above its November 6 closing price of $47.37

  • The stock recently traded at 70 times the next 12-month earnings vs. a P/E of 85 three months ago


Reuters Recommended Reads

  • Nov 9 - Via Transportation Q3 revenue rises 31%, adjusted net loss narrows

  • Nov 9 - Israel's Monday.com Q3 revenue rises 19%

  • Nov 7 - Berkshire Hathaway speeds up stock buybacks, though profit falls


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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