Life360, Inc. Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Life360 crossed 100 million monthly active users in Q2, adding 4.6 million active members to reach over 102 million.
- Q2 revenue grew 38% to a record $159 million, with subscription revenue up 31% to $115.6 million driven by 27% paying circle growth and 5% higher ARPPC.
- US subscription revenue grew 28% and international subscription revenue grew 45%, with strength in the UK, Australia, New Zealand, and Canada.
- Advertising revenue was $22 million, growing sequentially and substantially year over year, contributing to total revenue.
- Hardware revenue declined 20% to $9.8 million due to strategic exit from retail and inventory constraints during production line move.
- Gross margin was 80%, up from 78% a year ago, with subscription gross margin at 87%, advertising gross margin at 57%, and hardware gross margin at 43% including a $3.6 million tariff refund.
- GAAP net income was $5.1 million with basic and diluted EPS of $0.06; adjusted EBITDA was $31.1 million, up 53% with a 20% margin.
- Operating expenses increased 43% to $127 million driven by R&D, sales and marketing, and general and administrative costs including investments in AI and platform infrastructure.
- The company repurchased $13.2 million of stock in Q2 under a $225 million multi-year repurchase program.
- Management highlighted strong international growth, new partnerships including AT&T Mexico, and cultural engagement initiatives like Disney's Toy Story 5 integration.
- Pet GPS product is being relaunched with updated pricing and bundled offers, focusing on subscription scale over near-term monetization.
- Advertising platform integration is largely complete, with campaigns showing call-to-action rates up to 47% higher than third-party targeting.
- AI-powered monetization engine is delivering strong performance and is being expanded to engagement and retention efforts.
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Transcript
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dated March 2, 2026. These statements are based on assumptions we believe reasonable as of today, August 10, 2026, and we have no obligation to update them except as required by law. We will also present both GAAP and non-GAAP financial measures. Reconciliations are included in our earnings press release on our investor relations website. This is an audio only call with no slides. Our updated investor presentation is available as a reference on our IR website, along with our quarterly shareholder letter from our CEO and CFO. The letter goes into additional detail beyond our prepared remarks on this call. We will begin with a business update from our CEO, Lauren Antonoff, then CFO Russell Burke will review financial results and outlook, followed by Q&A. CRO James Selby will be joining the call to answer questions. Please limit questions to one per participant to start.
I will now turn the call over to Lauren.
Good morning and good afternoon. Thank you for joining the call. We hit a major milestone in Q2, crossing 100 million monthly active users. That's tens of millions of families who trust us every day to keep them connected and safe. Our Q2 results show our disciplined execution paying off. We added 4.6 million active members to reach over 102 million MAU, and we delivered our strongest Q2 paying circle growth on record with 185,000 net subscription adds. The signals we pointed to in Q1 delivered as expected, including strong demand, deepening penetration, and steady growth on higher-end devices. Importantly, we ended Q2 back on our MAU glide path. International MAU grew 20% year-over-year, with the U.S. growing 14%, driven by improved brand awareness, funnel efficiencies, and the value we bring to everyday family life.
We had tailwinds from unaided brand awareness, which rose an impressive 4 points in the U.S. during a quarter with lower marketing spend. We're also building momentum internationally. We launched new go-to-market initiatives in Brazil and Mexico and saw unaided brand awareness there increase from 9% to 14% in Brazil and from 10% to 16% in Mexico. Both countries are now around that 3% penetration mark where we've historically seen growth rates accelerate. We're reinforcing this momentum with new partnerships, including AT&T Mexico, who featured Life360 in their back-to-school campaign across television, radio, cinema, retail, and digital. In Germany, we launched our first local campaigns in Berlin and Cologne, and we're seeing a measurable lift in registration there. We've also been having some fun with global cultural moments. We tapped into the World Cup and brought Disney's Toy Story 5 into the app.
Members around the world sent 180 million quick notes tied to those touch points alone. We're proving that cultural relevance is a meaningful lever for member engagement and delight. Meanwhile, our subscription business continues humming along with 27% growth in paying circles. As we get ready to relaunch Pet GPS, we've updated our pricing for new subscribers, and we're shifting into a bundled Pet GPS offer that starts with Silver. This is a deliberate choice of subscription scale over near-term monetization as we build Pets into a long-term driver of subscription growth. Moving on to our advertising platform, we've largely completed the integration and are now shifting focus to commercializing what we've built. Advertising has become a substantial revenue stream, contributing $22 million this quarter, with revenue tied to the Life360 app growing the fastest. Most importantly, we're starting to prove the advantage that our platform and our audience deliver.
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