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Life360 (LIF) is under pressure today after reporting its Q3 results last night, despite reporting a record quarter. EPS improved 22% yr/yr to $0.11, revenue increased a healthy 34.1% yr/yr to $124.5 mln, above expectations, while it also raised its FY25 revenue guidance to $474-485 mln from $462-482 mln. The mid point of this range sits above analyst estimates.

• Growth was driven by the core subscription engine, with MAUs reaching a record 91.6 mln (+19% yr/yr) and Paying Circles up 23% yr/yr to 2.7 mln, a record 170,000 net additions. Total subscription revenue rose 34% yr/yr to $96.3 mln, also a record.
• International momentum remained solid, with Paying Circles outside the U.S. up 29% yr/yr and ARPPC up 8%, reflecting strong traction in key markets like the UK, Canada, and Australia.
• An emerging bright spot was Pet GPS, which sold out across key markets shortly after launch and is designed to drive higher subscription conversion over time.
• Beyond subscriptions and hardware, Q3 other revenue jumped 82% yr/yr to $16.9 mln, fueled by advertising growth, which management sees as a durable, high-margin opportunity.
• Building on that momentum, Life360 announced plans to acquire Nativo for $120 mln, adding a full-stack ad-tech platform to accelerate its advertising roadmap and broaden reach.
• Management also raised guidance across all major segments, subscription, hardware, and "other" revenue, along with adjusted EBITDA, reflecting solid core momentum, strong early Pet GPS demand, and growing confidence in its ad business.

Briefing.com Analyst Insight

Despite delivering another record quarter, the sharp pullback suggests expectations may have simply been too high. MAU growth slowed from tough comps (19% this quarter vs. 25% in Q2), and the Nativo acquisition adds uncertainty around integration and a pivot toward advertising, a business that's growing but still in the early stages for Life360. The stock had surged more than 200% from April lows, setting a high bar, and even after today's drop, valuation near 52x forward earnings leaves little room for error. Overall, the results highlight solid execution and platform strength, but they weren't quite enough to satiate high growth expectations.