Life360 Surges with Record 83.7M Users and 32% Revenue Growth in Q1 2025
Life360 has reported a landmark first quarter in 2025, with soaring user engagement and robust revenue growth that underscore its resilience in a cautious consumer market.
- Monthly active users reach 83.7 million, up 26% year-over-year
- Total revenue climbs 32% to $103.6 million in Q1 2025
- Paying Circles grow 26% year-over-year to 2.4 million
- Positive net income of $4.4 million and adjusted EBITDA of $15.9 million
- FY 2025 guidance targets $450-$480 million revenue and $65-$75 million adjusted EBITDA
Strong User Growth Fuels Revenue Momentum
Life360, the family safety and connection platform, has kicked off 2025 with record-breaking results, demonstrating significant growth across its key metrics. The company reported approximately 83.7 million monthly active users (MAUs) in the first quarter, marking a 26% increase compared to the same period last year. This surge was driven by both organic growth and strong international expansion, with international MAUs rising 39% year-over-year.
Paying Circles, a critical subscription metric representing groups of paying users, also saw robust growth, increasing 26% year-over-year to 2.4 million. This growth was supported by improved retention rates in the U.S. and strong momentum in international markets, particularly in the UK, Canada, and Australia-New Zealand (ANZ) regions.
Revenue and Profitability Climb Amid Market Caution
Life360’s total quarterly revenue reached $103.6 million, a 32% increase year-over-year, with subscription revenue leading the charge at $81.9 million, up 33%. Core subscription revenue, derived from the Life360 mobile app, grew even faster at 37%, reflecting the company’s focus on its primary product offering. The company also reported a 38% increase in annualized monthly revenue, now standing at $393 million.
Despite a cautious consumer spending environment, Life360 achieved a net income of $4.4 million and an adjusted EBITDA of $15.9 million, marking its tenth consecutive quarter of positive adjusted EBITDA. Operating cash flow was also positive at $12.1 million, underscoring the company’s operational discipline and margin expansion efforts.
Strategic Pricing and Product Mix Drive Revenue Per User
Average revenue per Paying Circle (ARPPC) increased 8% year-over-year, benefiting from strategic price increases in the U.S. and a shift toward higher-priced product offerings. International markets saw an even more pronounced ARPPC increase of 39%, driven by legacy price adjustments and the introduction of Dual Tier memberships in select regions.
Hardware revenue declined 13% year-over-year to $8.9 million, primarily due to reduced bundled offerings and increased discounts. However, the average selling price of hardware units rose 3%, reflecting a favorable channel mix and fewer returns.
Robust Balance Sheet and Confident Outlook
Life360 ended the quarter with a strong cash position of $170.4 million, boosted by capital raised from its U.S. IPO in the second quarter of 2024. The company’s leadership expressed confidence in navigating tariff uncertainties and consumer financial pressures, emphasizing resilience in its core subscription business.
Looking ahead, Life360 provided guidance for full-year 2025, targeting consolidated revenue between $450 million and $480 million and adjusted EBITDA in the range of $65 million to $75 million. This outlook reflects the company’s commitment to balancing growth with profitability in an increasingly demanding market environment.
Bottom Line?
Life360’s record quarter sets a strong foundation, but sustaining growth amid evolving market pressures will be the next challenge.
Questions in the middle?
- How will Life360’s hardware segment adapt to declining revenues amid shifting consumer preferences?
- What impact will tariff uncertainties have on Life360’s international expansion plans?
- Can Life360 maintain its positive adjusted EBITDA trajectory throughout 2025 given cautious consumer spending?
