Life360 Q4 2025 Earnings Call - Nativo And Pet GPS Position Life360 For AI-Driven, Multi-Engine Growth

Bob Chen, Analyst, JP Morgan2: Today, March 2nd, 2026. These statements are based on assumptions we believe reasonable as of today, 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 deck is available as a reference on our investor relations website. We’ll begin with a business update by CEO Lauren Antonoff, then CFO Russell Burke will review financials, followed by Lauren’s 2026 outlook, and then Q&A. Please limit questions to one per participant. I’ll now turn the call over to Lauren.

Lauren Antonoff, Chief Executive Officer, Life360: Good afternoon to everyone from the U.S., and good morning to those tuning in from Australia. Thank you for joining our fourth quarter and full year results call. We’ve got a lot of material today because there’s a lot going on that deserves deeper discussion. 2025 was a landmark year for Life360. For the first time in company history, we achieved annual net income of over $32 million, even excluding a one-time non-cash tax benefit, reflecting both the fundamental strength of our freemium model and the operating discipline we’ve built over the past several years. Full year revenue grew 32% to nearly $490 million. Adjusted EBITDA more than doubled to over $93 million, and we exited the year with 95 million monthly active users and 2.8 million Paying Circles. Beyond the numbers, we made significant progress building our Family Super App platform.

We introduced Pet GPS, our first fully in-house created device, which launched simultaneously across five global markets. We acquired Fantix, enabling Place Ads and Uplift, we completed the Nativo acquisition in January 2026, creating a full stack advertising platform with Fortune 500 relationships and thousands of publishers. These platform investments position us well for the next major shift reshaping our world, AI. We see AI as an opportunity to accelerate our path and deepen our moat. We’re well into the transition to an AI-first world, I want to share why we’re so confident in our position. First, our core use case is durable because it’s anchored in real people moving through the physical world. While AI will reshape our product experience, it does not replace your child, your spouse, or your pet.

As for market concern that AI will eliminate the need for software products, code’s only part of what we do. Family relationships and physical world services like Crash Detection, emergency response, and roadside assistance go well beyond what software alone can provide, and they’re essential to the peace of mind that families rely on us to deliver. Second, AI makes our data more valuable. For many products, data doesn’t need to be fresh. A year-old forum thread is nearly as useful as a new one, and once it’s absorbed in a model, you may not need that source at all. Our data is fundamentally different because by its nature, it’s real-time, continuous, and perishable. Where your child is right now can’t be learned from a training set.

We keep this data set within our walled garden, and the market’s already placing a premium on access to it, validating both its scarcity and its strategic value. Third, AI enhances our ability to delight customers. Today, members engage with Life360 by briefly checking the map or reading notifications. With AI, we can start to play a more active role in our members’ lives, telling you that there’s a soccer game at 3, or making sure you know you’re the one getting the kids and that you have directions to the field, and reminding you that you need to leave in 30 minutes so you won’t be late. AI connects the dots so you can focus on real life.

Where earlier apps have failed because they put the burden on parents to plan ahead, our location intelligence powered by AI can simplify organization for busy parents, deepening the value we offer families. Fourth, AI is improving our execution. The trajectory is promising as organization-wide AI adoption has grown from about 25% to almost 95% in the past year. This is already increasing the pace at which we’re delivering product capabilities and experiences that drive growth, further bolstering our confidence in achieving our 20% MAU target for 2026. Over time, it’ll accelerate our path to creating significant operating leverage. We understand the power of platform shifts because we were born from one. Life360 was founded on the early recognition that mobile would reshape how families stay connected, and we look forward to leading the charge to help families navigate this transformational shift.

At the same time as AI is transforming how we work and what we do, we enter 2026 on track to achieve our multi-year strategic goals, surpassing 150 million MAU and $1 billion in annual revenue, delivering continuous Adjusted EBITDA margin expansion on our path to 35%+, and becoming the number 1 brand that makes everyday family life better. To achieve these goals, we continue to grow our user base, scale our paid offerings, expand our revenue streams, and enhance our profitability. We’ll touch on each of these briefly. Let’s start with user growth, which is the engine that fuels both subscription and advertising revenue.

In 2026, we expect 20% MAU growth for the full year with significantly quarterly variation in net adds and growth weighted towards H2. Our MAU growth engine operates through 2 complementary mechanisms: product improvements and marketing, which supplements organic adoption. Both fluctuate due to the very timing of product improvements and marketing investments, along with unpredictable acquisition spikes, especially in emerging markets. While user growth remains a bit volatile quarter to quarter, we expect to continue steady annual MAU growth. Remember that after strong acquisition quarters, a meaningful share of new users shift from active to passive. Think about a parent who checks the app regularly while their spouse relies on notifications. Both are still getting value, but in this scenario, only 1 is counted in MAU after the first month.

Product-led growth benefits from specific improvements and new features like Driver Reports, No Show Alerts, and device integration, as well as network effects from happy members, and both of these compound over time. Across communities, word of mouth drives penetration as trust builds through social proof. At the platform level, our growing base of nearly 100 million users attracts partners like Uber and AccuWeather, and those partnerships in turn create new reasons for families to use and stay on Life360. Features like our Pet Finder Network and Pet GPS extend that flywheel further, broadening our relevance and fueling our progress towards Super App status. Turning from product-led growth to marketing-led growth, our marketing now spans the full customer journey. At the top of the funnel, we focus on awareness with evocative video ads you may find on YouTube or premium placements like the Olympics.

Mid funnel, we work with influencers and podcasters to enhance consideration and reinforce our family positioning. At the bottom of the funnel, we deploy sophisticated performance marketing to drive installs and registrations. We’ve validated our hypothesis that by investing more in the upper funnel, we improve efficiency of our lower funnel marketing, so we’re putting more dollars behind our brand. To that end, during the Super Bowl, we launched the third chapter of our Family-Proof Your Family brand campaign which had prominent placements across NBC’s streaming and broadcast networks during the Olympics. These campaigns represent a significant step forward in building Life360’s reputation as the trusted family brand at scale. We followed up with targeted campaigns leveraging the Life360 ad platform further down funnel. Our biggest growth opportunities are in international markets, where penetration averages low single digits compared to 16% in the U.S.

In more developed markets like the U.K. and Australia, we’re focused on deepening penetration and monetization. In emerging markets like Mexico and Brazil, we’re in the earliest stages of penetration, and we’re focused on growing awareness and adoption. We expect to see continued variability in growth rates. Our second key focus is on scaling our paid offerings. Paying Circles grew 26% in 2025, reflecting the increasing value we deliver for families and the impact of continuous funnel optimization, which is driving record conversion rates. As we expand the platform with capabilities like Pet GPS and eventually Aging Parents, families see more values and discover more reason to move into premium tiers. At the same time, international ARPPC remains 40%-50% below U.S. levels, representing a multi-year runway of natural monetization upside as those markets mature.

Our near term priorities are growth of our membership and subscriber base. Our wide remit addressing the needs of everyday family life opens limitless opportunities to create member value, presenting a pricing opportunity with significant headroom. Tile and Pet GPS extend Life360 into the physical world, giving families new reasons to join and deepening engagement with existing members. Devices serve as a subscription growth mechanism, not a standalone hardware business. For Tile specifically, we’ve decided to exit brick-and-mortar retail and focus distribution on direct and online channels where we can better control the full customer journey from purchase to subscription activation. Pet GPS launched exclusively through direct and online channels from day one.

To give you a perspective on the Pet GPS opportunity, in the few short months since we introduced our Pet Finder Network, we now have almost 5 million pets registered, and nearly 90% of those are in free circles. That’s a large, growing, identifiable audience we can convert to paid over time. Multi-year subscription revenue from converted users far exceeds the device investment, so we’re prioritizing adoption over device margins and getting the model right over near term device volumes. Initial response has validated our Pet GPS thesis, and now we’re optimizing unit economics, pricing, and supply chain to maximize subscription growth. This disciplined approach reflects our long-term focus. Our third area is expanding our revenue streams with advertising as a transformational opportunity to build a high-margin business that complements subscriptions.

With Fantix, which we acquired in early 2025, we built the intelligent and measurement layer that let us launch Place Ads and Uplift. With the acquisition of Nativo that closed in January 2026, we now have the pieces in place to operate a full stack advertising technology platform. The logic of this combination is straightforward. We have nearly 100 million users and the richest first-party family location data set in the market. We were early in building the ad tech platform and off-site reach needed to scale. Nativo had hundreds of advertisers and thousands of publisher relationships, along with a mature ad tech stack and a sales force built over more than a decade, but no first-party data or audience of its own. Let me explain what this combination means in practice.

Before Nativo, we were effectively limited to showing ads inside the Life360 app, reaching approximately 40 million ad-eligible U.S. users. We benefit from direct integrations with thousands of publishers, including news sites, lifestyle content, and connected TV. We can take our first-party data, the fact that we know that this is a household with two kids and a dog and a parent who drives to soccer practice every Saturday, and use it to serve ads, not just inside Life360, but across that entire publisher network. When that parent is reading an article or streaming content, our data is powering the ad they see. Because we have real-world location data, we can close the loop and tell the advertiser whether the ad actually generated store visits. Importantly, this includes our passive users, members who rely on notifications rather than actively opening the app.

Place Ads reach these users at the moment they’re moving through the physical world, meaning that even members who are not counted in MAU represent monetizable audience inventory. Throughout all of this, the data never leaves our ecosystem. What our off-site platform enables is that every new publisher relationship becomes another canvas for our ads. That’s what takes us from 16% reach to over 95% of the ad-eligible adults in the U.S., and even more as we expand internationally. The U.S. digital advertising market is massive, over $400 billion and growing. The majority flows through three platforms, but more than $100 billion is spent across open web, connected TV, and premium publishers, where advertisers are actively seeking better data, better targeting, and real-world measurement. That’s exactly what our platform delivers, and we’re uniquely positioned to win in this market.

Over the long term, we believe that advertising revenue can rival the scale of subscriptions and ensure that every family can access Life360 in the way that works best to them, whether that’s a free ad-supported experience or a premium subscription. The result is a truly multi-engine platform with diverse high-margin revenue streams. I’ll hand it over to Russell to review the financials and discuss how we’re enhancing profitability through operating leverage.

Bob Chen, Analyst, JP Morgan4: Thanks, Lauren, and thanks everyone for joining the call today. As a reminder, the financials I’ll be referencing are unaudited for Q4, audited for the full year 2025, and denominated in US dollars. Let’s start with the fourth quarter. Q4 revenue increased 26% year-on-year to $146 million, reflecting strong performance across our business. Overall, subscription revenues increased 30% year-over-year to $102.5 million. Core Life360 subscription, which excludes hardware subscriptions, increased 33% year-over-year to $97.3 million, driven by the 26% increase in global Paying Circles and 6% higher ARPPC. Total Paying Circles growth was supported by improved conversion globally, with Q4 quarterly subscriber net additions achieving a new record. Other revenue in Q4 increased 86% to $24.2 million, driven by continued scaling of our advertising platform and growth in data partnerships.

The significant year-over-year increase reflects the ramping of our advertising capabilities and increasing advertiser demand. December annualized monthly revenue reached $478 million and increased 30% year-over-year, reflecting the strong performance of subscription and other recurring revenue. Hardware revenue for the quarter was $19.3 million. While hardware revenue declined 19% year-over-year due to promotional pricing and product mix, device unit shipments increased 3% as we integrate hardware more deeply into the Life360 subscription experience. As we’ve stated previously, our strategic focus with hardware remains on expanding the member experience and ultimately our subscriber base rather than near-term hardware margins. In 2026, we’ve made the strategic decision to exit physical retail and focus exclusively on direct-to-consumer and online channels like Amazon.

Unit volumes are expected to decline year-over-year as we eliminate retail margin pressure and optimize pricing in our digital channels where we control the full customer experience. Q4 gross profit of $109.7 million increased 28% year-over-year, with gross margins of 75% higher than the prior year. The stability in gross margin reflects the balance of high-margin subscription and other revenue with strategic investments in hardware. At the device level, Pet GPS margins were negative as we priced for market penetration rather than near-term profitability. We expect this approach to continue in 2026, with device margins fluctuating quarterly between breakeven and negative. In Q1, we expect negative device margins as we conduct extensive price testing with Pet GPS and absorb the impact of our exit from brick-and-mortar retail.

However, our consolidated gross margins remain strong in the 75%-78% range, driven by high margin subscription and other revenue, which continue to become a larger part of the mix. Q4 total operating expenses remain flat as a percentage of revenue year-over-year at 69%. Q4 operating expenses, excluding commissions, increased 26% year-over-year versus subscription revenue growth of 30%. This demonstrates our continued operating discipline even as we made strategic investments in Pet GPS launch and international expansion. R&D costs increased 12% year-over-year to support our expanding product suite. Importantly, our AI investments are embedded within this existing cost structure and will help us build faster and work more efficiently. Sales and marketing costs increased 25% year-over-year, driven by higher commissions and planned Pet GPS and seasonal marketing.

Q4 G&A increased 55% year-over-year, supporting company growth in our expanding advertising platform, and importantly, including transaction costs related to the Nativo acquisition. We expect G&A costs to normalize in 2026, inclusive of our AI investments. We continue to make substantial progress in expanding profitability. First, we recorded positive net income of $129.7 million in Q4, up from $8.5 million in the prior year, and I note that it includes a one-time non-cash tax benefit of $118.4 million. Next, Adjusted EBITDA increased 53% to $32.4 million in Q4 from $21.2 million in the prior year, with Adjusted EBITDA margin expanding to 22%, our highest quarterly margin to date. This performance demonstrates the significant operating leverage inherent in our business model as we scale.

That operating leverage carries on into 2026 as we expand high-margin subscription and other revenues, even as we make growth-orientated investments and integrate Nativo in the first half. Advertising in particular creates high incremental margins as it scales in the second half, partly related to seasonality, importantly leveraging our existing infrastructure and user base. Looking briefly at the full year results for 2025, which exceeded guidance across the board, total revenue increased 32% year-over-year to $489.5 million. Gross margin expanded to 78%, 3 percentage points higher than 2024. Total operating expenses grew 26% year-over-year, declined as a percentage of revenue, driving strong operating leverage. Net income for the year was $150.8 million, compared to a $4.6 million loss in 2024.

This marks our first fully profitable year in company history, even excluding the one-time non-cash tax benefit. Adjusted EBITDA increased $47.7 million year-over-year to reach $93.2 million, exceeding our outlook range with margin expanding from 12% in 2024 to 19% in 2025. Turning now to the balance sheet and cash flow. Life360 ended 2025 with cash equivalents, and restricted cash of $495.8 million, a significant increase from $160.5 million at year-end 2024. This increase was primarily driven by operating cash flow and the net proceeds from our June 2025 convertible notes offering, which provided $275.4 million in net proceeds, partially offset by the $25 million investment in Aura convertible notes.

The result is a substantially stronger balance sheet with significant financial flexibility to invest in our highest return growth opportunities while maintaining disciplined capital allocation. Operating cash flow was positive again in Q4. Net cash provided by operating activities of $36.8 million during the quarter increased nearly 200% from $12.3 million in the prior year, reflecting our strong and accelerating cash generation. For the full year, operating cash flow reached $88.6 million, up $56 million from 2024. Thanks for your attention. I’ll hand back to Loren to discuss our 2026 guidance.

Lauren Antonoff, Chief Executive Officer, Life360: In 2026, we’re doing three things simultaneously: investing in our highest return opportunities, accelerating revenue growth, and expanding margin. That combination is reflected in our full year outlook as follows. Annual MAU growth of 20%. Consolidated revenue of $640 million-$680 million. Subscription revenue of $460 million-$470 million. Other revenue of $140 million-$160 million, driven by the rapid scaling of our Life360 ad platform following the Nativo acquisition. Hardware revenue of $40 million-$50 million as we narrow distribution to focus on channels that drive stronger subscription attachment. Adjusted EBITDA of $128 million-$138 million. Stock-based compensation is anticipated to be 40% higher than last year, largely due to increased headcount from Nativo.

This range represents approximately a 20% Adjusted EBITDA margin, another step in our multi-year path of continuous annual expansion toward our strategic target of over 35%. Given a few factors unique to 2026, we wanna provide some additional color on quarterly modeling. Russell’s gonna walk through those points before we conclude.

Bob Chen, Analyst, JP Morgan4: Thanks, Lauren. We have strong conviction in our full-year guidance, we take pride in delivering what we say. With that, there are a few quarterly dynamics worth walking through so that models reflect what we expect through 2026. Our strategic investments are concentrated in the first half of the year. At the same time, our revenue profile has shifted. Advertising in particular follows a seasonal pattern where growth concentrates in the second half. Our investments are front-loaded, our revenue acceleration back-loaded. That combination creates quarterly variability in MAU, revenue, and margins that normalize as the year progresses, and that dynamic is fully reflected in our full year guidance. Let me walk through three Q1 factors specifically.

First, Adjusted EBITDA margin percentage in Q1 is expected to be in the low double digits, driven by Life360 ad platform margin contribution timing, the Pet GPS promotional pricing, which is designed to maximize subscriber adoption, and front-loaded advertising and marketing. These are all intentional investments concentrated early in the year to fuel growth as we scale. Second, device revenue in Q1 is expected to be approximately 50% lower than Q1 last year due to our brick-and-mortar retail exit. Hardware gross margin will also be negative in Q1. This impact is reflected in our full year guidance range. Third, on MAU, Q1 year-over-year growth will come in below our full year rate of approximately 20%. As Lauren discussed, quarterly MAU growth after a strong quarter tends to retrace.

We expect MAU growth to be more back-half weighted due to product-led growth investments and scaled marketing in new geographies building through the year. Our growth investments normalize during the year. As our growth investments normalize during the year, we expect Q4 2026 margin to exceed the 22% margin that we just delivered in Q4 2025, reflecting continued build of operating leverage with subscription momentum and the Life360 ad platform delivering meaningful contributions in the second half. Additionally, for context, Nativo’s contribution to our 2026 outlook. Nativo’s unaudited 2025 revenue was approximately $63 million at effectively break-even Adjusted EBITDA. We expect a majority of that revenue base to carry forward into 2026 in the Life360 ad platform, with incremental growth at significantly higher Adjusted EBITDA margins in the second half as integration completes and cross-platform campaigns ramp through the year.

That concludes our prepared remarks. I’ll now turn over the call to RJ to manage Q&A.

Bob Chen, Analyst, JP Morgan2: Thanks, Russell. As a reminder, to participate in the Q&A, please raise your hand by pressing the Raise Hand icon at the bottom of your screen within the Zoom app. You will need to unmute yourself to ask your single question to start. First, we’d like to open it up to Mark Mahaney to ask a question.

Bob Chen, Analyst, JP Morgan1: Okay. Thanks very much. Two questions. The international growth, Lauren, that you talked about and wanting to lean into that, do you view that as needing to be run more by, is that more driven by product or by marketing? Which of those two kinda gets that international penetration up, you know, even ballpark close to the U.S. level? Then you talked about these record net new ads in the December quarter. Just what’s the source of those new ads? Anything interesting there in terms of different markets, I don’t know, different demographics, different verticals? Any new color on where those net ads came from? Thank you.

Lauren Antonoff, Chief Executive Officer, Life360: Thanks, Mark. I’m gonna focus on the international question because I think it’s really important. You know, there’s often this question about is it product or is it marketing, and it really is the interplay between both. We’re investing to make sure that the product works great for users outside of the U.S., and that means improvement in things like the Android platform, our localization, and features really tailored towards those markets. That only works if users in those markets know about our product. Product improvements and marketing really go together and complement each other as we grow.

Bob Chen, Analyst, JP Morgan2: Great. Thanks, Mark. Next, we’re going to open it up to James...

Bob Chen, Analyst, JP Morgan1: Hey, my second question.

Bob Chen, Analyst, JP Morgan2: Oh. I’m sorry, Mark?

Bob Chen, Analyst, JP Morgan1: My second question about the.

Bob Chen, Analyst, JP Morgan2: Oh, Q4 MAU growth.

Bob Chen, Analyst, JP Morgan1: ... MAU. Yeah.

Bob Chen, Analyst, JP Morgan2: Mark-

Bob Chen, Analyst, JP Morgan4: Mark, I would say that there’s not any one thing that stands out there. We got good contribution both from the U.S. across the board, and from international, particularly the lead countries that we’re really active in.

Bob Chen, Analyst, JP Morgan1: Thank you very much.

Bob Chen, Analyst, JP Morgan2: Thanks, Mark. Next I’d like to open it up to James Bales with Morgan Stanley.

James Bales, Analyst, Morgan Stanley: Yeah, thanks for taking my question. I guess I’d like to understand a bit about what has driven the conversion improvement to paid, and whether you have any thoughts on the relative growth that we should be expecting between subs and MAU growth in 2026.

Lauren Antonoff, Chief Executive Officer, Life360: The two things that drive improvement in conversion is the value that we create in the product, and then optimizations we make in the funnel along the way, and these two things really go together. We’ve added new value, things like improvements we’ve made in our Driver Reports or things like Pet GPS. We also do a lot of testing and experimentation in our funnel to find ways to help customers understand the value that we have in the product and suggesting to them at the, at those right moments.

James Bales, Analyst, Morgan Stanley: Perfect. Your thoughts about the sustainability of that improvement?

Lauren Antonoff, Chief Executive Officer, Life360: There’s a lot of room. There’s certainly a lot of room in creating value, and we’re actually seeing a lot of... We’re going a lot faster using AI to speed up that kind of optimization. It seems like we have a lot of headroom left.

James Bales, Analyst, Morgan Stanley: Perfect. Maybe just one other question. You talked about the margin profile for Nativo. Could you maybe help us understand the gross margins that you expect to achieve in the first half on a run rate basis for the advertising business? Post-integration, what those gross margins can get to?

Bob Chen, Analyst, JP Morgan4: Yeah, James. I think what I would say is that you really off the bat we are gonna get really good gross margins from the Life360 advertising platform. The thing to understand about Nativo is that it’s really given us all of these extra tools. It’s given us the infrastructure, the sales team, the relationships that will really help drive that growth, particularly in the second half. There is an element of fixed costs that comes along with that, but the gross margins themselves are very strong.

Bob Chen, Analyst, JP Morgan2: Thanks, James. A reminder to everyone, we have a lot to get through. Please limit yourself to one question. Next, we’d like to open it up to Lafitani Sotiriou from MST to ask a question.

Lafitani Sotiriou, Analyst, MST: Congratulations on the strong result, and thank you for the opportunity to ask a question. Appreciate the extra color on AI. Can I dive a little more into this? Both said, you both said you wanna build faster and work more efficiently. Can you just talk us through, in terms of the build faster? I know that Nativo’s new, but we previously had on the roadmap the seniors operating. I can see now that you’ve also got partner ecosystems listed. Can you talk us through, what does that mean by running faster? What, what’s scheduled for this year? On the same time, if you are gonna be able to work more efficiently, what’s that mean from a cost perspective?

Does that mean that you’re pretty happy with the number of staff you’ve got now, that you’ll be able to sort of keep it pretty steady into the future? Thank you.

Lauren Antonoff, Chief Executive Officer, Life360: I’ll start by saying that we think of our company as very early in our growth trajectory, which means there’s a lot of value for us to create. We have a lot of work to do, and we’re excited to put more resources against those things. AI helps us do that more efficiently. I’ll just give you one example. You know, there’s a certain period of time that when you have an idea for a new feature, it takes you to bring that feature to market. There’s all sorts of steps you go through, from early ideation to writing the code, to testing the code, and we’re applying AI in every stage of that. It is helping us ideate and prototype faster. It’s helping us get that code written very, very quickly, and it’s helping us test and iterate on those features.

That helps us take these ideas, these ways that we can create value, and deliver them faster. I am not gonna preview and tell you all the features that we haven’t yet released, but it’s helping us accelerate our roadmap. One of those areas that we’re invested in is partner ecosystem, and that’s sort of the example of working with the AccuWeathers and the Ubers to bring third-party capabilities forward to our members through our experience.

Bob Chen, Analyst, JP Morgan2: Thanks, Laf. Next, we’d like to open it up.

Lafitani Sotiriou, Analyst, MST: On the cost side, sorry, just the part on the cost side efficiencies wasn’t answered.

Bob Chen, Analyst, JP Morgan4: Yeah, what I would say, Laf, is that, you know, we are continuing to see, you know, efficiency gains there. We wanna plow those gains into growth in 2026. There’s a lot on our roadmap, as Lauren referred to do that. We don’t necessarily expect, you know, sort of gross cost, clawbacks in 2026. Thank you.

Bob Chen, Analyst, JP Morgan2: Thanks. next, we’d like to open it up to Maria Ripps from Canaccord to ask a question.

Bob Chen, Analyst, JP Morgan0: Great. Thanks so much for taking my question. I think you mentioned nearly 5 million registered pets, with nearly 90% of them in free Circles. It sounds like your near-term goal is to sort of grow penetration here. But can you maybe help us think about sort of deepening monetization among these free Circles with pets? Would that approach be different from sort of how you thinking about sort of monetizing free Circles more broadly?

Lauren Antonoff, Chief Executive Officer, Life360: It’s really heartening for us to understand more about our members. When we understand them better, we can serve them both through our subscriptions and through our advertising business. It sort of opens up both capabilities. This is why experiences like our Pet Finder Network are useful. They create substantial value to families, another way to make sure that every pet is safe and protected, not just those for subscribers. Doing that also gives us insights that’s certainly attractive to people advertising in the, in the pet market. Was there another point in your question that you were interested in? It’s, it’s a little hard to hear you, so if you can speak up, I can answer more.

Bob Chen, Analyst, JP Morgan0: No. I was just trying to understand how that would be different from monetizing sort of, free Circles in general. I think you sort of answered that.

Lauren Antonoff, Chief Executive Officer, Life360: Okay, great.

Bob Chen, Analyst, JP Morgan2: Great. Thanks, Maria. We’d like to open it up to Bob Chen from JP Morgan.

Bob Chen, Analyst, JP Morgan: Hey. Morning, team. Just a quick one from me, around the partner ecosystem piece. I mean, we saw that announcement with the partnership with Uber. Like, how does that flow through into your financials? Does it come through as additional advertising type revenues, and is that what we’re looking for in the partner ecosystem?

Bob Chen, Analyst, JP Morgan4: It’ll come through in a few different ways. Definitely advertising, but there’s also, as we get deeper into that relationship, both a subscription benefit on our side, and also for Uber. It’ll come through in a couple of different ways.

Lauren Antonoff, Chief Executive Officer, Life360: I’ll add that you’ll also see it come through in our product experiences and the value that we deliver for our members.

Bob Chen, Analyst, JP Morgan2: Thanks, Bob. We’d like to open it up to Mark Kelley or Brennan Robinson if they’re on the line. It looks like they might be on a dial. Not sure if they’re there. Okay. We’ll go back to them. Next, we’d like to open it up to Suraj from Citigroup.

Bob Chen, Analyst, JP Morgan6: Thank you. Can you hear me okay?

Bob Chen, Analyst, JP Morgan2: Yep.

Bob Chen, Analyst, JP Morgan6: All right, great. Lauren, just keen to double-click on your comment, or just in terms of the guidance for MAU, the first quarter being lower than the 20% and then stronger in the second half. Maybe because you had the big advertising campaign with the Super Bowl, et cetera, in the first quarter, has that... how has that tracked? It does seem like the guidance does, as you said, there’s product improvement. Just keen to understand how you... the confidence levels in the 20% growth, given it could move around, right? Just keen to understand the confidence and, you know, what, yeah, how much comfort do you have in that sort of 20% range. Thanks.

Lauren Antonoff, Chief Executive Officer, Life360: Our confidence is good, and we’re coming off a lot of momentum in 2025 and, you know, setting a big goal for 2026. We see that trajectory very clearly. The advertising campaigns that we do, especially brand building campaigns like that, are really designed to drive demand over a longer term horizon. They are letting more people know about us, and then we follow through and convert those people to registrations over time. We don’t necessarily see the impact in quarter. The signals that we’re seeing in terms of that awareness look really good to us.

Bob Chen, Analyst, JP Morgan2: Thanks, Suraj. Next, we’d like to open up to Wei-Weng Chen from RBC.

Bob Chen, Analyst, JP Morgan7: Hey, guys. Hey, guys. Just a question from me on AI efficiency gains. I guess there have been a few corporates such as Block and WiseTech here locally that have cited AI efficiencies as the rationale for large scale reductions in workforces. Is this something that, you know, could be a potential reality for Life360? Maybe more philosophically, can you give us your thoughts on these sorts of dramatic actions?

Lauren Antonoff, Chief Executive Officer, Life360: Maybe I’ll start this one, Russell, and then you take over. You know, we have been really intentional about how we grow and making sure that we are being efficient with our resources. The other thing that’s really, really different is that we are much earlier in our growth prospects. We have a lot of room to go. For us, this helps us sort of punch above our weight and grow faster to achieve that sort of next wave of growth for us. It’s different than more mature companies who have overhired and need to slash back. I think you will expect to see something very different from us. Russell, I’ll let you take it from there.

Bob Chen, Analyst, JP Morgan4: I’d probably just reiterate several of the same things. We are so early. Our employee headcount is relatively low. We look at things like your revenue per headcount, and we’re very well positioned there. You know, it’s just not something that we’re at that stage, as some of these companies that did overhire in COVID, for example. It’s just not necessary, and it would disrupt our growth.

Chris Smith, Analyst: Yeah, thanks so much.

Bob Chen, Analyst, JP Morgan2: Thanks, Wei-Wei Feng. Next, we’d like to open it up to Steven Chu from UBS.

Bob Chen, Analyst, JP Morgan5: Great. Thank you. It might be a little bit early to ask this question, but I wanted to see if you guys can shed any light on the type of advertisers that are on Nativo. Just kinda eyeballing the list of folks there, it seems like they’re more awareness and brand oriented, but I guess given the location data that you have, it seems like there’s probably all kinds of opportunities to run performance advertising. I’m just wondering who are on there now and what the outreach effort is gonna be to onboard some of the performance budgets. Thank you.

Lauren Antonoff, Chief Executive Officer, Life360: I’ll say the advertising base is quite diverse, and one of the things that being able to run offsite ads on different publishers lets us do is deliver different types of platforms, different types of advertising experiences for different advertisers with different needs. I don’t have a long list of specific names and. A funny anecdote as we were preparing for this, there’s at least some companies who said, like, "We don’t want you to use our name ’cause we don’t want you to tell everybody that we can see such positive outcomes that we’re seeing." I don’t know, Russell, if you wanna add anything more to that.

Bob Chen, Analyst, JP Morgan4: I guess the only, the other aspect is because we’re now able to utilize both, you know, on app and off app, as Lauren said earlier, the range of people that we can access is very much more attractive to big corporate advertisers. Because of that, we’re able to access sort of campaigns that we just weren’t able to do before.

Bob Chen, Analyst, JP Morgan5: Thank you.

Bob Chen, Analyst, JP Morgan2: Thanks, Steven. Next, we’d like to open up to John Marin. Wait, John, you can unmute.

John Marin, Analyst: unmuted. Thanks, RJ. Appreciate that. I’ll try and ask one question, maybe there’ll be a few answers to the one question. Think, just wanted to tease out a little more about the Nativo acquisition. You know, I know it’s a bit early, but, you know, maybe if you could just speak to their readiness, their readiness to execute on the data opportunity that you’ve basically handed them. Just maybe if you could talk about traction you’ve seen there to date and what the, you know, what your deterministic data might provide in terms of a pricing uplift relative to the business they were doing previously.

Maybe just a little more color around that and maybe the type of investments you have to make on that team, you know, in the first half of this year to help them win bigger engagements.

Lauren Antonoff, Chief Executive Officer, Life360: I’ve actually been really impressed with the alignment we have between the teams. I’ve been through a lot of M&A, and this one, you know, the puzzle pieces fit together better than typically. We’re seeing good traction. It is early on, but we feel great about where we’re going. In terms of things like pricing, you know, we think we have a lot of efficiencies that come from things like having our own built-in audience, having the data set that we have. It really sort of optimizes their, optimizes the cost, the margin profile quite a bit. We haven’t focused as much on pricing yet. I think that’s something we’ll look at later on.

Bob Chen, Analyst, JP Morgan4: The other thing I’d say is that it’s not, you know, we’re excited about you bring that team on board. That team is excited about having the extra, you know, capabilities that Life360’s, you know, first-party deterministic data provides to what they’re out there selling. You know, so far it is just looking like a great combination.

Lauren Antonoff, Chief Executive Officer, Life360: Yeah.

John Marin, Analyst: Great. Thanks, guys. Oh, sure.

Lauren Antonoff, Chief Executive Officer, Life360: One thing that I’ll add is that, you know, in bringing them together, it really helps us create a walled garden where we can reach those 95% of U.S. adults while keeping the data in the walled garden and providing the sort of privacy and family safe experience that both our customers and advertisers want.

John Marin, Analyst: Okay. All right. Thanks, guys. Congrats on a good quarter.

Bob Chen, Analyst, JP Morgan2: Thanks, John. Next, we’d like to open it up to Chris Smith. Chris, can you unmute?

Chris Smith, Analyst: Thank you, guys. Look, just real interesting, Lauren, in the point you made around pet and the opportunity there. Clearly you’re cycling a very difficult comp in terms of MAU growth in first quarter 2025, apologies. If you look at the 5 million pets, 90% that you said are in free MAUs, like, that’s the potential for you to take the Paying Circles up 50% if you convert them all. Can you maybe just help us think through, I guess, how we should think about that conversion opportunity through this year as you are investing in the pets through the first half? Thank you.

Lauren Antonoff, Chief Executive Officer, Life360: Yeah. I’m super excited about that opportunity. Everything we’ve seen so far tells us that, you know, long-term this should make a significant step in that, in our subscription penetration. The key thing is that we’re early in introducing Pets and Pet GPS to our audience. We wanna make sure that people understand it, that we know who they are, that we educate them, that we’re in the pet business, that we help them understand the value of the types of devices that we have. You know, right now the notion of putting a GPS on your pet is still new to most people. It’s gonna take us some time to build that.

We’re more focused on sort of a multi-year horizon than trying to rush to, you know, get the maximum sales in the short term.

Chris Smith, Analyst: Great. Thank you.

Bob Chen, Analyst, JP Morgan2: Thanks, Chris. Next I’d like to open up to Rob Sanderson with Loop.

Bob Chen, Analyst, JP Morgan3: Okay. Thank you. Thanks for the opportunity to ask a question. Can we talk about investment priorities a little bit? You know, your, obviously, your margin guide, EBITDA margin guide, shows some nice operating leverage again in 2026. You know, what areas do you expect to be spending relatively more? You’re probably gonna get some savings, not supporting Tile at brick-and-mortar, but any other areas you expect to maybe spend relatively less in 2026. Russell, on, I heard you comment on the Nativo margin being quite strong, but just compared to the nearly 90% gross profit margin you’ve been seeing in other revenue, you know, can you give us kind of some sense of range we should be thinking about as you layer in revenue share to your publishing partners with the acquisition?

Lindsay Bechtel, Analyst, Goldman Sachs: Russell, do you wanna take this one?

Bob Chen, Analyst, JP Morgan4: I’ll answer the first part of your later part of your question first, Rob. you know, in terms of in terms of margins, yes, we were had very strong margins in the early part of the Life360 advertising business, ’cause we were only delving in 1 part of that, you know, advertising ad tech stack. it was a digital piece that really had very little sort of flow-through costs. even when we bring in, you know, a broad range of, you know, addressing all of that stack, the margins will still be very strong. you call it in the in the sort of mid-seventies or at range in terms of gross margins.

you know, that is a, definitely continues to be a high margin business for us.

Bob Chen, Analyst, JP Morgan3: Yeah. Great. More of a sales investment this year or tech investment, both? Anything you could call out in areas you’d like to spend more and invest more?

Bob Chen, Analyst, JP Morgan4: Yeah, look, I mean, I think in terms of investments, it is the range of things. We have a lot of initiatives on the product roadmap that we’ll be investing in. We’ve talked about Pet GPS. We’re very much in testing mode for that. We wanna roll that out aggressively. You know, that is an acquisition vehicle for subscription. You know, that has a, you know, a cost up front that we really return over a period of time with subscription. Investing in international is gonna be important for us in 2026.

Bob Chen, Analyst, JP Morgan3: Thank you, Russell.

Bob Chen, Analyst, JP Morgan2: Thanks, Rob. Next, we’d like to open up to Eric Choi from Barrenjoey, please.

Eric Choi, Analyst, Barrenjoey: Hey. Thanks, Rae Kwon. I just had a quick question on FY 26 revenue guidance, probably for Russell Burke. Just a couple of components I was struggling with, I’ve probably done it wrong. Just on the subscription revenues, nominally, you’re guiding to $96 billion of growth in FY 26, and you did $91 million already in FY 25, and you’ve also called out you’re entering 2026 with accelerating Paying Circles growth. Just wondering on that piece, what I’m missing. On the other revenue, very helpful, Russell Burke, you told us Nativo is worth $63 million. If you back that out of your implicit FY 26 guidance, like, that other revenue bucket did $32 million of growth in 25, and you’re guiding for that to do $20 million or less in 26.

I’m just wondering on those two pieces, is it just conservatism or am I missing something?

Bob Chen, Analyst, JP Morgan4: I’ll let me try and address both of those quickly, Eric. We are definitely seeing, you know, acceleration in PC growth in 26. That’s a flow through of the momentum that we’re getting from 25 as we continue to really optimize that channel. We do expect to see volume increases. We’re not assuming that there’s much in the way of price increases, you know, specifically in 26 because we wanna deliver that value first. When you look at that sort of straight dollar comparison from year to year, what I would say is that 24 benefited from fairly significant price increases flowing through.

It’s not quite apples to apples to compare the dollar sort of increases year-over-year. We are expecting, you know, 30% revenue growth in 2026. Then, you know, in terms of the other revenue piece, what I would note is I said the majority of that $63 million will carry over. There’s definitely pieces that we will decide not to do as Life360. I wouldn’t strip out the whole of that. When you look at our guidance for other revenue, you know, including Nativo, I guess it’s something like a 120% increase. Even using that sort of $63 million, we’re in the range of 30% increase as a base case.

It will be more than that because, as I say, not all of that 60 will carry through.

Eric Choi, Analyst, Barrenjoey: Very helpful. Thanks.

Bob Chen, Analyst, JP Morgan2: Thanks, Eric. Next, I’d like to open it up for Lindsay Bechtel from Goldman Sachs.

Lindsay Bechtel, Analyst, Goldman Sachs: Hi guys. Hopefully you can hear me.

Bob Chen, Analyst, JP Morgan2: Yep.

Lindsay Bechtel, Analyst, Goldman Sachs: Yep, brilliant. I’m just gonna continue on from Eric’s question, actually, just on this other revenue guidance. Like, if I take the, I mean, it’s a $140 million-$160 million range. If I take the bottom end of that range, take away Nativo, which is circa $60 million-ish, let’s say, take away $30 million for data, you end up with, like, the implied kind of advertising contribution is, you know, somewhere between $45 million and $65 million is kind of my math. You’ve just exited doing $16 million in Q4. Like, I know you’re gonna probably tell me some of that is seasonality. I guess my question is, like, how much of Q4’s $16 million should we attribute to seasonality?

Like I said, just continuing kind of Eric’s question is, like, it does feel a little bit conservative that you’re exiting doing $16 a quarter and guiding to something like $40 for the full year. Just help us understand that, please.

Lauren Antonoff, Chief Executive Officer, Life360: Russell, you taking this one?

Bob Chen, Analyst, JP Morgan2: Russell, I think you’re on mute.

Bob Chen, Analyst, JP Morgan4: Thank you. Typical Zoom problem. Lindsay, I would end up sort of saying something of the same thing. I wouldn’t back out the whole 63, because there are pieces of that that won’t carry over. It’s sort of very, very much a base case from our perspective. There’s a lot of work to do in the integration in the first half. We definitely sort of see that, you know, growing and ramping quite quickly in the second half. Yes, it is, as we said, very much a seasonal business at this point, so even Q4 for last year had, you know, a good element of seasonality there.

Lindsay Bechtel, Analyst, Goldman Sachs: Sorry, just continuing the question. Is there a way to put a finer point on that? Like, of the 16 in Q4, could you give us, like, what percentage or what proportion of that is seasonality? Is it that easy to break out?

Bob Chen, Analyst, JP Morgan4: It’s really not that easy, but, you know, it’s going to be, you know, more than sort of 30% of that number.

Lindsay Bechtel, Analyst, Goldman Sachs: All right. Brilliant, thank you.

Bob Chen, Analyst, JP Morgan2: Thanks, Lindsay. Next, I’d like to open up to Chris Hulls.

Chris Hulls, Analyst: Thanks, RJ. Lauren, probably more one for you. Have you completed the relocation of manufacturing for Pet GPS, and is there any update on the launch of an elderly tracking device, please?

Lauren Antonoff, Chief Executive Officer, Life360: Great. It has taken us a little bit longer than we expected. We got stuck on some customs back and forth, but we are largely through that, and we’re almost done with moving Pet GPS. We haven’t yet moved Tile. We’re a little bit in wait and see as tariff policy is moving around. Sorry, what was the second part?

Chris Hulls, Analyst: Chris always spoke about potentially a launch.

Lauren Antonoff, Chief Executive Officer, Life360: Okay. Yeah.

Chris Hulls, Analyst: of an elderly tracking product.

Lauren Antonoff, Chief Executive Officer, Life360: Got it. That’s something that’s gonna take a little bit longer. We’re starting our way in elderly, in Aging Parents, really focused on bringing them into our ecosystem, and we’re working on devices for the future, but we don’t expect to launch those this year.

Chris Hulls, Analyst: Okay. Thank you.

Bob Chen, Analyst, JP Morgan2: Thanks, Chris. This will be our last question, so we’re running up on time, from Anabel Cantu.

Anabel Cantu, Analyst: Hi, guys. Thanks for the opportunity to ask a question. One final one on advertising. You saw that quite significant acceleration in Q4. Obviously, part of that is seasonality, part of that is with your new advertising products that you have released just with the Life360 platform. Maybe could we actually sort of dive into, like, particular advertising products you have in market right now with the platform, and then maybe could you give some, like, more granular examples of the advertising products you’re going to have with the Nativo platform integrated in the second half? Thank you.

Lauren Antonoff, Chief Executive Officer, Life360: I think that’s a, that’s a long question. It may need an investor day. Just at a, at a high level, you know, I think one of the things that you saw hit in Q4 is the relationship that we have with some of our direct deals. That isn’t necessarily a branded product like Uplift, or something like that. We did introduce a couple of new products last year, and I expect with now that Nativo’s with us, we’ll sort of formulate how we describe that as a product. It’s probably a longer discussion than we have now.

Bob Chen, Analyst, JP Morgan2: All right. Thanks, Anabel. With that, we’re gonna conclude our Q&A, and I’m gonna turn over to Lauren for closing remarks.

Lauren Antonoff, Chief Executive Officer, Life360: I am really proud of what the team has built, and super excited for what we’re gonna deliver in 2026. Thank you all for joining us, and we’ll see you next time.