0001581760-25-000180
SEC filingRevenue grew 36% YoY to $115M, driven by subscription growth and improved margins, leading to net income of $7M.
For Q2 2025, Life360 reported total revenue of $115.4 million, a 36% increase from $84.9 million in Q2 2024. Subscription revenue rose 35% to $88.6 million, driven by 25% growth in Paying Circles and price increases. Hardware revenue grew modestly 3% to $12.3 million despite a 21% increase in units shipped, due to higher discounts and bundling impacts. Other revenue doubled to $14.5 million, primarily from the new Placer.ai data agreement and advertising growth.
Gross profit increased 42% to $90.5 million, with gross margin expanding to 78% from 75% year-over-year. Subscription margin improved to 85% from 84%, while other margin rose to 89% from 87%. Hardware margin held at 17%. Operating income turned positive to $2.0 million from a loss of $2.4 million, aided by 19% increases in R&D and G&A but a 60% surge in sales and marketing spend. Net income reached $7.0 million, versus a $11.0 million loss, boosted by $4.6 million in other income (including $1.3 million gain on investments and $3.4 million net other income).
Subscription remains the core profit engine, contributing 77% of revenue with accelerating unit economics (ARPPC +8%). Hardware revenue is pressured by discounting in online channels, though unit growth signals strong consumer demand. The other revenue segment is scaling rapidly, now 13% of revenue, with high margins and a new data partnership providing recurring upside.
Management expects continued investment in R&D and sales/marketing to drive member growth and brand awareness. Cost of revenue will increase in absolute terms. No specific numerical guidance is provided, but the company believes existing cash ($432.7M, up from $159.2M) and cash flows will support operations for at least 12 months. The recent $320M convertible note issuance strengthens liquidity for strategic initiatives.
As of June 30, 2025, Life360 reported cash and cash equivalents of $432.7 million, a significant increase from $159.2 million at year-end 2024, primarily driven by the issuance of $320 million in convertible senior notes. Total debt (net carrying amount) stood at $309.3 million. Shareholders' equity increased to $366.7 million from $358.5 million. Inventory totaled $9.7 million, and accounts receivable net was $58.9 million. The company also held $25.4 million in a convertible note investment and $5.9 million in a related party investment.
Life360 has $74.0 million in non-cancellable purchase commitments, consisting of $22.5 million due in the remainder of 2025, $25.5 million in 2026, and $26.0 million in 2027. These commitments relate to cloud platform services and a contract manufacturer. The company also has a non-cancelable operating lease with remaining payments of $0.6 million through 2026. No material litigation reserves were recorded.
Capital allocation activity in the first half of 2025 included the issuance of $320 million in 0.00% convertible senior notes due 2030, accompanied by $33.7 million in capped call transactions (recorded in equity). Capital expenditures totaled $4.3 million (cash basis), including $3.5 million for internally developed software and $0.8 million for property and equipment, representing 1.95% of total revenue. No share repurchases or dividends were reported.
The company operates as a single operating segment. Geographic revenue disclosure shows North America contributed $100.1 million (87%) in Q2 2025, with Europe/Middle East/Africa at $8.8 million and other international at $6.4 million. The majority of revenue (85% for the six months) was generated in the United States.