Life360 (ASX: 360): Profit Turning, Dilution Rising?
This ASX Tech Stock just made a $275 million move. Should investors be cheering or cautious?
Life360 Inc (ASX: 360 | NASDAQ: LIF) is a US-based software company best known for its family safety platform, which offers location sharing, driving insights, crash detection, and emergency assistance features. With over 66 million monthly active users globally, its app has become a go-to tool for parents and households looking to stay connected. The company also owns Tile, a Bluetooth-enabled device-tracking business.
Shares in Life360 Inc have delivered a standout run over the past 12 months. From $15.390 on 20 June 2024, the stock has climbed to $31.940 by 20 June 2025 - a 108% gain. That momentum has been fuelled by an improving profit story and growing investor confidence in the company’s global expansion strategy.
Now, with its first profitable quarter on the books and a sizeable convertible note issue completed, Life360 is setting up for a new chapter - one that brings both opportunity and risk.
Profit finally arrives
In Q1 FY25, Life360 posted $103.6 million in revenue, up from $78.2 million in the same period last year. The headline result? A shift from a $9.8 million net loss to a $4.4 million net profit, marking its first-ever profitable quarter since listing.
Cash generation also improved, with $12.1 million in operating cash flow reported for the March quarter. This came alongside strength in both the subscription and hardware (Tile) segments. While costs rose particularly in marketing and R&D management has managed to balance growth investment with improving margins.
The company continues to show stable user metrics, low churn despite price rises, and growing traction in key developed markets like the US. These factors helped build confidence for a much larger strategic move.
A convertible raise with a twist
In early June, Life360 priced a $275 million zero-coupon convertible note offering, maturing in 2030. The notes are convertible at $80.97 per share a 32.5% premium to the company’s 2 June close of $61.11. To reduce dilution risk, Life360 also executed capped call transactions, protecting equity holders up to a share price of $122.22.
The company expects to receive net proceeds of $265.2 million, or $308.9 million if the over-allotment option is exercised. Roughly $29 million will go toward the capped call, while the rest will be directed toward strategic investments, potential acquisitions, and general corporate purposes.
This structure provides access to long-term capital without immediate dilution or interest costs a rare combination that’s only viable for companies with strong equity momentum and growing institutional support.
Should investors stay on board?
Life360’s execution is clearly improving, and the company’s profitable quarter is a significant milestone. Its model is now demonstrating scalability, especially in subscriptions, and recent fund manager commentary has highlighted the business as being largely shielded from tariff-related risks and global macro headwinds.
However, the convertible notes do come with long-term dilution potential if the stock outperforms. If shares rise above the $80.97 conversion price, noteholders may convert expanding the share base. That said, the capped call limits dilution at much higher levels, giving the company breathing room as it grows.
The bottom line?
Life360 is no longer a pre-profit growth story it’s now a cash-generating, expansion-minded business with strong investor backing. The raise strengthens its war chest, but investors will be watching closely to see if it can turn that capital into sustainable long-term value without eroding shareholder equity along the way.
(Source: Company Announcements)
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