Life360: An Emerging ASX Growth Story

Life360 represents itself as a strong investment case led by strong user growth and quarterly results.

Life360 Inc. (ASX: 360)

Life360 Inc. (ASX: 360) is one of the top ASX technology stocks to watch out for, as the company is recovering its recent low with a weekly return of ~14% and market capitalization of $243.18M.

Multi-year repurchase program

360 has announced on 17 May 2026, stating that its Board of Directors has authorized management’s deployment of a multi-year share repurchase program of up to $225M. The objective of the program is to return value to the shareholders by minimizing dilution from stock-based instruments.

Quarterly Results

Earlier, 360 had announced its first quarterly results of FY26 for the period ended in March 2026, stating that their Q1 FY26 revenue surged by +38% YoY to $143.1M, with annualized monthly revenue (AMR) increased by 32% YoY to $517.9M.

Subscription-based revenue increased by 32% to $108M, primarily driven by growth in the paying circle and an uplift in ARPRC. The company has delivered strong performance in the advertising business, with revenue surging by ~3.3x to $19.7M driven by growth in managed advertising following the acquisition of Nativo.

360’s global monthly active users of ~97.8m across 180+ countries globally and global paying circles surged by 27% YoY to ~3m, with ARPPC increasing by 7%. The company’s US penetration hit 17% and is currently ranked 7th among social networking apps by DAU in the U.S.

The company has reported a reported adjusted EBITDA of $17.12M, an increase of 7% YoY, and an adjusted EBITDA margin that stands at 12%. Net profit for Q1 FY26 reached $2.8M. The company faced margin pressure as the operating expenses increased by 46% YoY to 118.6M.

The company delivered strong cash flow results, with cash and cash equivalents doubled with a growth of 107% YoY to $352.9M and operating cash flow increased by 42% to $17.2M.

Outlook

The company has raised its management guidance for FY26, with MAU expected to increase by 17-20% in FY26, led by strong growth in the second half of FY26. The company also raised its overall revenue guidance to be around $650M-685M, which is a 33-40% increase YOY. The update comes from the subscription revenue, which will be in the range of $470M-$475M, while other revenue segments remain unchanged. The company expects hardware revenue to be in the range of $40M-$50M, advertising revenue of $98M-$115M, and other revenue of $42M-$52M.

The company has upgraded its adjusted EBITDA guidance to $130-$140M, which is an increase from previous guidance of $128M-$138M and an adjusted EBITDA margin of approximately 20%. The management is expecting its profitability will improve in the second half of FY26, depending on the timing of growth investments and typical business seasonality.

Conclusion

360 as a company strengthens itself by delivering support operational as well as financial performance supported by user growth with improved monetization and profitability. The company continues to expand its subscription size, advertising capabilities, product improvement, and disciplined execution. As the company’s growth momentum continues and increases engagement in the platform, the company is well positioned to create sustainable growth in the future.

(Source: Company Announcements)