Life360 shares rebound after latest results - could this be a good entry point for investors?

Life360 has solid growth trajectory supported by higher subscription revenue and a wider international presence. Its emerging opportunities in advertising and AI also make it an interesting opportunity.

Top 5 ASX Small Cap Stocks to Buy in FY26

Life360, Inc. (ASX: 360) shares have started to rebound after the latest Q3 results backed by impressive revenue growth and operating leverage. Expansion of its global audience has stood out as well. More users are now starting to use paid memberships and developing advertising and AI services.

Growth backed by a large user base

Life360’s family safety platform has a combination of location sharing, driver reports, crash detection and services for pets and connected devices. Monthly active users reached 107.7 million as at 30 September 2026 which grew 17% from last year and there were 5.3 million net additions in the quarter. International users reached 51.9 million while paying circles increased 26% to 3.4 million after 188,000 net additions. Average revenue per paying circle rose 4% to $143.56.

Total Q3 revenue rose 40% from prior corresponding period to US$174.1 million including subscription revenue of US$124.2 million and advertising revenue of US$25.4 million which was up 250%. Core subscription revenue increased 32% to US$119.9 million while annualised monthly revenue reached US$578 million which grew 29%.

Adjusted EBITDA rose 41% to US$34.6 million with a 20% margin while reported net income increased 130% to US$22.5 million.

Advertising and AI are additional growth avenues

The Nativo acquisition expanded Life360’s managed advertising capabilities and helped to drive the increase in advertising revenue while management sees 2026 as the foundation for a larger advertising and partnership business in 2027.

Life360 is also making its family intelligence available to third-party AI agents and members will decide whether their Circle information is shared and new in-app AI experiences are planned for upcoming quarters.

Its AI monetisation engine matches members with relevant features, plans and payment options, with early gains in higher-tier Platinum subscriptions being proof of it being beneficial.

Is it worth buying right now?

Management has forecast FY26 revenue of US$665 million to US$681 million which represents year-on-year growth of 36% to 39%. Adjusted EBITDA is expected to reach US$132 million to US$138 million with an anticipated margin of approximately 20%. The company has maintained its MAU growth guidance of 17% to 20%. Life360 has also narrowed its advertising revenue guidance to US$98 million to US$102 million. Hardware revenue is expected to range between US$35 million and US$40 million.

Cost efficiency and lower seasonal spending on growth media should also support profitability.

Life360 has a market capitalisation of $5.20 billion. Its forward price/cashflow multiple is 10.87 while its trailing price/earnings ratio is 23.3. Such valuation multiples are reasonable given the company's growth rate. The latest results provide further support for the investment case. At the current valuation levels, Life360 is an attractive buy and hold opportunity for investors.

(Source: Company Announcements)