Life360 (360) was hit yesterday, with the stock down ~10% after lowering its FY26 monthly active user growth guidance to 17–20%, from the previous 20% target.
Key takeaways:
- Monthly active users: 97.8m, +17% YoY
- Revenue: US$143.1m, +38% YoY
- Adjusted EBITDA: US$17.1m, +7.3% YoY
- Net income: US$2.78m, -37% YoY
- Operating expenses: US$118.6m, +46% YoY
- FY26 revenue guidance: upgraded to US$650–685m, from US$640–680m
- FY26 adjusted EBITDA guidance: upgraded to US$130–140m, from US$128–138m
The market is focused on the monthly active users (MAU) downgrade rather than the better revenue and earnings outlook. Citi suggested the upgraded revenue guide looks conservative and margins could be stronger, but near term the debate will remain around user momentum. Overall, this was not a bad financial update, but it was a reminder that for high-multiple growth names, slowing user growth matters more than earnings upgrades.
MM remains patiently long 360 in the Emerging Companies Portfolio
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