360 -19.44%: delivered a solid first-half result, with revenue growth remaining strong and profitability continuing to improve. However, shares were hit after management maintained rather than upgraded FY26 guidance, which disappointed a market that had become increasingly optimistic into the result.
Key numbers:
- 2Q revenue of US$159.0 million.
- 2Q adjusted EBITDA of US$31.1 million.
- 2Q net income of US$5.1 million.
- Annualised monthly revenue reached US$537.2 million.
Management maintained FY26 guidance for revenue of US$650–685 million and adjusted EBITDA of US$130–140 million, with the EBITDA midpoint broadly in line with consensus around US$136 million.
The issue was less about the quarter and more about expectations. The stock had rallied strongly into the result, and with user growth improving and paying circles continuing to expand, we (and clearly others) were hopeful of an upgrade to the full-year outlook, which didn’t happen.
Importantly, the underlying operating trends remain encouraging. Management said monthly active user growth had returned to the trajectory outlined last quarter, while disciplined execution continues to drive paying-circle growth and stronger monetisation.
MM’s view: This was not a bad result, but expectations had moved ahead of the numbers, and the stock pulled back to levels it was trading at two weeks ago. Life360 continues to grow revenue, improve profitability and scale its subscription model – it’s just the SP had run hard into the result.
MM remains long & bullish 360
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