Life360: 1Q Rev/EBITDA beat but modest FY raise & user outlook weighs on sentiment

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Life360: 1Q Rev/EBITDA beat but modest FY raise & user outlook weighs on sentiment

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Life360

1Q Rev/EBITDA beat but modest FY raise

& user outlook weighs on sentiment

Reiterate Rating: BUY | PO: 60.00 USD | Price: 43.28 USD

1Q beats on Rev/ paying circles; user growth disappoints 12 May 2026

1Q Rev/ EBITDA of $143mn/ $17mn was above Street estimates at $138mn/ $15mn. In Equity

1Q, PC net adds accelerated to 200k QoQ vs. Street expectations of 140k. However,

total MAUs growth decelerated to 17% y/y and was slightly below the Street

Key Changesexpectations at 18%. Life360 has raised high end of its FY26 revenue and EBITDA guide

by $5mn and $2mn respectively but lowered MAU growth outlook to 17-20% y/y (vs (US$) Previous Current

20% guided previously) as technical issues impacted new user registrations in 1Q/QTD. 2026E Rev (m) 676.4 684.8

High-value user growth intact despite headline MAU miss 2027E2028E RevRev (m)(m) 835.8996.9 1,013.7845.1

The durability of MAU growth remains a key debate on the stock and the guidance 2026E EPS 0.62 0.65

downgrade on 2026 MAU growth is likely to add to those concerns. We look through the 2027E EPS 1.11 1.10

near-term miss and stay positive on the medium-term opportunity as underlying 2028E EPS 1.48 1.29

engagement trends remain relatively resilient than the headline numbers suggest. In 1Q,

majority of the MAU shortfall came from lower-monetizing international regions tied to Nitin Bansal, CFA

lower-end Android devices, while higher-value international markets remained strong, Research Analyst

BofAS

with UK MAUs growing 25% y/y, Canada 32%, and ANZ 24%. In our view, the launch of +1 415 676 3551

Uber integration in 2H should lift user awareness and help accelerate MAU growth. nbansal7@bofa.com