Back to School

Research evidence excerpt

Not for redistribution without written consent of Morgan Stanley

M

Idea

August 11, 2026 12:04 PM GMT

Morgan Stanley Australia Limited+

Life360 | Asia Pacific

James Bales

Equity Analyst

Back to School

Chenny Wang, CFA

Equity Analyst

What’s Changed

Life360 (360.AX)

From

To

Price Target

A$32.00

A$31.50

US$66.24

US$65.20

Edward Xu

Research Associate

Life360 (LIF.O)

Price Target

2Q numbers were solid with MAU in line with expectations and

strong incremental rates of sub conversion. LIF took the first

steps towards the next US price rise, and early 3Q MAU

momentum looks promising. The stock sold off on a 2H skew for

MAU 39/61 and EBITDA 35/65. Reiterate OW.

Life360 (LIF.O, LIF US)

Australia Emerging Companies | Australia

skew. Yet given the sequential monthly improvement from an average of 0.6m/mth

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 10, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

in 1Q26, we think this achievable. Even assuming April added 1m MAU, the May/June

Fiscal Year Ending

run-rate would imply 5.4m in seasonally stronger 3Q. In addition, the quality of MAU

EPS (US$)**

Prior EPS (US$)**

Revenue, net (US$ mn)

EBITDA (US$ mn)

ModelWare net inc (US

$ mn)

P/E

EV/EBITDA

FCF yld ratio (%)**

Initial reaction of result vs. consensus here.

2H MAU growth - achievable: 2Q MAU +4.6m was +16% yoy vs. cons +16.1% and vs.

Sensor Tower MAU +18.7%. For FY26 we forecast +16.8m, implying a 35/65 1H/2H

remains strong, in terms of their propensity to convert to paying subs, and has been

consistently improving in US and International.

Ad guide unchanged, but audience engagement strong: Ad guidance unchanged.

Looking for low 60% GM, exiting at 65-70%. Audience - DAU/MAU improved to 47%

vs. 45% in 1Q26 and sessions/user improved to 6x vs. 5x in 1Q26, pointing to an

increase in available in-app inventory in addition to user growth. Monetisation:

Management suggested a stronger performance marketing vs. CPM skew, but with

Overweight

In-Line

US$65.20

1

US$64.61

US$112.54-37.01

86

US$9,865

US$9,369

US$64

12/25 12/26e 12/27e 12/28e

1.00

489

96

88

1.35

1.24

668

135

124

1.74

…