Life360 1Q26 result conference call feedback

研报英文原文证据摘录

Life360 1Q26 result conference call feedback

Bob Chen AC Asia Pacific Equity Research

(61-2) 9003-8611 12 May 2026 J P M O R G A N

bob.chen@jpmorgan.com

Investment Thesis, Valuation and Risks

Life360 (Overweight; Price Target: A$36.00)

Investment Thesis

Life360 is a leading provider of location-based family tracking via mobile application. The

company operates a freemium subscription model, in which it monetizes premium features

including driver safety and reporting functionality. At 31 December 2025, 360 had 96

million monthly active users (MAU), and 2.8 million paying groups (circles), providing the

company with a significant amount of location data that may be leveraged for 360’s growing

advertising business.

Valuation

Our Dec-26 price target of A$36 is equal to our DCF-based valuation. We use a three-stage

DCF, followed by a five-year horizon where FCF fades to our terminal growth rate. Key

inputs: beta 1.3; WACC 10.5%, TGR 2.5%.

Risks to Rating and Price Target

Key upside/downside risks include:

• Better-/worse-than-expected subscriber additions.

• Better-/worse-than-expected conversion of free users into paying circles.

• An improvement/deterioration in the competitive environment, leading to: 1) user churn

and 2) paid user penetration performing better/worse than expected.

• Changes to the pricing structures with mobile application partners (iOS/Android) are a

key COGS item and could drive an improvement/deterioration in operating margins.

• Risks associated with data privacy/security given 360’s access to sensitive personal

information, driving: 1) risk of financial loss to the company and 2) risk of a

deterioration in sentiment towards the company that could impact net subscriber

growth.

• Risks/opportunities relating to the use of AI in software development.