Life360, Inc. (LIF) AI Stock Analysis

• Market Cap: $4.46B
• Dividend Yield: N/A
• Average Volume (3M): 785.42K
• Price to Earnings (P/E): 161.6
• Beta (1Y): 1.88
• Revenue Growth: 33.86%
• EPS Growth: N/A
• Country: US
• Employees: 455
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.28
• Shares Outstanding: 78,400,520
• 10 Day Avg. Volume: 647,268
• 30 Day Avg. Volume: 785,423
• PEG Ratio: 7.69
• Price to Book (P/B): 8.30
• Price to Sales (P/S): 8.01
• P/FCF Ratio: 108.32
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 17.68
• Enterprise Value/Gross Profit: 22.76
• Enterprise Value/Ebitda: 245.69
• 1Y Price Target: $89.18
• Price Target Upside: 56.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.38
• Revenue Forecast (FY): $641.39M

• Rating: 66 Neutral
• Price Target: $65.00 ▲(14.36% Upside)

Life360, Inc. has a solid financial foundation with strong revenue and cash flow growth. The positive earnings call sentiment and strategic expansions are significant strengths. However, technical indicators and high valuation pose risks, suggesting caution.

Positive Factors

Subscription Growth and Paying Users

Sustained double-digit subscription and paying-user growth signals an expanding base of recurring revenue, improving predictability and customer lifetime value. A larger paying cohort supports scalable unit economics, funds product investment, and reduces revenue volatility over the medium term.

Advertising Expansion and Ad Tech Acquisition

Rapid ad revenue growth plus the Nativo acquisition structurally diversifies revenue beyond subscriptions. Integrating ad tech can raise monetization per MAU, improve margins through higher-yield inventory, and create a sustainable multi-revenue stream model that strengthens long-term cash generation.

Robust Free Cash Flow and High Gross Margins

Strong FCF growth and high gross margins indicate the core app business scales well and converts revenue into cash. Healthy cash generation provides flexibility to fund R&D, M&A (e.g., Nativo), and debt reduction, sustaining investment in competitive advantages over the medium term.

Negative Factors

Low Operating Profitability

Despite revenue and gross margin strength, very low EBIT/EBITDA margins point to elevated operating costs or inefficient scaling in some areas. Persistently thin operating profitability could constrain reinvestment, limit margin improvement even as revenue grows, and increase sensitivity to cost shocks.

Moderate Leverage and Equity Mix

A debt-to-equity near 0.85 reflects meaningful leverage that, while manageable, reduces balance sheet flexibility. In a downturn or for opportunistic investment, elevated leverage can raise financing costs and constrain capital allocation choices over the medium term compared with a lower-leverage peer profile.

Hardware Revenue Weakness and Tariff Headwinds

Declining hardware sales and tariff-driven cost pressures undermine a product avenue that historically aided ecosystem engagement and upsells. Continued weakness elevates reliance on software/ads for growth, risks lower attachment rates, and may compress margins if hardware cost pressures persist.

Life360, Inc. Business Overview & Revenue Model

Company Description

Life360, Inc. operates a technology platform to locate people, pets, and things in North America, Europe, the Middle East, Africa, and internationally. The company provides Life360 mobile application under the freemium model, which offers its services to users at no charge; and provides Life360 Platform, which offers location coordination and safety, driving safety, digital safety, and emergency assistance services. It also provides tile hardware tracking devices to locate lost devices sold through online and brick and mortar retail channels, as well as directly through Tile.com; tile mobile application that includes a free service, as well as two paid subscription options, such as Premium and Premium Protect to offer additional services, including warranties and item reimbursement; Jiobit subscriptions; and Jiobit wearable location devices for young children, pets, and seniors primarily in the United States through online retailers. The company was formerly known as LReady, Inc. and changed its name to Life360, Inc. in October 2011. Life360, Inc. was incorporated in 2007 and is headquartered in San Mateo, California.

How the Company Makes Money

Life360 generates revenue primarily through subscription services. The company offers a freemium model where basic features are available for free, but users can subscribe to premium plans for enhanced functionalities such as location history, driving analysis, and emergency services. These subscriptions are available on a monthly or annual basis. Additionally, Life360 monetizes through partnerships and integrations with other service providers, including insurance companies and automotive services, which may offer bundled services to their customers. Advertising revenue may also contribute to earnings, although it represents a smaller portion of their overall revenue model. The company continues to explore partnerships and new features to strengthen its revenue streams further.

Life360, Inc. Financial Statement Overview

Summary

Life360, Inc. demonstrates strong financial performance with significant revenue growth and improved profitability. The company shows robust cash flow generation, though operational efficiency and debt management need attention.

Income Statement

Life360, Inc. has shown strong revenue growth with a 7.4% increase in the TTM period, supported by a healthy gross profit margin of 77.1%. The net profit margin has improved significantly to 6.45%, indicating enhanced profitability. However, the EBIT and EBITDA margins remain relatively low at 1.16% and 3.82%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.85, reflecting a balanced approach to leveraging. The return on equity has improved to 7.65%, indicating better utilization of equity. However, the equity ratio of 49.7% suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Life360, Inc. has demonstrated impressive free cash flow growth of 50.07% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.60, and the free cash flow to net income ratio is 0.92, indicating efficient cash flow management. These metrics suggest a robust cash flow position, supporting future growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	459.03M	371.48M	304.52M	228.31M	112.64M	80.66M
Gross Profit	356.69M	279.16M	222.64M	148.60M	89.88M	65.26M
EBITDA	33.04M	2.13M	-20.00M	-85.21M	-26.79M	-15.99M
Net Income	29.68M	-4.55M	-28.17M	-91.63M	-33.56M	-16.33M
Balance Sheet
Total Assets	787.45M	441.58M	321.72M	339.63M	302.38M	86.93M
Cash, Cash Equivalents and Short-Term Investments	455.73M	159.24M	68.96M	75.44M	230.99M	56.41M
Total Debt	309.91M	723.00K	5.56M	8.39M	14.37M	3.07M
Total Liabilities	396.01M	83.03M	74.65M	95.09M	52.33M	21.82M
Stockholders Equity	391.45M	358.55M	247.06M	244.54M	250.04M	65.12M
Cash Flow
Free Cash Flow	56.21M	27.48M	5.30M	-57.76M	-12.23M	-7.90M
Operating Cash Flow	64.15M	32.61M	7.52M	-57.05M	-12.15M	-7.25M
Investing Cash Flow	-40.77M	-10.13M	-2.22M	-111.63M	-7.06M	-653.00K
Financing Cash Flow	273.66M	67.27M	-24.95M	27.71M	193.95M	445.00K

Life360, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIF, the sentiment is Negative. The current price of 56.84 is below the 20-day moving average (MA) of 63.96, below the 50-day MA of 70.58, and below the 200-day MA of 72.71, indicating a bearish trend. The MACD of -3.26 indicates Positive momentum. The RSI at 26.89 is Positive, neither overbought nor oversold. The STOCH value of 9.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LIF.

Life360, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FROG	73 Outperform	$6.73B	-81.46	-9.88%	―	22.69%	-32.47%
LIF	66 Neutral	$4.46B	161.62	8.12%	―	33.86%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	59 Neutral	$338.00M	-10.77	-20.20%	―	-6.23%	28.57%
BULL	52 Neutral	$4.09B	-7.24	―	―	―	―
SMRT	51 Neutral	$348.13M	-5.15	-25.48%	―	-24.30%	-181.62%
BMBL	51 Neutral	$402.48M	-1.87	-25.34%	―	-7.43%	61.36%