Life360, Inc. (LIF) AI Stock Analysis

• Market Cap: $3.78B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 141.6
• Beta (1Y): 1.89
• 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: 676,027
• 30 Day Avg. Volume: 1,006,506
• 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: 0.99
• Enterprise Value/Revenue: 8.19
• Enterprise Value/Gross Profit: 10.53
• Enterprise Value/Ebitda: 113.73
• 1Y Price Target: $92.06
• Price Target Upside: 90.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.38
• Revenue Forecast (FY): $650.78M

• Rating: 70 Outperform
• Price Target: $67.00 ▲(38.95% Upside)
• Action: Upgraded Date: 01/24/26
• Date: Action: Upgraded 01/24/26

The score is driven primarily by solid financial performance (especially strong free cash flow growth) and a very positive earnings call with raised guidance and strong subscription/advertising momentum. Offsetting factors are elevated valuation (very high P/E) and only mixed technical signals with incomplete longer-term trend recovery.

Positive Factors

Robust free cash flow

Sustained 50.07% FCF growth demonstrates strong cash generation that supports reinvestment, organic growth, and M&A without heavy equity issuance. This durable cash conversion improves flexibility to fund advertising roadmap, product development, or debt reduction over the next 2–6 months.

Recurring subscription momentum

High subscription growth reflects durable product-market fit and predictable recurring revenue. Strong conversion of users to paid tiers improves revenue visibility and ARPU, enabling scalable unit economics and long-term margin expansion as fixed costs are leveraged across a growing base.

Advertising expansion and strategic ad-tech M&A

Rapid ad revenue growth and acquisition of ad-tech capability provide a structural revenue diversification lever beyond subscriptions. Integrating Nativo can increase ad yield, productize targeting, and scale higher-margin monetization from the large MAU base, strengthening long-term revenue mix.

Negative Factors

Moderate leverage

A 0.85 debt-to-equity ratio indicates meaningful leverage that can constrain capital allocation flexibility. In a tightening rate environment or weaker cash cycles, debt servicing could limit opportunistic investment or make funding higher-cost, increasing financial risk over the medium term.

Thin operating margins

Low EBIT and EBITDA margins signal limited operating leverage and vulnerability to cost inflation or competitive pricing pressure. While adjusted EBITDA is improving, narrow core operating profitability means small adverse revenue or cost moves can materially compress earnings.

Hardware and MAU growth headwinds

Declining hardware sales (tariff-impacted) expose supply-chain and product-mix risk, while slower MAU growth—attributed to marketing shifts—can cap the addressable ad and subscription expansion. Both factors could constrain durable top-line and engagement-driven monetization.

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

Strong financial execution led by improved profitability (net margin 6.45%) and solid revenue growth (TTM +7.4%). Cash generation is a standout with free cash flow growth of 50.07%, while the balance sheet shows moderate leverage (debt-to-equity 0.85) and only modest operating margins (EBIT 1.16%, EBITDA 3.82%).

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: 48.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 48.22 is below the 20-day moving average (MA) of 54.02, below the 50-day MA of 59.64, and below the 200-day MA of 74.79, indicating a bearish trend. The MACD of -3.57 indicates Positive momentum. The RSI at 36.10 is Neutral, neither overbought nor oversold. The STOCH value of 17.85 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
LIF	70 Outperform	$3.78B	141.57	8.12%	―	33.86%	―
FROG	63 Neutral	$4.45B	-62.58	-8.65%	―	22.69%	-32.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	59 Neutral	$337.30M	-10.85	-20.20%	―	-6.23%	28.57%
BULL	52 Neutral	$2.89B	-5.33	―	―	―	―
SMRT	51 Neutral	$298.94M	-4.56	-25.48%	―	-24.30%	-181.62%
BMBL	51 Neutral	$328.07M	-1.53	-25.34%	―	-7.43%	61.36%