Free cash flow remains highly volatile, with margins fluctuating from a low of 2.4% in 2024Q2 to a peak of 24.1% in 2025Q4, while stock-based compensation frequently exceeds $10 million per quarter.
| Cash from Operations | 93.78M | 88.63M | 32.61M | 7.52M | -57.05M | -12.15M | -7.25M | -30.52M |
| Operating CF Margin % | - | 18.11% | 8.78% | 2.47% | -24.99% | -10.79% | -8.99% | - |
| Operating CF Growth % | 867.56% | 171.77% | 333.44% | 113.19% | -369.47% | -67.63% | 76.24% | - |
| Net Income | 149.23M | 150.83M | -4.55M | -28.17M | -91.63M | -33.56M | -16.33M | -28.95M |
| Depreciation & Amortization | 16.6M | 13.68M | 10.11M | 9.98M | 9.2M | 876K | 657K | 289K |
| Stock-Based Compensation | 45.57M | 55.46M | 42.27M | 38.51M | 34.68M | 11.75M | 8.09M | 0 |
| Deferred Taxes | -130.3M | -118.35M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 172.82M | 1.58M | -3.97M | 596K | -6.55M | 9.21M | 7M | 8.29M |
| Working Capital Changes | -9.32M | -14.57M | -11.24M | -13.4M | -2.76M | -434K | -6.66M | -10.14M |
| Change in Receivables | -12.52M | -23.52M | -16.12M | -9.05M | 6.47M | -2.69M | -1.15M | -2.17M |
| Change in Inventory | -5.57M | -1.81M | -3.96M | 5.81M | -497K | -859K | 0 | 0 |
| Change in Payables | -2.66M | 3.06M | -433K | -7.89M | -12.65M | 559K | 1.93M | -2.19M |
| Cash from Investing | -194.57M | -35.33M | -10.13M | -2.22M | -111.63M | -7.06M | -653K | -336K |
| Capital Expenditures | -3.26M | -1.79M | -1.19M | -506K | -701K | -81K | -653K | -410K |
| CapEx % of Revenue | 0.62% | 0.37% | 0.32% | 0.17% | 0.31% | 0.07% | 0.81% | - |
| Acquisitions | -2.83M | 0 | 0 | 0 | -110.93M | -2.98M | 0 | 74K |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -26.49M | -5.72M | -8.95M | -1.72M | 0 | -4M | 0 | 0 |
| Cash from Financing | 283.3M | 282.07M | 67.27M | -24.95M | 27.71M | 193.95M | 445K | 68.87M |
| Debt Issued (Net) | -1.28M | 309.12M | 0 | -3.6M | -2.82M | 2.07M | 0 | -5M |
| Equity Issued (Net) | 52.11M | 69.52M | 93M | 0 | 32.22M | 3.54M | -1.15M | 73.87M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -1.15M | 0 |
| Other Financing | 232.47M | -96.56M | -25.73M | -21.35M | -1.68M | 188.34M | 1.59M | 0 |
| Net Change in Cash | 182.33M | 335.02M | 89.75M | -19.65M | -140.98M | 174.58M | -7.46M | 38.01M |
| Free Cash Flow | 87.57M | 86.84M | 27.48M | 5.3M | -57.76M | -12.23M | -7.9M | -30.93M |
| FCF Margin % | 16.56% | 17.74% | 7.4% | 1.74% | -25.3% | -10.86% | -9.8% | - |
| FCF Growth % | 208.15% | 216% | 418.2% | 109.18% | -372.09% | -54.8% | 74.45% | - |
| FCF per Share | 1.02 | 1.02 | 0.38 | 0.08 | -0.92 | -0.24 | -0.16 | -0.90 |
| FCF Conversion (FCF/Net Income) | 0.59x | 0.59x | -7.16x | -0.27x | 0.62x | 0.36x | 0.44x | 1.05x |
| Interest Paid | 0 | 0 | 46K | 640K | 514K | 24K | 0 | 0 |
| Taxes Paid | 117K | 0 | 2.38M | 697K | 0 | 33K | 0 | 0 |
Operating margin volatility
According to recent quarterly filings, Life360 exhibits a volatile relationship between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly from -2.85 in 2023Q4 to 6.19 in 2026Q1, suggesting that reported net income is a poor proxy for the company's actual cash-generating capacity.
The extreme variance in the OCF/NI ratio indicates that non-cash items and accounting adjustments are significantly decoupling headline earnings from operational reality. Investors should interpret this as a signal that the company's profitability is currently driven by accounting factors rather than consistent cash inflows from core operations.
As reported in financial statements, Life360's free cash flow margins have shown significant inconsistency, ranging from a low of 2.4% in 2024Q2 to a peak of 24.1% in 2025Q4, highlighting the sensitivity of cash generation to seasonal hardware cycles and irregular operational expenditure patterns.
The erratic FCF trajectory suggests that the business model has not yet reached a steady state of cash production. The reliance on hardware sales likely introduces lumpy cash flows that complicate the predictability of free cash flow, warranting caution regarding the sustainability of recent margin peaks.
Based on Life360's reported figures, the company maintains a remarkably low capital intensity, with CapEx/Revenue ratios consistently remaining below 1.5% over the last ten quarters, which indicates that the business model is not heavily reliant on physical asset replacement to sustain its current growth trajectory.
The low capital expenditure requirements suggest that the company's primary investments are directed toward software development and marketing rather than heavy infrastructure. This asset-light profile may provide a buffer against operational downturns, provided that R&D spending remains effective at driving user acquisition.
Data from recent SEC filings reveals that Life360 consistently utilizes stock-based compensation, with quarterly figures frequently exceeding $10 million, which effectively masks the true cost of talent acquisition and dilutes the cash flow benefits that would otherwise accrue to shareholders from operational improvements.
The persistent reliance on stock-based compensation suggests that the company is using equity to preserve cash, which may be necessary given the thin operating margins. Analysts should monitor whether this dilution continues to outpace the growth in per-share cash flow, as it may indicate an unsustainable reliance on equity-based incentives.
Quick answers to the most common questions about buying LIF stock.
Life360, Inc. (LIF) generated $88.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Life360, Inc. (LIF) generated $86.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Life360, Inc. (LIF) spent $1.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.