Revenue growth accelerated to 38.1% in 2026Q1, though the company continues to struggle with profitability, reporting a -5.6% operating margin despite maintaining a 77.3% gross margin.
| Sales/Revenue | 528.98M | 489.48M | 371.48M | 304.52M | 228.31M | 112.64M | 80.66M | 0 |
| Revenue Growth % | 33.28% | 31.76% | 21.99% | 33.38% | 102.68% | 39.66% | - | - |
| Cost of Goods Sold | 121.12M | 108.64M | 92.33M | 81.88M | 79.71M | 22.77M | 15.39M | 0 |
| COGS % of Revenue | - | 22.19% | 24.85% | 26.89% | 34.91% | 20.21% | 19.09% | - |
| Gross Profit | 407.86M | 380.84M | 279.16M | 222.64M | 148.6M | 89.88M | 65.26M | 0 |
| Gross Margin % | 77.1% | 77.81% | 75.15% | 73.11% | 65.09% | 79.79% | 80.91% | - |
| Gross Profit Growth % | - | 36.43% | 25.39% | 49.83% | 65.34% | 37.72% | - | - |
| Operating Expenses | 399.3M | 362.02M | 287.13M | 252.62M | 243.01M | 122.14M | 81.91M | 0 |
| OpEx % of Revenue | - | 73.96% | 77.29% | 82.96% | 106.44% | 108.43% | 101.56% | - |
| Selling, General & Admin | 262.02M | 233.61M | 174.06M | 151.66M | 140.53M | 66.54M | 42.27M | 0 |
| SG&A % of Revenue | - | 47.73% | 46.86% | 49.8% | 61.55% | 59.07% | 52.41% | - |
| Research & Development | 137.28M | 128.41M | 113.07M | 100.97M | 102.48M | 50.99M | 39.64M | 0 |
| R&D % of Revenue | - | 26.23% | 30.44% | 33.16% | 44.89% | 45.27% | 49.15% | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 4.6M | 0 | 0 |
| Operating Income | 8.56M | 18.83M | -7.98M | -29.98M | -94.41M | -32.26M | -16.65M | 0 |
| Operating Margin % | 1.62% | 3.85% | -2.15% | -9.85% | -41.35% | -28.64% | -20.64% | - |
| Operating Income Growth % | - | 336.03% | 73.4% | 68.24% | -192.64% | -93.75% | - | - |
| EBITDA | 19.29M | 32.5M | 2.13M | -20M | -85.21M | -31.39M | -15.99M | -28.76M |
| EBITDA Margin % | 3.65% | 6.64% | 0.57% | -6.57% | -37.32% | -27.86% | -19.83% | - |
| EBITDA Growth % | 71.15% | 1423.82% | 110.66% | 76.53% | -171.5% | -96.24% | 44.39% | - |
| D&A (Non-Cash Add-back) | 10.73M | 13.68M | 10.11M | 9.98M | 9.2M | 876K | 657K | 0 |
| EBIT | 15.79M | 32.66M | -7.98M | -29.98M | -94.41M | -27.66M | -16.65M | -28.76M |
| Net Interest Income | 17.52M | 13.71M | 0 | 0 | 0 | 0 | 0 | -192K |
| Interest Income | 17.52M | 13.71M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 192K |
| Other Income/Expense | 11.03M | 13.83M | 3.35M | 2.43M | 3.09M | -1.17M | 317K | 62K |
| Pretax Income | 19.59M | 32.66M | -4.63M | -27.55M | -91.32M | -33.43M | -16.33M | 0 |
| Pretax Margin % | 3.7% | 6.67% | -1.25% | -9.05% | -40% | -29.68% | -20.25% | - |
| Income Tax | -129.64M | -118.17M | -71K | 616K | 312K | 127K | 0 | 0 |
| Effective Tax Rate % | -661.78% | -361.84% | 1.53% | -2.24% | -0.34% | -0.38% | 0% | - |
| Net Income | 149.23M | 150.83M | -4.55M | -28.17M | -91.63M | -33.56M | -16.33M | -28.95M |
| Net Margin % | 28.21% | 30.81% | -1.23% | -9.25% | -40.13% | -29.79% | -20.25% | - |
| Net Income Growth % | 1454.35% | 3411.35% | 83.83% | 69.26% | -173.05% | -105.44% | 43.58% | - |
| Net Income (Continuing) | 149.23M | 150.83M | -4.55M | -28.17M | -91.63M | -33.56M | -16.33M | -28.95M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.74 | 1.77 | -0.06 | -0.42 | -1.50 | -0.65 | -0.33 | -0.84 |
| EPS Growth % | 1722.14% | 2900.63% | 84.95% | 72% | -130.77% | -96.97% | 60.71% | - |
| EPS (Basic) | - | 1.95 | -0.06 | -0.42 | -1.47 | -0.65 | -0.33 | -0.84 |
| Diluted Shares Outstanding | 85.68M | 85.17M | 72.13M | 66.75M | 62.84M | 51.66M | 49.35M | 34.53M |
| Basic Shares Outstanding | 80.15M | 77.25M | 72.13M | 66.75M | 62.21M | 51.66M | 49.35M | 34.53M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Operating margin volatility
According to the latest quarterly data, Life360 has demonstrated robust revenue expansion, with growth accelerating to 38.1% in 2026Q1, signaling that the company's freemium-to-paid conversion strategy is successfully capturing market share despite the inherent cyclicality of its hardware-integrated business model.
The consistent double-digit revenue growth suggests that the platform's social graph is effectively driving user acquisition and retention. Investors should monitor whether this trajectory can be maintained as the company approaches higher penetration levels in its core North American market.
As reported in financial statements, Life360 maintains a gross margin profile near 77%, yet operating margins remain thin or negative, reflecting the heavy burden of R&D and SG&A expenses required to support its hybrid software-hardware ecosystem.
The disparity between high gross margins and low operating margins indicates that the company has not yet achieved the necessary scale to leverage its fixed cost base. This suggests that profitability remains highly sensitive to fluctuations in marketing spend and hardware supply chain costs.
Based on reported figures, the significant divergence between the 30.81% net margin and the 3.85% operating margin suggests that headline profitability is heavily influenced by non-recurring items or tax benefits rather than core operational performance.
Analysts should exercise caution when evaluating net income, as these one-time gains mask the underlying volatility of the company's operating results. A focus on operating income is required to assess the true sustainability of the business model.
Data from recent filings indicates that Life360 continues to prioritize aggressive investment, with R&D and SG&A expenses consistently scaling alongside revenue, which may indicate a strategic choice to sacrifice short-term profitability for long-term ecosystem dominance.
The persistent level of stock-based compensation and rising SG&A costs suggest that the company is in a high-spend phase to fuel its expansion. Investors should monitor whether these expenditures yield a commensurate increase in long-term customer lifetime value.
Despite strong revenue growth, the company's inability to consistently deliver positive operating margins, as evidenced by the -5.6% operating margin in 2026Q1, raises questions about the long-term scalability of its current cost structure.
Short-sellers may focus on the company's reliance on hardware sales, which inherently carry lower margins and higher operational complexity than pure-play software. This warrants further investigation into whether the platform can achieve meaningful operating leverage without compromising its competitive position.
Quick answers to the most common questions about buying LIF stock.
For fiscal year 2025, Life360, Inc. (LIF) reported total revenue of $489.5M.
Life360, Inc. (LIF) is profitable, generating $150.8M in net income for the fiscal year ending 2025 with a net profit margin of 30.8%.
Life360, Inc. (LIF) reported an operating income of $18.8M, resulting in an operating profit margin of 3.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Life360, Inc. (LIF) generated $380.8M in gross profit for the year, representing a gross profit margin of 77.8%. This demonstrates the company's core pricing power and production efficiency.