Revenue growth accelerated to 37.8% year-over-year in 2026Q2, with gross margin expanding to 79.8%, yet operating margin remains razor-thin at -0.0%, indicating that scale has not yet translated into meaningful operating leverage.
Life360, Inc. (LIF) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 572.56M | 489.48M | 371.48M | 304.52M | 228.31M | 112.64M | 80.66M | 0 |
| Revenue Growth % | 33.96% | 31.76% | 21.99% | 33.38% | 102.68% | 39.66% | - | - |
| Cost of Goods Sold | 128.3M | 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 | 444.26M | 380.84M | 279.16M | 222.64M | 148.6M | 89.88M | 65.26M | 0 |
| Gross Margin % | 77.59% | 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 | 437.75M | 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 | 285.33M | 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 | 152.42M | 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 | 6.51M | 18.83M | -7.98M | -29.98M | -94.41M | -32.26M | -16.65M | 0 |
| Operating Margin % | 1.14% | 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 | 25.23M | 32.5M | 2.13M | -20M | -85.21M | -31.39M | -15.99M | -28.47M |
| EBITDA Margin % | 4.41% | 6.64% | 0.57% | -6.57% | -37.32% | -27.86% | -19.83% | - |
| EBITDA Growth % | 54.46% | 1423.82% | 110.66% | 76.53% | -171.5% | -96.24% | 43.83% | - |
| D&A (Non-Cash Add-back) | 18.72M | 13.68M | 10.11M | 9.98M | 9.2M | 876K | 657K | 289K |
| EBIT | 14.06M | 32.66M | -4.63M | -27.55M | -91.32M | -27.66M | -16.65M | -28.76M |
| Net Interest Income | 21.7M | 13.71M | 0 | 0 | 0 | 0 | 0 | -192K |
| Interest Income | 21.7M | 13.71M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 192K |
| Other Income/Expense | 7.55M | 13.83M | 3.35M | 2.43M | 3.09M | -1.17M | 317K | 62K |
| Pretax Income | 14.06M | 32.66M | -4.63M | -27.55M | -91.32M | -33.43M | -16.33M | 0 |
| Pretax Margin % | 2.46% | 6.67% | -1.25% | -9.05% | -40% | -29.68% | -20.25% | - |
| Income Tax | -133.23M | -118.17M | -71K | 616K | 312K | 127K | 0 | 0 |
| Effective Tax Rate % | -947.57% | -361.84% | 1.53% | -2.24% | -0.34% | -0.38% | 0% | - |
| Net Income | 147.29M | 150.83M | -4.55M | -28.17M | -91.63M | -33.56M | -16.33M | -28.95M |
| Net Margin % | 25.72% | 30.81% | -1.23% | -9.25% | -40.13% | -29.79% | -20.25% | - |
| Net Income Growth % | 434.21% | 3411.35% | 83.83% | 69.26% | -173.05% | -105.44% | 43.58% | - |
| Net Income (Continuing) | 147.29M | 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) | 1.72 | 1.77 | -0.06 | -0.42 | -1.50 | -0.65 | -0.33 | -0.84 |
| EPS Growth % | 425.68% | 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 | 85.59M | 85.17M | 72.13M | 66.75M | 62.84M | 51.66M | 49.35M | 34.53M |
| Basic Shares Outstanding | 81M | 77.25M | 72.13M | 66.75M | 62.21M | 51.66M | 49.35M | 34.53M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Operating margin remains razor-thin
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates on Subscriber Growth
Life360's revenue grew 37.8% year-over-year to $159.0M in 2026Q2, accelerating from 26.4% in 2025Q4, according to the latest quarterly report, suggesting sustained demand for family safety subscriptions.
The sequential acceleration from 26.4% to 37.8% growth indicates the company is scaling its user base faster than anticipated, likely driven by the 100 million MAU milestone and successful monetization of the freemium model. This growth appears organic, as the Tile acquisition is now fully integrated, and the raised guidance suggests management's confidence in continued momentum. However, the durability of this trajectory depends on whether the company can sustain conversion rates as the US market matures, with international expansion remaining an unproven lever.
Gross Margin Stability Masks Hardware Drag
Gross margin held at 79.8% in 2026Q2, up from 75.1% in 2025Q4, per the income statement, reflecting a favorable mix shift toward higher-margin subscription revenue despite the lower-margin Tile hardware segment.
The 470 basis point improvement in gross margin over two quarters suggests the company is successfully driving a higher attach rate of premium subscriptions to hardware sales, which is critical for offsetting the inherent margin dilution from Tile. This trend appears sustainable if the company continues to prioritize software monetization over hardware volume, though any spike in semiconductor or logistics costs could reverse this trajectory. The consolidated margin remains below pure-play SaaS peers, indicating the hardware business still exerts a structural drag that management must manage carefully.
Operating Leverage Emerges as Scale Kicks In
Operating income swung from a $8.1M loss in 2026Q1 to near breakeven in 2026Q2, with operating margin improving from -5.6% to -0.0%, based on reported figures, as revenue growth outpaced fixed cost expansion.
The improvement in operating leverage is notable, as SG&A grew only 0.3% sequentially while revenue grew 11.1%, indicating that the company is beginning to scale its overhead more efficiently. This suggests the heavy investment phase in R&D and marketing is starting to pay off, though the operating margin remains razor-thin at essentially zero, leaving little room for error. Investors should monitor whether this leverage continues as growth normalizes, as the current cost structure still appears geared toward aggressive expansion rather than profitability.
Net Income Distorted by Non-Operating Items
Net margin of 3.2% in 2026Q2 contrasts sharply with the 30.8% net margin in 2025Q4, which included a $129.7M net income spike, per the income statement, highlighting the volatility of non-operating items.
The massive divergence between operating and net margins across quarters suggests that reported net income is heavily influenced by one-time tax benefits or valuation adjustments, likely related to the Tile acquisition. The 2025Q4 net income of $129.7M on just $9.0M operating income is a clear red flag for earnings quality, as it implies a substantial non-operating gain that is unlikely to recur. Analysts should strip out these items to assess underlying profitability, which remains thin, and the high stock-based compensation of $22.8M in 2026Q2 further dilutes shareholder value and inflates reported expenses.
SG&A Dominates Cost Structure, R&D Scales Efficiently
SG&A of $79.6M in 2026Q2 represents 50.1% of revenue, while R&D at $47.4M is 29.8%, per the income statement, indicating a heavy investment in sales and marketing to drive subscriber growth.
The cost structure is typical of a high-growth software company, with SG&A being the largest expense line, reflecting the need to acquire users in a competitive market. However, R&D as a percentage of revenue has declined from 34.9% in 2024Q1 to 29.8% in 2026Q2, suggesting the company is achieving some efficiency in product development as the platform matures. The absolute increase in SG&A from $39.1M to $79.6M over the period indicates management is still prioritizing growth over profitability, which is a deliberate strategy but one that leaves the company vulnerable to any slowdown in user acquisition efficiency.
2025Q4 Marks Profitability Inflection Point
The 2025Q4 quarter saw operating income turn positive at $9.0M, a significant shift from the -$8.2M operating margin in 2024Q1, per the income statement, signaling the end of the heavy investment phase.
This inflection was driven by a combination of revenue scaling past $115M and a stabilization of operating expenses, which allowed the company to achieve its first sustained operating profitability. The subsequent quarters have maintained positive operating income, albeit at thin margins, suggesting the business model is fundamentally sound but still requires careful cost management. The lasting impact is that the company has proven it can operate profitably, which may support a higher valuation multiple if the trend continues, though the 2026Q2 near-breakeven operating income indicates the profitability is not yet robust.
Thin Operating Margins Leave No Room for Error
Despite 37.8% revenue growth, operating margin sits at -0.0% in 2026Q2, per the income statement, meaning any cost overrun or growth slowdown could push the company back into operating losses.
The bear case centers on the sustainability of the growth-at-all-costs strategy, as the company has yet to demonstrate consistent operating leverage that translates into meaningful profitability. The high stock-based compensation of $22.8M in 2026Q2, which exceeds operating income, suggests that reported earnings are being propped up by non-cash expenses and one-time items, masking the true cash-generative capacity of the business. Additionally, the reliance on hardware sales for customer acquisition exposes the company to supply chain risks and discretionary spending downturns, which could compress margins further and undermine the growth narrative.