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DATE

Monday, March 2, 2026 at 5 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Lauren Antonoff
  • Chief Financial Officer — Russell Burke
  • Head of Investor Relations — Raymond Jones

TAKEAWAYS

  • Total revenue -- $146 million, increasing 26% year over year.
  • Subscription revenue -- $102.5 million, up 30% year over year, with core Life360 subscription revenue (excluding hardware) at $97.3 million, a 33% increase.
  • Paying circles -- Global paying circles rose 26%, which, combined with a 6% higher ARPPC, drove subscription revenue growth.
  • Other revenue -- $24.2 million in Q4, up 86% year over year, primarily from scaling advertising and data partnerships.
  • Annualized monthly revenue (December) -- $478 million, a 30% increase.
  • Device revenue -- $19.3 million, down 19% year over year, offset by a 3% increase in device unit shipments.
  • Gross profit -- $109.7 million, a 28% year-over-year increase, with gross margin at 75%, up from the prior year.
  • Operating expenses -- 69% of revenue, flat as a percentage year over year; R&D up 12%, sales and marketing up 25%, general and administrative up 55% due to Nativo transaction costs.
  • Net income -- $129.7 million in Q4, which includes a one-time noncash tax benefit of $118.4 million.
  • Adjusted EBITDA -- $32.4 million, up 53%, with an adjusted EBITDA margin of 22%, the highest quarterly margin to date.
  • Full-year 2025 revenue -- $489.5 million, up 32%, with gross margin rising to 78%, up three percentage points.
  • Full-year net income -- $150.8 million, compared to a $4.6 million loss in 2024; first fully profitable year, excluding the tax benefit.
  • Operating cash flow -- $36.8 million for Q4, up nearly 200% from $12.3 million, and $88.6 million for the full year, up $56 million.
  • Cash position -- $496 million at year-end, up from $161 million due to cash flow and $275 million in convertible notes proceeds.
  • 2026 guidance -- Anticipates consolidated revenue of $640 million-$680 million, subscription revenue of $460 million-$470 million, other revenue of $140 million-$160 million, hardware revenue of $40 million-$50 million, and adjusted EBITDA of $128 million-$138 million, reflecting an adjusted EBITDA margin of approximately 20%.
  • Annual MAU growth guidance -- 20% for 2026, with lower Q1 growth and back-half weighted acceleration.
  • Platform expansion -- Completion of Nativo acquisition now enables direct integration with thousands of publishers, expanding ad reach from 16% to over 95% of U.S. ad-eligible adults.
  • Pet GPS -- Nearly 5 million pets registered; almost 90% are in free circles, offering a pipeline for potential subscription conversion.
  • Strategic hardware shift -- Exiting brick-and-mortar retail for Tile in favor of direct and online sales, expecting further declines in unit volumes but improved control and economics.

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RISKS

  • Burke stated, "In Q1, we expect negative device margins as we conduct extensive price testing with Pet GPS and absorb the impact of our exit from brick-and-mortar retail."
  • Device unit volumes and revenue are expected to decline year over year in 2026, due to the planned reduction of physical retail presence and shift to online distribution.
  • Burke noted, "Q1 year-over-year growth will come in below our full-year rate of approximately 20%," indicating near-term user growth headwinds ahead of back-half acceleration.
  • Near-term hardware gross margins will be negative in Q1 2026, impacted by market penetration pricing and transition costs.

SUMMARY

Life360 (LIF 7.37%) reported substantial revenue and profitability gains, including record adjusted EBITDA margin and its first full year of profitability, as subscription and advertising growth accelerated. Management emphasized that the integration of Nativo increases advertising reach to over 95% of U.S. ad-eligible adults, positioning the company to compete for a larger share of the $100 billion U.S. open-web and CTV advertising market. The company is prioritizing high-margin subscription and advertising revenue streams while redirecting hardware sales to online channels and optimizing for user ecosystem expansion rather than short-term device margins. Incremental financial gains are underpinned by disciplined operating expense management outside of Nativo-related G&A, and strategic investment is concentrated in early 2026 to fuel second-half growth in advertising and international markets.

  • Antonoff projected advertising could rival subscription scale, creating a "truly multi-engine platform" for revenue diversification.
  • Management confirmed AI adoption is focused on accelerating product development and optimizing funnels for conversion, rather than workforce reduction, citing, "The other thing that is really, really different is that we are much earlier in our growth prospects. We have a lot of room to go. And so for us, this helps us sort of punch above our weight and grow faster to achieve that sort of next wave of growth for us. It is different than more mature companies who have overhired and need to slash back. And so I think you will expect to see something very different from us."
  • Announced hardware focus on Pet GPS and direct channels, with a long-term approach to converting free users; near-term adoption favored over immediate hardware profits.
  • Burke highlighted that the majority of Nativo’s $63 million in annual revenue is expected to integrate into the advertising business with higher adjusted EBITDA margins after full integration.
  • Q1 2026 will see operating leverage temporarily reduced by front-loaded investments and negative hardware margins; margin expansion is expected to normalize as the year progresses and advertising ramps in the second half.
  • Platform data and publisher reach are foundational to Life360's advertising strategy, enabling on- and off-app campaign access for a wider spectrum of advertisers post-Nativo acquisition.

INDUSTRY GLOSSARY

  • Paying circles (PC): Distinct subscription-based user groups on the Life360 platform, each of which generates recurring subscription revenue.
  • ARPPC: Average revenue per paying circle, a metric for tracking subscription monetization.
  • Pet GPS: Life360’s connected device product for tracking pets, integrating with its freemium and subscription platform.
  • Nativo: Acquired advertising technology company, now forming the core of Life360's full-stack ad-tech and publisher integration strategy.
  • Fantix: Acquired in 2025, its technology underpins Life360's Place Ads and ad measurement capabilities.
  • Device unit shipments: Quantity of hardware devices (e.g., Tile, Pet GPS) shipped, an operational measure of hardware sales velocity.
  • Place Ads: Life360’s advertising product that delivers location-targeted ads both inside its own app and through partner publisher inventory.

Full Conference Call Transcript

Lauren Antonoff: Giving families new reasons to join and deepening engagement with existing members. Devices serve as a subscription growth mechanism, not a standalone hardware business. For Tile specifically, we have decided to exit brick-and-mortar retail and focus distribution on direct and online channels where we can better control the full customer journey from purchase to subscription activation. Pet GPS launched exclusively through direct and online channels from day one. To give you a perspective on the pet GPS opportunity, in the few short months since we introduced our pet finder network, we now have almost 5,000,000 pets registered and nearly 90% of those are in free circles. That is a large, growing, identifiable audience we can convert to paid over time.

Multiyear subscription revenue from converted users far exceeds the device investment. So we are prioritizing adoption over device margins and getting the model right over near-term device volumes. Initial response has validated our pet GPS thesis, and now we are optimizing unit economics, pricing, and supply chain to maximize subscription growth. This disciplined approach reflects our long-term focus. Our third area is expanding our revenue streams, with advertising as a transformational opportunity to build a high-margin business that complements subscriptions. With Fantix, which we acquired in early 2025, we built the intelligence and measurement layer that let us launch Place Ads and Uplift.

With the acquisition of Nativo that closed in January 2026, we now have the pieces in place to operate a full-stack advertising technology platform. The logic of this combination is straightforward. We have nearly 100,000,000 users and the richest first-party family location dataset in the market, but we were early in building the ad tech platform and off-site reach needed to scale. Nativo had hundreds of advertisers and thousands of publisher relationships along with a mature ad tech stack and a salesforce built over more than a decade, but no first-party data or audience of its own. Let me explain what this combination means in practice.

Before Nativo, we were effectively limited to showing ads inside the Life360, Inc. app, reaching approximately 40,000,000 ad-eligible U.S. users. Now we benefit from direct integrations with thousands of publishers, including news sites, lifestyle content, and connected TV. We can take our first-party data, the fact that we know that this is a household with two kids and a dog and a parent who drives to practice every Saturday, and use it to serve ads not just inside Life360, Inc., but across that entire publisher network. When that parent is reading an article or streaming content, our data is powering the ad they see.

And because we have real-world location data, we can close the loop and tell the advertiser whether the ad actually generated store visits. Importantly, this includes our passive users, members who rely on notifications rather than actively opening the app. Place Ads reach these users at the moment they are moving through the physical world, meaning that even members who were not counted in MAU represent monetizable audience inventory. And throughout all of this, the data never leaves our ecosystem. What our off-site platform enables is that every new publisher relationship becomes another canvas for our ads.

That is what takes us from 16% reach to over 95% of the ad-eligible adults in the U.S., and even more as we expand internationally. The U.S. digital advertising market is massive, over $400,000,000,000 and growing. The majority flows through three platforms, but more than $100,000,000,000 is spent across open web, connected TV, and premium publishers where advertisers are actively seeking better data, better targeting, and real-world measurement. That is exactly what our platform delivers, and we are uniquely positioned to win in this market.

Over the long term, we believe that advertising revenue can rival the scale of subscriptions and ensure that every family can access Life360, Inc. in the way that works best for them, whether that is a free ad-supported experience or a premium subscription. The result is a truly multi-engine platform with diverse, high-margin revenue streams. I will now turn the call over to Russell to review the financials and discuss how we are enhancing profitability through operating leverage.

Russell Burke: World. Thanks, Lauren. Thanks everyone for joining the call today. As a reminder, the financials I will be referencing are unaudited for Q4, audited for the full year 2025, and denominated in U.S. dollars. Let us start with the fourth quarter. Q4 revenue increased 26% year over year to $146,000,000, reflecting strong performance across our business. Overall, subscription revenues increased 30% year over year to $102,500,000. Core Life360, Inc. subscription, which excludes hardware subscriptions, increased 33% year over year to $97,300,000, driven by the 26% increase in global paying circles and 6% higher ARPPC. Total paying circles growth was supported by improved conversion globally, with Q4 quarterly subscriber net additions achieving a new record.

Other revenue in Q4 increased 86% to $24.2 million, driven by continued scaling of our advertising platform and growth in data partnerships. The significant year-over-year increase reflects the ramping of our advertising capabilities and increasing advertiser demand. December annualized monthly revenue reached $478,000,000 and increased 30% year over year, reflecting the strong performance of subscription and other recurring revenue. Hardware revenue for the quarter was $19,300,000. While hardware revenue declined 19% year over year due to promotional pricing and product mix, device unit shipments increased 3% as we integrate hardware more deeply into the Life360, Inc. subscription experience.

As we have stated previously, our strategic focus with hardware remains on expanding the member experience and ultimately our subscriber base, rather than near-term hardware margins. In 2026, we have made the strategic decision to exit physical retail and focus exclusively on direct-to-consumer and online channels like Amazon. Unit volumes are expected to decline year over year as we eliminate retail margin pressure and optimize pricing in our digital channels where we control the full customer experience. Q4 gross profit of $109,700,000 increased 28% year over year, with gross margins of 75%, higher than the prior year. The stability in gross margin reflects the balance of high-margin subscription and other revenue and strategic investments in hardware.

At the device level, pet GPS margins were negative as we priced for market penetration rather than near-term profitability. We expect this approach to continue in 2026, with device margins fluctuating quarterly between breakeven and negative. In Q1, we expect negative device margins as we conduct extensive price testing with Pet GPS and absorb the impact of our exit from brick-and-mortar retail. However, our consolidated gross margins remain strong, in the 75% to 78% range, driven by high-margin subscription and other revenue, which continue to become a larger part of the mix. Q4 total operating expenses remained flat as a percentage of revenue year over year at 69%.

Q4 operating expenses excluding commissions increased 26% year over year versus subscription revenue growth of 30%. This demonstrates our continued operating discipline even as we made strategic investments in Pet GPS launch and international expansion. R&D costs increased 12% year over year to support our expanding product suite, and importantly, our AI investments are embedded within this existing cost structure and will help us build faster and work more efficiently. Sales and marketing costs increased 25% year over year, driven by higher commissions and planned Pet GPS and seasonal marketing. Q4 G&A increased 55% year over year, supporting company growth and our expanding advertising platform, and importantly, including transaction costs related to the Nativo acquisition.

We expect G&A costs to normalize in 2026 inclusive of our AI investments. We continue to make substantial progress in expanding profitability. First, we recorded positive net income of $129,700,000 in Q4, up from $8,500,000 in the prior year, and I note that it includes a one-time noncash tax benefit of $118,400,000. Next, adjusted EBITDA increased 53% to $32,400,000 in Q4, from $21,200,000 in the prior year, with adjusted EBITDA margin expanding to 22%, our highest quarterly margin to date. This performance demonstrates the significant operating leverage inherent in our business model as we scale.

That operating leverage carries on into 2026 as we expand high-margin subscription and other revenues, even as we make growth-orientated investments and integrate Nativo in the first half. Advertising in particular creates high incremental margins as it scales in the second half, partly related to seasonality but also importantly leveraging our existing infrastructure and user base. Looking briefly at the full year results for 2025, which exceeded guidance across the board, total revenue increased 32% year over year to $489,500,000. Gross margin expanded to 78%, three percentage points higher than 2024. Total operating expenses grew 26% year over year, but declined as a percentage of revenue, driving strong operating leverage.

Net income for the year was $150,800,000 compared to a $4,600,000 loss in 2024. This marks our first fully profitable year in company history, even excluding the one-time noncash tax benefit. Adjusted EBITDA increased CAD47.7 million year over year to reach CAD93.2 million, exceeding our outlook range, with margin expanding from 12% in 2024 to 19% in 2025. Turning now to the balance sheet and cash flow. Life360, Inc. ended 2025 with cash, cash equivalents, and restricted cash of $495,800,000, a significant increase from $160,500,000 at year-end 2024.

This increase was primarily driven by operating cash flow and the net proceeds from our June 2025 convertible notes offering, which provided $275,400,000 in net proceeds, partially offset by the $25,000,000 investment in AURA convertible notes. The result is a substantially stronger balance sheet with significant financial flexibility to invest in our highest return growth opportunities while maintaining disciplined capital allocation. Operating cash flow was positive again in Q4. Net cash provided by operating activities of $36,800,000 during the quarter increased nearly 200% from $12,300,000 in the prior year, reflecting our strong and accelerating cash generation. For the full year, operating cash flow reached $88,600,000, up $56,000,000 from 2024.

Thanks for your attention, and I will hand back to Lauren to discuss our 2026 guidance.

Lauren Antonoff: In 2026, we are doing three things simultaneously: investing in our highest return opportunities, accelerating revenue growth, and expanding margin. That combination is reflected in our full-year outlook as follows. Annual MAU growth of 20%, consolidated revenue of $640,000,000 to $680,000,000, subscription revenue of $460,000,000 to $470,000,000, other revenue of $140,000,000 to $160,000,000 driven by the rapid scaling of our Life360, Inc. advertising platform following the Nativo acquisition, hardware revenue of $40,000,000 to $50,000,000 as we narrow distribution to focus on channels that drive stronger subscription, and adjusted EBITDA of $128,000,000 to $138,000,000. Stock-based compensation is anticipated to be 40% higher than last year, largely due to increased headcount from Nativo.

This range represents approximately a 20% adjusted EBITDA margin, another step in our multiyear path of continuous annual improvement toward our strategic target of over 35%. Given a few factors unique to 2026, we want to provide some additional color on quarterly modeling. Russell is going to walk through those points before we conclude.

Russell Burke: Thanks, Lauren. We have strong conviction in our full-year guidance and we take pride in delivering what we say. With that, there are a few quarterly dynamics worth walking through so that models reflect what we expect through 2026. Our strategic investments are concentrated in the first half of the year. At the same time, our revenue profile has shifted. Advertising in particular follows a seasonal pattern where growth concentrates in the second half. Our investments are front-loaded, our revenue acceleration back-loaded. That combination creates quarterly variability in MAU, revenue, and margins that normalizes as the year progresses. And that dynamic is fully reflected in our full-year guidance. Let me walk through three Q1 factors specifically.

First, adjusted EBITDA margin percentage in Q1 is expected to be in the low double digits, driven by Life360, Inc. advertising platform margin contribution timing, the Pet GPS promotional pricing, which is designed to maximize subscriber adoption, and front-loaded advertising and marketing. These are all intentional investments concentrated early in the year to fuel growth as we scale. Second, device revenue in Q1 is expected to be approximately 50% lower than Q1 last year due to our brick-and-mortar retail exit. Hardware gross margin will also be negative in Q1. This impact is reflected in our full-year guidance range. And third, on MAU, Q1 year-over-year growth will come in below our full-year rate of approximately 20%.

As Lauren discussed, quarterly MAU growth after a strong quarter tends to retrace. We expect MAU growth to be more back-half weighted due to product-led growth investments and scaled marketing in new geographies, building through the year. As our growth investments normalize during the year, we expect Q4 2026 margin to exceed the 22% margin that we just delivered in Q4 2025, reflecting continued build of operating leverage with subscription momentum and the Life360, Inc. advertising platform delivering meaningful contributions in the second half. Additionally, for context on Nativo’s contribution to our 2026 outlook, Nativo’s unaudited 2025 revenue was approximately $63,000,000 at effectively breakeven adjusted EBITDA.

We expect a majority of that revenue base to carry forward into 2026 in the Life360, Inc. advertising platform with incremental growth at significantly higher adjusted EBITDA margins in the second half as integration completes and cross-platform campaigns ramp through the year. That concludes our prepared remarks. I will now turn over the call to RJ to manage Q&A.

Raymond Jones: Thanks, Russell. As a reminder, to participate in the Q&A, please raise your hand by pressing the raise hand icon at the bottom of your screen within the Zoom app. You will need to unmute yourself to ask your single question to start. First, we would like to open it up to Mark Mahaney to ask a question.

Mark Stephen Mahaney: Okay. Thanks very much. Two questions. The international growth, Lauren, that you talked about and wanting to lean into that, do you view that as needing to be run more, is that more driven by product or by marketing? Which of those two kind of gets that international penetration up, you know, even ballpark close to the U.S. level? And then you talked about these record net new adds in December. Just what is the source of those new adds? Anything interesting there in terms of different markets? I do not know. Different demographic? Different verticals? Any new color on where those net adds came from? Thank you.

Lauren Antonoff: Thanks, Barb. I am going to focus on the international question because I think it is really important. You know, there is often this question about is it product or is it marketing? And it really is the interplay between both. We are investing to make sure that the product works great for users outside of the U.S., and that means improvement in things like the Android platform, our localization, and features really tailored towards those markets. But that only works if users in those markets know about our product. And so product improvements and marketing really go together and complement each other as we grow.

Mark Stephen Mahaney: Great.

Lauren Antonoff: Thanks, Mark.

Mark Stephen Mahaney: My second question about the Q4 MAU growth. Yeah.

Russell Burke: There is not any one thing that stands out there. We got good contribution both from the U.S. across the board, and from international, particularly the lead countries that we are really active in.

Raymond Jones: Next, I would like to open it up to James Bales with Morgan Stanley.

James Bales: Yeah. Thanks for taking my question. I guess I would like to understand a bit about what has driven the conversion improvement to paid, and whether you have any thoughts on the relative growth that we should be expecting between subs and MAU growth in 2026.

Lauren Antonoff: So the two things that drive improvement in conversion are the value that we create in the product, and then optimizations we make in the funnel along the way. And these two things really go together. We have added new value, things like improvements we have made in our drive reports or things like Pet GPS, but we also do a lot of testing and experimentation in our funnel to find ways to help customers understand the value that we have in the product and suggest to them at those right moments.

James Bales: Perfect. And your thoughts about the sustainability of that improvement?

Lauren Antonoff: There is a lot of room. There is certainly a lot of room in creating value, and we are actually seeing a lot of—we are going a lot faster using AI to speed up that kind of optimization. So it seems like we have a lot of headroom left. But they are looking at

James Bales: Perfect. Maybe just one other question. You talked about the margin profile for Nativo. Could you maybe help us understand the gross margins that you expect to achieve in the first half on a run-rate basis for the advertising business, and post-integration, what those gross margins can get to.

Russell Burke: Yeah. Yeah, James. I think what I would say is that really, off the bat, we are going to get really good gross margins from the Life360, Inc. advertising platform. The thing to understand about Nativo is that it has really given us all of these tools. It has given us the infrastructure, the sales team, the relationships that will really help drive that growth, particularly in the second half. And there is an element of fixed cost that comes along with that. But the gross margins themselves are very strong.

Raymond Jones: Thanks, James, and a reminder to everyone we have a lot to get through. Please limit yourself to one question. Next, we would like to open it up to Lafitani Sotiriou from MST to ask a question.

Lafitani Sotiriou: Congratulations on the strong result, and thank you for the opportunity to ask a question. And appreciate the extra color on AI. Can I dive a little more into this? So both said you want to build faster and work more efficiently. Can you just talk us through, in terms of the build faster, I know that Nativo is new, but we previously had on the roadmap the seniors offering. I can see now that you have also got partner ecosystems listed. Can you talk us through what does that mean by running faster? So what is scheduled for this year?

And then at the same time, if you are going to be able to work more efficiently, what does that mean from a cost perspective? Does that mean that you are pretty happy with the number of staff you have got now, that you would be able to sort of keep it pretty steady into the future? Thanks.

Lauren Antonoff: I will start by saying that we think of our company as very early in our growth trajectory, which means there is a lot of value for us to create. We have a lot of work to do, and we are excited to put more resources against those things. AI helps us do that more efficiently. I will just give you one example. You know, there is a certain period of time that when you have an idea for a new feature, it takes you to bring that feature to market, and there are all sorts of steps you go through from early ideation to writing the code to testing the code.

And we are applying AI in every stage of that. It is helping us ideate and prototype faster. It is helping us get that code written very, very quickly. It is helping us test and iterate on those features. So that helps us take these ideas, these ways that we can create value, and deliver them faster. I am not going to preview and tell you all the features that we have not yet released, but it is helping us accelerate our roadmap.

One of those areas that we are invested in is partner ecosystem, and that is sort of the example of working with the AccuWeathers and the Ubers to bring third-party capabilities forward to our members through our experience. Thanks, Laf.

Lafitani Sotiriou: Next, we would like to open it up—cost side, on the cost side. We did not—sorry, just the part on the cost-side efficiencies was not answered. I

Russell Burke: You know, what I would say, Laf, is that we are continuing to see efficiency gains there. We want to plow those gains into growth in 2026, and there is a lot on our roadmap as Lauren referred to, to do that. So we do not necessarily expect sort of gross cost clawbacks in 2026.

Raymond Jones: Thanks, Laf. Next, we would like to open it up to Maria Ripps from Canaccord to ask a question.

Maria Ripps: Great. Thanks so much for taking my question. I think you mentioned nearly 5,000,000 registered pets with nearly 90% of them in free circles. It sounds like your near-term goal is to sort of grow penetration here. But can you maybe help us think about sort of deepening monetization among these circles with these free circles with pets? And would that approach be different from how you are thinking about sort of monetizing free circles more broadly?

Lauren Antonoff: So it is really heartening for us to understand more about our members. And when we understand them better, we can serve them both through our subscriptions and through our advertising business. It sort of opens up both capabilities. So this is why experiences like our pet finder network are useful. They create substantial value to families and another way to make sure that every pet is safe and protected, not just those for subscribers. And doing that also gives us insights that are certainly attractive to people advertising in the pet market. Was there another point in your question that you were interested in? It is a little hard to hear you. So if you speak up, I can

Maria Ripps: answer more. I was just trying to understand how that would be different from monetizing sort of free circles in general, but I think you sort of answered that.

Lauren Antonoff: Great.

Raymond Jones: Great. Thanks, Maria. Next, we would like to open up to Bob Chen from JPMorgan.

Bob Chen: Hey. Morning, team. Just a quick one for me, around the partner ecosystem piece. I mean, we saw that announcement with the partnership with Uber. How does that flow through into your financials? Does it come through as additional advertising-type revenues, and is that what we are looking for in the partner ecosystem?

Russell Burke: It will come through in a few different ways. Definitely advertising, but there is also, as we get deeper into that relationship, both the subscription benefit on our side and for Uber. So it will come through in a couple of different ways.

Lauren Antonoff: And I will add that you will also see it come through in our product experiences and the value that we deliver for our members. Thanks, Bob.

Raymond Jones: We would like to open it up to Mark Kelley or Berenberg and Robinson if they are on the line. It looks like they might be on a dial. Not sure if they are there. Okay. We will go back to them. Next, we would like to open it up to Siraj from Citigroup.

Siraj Ahmed: Thank you. Can you hear me okay? Yep. Alright. Great. Lauren, just keen to double click on your comment, or just in the guidance for MAU, that first quarter being lower than the 20%, and then stronger in the second half. Maybe because you are—the big advertising campaign with the Super Bowl, etcetera, in the first quarter—has that—how has that tracked? It does seem like the guidance does—as you said, this product improvement. Just keen to understand how you—the confidence levels in the 20% growth given it could move around, right? So just keen to understand the confidence and, you know, how much comfort do you have in that sort of 20% range? Thanks.

Lauren Antonoff: Our confidence is good, and we are coming off a lot of momentum in 2025 and, you know, setting a big goal for 2026. We see that trajectory very clearly. The ad campaigns that we do, especially brand-building campaigns like that, are really designed to drive demand over a longer-term horizon, and so they are letting more people know about us, and then we follow through and convert those people to registrations over time. So we do not necessarily see the impact in-quarter. And the signals that we are seeing in terms of that awareness look really good to us. Thanks, Siraj.

Raymond Jones: Next, we would like to open up to Wei-Weng Chen from RBC.

Wei-Weng Chen: Hey. Hey, guys. Hey, guys. Just a question for me on AI efficiency gains. I guess there have been a few corporates such as Block and WiseTech here locally that have cited AI efficiencies as the rationale for large-scale reductions in workforces. Is this something that, you know, could be a potential reality for Life360, Inc.? And maybe more philosophically, can you give us your thoughts on these sorts of dramatic actions?

Lauren Antonoff: Maybe I will start this one, Russell, and then you take over. But, you know, we have been really intentional about how we grow and making sure that we are being a good steward with our resources. The other thing that is really, really different is that we are much earlier in our growth prospects. We have a lot of room to go. And so for us, this helps us sort of punch above our weight and grow faster to achieve that sort of next wave of growth for us. It is different than more mature companies who have overhired and need to slash back. And so I think you will expect to see something very different from us.

But, Russ, I will let you take it from there. I would probably just reiterate

Russell Burke: several of the same things. We are so early. Our employee headcount is relatively low. We look at things like revenue per headcount, and we are very well positioned there. You know, it is just not something that—we are not at that stage, as some of these companies that did overhire in COVID, for example. It is just not, and it would disrupt our growth.

Wei-Weng Chen: Yeah. Thanks so much.

Raymond Jones: Thanks, Wei-Weng. Next, we would like to open it up to Steven Chu from UBS. Great.

Steven Chu: Thank you. So it might be a little bit early to ask this question, but I wanted to see if you guys can shed any light on the type of advertisers that are on Nativo. Just kind of eyeballing the list of folks there, it seems like they are more awareness- and brand-oriented, but I guess, given the location data that you have, it seems like there is probably all kinds of opportunities to run performance advertising. So I am just wondering who are on there now and what the outreach effort is going to be to onboard some of the performance budgets. Thank you.

Lauren Antonoff: I will say that the advertising base is quite diverse. And one of the things that being able to run off-site ads and different publishers lets us do is deliver different types of platforms, different types of advertising experiences for different advertisers with different needs. I do not have a long list of specific names, but a funny anecdote as we were preparing for this: there are at least some companies who said, like, do not want you to use our name because we do not want you to tell everybody that we can see such positive outcomes that we are seeing. So I do not know, Russell, if you want to add anything more to that. But

Russell Burke: I guess the only other aspect is because we are now able to utilize both on-app and off-app, as Lauren said earlier, the range of people that we can access is very much more attractive to big corporate advertisers. And because of that, we are able to access campaigns that we just were not able to do before.

Steven Chu: Thank you.

Raymond Jones: Thanks, Steven. Next, we would like to open up to John Marin.

John Marin: Wait, John. You can unmute. Unmuted. Thanks, RJ. Appreciate that. Try and ask one question. Maybe there will be a few answers to the one question. I just wanted to tease out a little more about the Nativo acquisition, and I know it is a bit early, but maybe if you could just speak to their readiness to—on the data opportunity that you have basically handed them. Just maybe you could talk about traction you have seen there to date and what your deterministic data might provide in terms of pricing uplift relative to the business they were doing previously?

Maybe just a little more color around that and maybe the type of investments you have to make on that team in the first half of this year to help them win bigger engagements.

Lauren Antonoff: Yeah. I have actually been really impressed with the alignment we have between the teams. I have been through a lot of M&A, and this one—you know, the puzzle pieces fit together better than typically. So we are seeing good traction. It is early on. But we feel great about where we are going. In terms of things like pricing, we actually think we have a lot of efficiencies that come from things like having our own built-in audience, having the dataset that we have. It really sort of optimizes their—optimizes the cost, the margin profile, quite a bit. We have not focused as much on pricing yet. I think that is something we will look at later on.

Russell Burke: And the other thing I would say is that it is not—your rearing excited about bringing that team up on—That team is excited about having the extra, you know, the—you have—the data provides to what they are out there selling. So, you know, so far, it is just looking like a great combination.

Lauren Antonoff: Yeah. Okay. Thanks, guys. I will just—one thing that I will add is that, you know, in bringing them together, it really helps us create a walled garden where we can reach those 95% of U.S. adults while keeping the data in the walled garden and providing the sort of privacy and family-safe experience that both our customers and advertisers want.

John Marin: Okay. Alright. Thanks, guys. Keep watching a good quarter.

Raymond Jones: Thanks, John. Next we would like to open it up to Chris Smith. Chris, can you unmute?

Chris Smith: Thank you, guys. Look. Just really interesting, Lauren, in the point you made around first quarter 2025. Apologies. If you look at the 5,000,000 pets, 90% you said are in free MAUs. That is the potential for you to take the paying circles up 50% if you convert them all. Could you maybe just help us think through, I guess, how we should think about that conversion opportunity through this year as you are investing in the pet through the first half? Thank you.

Lauren Antonoff: Yeah. I am super excited about that opportunity, and everything we have seen so far tells us that long term this should make a significant step in our subscription penetration. The key thing is that we are early in introducing pets and Pet GPS to our audience. And we want to make sure that people understand it, that we know who they are, that we educate them that we are in the pet business, and that we help them understand the value of the types of devices that we have. You know, right now, the notion of putting a GPS on your pet is still new to most people.

And so it is going to take us some time to build that. And we are more focused on sort of a multiyear horizon than trying to rush to get the maximum sales in the short term.

Chris Smith: Great. Thank you.

Lauren Antonoff: Thanks, Chris.

Raymond Jones: Next, I would like to open up to Rob Sanderson with Loop. Okay. Thank you. Thanks for the opportunity to ask

Robert Sanderson: a question. Can we talk about investment priorities a little bit? You know, obviously, your margin guide, EBITDA margin guide, shows some nice operating leverage again in 2026. But, you know, what areas do you expect to be spending relatively more? You are probably going to get some savings not supporting Tile at brick-and-mortar, but any other areas you expect maybe spend relatively less in 2026?

And, Russell, I heard you comment on the Nativo margin being quite strong, but just compared to the nearly 90% gross profit margin you have been seeing in other revenue, can you give us some sense of range we should be thinking about as you layer in revenue share to your publishing partners with the acquisition?

Lauren Antonoff: Russell, do you want to take this one?

Russell Burke: So I will answer the later part of your question first, Rob. In terms of margins, yes, we had very strong margins in the early part of the Life360, Inc. advertising business. We were only delving in one part of that advertising ad tech stack, and it was a digital piece that really had very little sort of flow-through costs. But even when we bring in a broad range of addressing all of that stack, the margins will still be very strong. Call it in the sort of mid-70s range in terms of gross margins. So, yeah, that definitely continues to be a high-margin business for us.

Robert Sanderson: Yeah. Great. And more of a sales investment this year, tech investment, both, or anything you would call out in areas you would like to spend more and invest more?

Russell Burke: Yeah. Look, I mean, I think in terms of investments, it is the range of things. We have a lot of initiatives on the product roadmap that we will be investing in. We have talked about Pet GPS. We are very much in testing mode for that. We want to roll it out aggressively. You know, that is an acquisition vehicle for subscription. So, you know, that has a cost upfront that we really return over a period of time with subscription. And investment in international is going to be important for us in 2026.

Robert Sanderson: Thank you, Russell.

Raymond Jones: Thanks, Rob. Next, I would like to open up to Eric Choi from Barrenjoey, please.

Eric Choi: Hi. Thanks, Ray. And I just had a quick question on FY 2026 revenue guidance, probably for Russell. Just a couple of components as I am just struggling with and I have probably done it wrong. But just on the subscription revenues, nominally, you are guiding to $96,000,000 of growth in FY 2026. And you did $91,000,000 already in FY 2025. And you have also called out your entry in 2026 with accelerating PC growth. So I am wondering on that piece, what I am missing. And then on the other revenue, helpful, Russell. You told us Nativo is worth 63.

So if you back that out of your implicit FY 2026 guidance, that other revenue bucket did $32,000,000 of growth in 2025, and you are guiding for that to do 20 or less in 2026. So I am just wondering on those two pieces, is it just conservatism, or am I missing something?

Russell Burke: Let me try and address both of those quickly, Eric. We are definitely seeing PC growth in 2026. That is a flow-through of the momentum that we are getting from 2025 as we continue to really optimize that channel. So we do expect to see volume increases. We are not assuming that there is much in the way of price increases specifically in 2026 because we want to deliver that value first. And when you look at that sort of straight dollar comparison from year to year, what I would say is that 2024 benefited from fairly significant price increases flowing through.

So it is not quite apples to apples to compare the dollar increases year to year, but we are expecting 30% revenue growth in 2026. And then, in terms of the other revenue piece, what I would note is I said the majority of that $63,000,000 will carry over. There are definitely pieces that we will decide not to do as Life360, Inc. So I would not strip out the whole of that. When you look at our guidance for other revenue, including Nativo, I guess it is something like a 120% increase.

Even using that $63,000,000, we are in the range of a 30% increase as a base case, but it will be more than that because, as I say, not all of that 63 will carry through.

Eric Choi: Very helpful. Thanks.

Raymond Jones: Thanks, Eric. I would still like to open it up for Lindsay Bettiol from Goldman Sachs. Hi, guys. Hopefully, you can hear me. Yep.

Lindsay Bettiol: Brilliant. Yeah. I am just going to continue on from Eric’s question actually just on this other revenue guidance. So, like, if I take the—I mean, it is $140 to $160 range. If I take the bottom end of that range, take away Nativo, which is circa 60-ish, let us say, take away 30 for data, you end up with, like, the implied kind of advertising contribution is somewhere between 45 and 65 is kind of my math. You have just exited doing 16 in Q4. Like, I know you are going to probably tell me some of that is seasonality. So I guess my question is, how much of Q4’s $16,000,000 should we attribute to seasonality?

And, as I said, just continuing kind of Eric’s question, it does feel a little bit conservative that you are exiting doing 16 a quarter and guiding to something 40 for the full year. So just help us understand that, please.

Lauren Antonoff: Russell, are you taking this one? Thank you.

Russell Burke: Typical Zoom problem. Lindsay, I would end up sort of saying something of the same thing. I would not back out the whole 63 because there are pieces of that will not carry over. And it is very much a base case from our perspective. There is a lot of work to do in the integration in the first half, and we definitely sort of see that growing and ramping quite quickly in the second half. But, yes, it is, as we said, very much a seasonal business at this point. So even Q4 for last year had a good element of seasonality there.

Lindsay Bettiol: Is this—sorry, just continuing the question. Is there a way to put a finer point on that? Like, if the 16 in Q4—could you give us, like, percentage or what proportion of that is seasonality? Is that easy to break out?

Russell Burke: It is really not that easy, but, you know, it is going to be more than sort of 30% of that number.

Lindsay Bettiol: Brilliant. Thank you.

Raymond Jones: Thanks, Lindsay. Next, I would like to open up to Chris Savage.

Chris Savage: Thanks, RJ. Lauren, probably more one for you. Have you completed the relocation of manufacturing for Pet GPS? And is there any update on the launch of an elderly tracking device, please?

Lauren Antonoff: Great. It has taken us a little bit longer than we expected. We got on some customs back and forth, but we are largely through that. And we are almost done with moving Pet GPS. We have not yet moved Tile. We are a little bit in wait and see as tariff policy is moving around. And then—sorry. What was the second part?

Chris Savage: Chris always spoke about potentially a launch of an elderly tracking product. Got it.

Lauren Antonoff: That is something that is going to take a little bit longer. So we are starting our way in elderly—in aging parents—really focused on bringing them into our ecosystem, and we are working on devices for the future. But we do not expect to launch those this year.

Chris Savage: Okay. Thank you.

Raymond Jones: Thanks, Chris. And this will be our last question; we are running up on time. Annabel Kuhn,

Annabel Kuhn: Hi, guys. Thanks for the opportunity to ask a question. One final one on advertising. You saw that quite significant acceleration in Q4. Obviously, part of that is seasonality. Part of that is with your new advertising products that you have released just with the Life360, Inc. platform. Maybe could we actually sort of dive into particular advertising products you have in market right now with the platform? And then maybe could you give some more granular examples of the advertising products you are going to have with the Nativo platform integrated in the second half. Thank you.

Lauren Antonoff: I think that is a long question. It may need an Investor Day. So, just at a high level, you know, I think one of the things that you saw hit in Q4 is the relationship that we have with some of our direct deals. And so that is not necessarily a branded product like Uplift or something like that. We did introduce a couple of new products last year, and I expect with—now that Nativo is with us—we will sort of formulate how we describe that as a product. But it is probably a longer discussion than we have now.

Raymond Jones: Alright. Thanks, Annabel. We are going to conclude our Q&A, and I am going to turn it over to Lauren for closing remarks.

Lauren Antonoff: Well, I am really proud of what the team has built and super excited for what we are going to deliver in 2026. So thank you all for joining us, and we will see you next time.