Is Life360’s (ASX:360) Ad-Tech Bet Shifting Its Long-Term Growth Story?

• Life360 reported third quarter 2025 earnings with revenue of US$124.5 million, up from US$92.87 million a year ago, alongside a rise in net income and an upgraded full-year revenue outlook, following its acquisition of ad-tech company Nativo for around US$120 million.
• Despite delivering record results and new revenue diversification efforts, the company’s pivot toward targeted advertising and a slowdown in user growth raised questions about the sustainability of its plan.
• We'll explore how Life360's increased advertising focus, highlighted by the Nativo acquisition, impacts its investment narrative and longer-term outlook.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

Life360 Investment Narrative Recap

To be a shareholder in Life360, you need to believe the company can sustain its transformation into a multi-revenue stream platform, balancing its established subscription business with new advertising growth powered by acquisitions like Nativo. While robust third-quarter results and a raised full-year outlook reinforce Life360's momentum, a deceleration in user growth and its increased emphasis on advertising currently present the most significant upside catalyst and corresponding risk, respectively; the impact is material as the shift tests the durability of its growth story.

The most relevant recent announcement is the upgraded full-year revenue guidance, reflecting management’s confidence in further revenue expansion from both existing and new sources. This aligns directly with Life360’s bid to diversify and deepen its monetization options, emphasizing the importance of continued innovation and execution around both user engagement and partner integrations to deliver on ambitious forecasts.

However, investors should be aware that despite these upgrades, questions remain about...

Read the full narrative on Life360 (it's free!)

Life360's narrative projects $731.8 million revenue and $97.9 million earnings by 2028. This requires 19.6% yearly revenue growth and a $70.3 million earnings increase from $27.6 million today.

Uncover how Life360's forecasts yield a A$48.96 fair value, a 39% upside to its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community range from US$10.41 to US$51, reflecting broad disagreement on Life360's potential. As user growth moderates and the company pivots toward advertising, differing views highlight why continued innovation will be critical for future performance.

Explore 8 other fair value estimates on Life360 - why the stock might be worth as much as 45% more than the current price!

Build Your Own Life360 Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Life360 research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Life360 research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Life360's overall financial health at a glance.

Interested In Other Possibilities?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• Find companies with promising cash flow potential yet trading below their fair value.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 38 best rare earth metal stocks of the very few that mine this essential strategic resource.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com