Life360 shares climb 3.3% on record Q4 operational performance
Location-based safety platform announces record metrics as analysts maintain bullish outlook with $98.81 target price
Life360 shares rose 3.3% on Thursday as the San Mateo-based technology company announced record key performance metrics for the fourth quarter and full year 2025, extending a rally that has seen the location-based safety platform double in value over the past year despite a significant pullback from its 52-week high.
The stock gained $1.74 to close at $54.81, giving the company a market capitalization of $4.46 billion. The move follows the company's release of operational data showing continued growth in its family safety and connectivity platform, which has rapidly expanded its global user base through a combination of subscription services and real-time tracking technology.
Life360, which provides location-based services designed to enhance the safety and connectivity of families, friends, and valuable assets, has built a substantial following among consumers seeking digital security solutions. The company's platform now serves more than 91.6 million monthly active users according to third-quarter 2025 data, representing 19% year-over-year growth.
Thursday's operational update marks the second consecutive year of record-breaking fourth-quarter performance for Life360, which reported similar achievements in Q4 2024 across monthly active users, paying circles, and annualized monthly revenue. The company's momentum comes as it approaches its formal fourth-quarter earnings report, which analysts expect between February 26 and March 2.
The bullish sentiment around Life360 reflects strong fundamentals from recent quarters. In the third quarter of 2025, the company reported total revenue of $124.5 million, a 34% increase from the prior year. Subscription revenue grew 34% to $96.3 million, while paying circles reached 2.7 million, up 23% year-over-year. The company generated $9.8 million in net profit for the quarter.
Average revenue per paying circle reached $137.63 in the third quarter, an 8% increase from the previous year, indicating success in monetizing its growing user base. That metric has become a key focus for analysts tracking Life360's ability to convert free users into paying subscribers.
Wall Street remains overwhelmingly positive on Life360's prospects. The stock carries eight buy ratings—including one strong buy—and just one hold rating, with no sell recommendations. The analyst consensus target price stands at $98.81, representing roughly 80% upside from current levels.
Despite the bullish outlook, Life360 trades below its 52-week high of $112.54 reached earlier this year, after climbing from a 52-week low of $29.62. The volatility reflects investor concerns about growth-stock valuations in a rising interest rate environment, as well as competition in the location-services market from technology giants including Apple and Google.
Life360's forward price-to-earnings ratio of 53.19 suggests investors are pricing in significant continued growth. The company delivered 34.1% quarterly revenue growth in its most recent report, with earnings per share growth of 22.3% year-over-year.
The company has expanded beyond its core family safety application through strategic acquisitions, including the purchase of Jiobit, which provides GPS trackers for children and pets. Life360's platform now serves families across North America, Europe, and the Middle East, with institutional investors holding 43% of outstanding shares.
As investors await the formal fourth-quarter earnings release in late February or early March, focus will center on user growth metrics, particularly paying circles and average revenue per user, as well as progress toward profitability. The company reported trailing twelve-month revenue of $459 million, with a profit margin of 6.47%.
Life360's ability to maintain its growth trajectory while improving operational efficiency will be crucial to justifying its premium valuation and delivering on analyst expectations. The company's next earnings report will provide clarity on whether Thursday's operational update translates into financial results that support the stock's recent rally and ambitious price targets.