Life360 stock dropped 23.4% in after-hours trading on Monday, hitting $49.50, after the company reported Q2 earnings that showed slipping underlying profitability despite strong top-line growth.
Revenue came in at $159 million, up 38% year-over-year. Adjusted EBITDA rose 53% to $31.1 million. On the surface, those look like solid numbers.
But the GAAP net income told a different story. It fell to $5.1 million from $7 million in the same period last year, and margins also deteriorated.
LIFE360 $LIF Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $159.0M (Est. $156M) 🟢; +38% YoY
🔹 EPS: $0.06
🔹 Adj. EBITDA: $31.1M (Est. $24.7M) 🟢; +53% YoY
🔹 MAU: 102.4M; +16% YoYFY26 Guide:
🔹 Revenue: $650M-$685M (Est. $671M) 🟡
🔹 Adjusted EBITDA: $130M-$140M (Est. $136M) 🟡
🔹…— Wall St Engine (@wallstengine) August 10, 2026
Making it worse, that $5.1 million figure was propped up by one-time tax benefits and tariff refunds. Strip those out, and the actual profitability picture looks shakier.
Life360 kept its full-year adjusted EBITDA guidance unchanged at $130 million to $140 million. Investors were not impressed. Holding guidance steady after a quarter where underlying profits slipped sent a cautious signal to the market.
The stock had been trading around $64.50 before the earnings release. The drop to $49.50 wiped out a large chunk of those gains in a single session.
There was at least one clear bright spot. Monthly active users crossed 100 million for the first time. Management pointed to this as evidence of the platform’s growing global reach, and it is a real milestone.
User growth at that scale matters for a platform business. But investors appear to be weighing it against the profitability concerns for now.
Analyst price targets shifted following the report. The average target among 8 analysts fell from $62.91 to $62.53, with estimates ranging from $47 to $72 per share.
Based on the August 10 closing price, that updated average target implies roughly 3% downside from where the stock was trading before the selloff.
Despite the earnings reaction, the consensus rating across 11 analysts covering the stock remains at Buy, with 9 Buys and 2 Holds and no Sell ratings recorded.
The gap between analyst targets and what the after-hours price implies could make for an interesting setup once the stock opens Tuesday.
As of the latest data, Life360 stock was trading at $49.50 in after-hours, with the average analyst price target sitting at $62.53.
The post Life360 Stock Drops 25% After Earnings Miss Profit Expectations appeared first on CoinCentral.
