Life360 Inc (NASDAQ:LIF) announced an upward revision of its sales guidance for the fiscal year 2025, triggering a notable rise in its stock price on Friday. The updated forecast signals a pronounced confidence in the company’s growth trajectory following a solid performance in the final quarter of the previous year.
The newly issued guidance anticipates fiscal year 2025 revenues ranging from $486 million to $489 million, representing an increase over the previously communicated range of $474 million to $485 million. This adjustment corresponds to an expected year-over-year growth rate between 31% and 32%. In addition to revenue, Life360 projects adjusted EBITDA in the range of $87 million to $92 million, translating to an operating margin forecast of 18% to 19%.
These projections are grounded in initial, unaudited financial results that illustrate strength across multiple facets of Life360’s operations. The company reported an impressive surge in global monthly active users, which reached 95.8 million in the fourth quarter alone. Furthermore, Life360 attracted a net 16.2 million new users in 2025, marking its highest quarterly net addition to date.
The subscription-based 'Paying Circles' component of Life360’s business also achieved new milestones. The total global paying subscriber base expanded to 2.8 million, bolstered by an annual net addition of 576,000 users — the largest yearly increase in the company’s history. Within this segment, U.S.-based paying subscribers grew by 23% to 2.0 million, while international paying subscribers expanded by 32% to 0.8 million.
Management attributes the optimistic outlook to comprehensive strength observed throughout the business, highlighting positive momentum in customer acquisition and monetization strategies as pivotal drivers.
Despite these positive fundamentals, technical analysis of Life360’s stock reveals a challenging landscape. The share price remains 16.9% below its 100-day simple moving average (SMA) and 5.1% beneath its 200-day SMA, indicating sustained bearish sentiment over the medium to longer term. Adding to this concern, the relative strength index (RSI) currently stands at 27.67, positioning the stock in oversold territory. This metric typically implies potential for a near-term price bounce; however, traders remain cautious as existing momentum lacks strength.
Moreover, the Moving Average Convergence Divergence (MACD) indicator is below its signal line, reinforcing the presence of downward pressure and suggesting the possibility of continued challenges unless there is a significant shift in market dynamics. Critical chart support is identified at $59.00, while a key resistance level exists at $80.50. A breach below the support threshold could predict further declines, whereas surpassing resistance might signal a reversal of the prevailing downtrend.
An additional technical note is the 'death cross' that transpired in January, characterized by the 50-day SMA crossing below the 200-day SMA. This pattern is traditionally interpreted as a signal of a bear market condition, underscoring the importance of monitoring the stock closely amidst mixed signals.
Examining the broader performance range, Life360 has gained 47.43% over the last twelve months, evidencing a longer-term positive trajectory despite recent technical weakness. Presently, the stock is positioned at 47.8% within its 52-week trading range, indicating proximity to recent lows rather than highs and highlighting recent volatility.
At the time of reporting on Friday, Life360’s shares were trading up 24.72%, priced at $68.36, reflecting the market’s enthusiastic response to the amplified fiscal year 2025 guidance and the company’s continued user base expansion.
In summary, Life360’s upgraded revenue and EBITDA outlook grounded in strong user engagement metrics has catalyzed a notable stock price rally. Nevertheless, the persistence of bearish technical indicators advises prudence. Investors should monitor key support and resistance levels as well as upcoming financial disclosures for further clarity on the company’s recovery prospects.