Life360 closed a $120 million deal to acquire Nativo, a full‑stack advertising technology company, paying 65 % in cash and 35 % in stock. The transaction gives Life360 a ready‑made platform for native and programmatic ads across premium publishers, enabling the company to monetize its family‑centric data through connected TV, mobile, and premium digital environments.
The acquisition coincides with Life360’s announcement that it now has more than 50 million U.S. monthly active users. The milestone underscores the scale of the company’s first‑party family data, which is a key asset for targeted advertising. The larger audience also expands the inventory that Life360 can offer to advertisers, creating a new revenue stream that can grow faster than its subscription business.
Life360’s recent earnings illustrate the momentum behind the move. In Q3 2025, the company reported record revenue of $124.5 million, up 34 % YoY, and adjusted EBITDA of $24.5 million, a 174 % increase. Other revenue—primarily advertising—rose 82 % YoY to $16.9 million, reflecting the early traction of its advertising offering. The company’s subscription revenue has also been a consistent driver, growing 15–36 % YoY across 2024 and 2025, but the advertising segment is now a rapidly expanding contributor.
CEO Lauren Antonoff said the deal “accelerates our roadmap, adding capabilities that typically take platforms years to develop. It allows us to scale faster and bring high‑quality, contextual advertising to market sooner—while enhancing, not disrupting, the Life360 member experience.” She added that the acquisition is part of a broader strategy to build a durable, mission‑aligned advertising business that can rival subscription revenue in the future.
The transaction signals a strategic pivot for Life360. By integrating Nativo’s technology and publisher network, the company can monetize its 50 million‑user base more efficiently, leveraging the high‑margin advertising model that has already shown an 82 % jump in other revenue. The move also positions Life360 to compete with larger first‑party networks such as Netflix and Spotify, while maintaining its core subscription offering. Management’s focus on cost control and strategic investments suggests confidence that the advertising pillar will continue to grow without eroding the user experience.
The acquisition and user milestone together reinforce Life360’s transition from a subscription‑centric model to a diversified revenue structure. With a proven advertising platform and a rapidly expanding audience, the company is poised to capture higher‑margin advertising revenue, potentially matching or surpassing its subscription income in the coming years.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.