Why Life360 Stock Was Sliding This Week

By Eric Volkman – Mar 6, 2026 at 12:25PM ESTKey PointsInvestors have rather high expectations for tech companies these days.Some were worried that the company's robust growth rates would cool.Investors weren't in much of a mood to find next-generation location services company Life360 (LIF +1.54%) lately. Much of this was due to the company's latest earnings release, which disappointed the market. As of mid-morning Friday, according to data compiled by S&P Global Market Intelligence, Life360's shares were down by more than 13%. Operational and financial metrics on the rise Life360's fourth quarter saw revenue rise 26% year over year to $146 million. That was on the back of a 30% increase in subscription revenue to $102.5 million, and a 20% increase in its monthly active user (MAU) count to 95.8 million. Image source: Getty Images. Net income under generally accepted accounting principles (GAAP) ballooned to $129.7 million ($1.51 per share) from the year-ago profit of $8.5 million. However, this was skewed by a one-time, non-cash income tax benefit of nearly $118 million. On average, pundits tracking the stock were modeling $144 million in revenue and $0.33 per share in profitability (though they likely didn't anticipate such a sizable tax benefit). In its earnings release, Life360 attributed its double-digit growth in key fundamentals and operational metrics to several factors. These include new product rollouts, higher user adoption, and the positive effects of increased artificial intelligence (AI) capabilities across the company. ExpandNASDAQ: LIFLife360Today's Change(1.54%) $0.69Current Price$45.60Key Data PointsMarket Cap$3.6BDay's Range$43.75 - $45.9152wk Range$29.62 - $112.54Volume20KAvg Vol1MGross Margin77.81% Worries about growth Life360 also published full-year 2026 guidance. It believes revenue for the year will total $640 million to $680 million, representing growth of 31% to 39% over 2025. Non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) should come in at $128 million to $138 million, well up from the previous year's $93 million. MAUs are forecast to rise by 20%. I can't find much to dislike in this earnings report -- it's clear that Life360 is expanding its business rather effectively, and its products are resonating with users. However, investors are kind of picky these days, particularly with tech stocks, so they might be concerned that MAU growth rates will stagnate or even reverse. I'd have no such fears, and I'd consider buying the stock. Read NextMar 3, 2026 •By Josh Kohn-LindquistWhy Life360 Stock Is Plummeting TodayFeb 22, 2026 •By Adé HennisLife360 Board Director Sells Nearly 8k Shares as Company Expands Partnership with UberJan 23, 2026 •By Joe TenebrusoWhy Life360 Stock Soared TodayJan 14, 2026 •By Adé HennisLife360 Director Sells Shares Amid Strong 2025 PerformanceAbout the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedLife360NASDAQ: LIF$45.60(+1.54%)+$0.69*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.