Life360 Shares Plunge 23% After Mixed Second-Quarter Results

Life360 shares dropped 23.4% to $49.50 in after-hours trading following the release of its second-quarter financial results. Investors reacted negatively to a decline in GAAP net income, which fell to $5.1 million from $7 million in the previous year. This figure was heavily supported by one-time tax benefits and tariff refunds, indicating pressure on the company's core profitability.

The company reported a 38% year-over-year revenue increase to $159 million and a 53% rise in adjusted EBITDA to $31.1 million. However, Life360 maintained its full-year adjusted EBITDA guidance of $130 million to $140 million, a projection that failed to meet market expectations.

Despite the financial volatility, the company achieved a significant growth milestone by reaching 100 million monthly active users for the first time.