Life360 Inc. (NASDAQ: LIF) had a rough Tuesday, and the reason isn't hard to find. The company reported second-quarter numbers that beat expectations, but Wall Street wasn't impressed with what it sees ahead.
Life360 Stock Tumbles Despite Earnings Beat: Here's What Went Wrong
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Beating Estimates, Missing the Mark
Life360 posted earnings of 6 cents per share, blowing past the 1-cent estimate. Revenue came in at $158.96 million, also topping the expected $156.39 million. So far, so good.
But here's the catch: the company kept its fiscal 2026 revenue guidance at $650 million to $685 million. The midpoint of that range, $667.5 million, falls short of the $670.24 million analysts were looking for. That gap is what sent shares tumbling.
Evercore ISI, which still rates the stock Outperform, trimmed its price target to $66 from $68 after the results.
Subscriptions and Ads Are Booming
Chief Financial Officer Russell Burke highlighted the bright spots. Quarterly revenue jumped 38% year over year to $159 million, while annualized monthly revenue climbed 29% to $537.2 million.
Burke noted that subscription growth remains strong globally. Advertising revenue hit a record $22 million, as the company's ad platform gains traction following its integration.
Technical Damage Done
Tuesday's selloff pushed Life360 shares below several key moving averages. The stock traded about 13% below its 20-day simple moving average, nearly 8% below its 50-day average, and roughly 14% below its 200-day average.
Shares have fallen more than 34% over the past 12 months. The moving average convergence divergence (MACD) is below its signal line, and the negative histogram points to weakening momentum.
Resistance sits near $57, while support is around $48.50.
LIF Price Action: Life360 shares were down 25.48% at $50.20 at the time of publication Tuesday, according to market data.
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