LIF

Dated March 2, 2026. These statements are based on assumptions we believe reasonable as of today, August 10, 2026, and we have no obligation to update them except as required by law. We will also present both GAAP and non-GAAP financial measures. Reconciliations are included in our earnings press release on our investor relations website. This is an audio only call with no slides. Our updated investor presentation is available as a reference on our IR website, along with our quarterly shareholder letter from our CEO and CFO. The letter goes into additional detail beyond our prepared remarks on this call. We will begin with a business update from our CEO, Lauren Antonoff, then CFO Russell Burke will review financial results and outlook, followed by Q&A. CRO James Selby will be joining the call to answer questions. Please limit questions to one per participant to start.

I will now turn the call over to Lauren.

Good morning and good afternoon. Thank you for joining the call. We hit a major milestone in Q2, crossing 100 million monthly active users. That's tens of millions of families who trust us every day to keep them connected and safe. Our Q2 results show our disciplined execution paying off. We added 4.6 million active members to reach over 102 million MAU, and we delivered our strongest Q2 paying circle growth on record with 185,000 net subscription adds. The signals we pointed to in Q1 delivered as expected, including strong demand, deepening penetration, and steady growth on higher-end devices. Importantly, we ended Q2 back on our MAU glide path. International MAU grew 20% year-over-year, with the U.S. growing 14%, driven by improved brand awareness, funnel efficiencies, and the value we bring to everyday family life.

We had tailwinds from unaided brand awareness, which rose an impressive 4 points in the U.S. during a quarter with lower marketing spend. We're also building momentum internationally. We launched new go-to-market initiatives in Brazil and Mexico and saw unaided brand awareness there increase from 9%-14% in Brazil and from 10%-16% in Mexico. Both countries are now around that 3% penetration mark where we've historically seen growth rates accelerate. We're reinforcing this momentum with new partnerships, including AT&T México, who featured Life360 in their back-to-school campaign across television, radio, cinema, retail, and digital. In Germany, we launched our first local campaigns in Berlin and Cologne, and we're seeing a measurable lift in registration there. We've also been having some fun with global cultural moments. We tapped into the World Cup and brought Disney's Toy Story 5 into the app.

Members around the world sent 180 million quick notes tied to those touch points alone. We're proving that cultural relevance is a meaningful lever for member engagement and delight. Meanwhile, our subscription business continues humming along with 27% growth in paying circles. As we get ready to relaunch Pet GPS, we've updated our pricing for new subscribers, and we're shifting into a bundled Pet GPS offer that starts with Silver. This is a deliberate choice of subscription scale over near-term monetization as we build Pets into a long-term driver of subscription growth. Moving on to our advertising platform, we've largely completed the integration and are now shifting focus to commercializing what we've built. Advertising has become a substantial revenue stream, contributing $22 million this quarter, with revenue tied to the Life360 app growing the fastest. Most importantly, we're starting to prove the advantage that our platform and our audience deliver.

Our testing shows that campaigns using our audience data see call to action rates up to 47% higher than campaigns using third-party targeting. One example is a top grocery store chain that saw a lift of over 40% in store visits from a single campaign, with exceptional performance among the 21-24 year old. These are compelling results. We're still early in the ads business, but our direction is clear, the momentum is building, and we have a long runway ahead. With so much opportunity in front of us, leveraging AI is essential. AI continues to accelerate both how we build Life360 and what we believe the platform can become. More than 100 million members use Life360 to navigate family life, creating real-world data that no competitor can replicate.

One of the earliest benefits we're seeing is from our proprietary AI-powered monetization engine, which continues to deliver exceptional performance by automating our use of first-party data to deliver the right message to the right member at the right time. We're now experimenting with the same approach applied to engagement and retention to support member growth. On the product side, we're leveraging AI as we start to build more dynamic experiences for different types of families, and we're expanding our family AI lab led by Executive Chair and Co-Founder, Chris Hulls. We entered into an agreement to acquire the team and technology from SuperDuper. What stood out to us about SuperDuper is that they're using AI to understand the real complexities of everyday family life, the calendars, emails, schedules, and errands scattered across dozens of apps, and to connect those dots into a single, meaningful picture.

This work is bringing us closer to making family life easier, more coordinated, and a little more fun. As we cross the 100 million monthly active users, our disciplined execution has brought our once ambitious targets of 150 million MAU and a billion dollars in revenue within sight, alongside continued margin expansion. We're tailoring our product experiences for more members in more geographies and more life stages with new capabilities like morning check-in, live progress, and our Apple Watch app. We're building new lines of business that didn't exist a few years ago, including advertising, pets, and next, aging parents. Each takes time to nurture, and all are significant growth opportunities built on our established platform and the trust families have placed in us. And each makes Life360 more essential to everyday family life.

A strong Q2, momentum heading into back to school, and our upcoming Pets launch set us up for a strong second half across products, subscriptions, advertising, and international. I am looking forward to showing you more of that momentum in the back half of the year. With that, I will turn it over to Russell to share more detail about our performance and outlook.

Thanks, Lauren. Q2 delivered strong financial results across our core business, and our transition to an AI-native operating model is introducing some new revenue and cost dynamics worth walking through. All figures are unaudited and in U.S. dollars. Total revenue grew 38% to a record $159 million. Subscription revenue grew 31% to $115.6 million, with core subscription up 34%, driven by 27% paying circle growth and 5% higher ARPPC. U.S. subscription revenue grew 28%, and international grew 45%, with particular strength in the U.K., Australia and New Zealand, and Canada. Advertising revenue was $22 million, growing sequentially and up substantially year-over-year, reflecting the build-out of our managed service offerings, both on and off app, and contribution from programmatic advertising.

Hardware revenue was $9.8 million, down 20%, reflecting our strategic exit for Tile from brick and mortar retail and some Pet GPS inventory constraints as we completed a production line move. Other revenue grew 25% to $11.6 million, and annualized monthly revenue reached a record $537.2 million, up 29% year-over-year. Gross margin was 80%, up from 78% in Q2 last year. There are three distinct dynamics across our revenue lines. Subscription gross margin increased to 87% from 85%, reflecting continued cost optimization. Advertising gross margin was 57%. This is down from last year and largely reflects the fact that we are scaling the advertising business by building out a managed service operation, which under GAAP brings costs that impact gross margin. These include traffic acquisition costs, technology and hosting, personnel costs, and data and content licensing.

Due to changes in revenue mix, we now expect advertising gross margin to normalize towards 65%-70% on a GAAP basis in Q4 as we exit 2026. Hardware gross margin was 43%, up from 17% a year ago, but that increase was largely a one-time item, primarily a $3.6 million tariff refund that we had expected later in the year. Excluding that refund, hardware gross margin would have been closer to 7%, more representative of where we have been trending as we complete our retail exit. We are pricing the Pet GPS device itself relative to competing devices to drive adoption, consistent with our strategy of using devices to complement the member experience rather than drive revenue or margin on their own, and we expect a loss at the device gross profit level initially.

Given the average pet lives of 10+ years, we are building this customer relationship for the life of pets and beyond. The Silver Pet GPS bundle will be priced at $99 annually. We do not expect Pet GPS to be a material revenue contributor this year as the category continues to build. Operating expenses were $127 million, up 43%. As we have previously discussed, our operating expense profile has changed slightly this year, partly due to deliberate investment decisions, but also due to the fact that we have brought on a level of fixed operating costs that do not exactly match the timing of revenues due to seasonality. Importantly, they do not impact our overall growing operating leverage. R&D grew 47% to $47.4 million, flowing from advertising engineering headcount, expanded platform infrastructure, and continued product investment.

Sales and marketing grew 35% to $52.3 million, reflecting higher variable platform commissions on subscription growth and the addition of Nativo's sales organization, partly offset by growth media that we intentionally shifted into Q3. General and administrative expenses grew 57% to $27.2 million, primarily personnel and technology costs from scaling the business, along with our hardware warehouse relocation and final Nativo integration costs. in Q2, we reshaped our technology organization to accelerate our transition to an AI-native operating model, reallocating investment from certain roles toward AI-native capabilities and workflow redesign rather than backfilling them. That reallocation is already producing results by enabling us to move faster. Taking one example, our personalization engine, built on this same foundation, is generating real revenue impact, and we are accelerating investment in it based on that early performance.

We expect this transition to build faster execution and meaningful operating leverage over time, with that benefit compounding from 2027 onward. GAAP net income was $5.1 million, including a $4 million tax benefit, with basic and diluted EPS at $0.06. Adjusted EBITDA was $31.1 million, up 53% at a 20% margin versus 18% a year ago. Compared to the 16% outlook we gave for the quarter, the timing of the tariff refund drove our actual result about three percentage points higher, and operating leverage added one percentage point. Operating cash flow was $23.8 million, up 79%. We ended the quarter with $467.7 million in cash equivalents, restricted cash, and short-term investments. In May, our board authorized a multi-year repurchase program of up to $225 million, and we repurchased $13.2 million of stock in the quarter, leaving $212 million available.

We will continue to be strategic about the pace of repurchases, balancing capital return and offsetting dilution with continued investment in long-term growth. On guidance, we are reiterating our full-year revenue outlook of $650 million-$685 million. Within that, we are raising subscription revenue guidance to $475 million-$480 million, up from $470 million-$475 million, and lowering hardware revenue guidance to $35 million-$45 million, down from $40 million-$50 million, reflecting device pricing and volume shifts. Advertising and other revenue guidance are unchanged at $98 million-$150 million and $42 million-$45 million, respectively. Our full-year adjusted EBITDA outlook of $130 million-$140 million also remains unchanged, reflecting operating leverage flow-through offset by advertising mix shifts. A couple of modeling points for the balance of the year.

Even with some growth media moving from Q2 to Q3, we expect Q3 adjusted EBITDA margin of approximately 18%, showing continued sequential improvement from Q2, while excluding the tariffs benefit. We expect Q4 operating expenses as a percentage of revenue to be below Q4 2025, and we expect Q4 2026 adjusted EBITDA margin to exceed the 22% margin we delivered in Q4 2025. The financial setup into the back half is strong. Revenue acceleration, margin expansion, and paying circle and MAU growth are all pointed in the same direction. We look forward to demonstrating that in the quarters ahead.

We will now open up the call to question-and-answers. As a reminder, please limit yourself to one question to start and re-queue. Also, a reminder, joining us today is James Selby to discuss questions related to advertising. With that, we would like to open up the call to Lafitani Sotiriou from MST. Can you please unmute your line? Okay there, Laf?

Okay, great.

There we go.

I am now. Just had the option then. Congratulations on a great result, and good to see MAU is back on track, with a clear record for second quarter paying circle additions. Can I first clarify something Russell said, and then I've got a question for Lauren and James. Russell, did you say when the 25% increase to Silver package and 13% increase to Gold will be implemented from? Has that already gone through that price hike, or is that still to come through? My question for Lauren and James, so we're starting to see some big brands coming through that are being associated with Life360, like Disney, easyJet. You've got AT&T in Mexico, and you've got Apple Watch integration. Some of it isn't strictly on the advertising side, but can you talk us through, are you looking at this more from a one-company approach?

Are you sort of starting softly like you did with Uber and then expanding? How should we consider the next couple quarters in what we should expect to see on the advertising front with some big brands? Thank you.

Laf, let me quickly cover the pricing question first. We're in the process of implementing that, so you'll actually see that fairly soon. Just to emphasize, it is for new subscribers only.

Got it. Thanks.

Going into the brands, I think it is super exciting, the brands that are coming to us and want to work with us, and the way that brands are responding to us when we approach them. We do start from a full company, what are the ways that we want to work together. For Disney, for example, we put together a vision for how would we like to work with Disney. Often these partnerships, like you saw with Uber, we will start with let us do something first and then build confidence and build that relationship as it goes. Often, we will consider whether advertising is part of that, whether it is early or late. I do not know, James, do you want to add anything to that?

Yeah. I think the only thing I would add is that the brand partnerships really give this fantastic halo effect, making the Life360 brand better known, and that helps us push that into bigger partners and new partners.

Can I just clarify? You have talked to the platform being in place. Nativo is now all set. How should we look at the ramp up from here in advertising? Maybe you can even just talk to the seasonality, how much is typically in the fourth quarter in terms of the overall revenue for the advertising part of the business. Thank you.

I am going to let James answer this, but I could not help but chime in because the thing that is really exciting for me is not only are we getting some of these great brand relationships, but we are starting to be able to demonstrate the value that we can deliver based on our unique real-world data. James will answer some of those details, though.

Yeah. As we noted, the first half has really been about the tech integration, and now it is really about scaling that integration and taking that to market. We had a really fantastic Cannes Festival where we had great setup there. We have been doing many regional marketing events that have been going really well. A lot of the campaigns are starting to show real-world proof points, much like what Lauren spoke about earlier with one of those grocery chains. So we are getting great proof points, and that motion in the market is really taking steam.

Just on the financial aspects of that, Laf, our guidance is really unchanged from what we have said before. We do look to Q4 as being this sort of seasonally high period in the advertising business. We have said before that we expect Q4 revenue to be approximately double that of Q1. I should also just, a further clarification on the price increases, that they are for U.S. subs only at this point.

Great. Thanks, Laf. I would like to open it up now to Mark Mahaney from Evercore.

All right. Two questions, please. First, just go through, Russell, or Lauren, why the increase in subscription revenue, expected results or guidance for the full year? Just go through those factors. That sounded positive. Then I want to make sure I understand this recovery to growth in MAUs. Is there something in the linearity of the quarter that proves that to you, that 16% is kind of a deceleration from last quarter? So, what convinces you that your MAUs growth is back on track and potentially back to that 20% goal that had been set at the beginning of the year? Thank you.

We might have to bounce around a little because there is a lot in there. I will start with the motivation on price increase and then let Russell talk about the implications of that, and then we will come back to the MAU question. From the price perspective, we have made our priority really growing the number of subs rather than the price per sub. As we were learning about and testing how to get the most scale out of the Pet GPS, what we learned is that bundling it in, and bundling in at the lower tier, was the way we were going to get the biggest growth. That caused us to look at pricing. That is a lot of value for that tier. We decided to make a modest increase, so it is a $2 increase on the monthly. It is an equivalent increase on the annual.

Then we made adjustments to match that end goal, basically. Russell, do you want to talk about what that means?

Yeah. From a pure technical point of view, Mark, it is similar to what we have seen before with price increases. It is a relatively small impact over a period of time for increases to new subs, especially where we are testing that out and perhaps have a holdback group. The larger potential down the road somewhere is across the existing user base. To your question on MAU, I think it is really a factor of that growth that you referred to is over the whole quarter period, whereas, as we have talked about, that trajectory was really building up over the quarter. So the exit rate is a bit higher than the average for the quarter.

Yeah. I will just add to that. Not only did we end the quarter with just really good pace, but we have got a lot of stuff in store in the back half of the year. Q3 is when we do back to school. We have a lot of exciting things in Pets. So we have the momentum we built up in Q2 that really drove the good result there, coupled with a number of initiatives in the back half of the year.

Thank you, Russell. Thank you, Lauren.

Thanks, Mark. Next, I'd like to open it up to James Bales with Morgan Stanley, please.

Yeah. Hi, guys. I'd like to firstly cover off on MAU. Can you maybe help us understand about what you're seeing on back-to-school performance, and what gives you the confidence in a re-acceleration into quarters three and four?

It's early on back to school, but so far we're seeing really great results, not only from the beginning of back to school, but we're actually still getting benefit from the advertising that we did in Q1. So one of the factors that is helping to drive some of the good numbers we're seeing is just an increase in brand awareness, both in the U.S. and in those newer international markets. That makes everything else that we do, customers more receptive to those things. I don't know, Russell, if there's more detail that you want to add.

No, I actually don't think there's a lot more to say on that, so let's leave it at that.

Wow.

Thanks, James. Next, I'd like to open it up to Andrew Boone from Citizens.

Thanks so much for taking the question. I wanted to go to Pet and just understand your progress with Pet in the quarter. I'll leave it at that. Thank you.

This is something I'm super excited about. We're really gearing up for a lot of exciting things later this month. You know, we moved our manufacturing, so we had inventory come down for a while, and we've got that back going again. We've made some improvements there as well. One of the biggest changes, I think, is a new go to market. So before we sold the device as a standalone, now we're going to be selling it bundled. We think that's both a better customer experience, and it's good for the business. So it's a win-win there. One of the most exciting things is that when we released the Pet GPS, we also introduced the Pet Finder Network, and this was a way to bring the value of pets to every member and also help us understand who had pets.

The adoption there, we have now over 8 million pets registered. The adoption there has really exceeded our expectations, and it's made us realize that there's a real opportunity to serve pet parents throughout our base, whether or not they get the tracker. We are going to be doing more things that are good for pet parents on the free tier, and then those things get even better when you have the paid tier.

Thank you.

Thanks, Andrew. Next, we would like to open it up to Julian Mulcahy.

Just a couple of questions from me. Firstly, Russell, with the tariff benefit you got, you've said you got it earlier than you expected. Was that the magnitude you were expecting in the full year, and is that why guidance hasn't changed on EBITDA? Secondly, maybe for Lauren, the conversion rate of free to paying has been edging up for nearly two years now. Is there anything you're doing differently now that you weren't previously, and how far do you see that conversion rate lifting from the current levels? Thank you.

Thanks, Julian, and welcome back.

Thanks, Russell.

I am going to cover the first part of your question in a little more detail about guidance. You asked specifically about the tariff refund, and you are absolutely correct. We had expected that in the second half, and that was sort of built into our guidance as such. There is a timing difference there that came into Q2, and that is why we gave the sort of specific details of the impact on adjusted EBITDA in Q2, so you could sort of lay that out. You are talking about your guidance generally. In addition to that, in the second half where we are seeing a little bit of a bump in subscription revenue, which is why we increased guidance there. There are also some other shifts. For marketing, we laid off marketing a little in Q2 and just made an intentional decision to push that into Q3.

That is our regular sort of back to school period, and so the small incremental margin on higher subscription revenue that we are essentially investing into marketing in Q2 to support growth, and particularly in international territories as we start to push harder there. While advertising is building as we expected, we do recognize that there is really elevated seasonality as we have talked about for advertising, and that does create a little bit of a higher risk, and that is why we are leaving revenue and adjusted EBITDA guidance unchanged, even though we raised in Q1.

I will take the question on the conversion rate. I really should let James do it because his team has done the work here, but I will take it anyway. The thing that drives conversion is customers understanding the value that you have in your product. It is partially what we build, but it is just as much customers figuring out that that stuff is in there. We have some great benefits like roadside assistance and things like that even many of our paying members do not know about. What we have done is, this is one of the places where we have leveraged AI.

What we have done is create an engine that takes the member profile, that looks at their behaviors, it looks at their families, and it creates a model, and it runs all of these tests to get the right message about our capabilities in front of the right member at the right time. That is one of the big drivers that is improving conversion. Of course, we continue to improve the features. We have things like Pet GPS. But I would say that the bigger jump right now is our ability to get that information in front of customers at the right time.

Thanks. How much further does it go, do you think?

It is hard to say. There is definitely more gas in the tank. Right now, we are asking the team to broaden the technology platform so that we can use it not just for revenue, but those same sort of discoverability challenges are important for engagement. How do we get free members to use more of our capabilities so that they are more likely to create a new circle and bring in more friends, or are more likely to stick around with us? I think it has got a lot of runway ahead of us, but I could not give you an exact target.

Thanks, Lauren. Thanks, Russell.

Thanks, Julian. Next, we'd like to open it up to Rob Sanderson from Loop.

Yeah. Thank you. Two questions from me, please. Just a question on the pricing update, just the rationale behind new users only. It seems like you're delivering a lot of value to the existing base as well. Why not raise the price across the board? Is it just want to go slow and test the market at the reaction at the higher prices? Anything you can maybe share on the decision to just limit that to new users? Then a question, Russell, advertising gross margin, you went through a lot of detail on how the mix implications and everything we should be considering as we're modeling. It seems like you're kind of landing right where I was modeling to start with. I'm curious, did something change with that, or are you just trying to provide incremental color to get consensus into more reflective of what you expect with mix dynamics?

I'll take the new user questions, then I'll let Russell answer the second half. The reason we decided to adjust price in the first place was about scaling the pet business. That is about literally getting new subscribers. The problem we were trying to solve is a new subscriber problem rather than a dollar maximization problem. We want to be really careful when we consider raising prices on the base because we want to get that. We want many, many more subscribers as opposed to the optimal revenue change. We believe that we're going to learn a lot from the new members, and then we'll decide how to take those learnings and consider what we want to do with the base. But the initial decision is really motivated around getting more new subscribers, more new sticky subscribers. Okay, Russell.

As far as the margin detail go, yes, that is exactly the intention, was just to provide some more detail to help with modeling. We are really excited about the potential with the acquisition that gives us that full stack advertising range. Coming with that is the highly valuable managed services piece, which we think is a real opportunity, but does have slightly lower margins than some of the other parts of the business. So we just want to delay that out. The other aspect, obviously, as we have talked about, is that as we scale the business, there are some fixed costs inherent there, which we will be able to gain leverage on, and therefore grow margins as the business scales.

If I could add a follow-up to that, Russell, just so it is clear.

Yeah.

That is obviously a really heavy seasonal quarter. So we should expect some seasonality again on the margins as we build through 2027, just as we are building our models?

Yes, I would build seasonality into it. Over time, we will be able to increase generally as a result of the leverage. But there is definitely going to be seasonality impacts.

Okay. Thank you both.

Thanks, Rob. Next, we would like to open it up to Andrew Gillies from Macquarie.

Thanks, guys. Can you hear me?

Yep.

Perfect. Just glad that question was asked around the 4Q EBITDA margin. Just a quick clarification on that. Does that apply to the whole business? There are a couple of other things going on at the group level. How much of that strong seasonality? Are there any underlying things on the margin side from the 4Q that we should be thinking about dragging into 2027? Then I have a follow-up as well.

What I would say is the subscription revenue margins are very stable. In fact, we've managed to push them up a couple of points in the last couple of quarters, and they are very stable and not really subject to seasonality. The pieces that are subject to seasonality is obviously the advertising business that we've talked about, and also the hardware business. That will be particularly affected this period by what we've talked about with the Pet GPS device, which will impact margins but give us considerable benefit in the longer run on subscription revenue.

Perfect. Thank you very much. Then just a quick follow-up maybe for Lauren. Just on the Apple Watch launch, some of the underlying subscription dynamics, we've spoken quite a lot about pets and some other things, but just curious as to what you're seeing on the Apple Watch launch and really the rationale for how that improves potentially subscription dynamics, particularly in the U.S., but elsewhere as well.

Great. First of all, Apple Watch has not yet launched. It is in beta. You guys noticed it before we were ready to sort of bring it out to the world. We want to make sure that it's a really great experience and it's intended to be part of our free tier. It is not intended to be a subscription driver. The idea is that we want the families that join us, both free and paid, to be able to bring their whole families onto the map. We know that families that are more engaged, that have more people, have a higher tendency to stay, they get more value, and they have a higher tendency to get subscribers.

We're not planning to monetize it directly, but we get that indirect benefit of appealing to more families at earlier life stages, providing more value and hopefully win the right to serve them the subscription value.

Thank you very much.

Thanks, Andrew. Next, we would like to open up to Nitin Bansal from Bank of America.

Thank you for taking my question. In 2Q, there was a step-up in both R&D expenses and SBC. Can you help us understand what drove the increase? Is it majorly growing investments in AI? How should we think about the run rate of these expenses going forward and the potential implications for AI investments on your longer range margin? Thank you.

Yes, Nitin. Thanks for the question. In terms of R&D, the step-up there was from two pieces. One is the headcount increase, which is a combination of normal headcount and the additional heads that came with the Nativo acquisition, and some increases in tech costs on the cloud operations side. To your specific question on AI, yes, we have seen those costs increase, particularly as we adopt that very aggressively and encourage our employees to make use of it. We have been able to really manage those costs in relation to overall headcount for R&D. We are managing that on essentially a net basis, which we have been very effective at containing the overall cost base that way.

On the SBC, any guidance on that?

I'm sorry, I didn't quite catch that, Nitin.

On the stock-based compensation, what drove the increase?

On stock-based compensation, there's a couple pieces. I'll talk more broadly than R&D. I'll sort of talk to that generally. We did see a bit of a step-up in Q2, and there's two main drivers for that. One is simply the headcount increase overall that we typically see. Again, that's partly driven by the Nativo acquisition. The other aspect, which is not quite as obvious, is that there were some performance equity grants that were approved at our AGM in May, that once approved, essentially get backdated to the beginning of the year. Those performance grants, the way U.S. GAAP accounting works, is that they're actually expensed a little faster than normal grants. They still vest over the agreed period, but they do get expensed faster.

That means that Q2 for SBC will be the highest quarter for us for SBC costs for this year, and that will start to normalize in Q3 and Q4.

Thank you.

Thanks, Nitin. I would like to open up to Siraj Ahmed from Citi.

Thanks. Maybe just first one for Lauren. Lauren, in terms of MAU cadence, right? Pretty strong Q2, good improvement. But just given you have left the guidance range unchanged, just keen to understand how you are thinking about Q3 and Q4, because we had this discussion before where you like to have record quarters in the third quarter and fourth quarter, right? So just how are you thinking about it, and do you actually think 20% is achievable?

I do not want to jinx things, but we left it a wide range on purpose because we got a slow start to the year. We feel really good about our pace coming out of that. We feel like we are on track to get in that range. What can I say? It is good momentum. Yeah.

Yeah. Any reason why you have now formally given that, what do you call it, passive users or something, in the appendix? I think it is 19 million. Any reason for that? Do you reckon that comes into MAU, there is initiatives to put that in?

We sometimes look at passive users and try to activate them, but I think it is more to give a more complete picture of what our user base really looks like. We are a little bit unusual in how we look at users, and we have a very narrow definition of who counts as an active user. You have to open the app, even though people are literally giving us their location all day, every day. They are getting notifications, but they do not count. I think we wanted to be transparent about that because there is a lot of these things that affect both our overall business growth and, in particular, revenue growth that just did not have optics previously.

Got it. Quick one for Russell. Russell, just thinking about your guidance, Q3 at 18% EBITDA margin, and then leaving full year unchanged. To get to your midpoint of EBITDA guidance, you sort of need to get 30% EBITDA margin in Q4, right? Is that fair, or do you reckon you are trending towards the lower end just given advertising and hardware gross margin? Also, would not Q4 be having the highest sort of negative drag from pet tracker gross margin given that is the holiday period? Just keen to understand how to think about that and then into next year. Thanks.

Yep. Yes, there's a few parts to that. What I would say is that we've specifically said that Q4 adjusted EBITDA margin will be considerably higher than what we delivered in Q4 last year. I'm not saying that it would get to that 30% number that you were discussing, and I don't think we need to get quite to that to deliver the guidance that we've talked about. In terms of the impact of the Pet GPS device, I think hardware revenues as a whole have become a smaller piece of the pie, even as subscription is growing very, very strongly. Essentially, the impact of that will be felt, but based on what we see at the moment, that will be more than offset by the subscription side of the business. So we're keeping our margin guidance intact.

Thank you.

Thanks, Siraj. I'd like to open the call up to Stephen Ju from UBS.

Right. Great. While we have you on this call, James, I just wanted to ask you, I think you touched on onboarding spend from brand advertisers. Given the location data, it seems like there's an underlying opportunity to drive more of the performance ad budgets on the platform as well. So, wondering where that sits from a product development point of view in terms of the list of your priorities and right now what ad verticals are working particularly well. I guess, Lauren, looking very much big picture, you're seeing other subscription-driven companies roll out advertising as a supplementary stream of revenue. The other thing that's happening in the background is that might help the entry point from a subscription fee standpoint. So this might be something that you might want to contemplate maybe a couple of years down the line.

I'm just wondering if having an ad-sponsored subscription model for Life360 is something that we should be thinking about longer term. Thanks.

Maybe I'll take that one first and then let James go from there. When we contemplated bringing ads into the app, we were very clear that our first priority was to ensure that we continue to deliver member delight, and that our app is a place where people really trust us with their family and with their data. We decided not to follow some of our peers who use ads to annoy people into becoming subscribers. That is not our intent. Ours is really to deliver value to members. Ultimately, our vision is to be able to have ads that are so good, kind of like Uber, where people don't even think of them as ads, where they're just value add, and we'll see how close we can get to that. We're on a good start with some of the partners that we're with. That is not our plan. James?

Yeah. So maybe I'll start on verticals because then it will lead nicely to our focus on performance. On verticals, where we're finding the most success is really verticals that are in real world, in real life, so that might be automotive, QSR, travel, and retail. Where we are able to provide something really unique in the market is with our Uplift product. This is our measurement product that we have, which helps us determine if I drove past a billboard, did I influence someone's behavior into going into that gas station or that specific coffee shop or whatever it is? We're finding a lot of success with that. It's a really unique product in that it uses deterministic data, and that's our focus on the performance side, is working out where can we offer unique performance, which is driving real-world behavior.

Thank you.

Thanks, Stephen. Next, we would like to open up to Eric Choi from Barrenjoey.

Thanks. Thanks, RJ. Sorry, I just had one question on the second half outlook, but it had two parts to it just on the implied MAUs and implied ARPPC growth that you have got in your second half outlook. Sorry to keep harping on the MAUs, but you have previously mentioned April was still experiencing some of the issues you saw in the first quarter. If we kind of assume April doing a bit under 1 million, it kind of implies May and June must have been doing close to 2 million MAUs a month, maybe a touch under. The other point is you have also got July data now.

I was just wondering if you could confirm if we, say, took May to July, that kind of adjusted quarter, is that tracking on pace with, say, the high 5-6 million MAU pace you need to hit guidance? Then just on ARPPCs, to get to your subscription revenue guidance, I think you need subscription revenues to grow, say, 7.5% quarter-on-quarter in the last two quarters. Subs are growing about 6% quarter-on-quarter pretty consistently. So I think that means you are implying ARPPC growth goes back to, say, 1%-2% a quarter for the last two quarters, and then, sorry, it is a mouthful, but I just wanted to check that 1%-2% is basically entirely driven by those U.S. front book price changes. Thanks, guys.

Okay. I will start us out here and then turn it over to Russell. When we set out and planned the year, we had a glide slope that we believed that we were going to deliver on. What happened early in the year is that got delayed due to the problems that we talked about in Q1. What we saw, as we got through the quarters, we got back on that glide slope. I would not say this is a major outperformance. It is performing now according to plan, which sets us up well for the back half of the year. I will let Russell take it from here.

Eric, I will start with a question you did not ask, but which was why did the U.S. ARPPC decline slightly in the quarter? That is purely mathematical. It is the fact that there is 91 days in the quarter versus 90. If it was normalized, it would have actually increased slightly. To your question in terms of guidance, you are basically right. We would expect that tick-up in ARPPC in both the U.S. and international to come back to that small, lower single-digit level. That takes into account the impact of the price increase for new users in the U.S.

Got it. Thanks, Russell. Thanks, Lauren.

Thanks, Eric. Next, I would like to open the call up to Chris Savage from Bell Potter.

Thanks, RJ. Thanks for taking my question. It is a good follow-up to Eric's because I guess I am trying to find the negative why the market in the U.S. sold it off so aggressively, and the only numbers that missed mine and the markets were ARPPC and AMR. Russell, ARPPC has been going up consistently 1%-2% per quarter. Was it just the 91 days that caused it to fall slightly, or was it also some currency or volatility or seasonality or change in the mix, or what was it?

There are a few pieces to that, Chris. One, for international, we are cycling through some of the benefit of the triple-tier territory, so we would expect that to grow a little slower going forward. In the U.S., we have also been cycling through some of the benefit that we had from dated legacy holders. That is pretty small impacts in both respect and amplified by the 91 days versus the 90 days. We would expect that to normalize going forward. You also asked about AMR, and I guess the thing to point out there is that it does not include advertising, so it is becoming perhaps a less critical measure of our business. We still got 29% growth year-on-year on that measure, so it does reflect the strength of the core subscription business.

Right. Thank you.

Thanks, Chris. I would like to open up the call to Annabel Khun from E&P.

Hey, guys. Can you hear me?

We can.

Great. Thanks for taking the question. Maybe sort of a two-parter. Would love just to talk a little bit more about the shape of the marketing investment. In terms of the margin guidance coming into Q3, how much of that is just draw forward from where you guys pulled back a little bit in Q2? How we should think about in Q4 in terms of what does that marketing investment peak in Q3 versus as more of just a larger investment in marketing that we need to drag forward into Q4? In terms of marketing as well, you guys have been doing a lot of work promoting Life360 Ads in conferences, and going out there to market.

Maybe can you just give a little bit more detail on how that marketing is going and where you're seeing that flow through in terms of interest in products across Uplift by Life360 versus Place Ads by Life360 versus your on-site, off-site. Thanks.

I'll take the first part of that and then Lauren and James can cover the second. What I would say, Annabel, is that there will be a step-up in Q3. Q3 is typically our larger marketing period as we really support the back to school in the northern hemisphere. What is also happening this year is that there is a little bit of a timing swap from Q2 to Q3 for the U.S. We did lay off a little in Q2 and have pushed that into Q3. Also in Q3, we wanted to support our international side as we really expand the territories that we're focusing on and wanted to really invest in the growth in those territories. So that will mean that Q3 will be a little more elevated in terms of marketing spend. That will come back to a more typical spend in Q4.

I can touch on marketing around ads. A lot of the focus there is getting the Life360 Ads brand name known. A lot of people know Nativo. A lot of people know Life360 as a consumer app, so we're really focused on just awareness of us as an ad solution. A lot of that focus is on our differentiated products, our differentiated capabilities. We're getting great reception when people understand the types of ways we can target users, the different customer signals that we are able to capture, and our unique formats and experiences that we can deliver. Ultimately, all of that generates a pipeline for back to school, for the holiday period and so on. We're seeing really good reception and momentum there in pipeline creation.

Thanks, Annabel. We have time for another question from Siraj Ahmed from Citi.

Thanks. Maybe just a question for James. James, in terms of the ad tech stack, one of the things that we had heard is, the acquisition of Nativo, even with that, Nativo did not have an ID spine. Just keen to understand, do you now have the capability of an ID spine to take it from the first-party data that you have right now and actually offering it to publishers? Just keen to understand if that's been built, because that was flagged as a gap in some of the work that we did.

The device graph is a key component of this. Being able to capture or address, I think we are at close to 100% of the U.S. addressable ad market now across the platform. That is using Life360 proprietary data to be able to target users on the Nativo platform. That work is complete and actually in market right now.

Second thing, there seems to be some restrictions in the U.S. coming in terms of how much location data you can use. For instance, it has to be 100 ft away or something. I do not know the exact restrictions from a particular point. I am just wondering if that gives you an advantage being a closed full tech stack here end-to-end, or can you not use the data for advertising in some of these states that are proposing this legislation? Thanks.

Absolutely. You are absolutely right. This is an advantage for us, wherein the legislation is really focused on those who buy other people's data for targeting. Ours is all first party, consented, consumers can opt out at any moment they would like. We are insulated from any of those risks, and it gives us an advantage as others are unable to use other people's solutions and they are coming to our door instead.

Great. Thanks.

We have time for a final question from Lafitani Sotiriou, and after this, we will conclude the call.

Thank you for the final question. I just wanted to follow up on the Apple Watch Beta, and Apple is in the press yesterday. There are reports talking about Apple looking to completely relaunch some of its watches and its approach to its watch offering. What are some of the things that your collaboration or working with Apple may entail? Are you pursuing this because of, say, kids watch, or is it part of the broader senior offering? Is it possible that we can see that Disney is working with Apple as all has collaborations in place as well? Is it a far fetch to see something like an Apple Disney watch on Life360?

Our intent with Apple Watch is really about that mission that we have to serve more members at more life stages. Apple Watch, both for kids and for people who are aging, it provides more options. We see the world evolving to be less phone centric and to be able to serve people in different ways, and I would say this is a first step for us for being able to be present on different kinds of services. I would expect to see us in the future, working with more device manufacturers in more ways.

To the Disney Apple possibility, more specifically?

I certainly don't have anything to share.

Okay. Thank you.

That concludes the call. I'll turn it over to Lauren to sign off.

Well, thank you all for joining us. This was an exciting quarter. Lots of great momentum and even more exciting stuff coming for Q3. I look forward to talking with you all again then, and probably before then.

To everyone in the U.S., and good morning to those joining from Australia. Thank you for joining the call. We're doing something a little different this quarter with shorter remarks so we can get to more Q&A. The letter we shared provided a lot of detail, so I wanna take a couple of minutes to reinforce a few key points. I wanna talk about what's propelling our strong financial results and why I'm confident in our trajectory. I also wanna spotlight our advertising business, which has long been a glimmer in our eye and is finally at a scale where it's becoming a significant part of our business. I wanna touch on our progress in learning on AI. First, our strong revenue growth is a clear reflection of what makes Life360 so special. Life360 is in a rare position.

We've become a meaningful part of everyday family life for more than 97 million people who use Life360 to keep their families safe and connected. The trust families place in us is a genuinely differentiated asset, one that grows and compounds day after day because of the real value we deliver around safety, coordination, and connection. It's the foundation and fuel for every part of our business. The momentum we have in subscriptions, advertising, and partnerships all flows from it. Every quarter we ask ourselves, are we increasing the value we deliver to families, and are we seeing that value compound in our results? The answer to both of those questions in Q1 is yes. This trust and value translated into outstanding Q1 revenue growth of 38% to $143 million.

We delivered the most quarterly subscription net adds ever, bringing us to three million Paying Circles. ARPPC is at an all-time high. These aren't one quarter anomalies. They're the result of a flywheel that's continually getting stronger. Better product drives higher conversion and retention. Those improved economics fund more investment, and more investment makes the product better. The value we deliver to our members powers our monetization engine. Let me take a moment on monthly active users. Q1 MAU growth came in at 17% year-over-year. That's solid growth, but below where we plan to be due to a series of technical issues that temporarily suppressed registration volume during the peak of Q1 marketing. After fixing a widespread issue that impacted new signups, we uncovered additional Android specific problems disproportionately affecting lower-end devices.

The latter took longer to resolve, but was largely concentrated in populations that don't materially impact revenue today. We've implemented the major fixes, put systems in place to quickly catch problems in that part of the funnel should they ever arise again, and we're still finding opportunities for improvement. Recovery won't happen in a single quarter, but even with pressure on registration, our monetization through the funnel has remained strong. What I really wanna convey is that demand never faded and engagement continues to deepen. When we look at the underlying data, the story is clear. Google Trends searches for Life360 were up over 40% during the affected period. Our most penetrated U.S. states continued to increase their penetration consistent with previous years. Our iOS segments, which drive the vast majority of our revenue, recovered and are growing well.

The U.K. is growing at 25%, Canada at 32%, and Australia and New Zealand at 24%, all bolstered by strong and improving member retention. The signals we're seeing now give us confidence that the fixes are taking hold, and we expect to be back on our planned glide slope by Q3. This impact delays but does not fundamentally change our MAU growth trajectory. This brings our expectation for MAU growth to between 17%-20% for the year. Our top line growth remains strong, and we've raised outlook for revenue. I wanna highlight our newly scaled Life360 Ads business. What makes our advertising business different isn't just real-time location data. It's that the same trust that families place in Life360 is exactly what advertisers are attracted to.

Our real-world first-party family data is unique, impossible to replace with a synthetic model, and it's what turns relevant reach into measurable results. With the completion of the Nativo acquisition, advertising revenue has reached critical scale, and the promise we've seen for some time has become real. We broke out advertising revenue for the first time with nearly $20 million in Q1, and we expect a steep ramp over the next few quarters as we enter peak advertising season. Over the long term, we continue to expect advertising to rival the scale of our subscription business, powered by our unique audience and real-time, real-world data. Now that we've integrated Nativo, our location data activates not just inside Life360, but across over 20,000 publisher sites and connected TV, extending our reach from under 20% of U.S. ad eligible adults to over 95%.

With world-class buy side tools, sell side infrastructure, and data intelligence, we can reach relevant audiences in the moments that matter and allow advertisers to clearly see when a campaign drives real world behavior from store visits to test drives, all while keeping the data private within our walled garden. What that means in practice is that brands like Starbucks can reach families in a real moment near a store on a Saturday morning, then close the loop to see whether that impression drove a visit. Uber likes our results enough to deepen their product integration with us. Parents will soon be able to call an Uber for their teen and see the trip live all inside Life360.

Brands like these wanna work with us because of the trust we build with the families they serve and because we can close the loop between ad targeting and customer behavior. Experiences like these enrich the value that we deliver our members and propel the flywheel that drives member value and monetization. That's why we see so much potential in our ads business. Finally, I wanna touch on AI. I want to address this directly because it doesn't yet show up in the financials, it will shape how we operate and compete for years to come. We see AI as a critical opportunity to accelerate our path and deepen our moat. The vision for Life360 has always been bigger than location sharing. We're working to become the go-to app for everyday family life across every life stage.

AI empowers us to take insights based on real relationships, location history, and behavioral patterns across our enormous membership base and make that vision a reality. Our real-time continuous data becomes even more valuable in an AI-first world. In April, we restructured our R&D organization as a first step toward becoming an AI native company, where AI handles more of the execution work and our people direct, decide, and are accountable for outcomes. What we see clearly now is that AI doesn't just help work get done faster, it fundamentally changes how work gets done. Becoming AI native demands deeper changes in how roles and organizations are defined and aligned. We believe that companies that go AI native will compound that advantage over time. We're still early in our AI journey, but strong adoption across our engineering organization has increased developer productivity by over 50% from last year.

That velocity lets us do more and unlocks high-value features that would have previously required unrealistic levels of manual effort. As our AI implementation matures, Life360 becomes the easiest way to orchestrate everyday family life, compounding value for our members and our business. Those were the points that I wanted to highlight for Q1. Looking forward, the setup into the back half of the year is strong. Revenue acceleration, margin expansion, and MAU growth all point in the same direction. We've got some exciting updates and product innovations in store for H2, including an action-packed back to school and the next phase of our push into families and aging parents. We continue on the path to exceed 150 million MAU, a billion in revenue, and over 35% adjusted EBITDA margins. Q1 reinforced our confidence in that path.

The MAU headwinds slowed us a bit, but the trajectory remains unchanged. With that, I'll ask Russell to share a bit more detail on our performance and outlook.

Thanks, Lauren. Q1 delivered strong financial results across our core business, and there are some important cost structure dynamics that are worth walking through. All figures are unaudited and in U.S. dollars. Total revenue grew 38% to a record $143.1 million. Subscription revenue grew 32% to $108.2 million, with core subscription up 36%, driven by 27% Paying Circles growth and 7% higher ARPPC. U.S. subscription revenue grew 28% and international grew 58%. Advertising revenue was $19.7 million, up 329%, boosted by the Nativo acquisition. This revenue stream is now disclosed as a separate line. Hardware revenue was $4.5 million, down as expected, given our strategic exit from brick-and-mortar retail for Tile. Other revenue grew 30% to $10.7 million.

March AMR reached a record $517.9 million, up 32% year-over-year. Gross margin was 77% versus 81% in Q1 last year. The difference reflects three distinct dynamics across our revenue lines. Subscription gross margin held at 87% in line with last quarter. Advertising gross margin was 60%. As the Life360 advertising business broadens following the Nativo acquisition, we're introducing a wider suite of products that carry higher costs than pure digital advertising. Advertising gross margin will improve as the platform scales and should normalize towards 70% as revenue scales in the higher margin back half. Lastly, hardware margin was negative as we priced Pet GPS for adoption and absorbed brick-and-mortar retail exit costs. Operating expenses were $118.6 million, up 46%.

R&D grew 29%, reflecting Nativo headcount and platform investments, as well as AI investments that are already accelerating our delivery pace. Sales and marketing grew 62%, driven by the increase in growth media spend, higher App Store commissions, and personnel costs associated with our newly enlarged sales organization. Our upper funnel investment, such as streaming Super Bowl and Winter Olympics commercials, is oriented towards brand awareness, which offers longer-term payoffs. Even with these investments, we expect to resume our march to increasing operating leverage by Q4. The April organizational reshaping affected a small group of employees. Rather than backfilling certain roles, we're allocating that investment towards AI native capabilities and workflow redesign. The net financial impact should be neutral to 2026 and is fully reflected in our guidance. We expect operating leverage from AI to then begin to impact and compound thereafter.

GAAP net income was $2.8 million, with basic and diluted EPS at $0.03. Adjusted EBITDA was $17.1 million at a 12% margin, reflecting the front-loading of our investment cycle, as discussed last quarter. Operating cash flow was $17.2 million, positive for the 12th consecutive quarter. We ended the quarter with $459 million in cash equivalents, restricted cash, and short-term investments, and total assets exceeding $1 billion. On guidance, we're updating our full-year financial outlook. We're raising total revenue guidance to $650 million-$685 million, up from $640 million-$680 million. This is driven by subscription revenue, which we now expect to be between $470 million and $475 million, up from $460 million-$470 million.

Full-year guidance for the rest of the business is unchanged, with advertising revenue now disclosed separately and expected to be $98 million-$115 million. Hardware revenue of $40 million-$50 million, and other revenue of $42 million-$45 million. We're raising adjusted EBITDA guidance to $130 million-$140 million, up from $128 million-$138 million, representing approximately 20% margin. A few modeling points worth noting for our 2026 outlook. Revenue and margin are back-half weighted, driven by advertising seasonality concentrating in the second half, integration costs and brand investment front-loaded in the first half, and lower hardware revenue as we complete the retail exit. Q1 advertising revenue accounts for approximately 18% of our expected full-year total, with Q4 representing approximately double that of Q1. Operating costs for the advertising platform are largely fixed.

Beginning in Q1, we took on incremental quarterly operating costs from adding nearly 125 personnel and new ad tech operations related to the acquisition, while revenue and profit contribution are back-half weighted. This is the primary driver of first-half to second-half margin progression. It's why Q4 2026 adjusted EBITDA margin is expected to exceed the 22% that we delivered in Q4 2025. The financial setup into the back half is strong. Revenue acceleration, margin expansion, and MAU trends are all pointed in the same direction. We look forward to demonstrating that in the quarters ahead. RJ, back to you for Q&A.

Thanks, Russell. As a reminder for everyone, please start with just one question. We have a number of personnel in the queue today. We'd like to open up first to [Mark Mahaney]. Could you unmute your line and ask a question?

Okay. Can you hear me? Great. RJ?

Yes, we can hear you.

Okay. Let's see. I just wanna ask I'll start off on advertising. You laid out some numbers for the full year. Talk a little bit more about the go-to-market strategy and also give us a little bit of color on that Q1 ad revenue number. How much of that was from Nativo? Trying to figure out what the organic growth rate was. But a little bit more on how you build up to those numbers that you talked about by the end of the year, you know, approximately $100 million? Thanks a lot.

Thanks. The first thing that's important to understand is that we've fully integrated our Nativo team into the Life360 Ads team. They function as one team and one business. We are pounding the pavement in the ad circuit, attending the key conferences, continuing to reach out to both the customer base that Nativo and Life360 had cultivated over time. We're seeing a lot of enthusiasm for the combined offering. We're off to a good start.

Mark, I think I know you're looking for an organic number. It is difficult because we've combined the businesses from day one. I think if you look at it broadly for that $20 million revenue in Q1, roughly half of that was organic.

Okay. Thank you very much.

Thanks, Mark. Next, we'd like to open it up to [Eric Choi]. Eric, could you unmute your line and ask a question?

Yes. Thanks very much, RJ. My one question would be just on the MAUs. Given you did 1.9 million MAU additions in the first quarter, to get to your 17%-20% range for the full year, it still implies that 1.9 million needs to lift to, say, five million-ish on average per quarter for the remainder of the year. My question is, I'm just trying to get investors and myself more comfort that you can do that. Maybe could you give us an estimate of what that 1.9 million would have been in the first quarter if you didn't have the technical issues? Alternatively, you're kind of halfway through second quarter now, maybe if you can give us a feel if that MAU number has actually already meaningfully accelerated? Thank you.

Okay. Let me unpack this a little. In Q1, we saw the suppression of the funnel that really impacted certain segments more than others, and that is the Android-heavy markets and, in general, the lower-end devices. When we sort of pull apart and look at the performance of our premium devices, iOS devices and high-end Android devices, we're already seeing really strong momentum. As we look into Q2 and we see a lot of the problems that we saw in Q1 start to recover, although that's still ongoing through some of Q2, we see a return to similar levels of ads that we've had in previous Q2s.

We have the improved growth of that premium segment, and I would say overall that balances out with a suppressed funnel to give us a similar quantum to previous quarters. We expect as that funnel is fixed and we go into Q3 in the later half of the year, that trajectory helps us build further momentum across the full user base.

Super helpful, Lauren, and sorry, I know I'm being annoying. For avoidance of all doubt, if I look at second Q 2025, you did $4.3 million MAU. You're sort of saying second Q 2026 is already tracking kind of in line with that number and given there's potential for second half acceleration on second Q, that's what gives you the confidence in that full year number. Sorry, is that the right way to think about it?

Yeah, I'll add a couple of things. You know, even as this has been ongoing, we're seeing increased demand, we're seeing increased user retention. We're seeing a lot of great signals in the fundamentals. The problem that we've been contending with is pretty narrow and we put fixes in place and new monitoring, and we feel good about getting back on that glide slope by Q3.

Just to emphasize again, Eric, you this doesn't have an impact on revenues or financial results in the short term. Certainly this year you can see how well the business is performing. The it is very separate from the MAU trend.

No, your core business is flying. I get it. Thanks very much. Thank you.

Thanks, Eric. Next, we'd like to open up to [Maria Ripps]. Maria, can you unmute your line and ask a question?

Great. Thanks so much for taking my question. I just wanted to follow up on the MAU sort of technical issue this quarter. Can you maybe help us understand sort of the timeline of the recovery there? I think you said it will take a couple of quarters by Q3. Are there any sort of certain fixes that still need to be implemented? I guess, how are you recalibrating your marketing spend over the next couple of quarters as this is happening?

The issues that we've seen are sort of a cluster of issues. That first issue that we detected was a broader impact that affected traffic coming into Life360 as a whole. When we repaired that issue, it's when we sort of uncovered that there was remaining issues, particularly in Android and particularly with lower-end devices. There were a few very specific issues that we have fixes in place for, and those fixes went in, you know, in between late Q1 and Q2. Those are already seeing good progress. The thing that this work has really helped us understand is that, you know, very much not all MAU is created equally, and there's an opportunity to look at those lower-end devices and continually improve performance among those cohorts.

That'll help really the business over the long term as we get into markets that are Android heavy and that have a higher propensity of lower-end devices. You know, Russell called out that what we're seeing in MAU is a little bit disconnected or very disconnected with what we're seeing in subscriptions, and that's because the premium devices are the things that really drive the lion's share of our momentum today. We believe that the Android cohorts and these broader cohorts are important to our long-term health, so we're making sure to make those investments, and those will continue for a longer period of time.

Great. Thank you so much.

Thanks, Maria. Next, we'd like to open up to [Laf Sotiriou]. Laf, could you unmute your line and ask a question?

Thank you for the opportunity to ask a question. Can I just quickly follow up on a previous answer that Russell provided and then ask my question? Russell, did you say was it $10 million of the new $20 million advertising revenue disclosure was organic growth? Given, you know, roughly $4.6 million PCP, does that imply Nativo was around $6 million PCP on a like for like, so that $10 million is organic? If you can just clarify your answer around the $10 million. And my question is in relation to Starbucks and the Uber partnership and the partnerships more broadly in advertising. Is Starbucks new? Have you signed them up as a new advertising partner or it just seemed odd to discuss them and not clarify.

With Uber's expanding partnership, is that leading to higher revenue? Is it double the revenue? What's involved with that expanding partnership? Thank you.

Let me take the partnership one first, and then Russell will get back to you on his earlier comment. One of the interesting things about the ads business is, and this is something we learned as we started getting in, is that customers want to start small and then grow. That was a real challenge for us before Nativo because we just didn't have the capacity or frankly the platform to be able to do these initial tests and get to know partners and sort of prove what our platform can do with them. Now with Nativo, we're able to engage in partnerships, and we are starting on that journey with Starbucks and many other partners.

That is helping us get going, and those accounts will build over time. Uber is really in a great example of how partnerships grow and blossom over time. That is a bigger deal. We're not disclosing specific numbers, but that relationship is growing both in terms of the value that it provides our members and the economics that it returns to the business.

Laf, what I'd say about the organic growth question is, as I said in my previous answer, because we've combined the businesses really from day one, it's not technically possible to extract a pure organic number. All I'm doing is sort of looking at past history for both businesses, and saying, you know, roughly half of that first quarter result was organic. Now in terms of progression, we've also said that what we expect to happen this year is that, you know, the revenue will double between Q1 and Q4. The Q4 level of revenue is likely to be roughly double what we saw in Q1, and that reflects sort of history of both businesses.

Thanks, Russell. Just to be clear, so that means Nativo was roughly $6 million PCP. The $10 million on is an organic growth on both the existing Life360 advertising and Nativo?

That's a broad enough assumption, yeah.

All right. Excellent. Thank you.

Thanks, Laf. Next, we'd like to open it up to [Mark Kelley]. Mark, could you unmute your line and ask the question?

Hi. Great. Thanks very much for taking my question. I was hoping I'd love to get just a maybe a better understanding of the technical issues that you identified, you know, that impacted MAU. You know, I know a lot of non-technical people on this call, including myself, but maybe just a little bit more color about, you know, what caused the issue and, you know, how to make sure that those issues don't pop up again in the future would be really helpful? Thank you.

Yeah. I can give you some examples. The first that I mentioned is technology that we use to make sure that there isn't fraud in traffic coming into Life360. It's very helpful to prevent fraud, there was a technical change made by the partner that we provide, it started to catch more legitimate traffic as well as fraudulent traffic. That was sort of like the first problem that we resolved and fixed. When we did that fix, we saw strong improvement in iOS, we didn't see the same recovery in Android, that was really the signal that there was a unique set of problems impacting Android. These particular problems are things that caused problems with people just getting started and onboarding into the app.

It's before they're really using the app, which is why we didn't have as much visibility into the problem early on because they're not fully in the app. They're not, sort of daily use customers already. What we've done is put much, much more robust monitoring on that part of the funnel to make sure we catch those problems. I'll just add one other side effect. When those problems were happening, it's something that Google is able to detect, and when they saw those problems, they actually decreased our ranking in search results in the App Store. I think that was one of the most significant impacts that we saw because it meant that people who were looking for us didn't necessarily find us.

All right. Really helpful. It sounds like a big part of this was not your code. It was, you know, a third-party code that, you know, kind of made it hard for you at to identify, and the ranking stuff for Google. That all makes sense. I really appreciate the color. Thanks, Lauren.

Thanks, Mark. Next, we'd like to open it up to [Chris Savage]. Chris, could you unmute your line and ask the question?

Thanks, RJ. Lauren, this is probably more for you, but to use your term, the monetization through the funnel was obviously very good in Q1. Can you talk us through what particularly drove that, and was it any, in any way, shape, or form Pet GPS?

It's a lot of things. I would say it's a combination of new value, including Pet GPS, although Pet GPS is still small, and we had limited inventory, so it's not a huge part of it. That's an example of the kind of new value that we've been adding. I think more importantly, there's a lot of value in our subscriptions that people don't understand. I can't tell you how many paying subscribers today don't even know that they're entitled to roadside assistance. So we've been using AI to help get the right messages to the right customers at the right time, and that is just helping to uncover the value that's there and drive a lot of our subscription growth.

Okay. Thank you.

Thanks, Chris. Next, we'd like to open up to Nitin Bansal from Bank of America. Nitin, are you on the line, and could you unmute and ask the question?

Hi. Thank you for taking questions. On the user, U.S. user growth side, can you help us understand, like, which regions or demographic cohorts contributed most meaningfully to the user additions in 1Q? As we look ahead for the remainder of the year, where do you still see, like, the largest white space opportunities for growth within U.S.? And what do you believe will are the key levers that could drive deeper penetration in those under-penetrated markets? Thank you.

Okay. Growth in Q1 is pretty broad within the U.S. It's not necessarily one segment. The key thing that we're seeing is that the premium devices are growing much more strongly than the Android devices that were impacted by the technical problems that we had. In terms of opportunities, we see two things. Historically, we've had stronger growth in regions where cars are really important. Our car value props resonate really well. One of the things we've been doing, one of the enhancements that's come out and been increasing in the app over the last couple of quarters, is our awareness of other modalities. Riding bikes, walking, and soon trains. That is helping us appeal to demographics where we haven't been as popular. I'm hopeful that we'll see New York come up at some point.

When we look at growth within our most penetrated states, the states that are doing well, we do see a real continuation of the momentum that we have there. You know, this is layering on to strong growth in our best regions, the ability to go after regions where the driving value props aren't as strong. The other opportunity, of course, are the less premium devices. States where Android is more popular, where there's a higher propensity of lower-end devices. We expect as we improve those things, not only international markets will benefit, but it'll also benefit the U.S.

Thank you.

Thank you. Next, I'd like to open up to [James Bales]. James, could you unmute your line and ask a question?

Yeah. Thanks, guys. I just wanted to come back to the guidance revisions that you've given for the year. It seems to be focused on the subscription part of the business, and you talked about the conversion from MAU to Paying Circles as having better conversion performance. I guess, could you help us understand how that's changed and how much that's changed? Also, has there been any improvement in terms of the take-up of paid subs from older cohorts?

James, I think what we said is conversion has improved fairly dramatically and we've been talking for a while about the impact of our marketing efforts and how they've been very successful in, you know, really getting to people with a greater propensity to convert to subscription. Now, that's part of it. The member experience that Lauren referred to earlier is definitely part of it. You know, so that is all building in terms of conversion. When we look at the, you know, the MAU growth sort of to connect the two, our growth has not slowed down at all in those higher premium devices that are the ones that are more likely to convert. All of that is sort of driving a, you know, higher conversion and all the way through to the Paying Circles growth that we're seeing.

Yeah. That's actually worth double-clicking on. You know, not only has growth in those premium cohorts not slowed down, we're actually seeing the improvement that we expected to see in those cohorts that are not impacted by the technical problems.

Okay. I guess the question I had was basically, are you seeing improvement on the new customers added, and that's the big driver? When they're signing up for the first time, you're getting an uplift in the percentage that convert to paid? Or are you also seeing it in the existing base?

We're seeing a little bit of both. We're definitely seeing new customers with a higher propensity to come in.

Yeah. I'd say it's the new customer stream that's, sort of, driving it primarily, but we're certainly not seeing any fall off in previous cohorts.

Great. Thanks, guys.

Thanks, James. We'd like to open up to Stephen Ju from UBS. UBS, excuse me. Stephen, can you unmute your line and ask a question?

Yes, Sir. Thank you. Wondering if you can update us on the state of the elderly segment product development. Secondarily, whether there's anything you can share about the type of advertisers who are showing up to your platform, whether they are performance advertisers or more the upper funnel, brand advertisers? Thank you.

Lauren, can you pick one? Which one would you prefer?

I wanna talk about Aging Parents.

Yeah. Aging Parents, there we go. We're gonna move that one to later in the queue.

Okay.

Okay. On Aging Parents, I'm incredibly excited about the opportunity that we have to expand to serve more families at more life stages. We're laying those foundations with Aging Parents today. We're starting to make changes in the core product that make it a better fit for those parents. We have more work lined up both in the back half of the year and years to come. The key thing here is that as we expand into things like Pet GPS and Aging Parents, it's really important that we're disciplined and that we're doing it well and that we're seeing it through. You'll see us double down on Pet GPS later this year. Not just improving Pet GPS, but really looking at the whole pet ecosystem from our free customer to our subscriber customers and partnerships.

We're making sure that we're following through with that so we can scale a really healthy part of our business and not just move on too quickly. We are laying the foundation with aging parents, and you will see more this year, but that will build over the next few years.

Thanks, Stephen.

Thank you. Thank you.

Next, we'd like to open it up to [Annabel Khun]. Annabel, could you unmute your line and ask a question?

Hey, guys, thanks for taking the question. Maybe just love to get a little bit more detail on how Pet GPS are going. Maybe just how you guys are trying to get some more stock to have to sell, the amount you guys are selling out. Great to see the demand. Maybe if you could also comment on the types of customers who are buying the Pet GPS at the moment in terms of new users coming to Life360 platform, free user conversion, and sort of like current Gold members buying? Thanks.

Yeah, great. We're really excited about the momentum that we're seeing in Pet GPS. You know, first on the free side, we're seeing something like 120,000 new customers, or new pet profiles created every week, really great momentum there. Of course, you know that we've sold out, at least in the U.S., we've sold out of our Life360 Pet GPS pretty quickly. We've moved that manufacturing to a new location, and we are retooling and getting ready to build up or getting the inventory ready to relaunch in the summer. We're excited about that progress there. In terms of what we're seeing, one thing that's interesting is that a lot of the customers that are pet customers are free teenage families.

A lot of them are earlier in their life cycle than the typical Life360 family. That's helping us think about how we wanna shape those offers. One of the things that we've been doing in Q1 is a lot of price testing. I know a lot of you have observed a lot of different prices and different mechanisms by which we're selling this. That insight that a lot of these customers are early in the journey, it means some of the things in the current lineup are more or less appealing to them at different layers of the tiering, and that's informing how we're going to go to market in Q3.

Thanks, Annabel. Next, we'd like to open up to [Andrew Boone]. Andrew, could you unmute your line and ask a question?

Thanks much for taking the question. I wanted to ask about marketing campaigns. You guys were lapping a very successful campaign in 2025, and yet it sounds like you're seeing pretty good success in terms of what you're doing in 2026. Can you just unpack that? Help us understand what the changes are. How do we think about the lapping of last year's strong campaign, and what's changed this year? Thank you.

It's hard for me to compare exactly, you know, one campaign to another. I would say we continue to see really good performance of our advertising. You know, we're very much focused on demand creation, on building What we talk about is building an iconic brand and getting, making it so that more people understand our brand, when they encounter us, they're more likely to join and eventually convert. We're really happy with the overall progress in that, we are teeing up new campaigns. I will say we are more likely to lean into that after we've sort of gotten through this little wave of the technical suppression on our registration. I feel like it was frustrating to me that, you know, during the height of our Q1 marketing we were facing these technical issues. As we come out of that, we'll lean back into our marketing.

Andrew, we've also talked about this year our plan is to spend more in international territories and again, where we've talked about our sort of focus territories, particularly Brazil and Mexico and Germany. And we're really sort of laying out, you know, the campaigns and going to support the go-to-market in those territories.

Thanks, Andrew. We'd like to open up to Andrew Gillies. Andrew, can you unmute your line and ask a question? Andrew Gillies, Macquarie.

Come back to it.

Yeah, we'll come back to you, Andrew. [Rob Sanderson]. Rob, are you available? Please unmute your line and ask a question.

Yes. Thanks for taking the question. I wanted to talk a little bit about go-to-market on your ads business. You know, as we talk to agencies and brands, there's obviously, there's a high degree of interest in real-time location, but a very low availability of supply, and we hear, you know, difficult to scale and not really worth putting a lot of energy into it, but clearly high interest. Obviously Nativo Publisher Network, you know, brings a lot on the supply side so that's, I think, really good unlock there. The question's really on scaling the demand side. You know, we're watching OpenAI come to market and they're partnering, you know, to get its advertising business off the ground.

Just why would a similar strategy that includes demand-side partners, you know, maybe not make sense for Life360 today, and is that something you might consider more in the future? Thank you.

Yeah. We're definitely looking both at supply and demand. Nativo gives us the capacity to be able to work both sides. It's one of the reasons that Nativo is such a great fit for us.

On the demand side, in terms of partnerships?

I'm not sure I understood exactly what the question was. We certainly are building our demand side and pursuing new partners on that.

Right. The question, Lauren, sorry to not be specific, was, you know, engaging with third-party partnerships on the demand side instead of just going on a first-party basis?

Yeah, we do look at that, and so we will continue to invest in that. We should probably follow up and get some of our specialists to talk with you about that.

Okay, thanks very much.

Thanks, Rob. We'd like to open it up to Siraj Ahmed. Siraj, can you unmute your line and ask a question? Siraj, unfortunately, looks like you're not there. We'll try [Roger Samuel]. Roger, can you unmute your line and ask a question?

Oh, yes. Thanks for taking my question. I've got a question on your stock-based compensation, which has grown substantially, up 64% versus PCP. I get it's because of Nativo. I think at the full year result you were guiding to stock-based compensation to increase by 40%. I'm just wondering if things would normalize in the next quarters?

Yeah. I think it will normalize to some extent. SBC isn't necessarily something that lays out evenly over the quarters. To your point, we took on, you know, 125 heads with Nativo from the first day of Q1. Plus we've had some additional growth ourselves. There's a few factors that go into that and it will tend to normalize over the course of the year.

Got it. Thank you.

Thanks, Roger. Next we'd like to open up to [Chris Smith]. Chris, can you unmute your line and ask a question?

Morning. Thank you. Just one from me. Just interested in your thoughts around the capital allocation framework and what's holding you back from initiating a buyback. Like, we've clearly seen the balance sheet strengthen. The business is now generating consistent free cashflow. The conversion rate of Paying Circles in that first quarter nearly 3x on the previous quarter. You're talking to MAUs sort of incrementally doubling in the second quarter. What's not giving you the confidence, or why not initiate a buyback, just to sort of give that confidence that you've clearly got in the business to the market?

Chris, I'd have to say I agree with all of the points that you made in terms of the strength of the business. That's absolutely true. We are hearing that from investors and hearing the suggestion for a buyback. We absolutely will consider it. You're looking at a balanced capital management strategy. We also view ourselves still very much as a growth company. There are multiple opportunities for us to invest in growth in the future. We wanna balance those things out. It is definitely something that we will look at closely.

Thank you. I think if you just look at that first quarter conversion rate of Paying Circles from MAUs, it's nearly 10%. I know you can't look at it that in terms of the number of members per Paying Circles or Circle, but that strength and that must give you extreme confidence about the outlook?

It really does. Your the subscription side of the business, the core business is growing incredibly well. The strength of that business is evident in all of those metrics. Yeah, I can only agree with you.

Thank you.

Thanks, Chris. Right, we'd like to go back to Siraj Ahmed. Siraj, can you unmute your line and ask your question?

Okay. Seems to be working now. Can you hear me okay?

Yes.

All right, great. Lauren, just actually maybe a quick clarification on the whole fraud thing that you mentioned. Have those customers actually come back? Because you said they're in the funnel but didn't really register. Secondly, just in terms of Paying Circles, pretty strong conversion, but you're flagging with AI benefits. Was that through the course of the quarter? Just wondering whether we can see that continue to improve into the second quarter, and how does this whole family AI initiative link up with Paying Circles conversion? Thank you.

Okay. The first question was Remind me what the?

I think it's about fraud.

Okay. I'll take that one first. What happens here is when traffic is coming in, we were not getting some of those customers. Those particular customers that may have come in and been turned away, we don't magically get them back. What we do is we repair that, and this part has already been fixed. We sort of repair that problem so that as new traffic is coming in, and hopefully some of those same people return again. As new traffic is coming in, that part of the funnel performs healthy again. Repeat the question for me.

AI for families, AI initiative. That was the question, I believe.

So we're really excited-

Is this sort of Paying Circles conversion and how that's actually how we should think that plays through the whole family AI initiative? Thanks.

I'll separate those two things. Just in general, the Paying Circles conversions, we expect to continue to hold strong and improve over time. The way that AI is really impacting Paying Circles conversion today is more about feature discovery than about those new capabilities. That's the way it's driving Paying Circles conversion and growth today. What we're doing now with AI is starting to weave it into features so that we use more intelligence about what people are doing to make new features that help orchestrate family life. I would like to give the example of carpool, which is one of those crazy times in every parent's life. What are the things we can do if we know who's nearby and what people's schedules are to inform those kind of things.

Those kind of AI capabilities will play out over a long time horizon, but the kinds of ways that we're using AI today to get the right message to the right people are already having a positive impact in the business.

Thanks, Siraj.

There were a lot of questions there. I hope I answered them.

Next, we'd like to go to Andrew Gillies. Andrew, if you could unmute your line and ask a question.

Hi, guys. Can you hear me?

Yes.

Perfect. Thank you. Just a quick question on Nativo and the relationships you've got there. That's very core to the business and the growth story. How have the retention dynamics been? Are there any opportunities there, and effectively just a bit of an update would be great.

Overall, the Nativo business or what was the Nativo business is holding strong, and a lot of people who have long been customers there are looking to do more with us now that we have a broader offering and more capabilities, especially on the measurement side. We see a real opportunity to increase performance there. There were, you know, maybe one or two customers who were with Nativo that aren't necessarily a great fit, one customer in particular that sees us as competitive. For the most part, customers have decided to double down and are looking for new ways they can expand their relationship now that we're one company.

Thank you very much.

Thanks, Andrew. Next, we'd like to go to [Wei-Weng Chen]. Wei Weng, could you unmute your line and ask a question?

Hey, guys. Thanks. Just a question on the AI initiative or kind of the startup that Chris Hulls is leading within Life360. I guess the nature of startups is they generally burn a bunch of cash initially while the product's being developed, and then a, I guess a viable product, even then isn't necessarily guaranteed. Can you maybe speak to the level of resourcing that's gonna be available to this startup? Then also maybe given, Chris is the Exec Chair of Life360, I guess what are the governance structures as they're, as they relate to this startup? Are these costs factored into guidance?

Yeah. Chris is building a small team within the company. It's not a huge number of headcount. Of course, they're fortified with AI, so they'll punch above their weight. The nice thing about being a startup within a broader company is that we can start to harness some of the benefits of the work that they're doing sooner, even if some of the work that they're doing takes longer to play out. They also benefit from learning and progress that we're making in the rest of the company. It's not the same as being a fully, you know, on your own isolated startup.

Chris and I have a pretty good relationship set up around this, where they're really free to push the limits and do whatever it is they think is really going to get us to that next level of meeting families' needs. We have a sort of a way that we evaluate that to decide what goes into production from that based on a couple of gates that we set up. It's pretty exciting.

Wei, that small resource that's being allocated there is, you know, considered as within our guidance for the year.

Oh, yeah.

Well, thanks.

Thanks, Wei Weng. Thanks, all. We've gone through the first questions. We're gonna open it up to the last part of the queue. I'd like to go to Chris Savage. Chris, can you unmute your line and ask your question? Chris, do you have a follow-up question?

No, I'm fine. I do.

He's good.

Okay. Thanks, Chris. Next, we'd like to open it back up to [Mark Kelley]. Mark, can you unmute and ask a question?

Great. Thank you. I just wanted to ask you about Paying Circles size over time. Like, have you seen the number of MAU within Paying Circles change at all, you know, over the last year or so? I guess, do you have any expectations going forward? Thank you.

In general, as Paying Circles age, they tend to get bigger. As our population ages, the number creeps up a little bit, but that's more about sort of mix shift over time. One of the interesting things about expanding to more life stages and Pet GPS in particular are the families that were more likely to become Paying Circles are a little bit larger than our average circle size. But the families with pets are often these smaller one and two-person circles, that's figuring into our the go-to-market strategy that we're developing for the back half of the year.

Okay. Maybe, like if we're gonna look at like average, you know, Paying Circles size just for modeling purposes, just to get to like a better penetration rate, has that been pretty consistent over time?

It has. It's been fairly consistent, around the 3.3 level.

Okay. Perfect. Thank you so much.

Thanks, Mark. We have one final question. [Annabel Khun]. Annabel, can you unmute your line and ask your question?

Hey, guys. Thanks for taking the follow-up. Just a quick modeling question around hardware. There was a commentary in the note that we expect a similar gross profit coming to the second quarter. Maybe just sort of a comment on what's sort of driving that. Should we think about with the pricing initiatives, maybe like a more of a loss leading from Pet GPS and sort of how is the Tile exit going, and how should we think about modeling that out for the rest of the year as well? Thanks.

Yeah. No problem. I think we will look to have hardware margins sort of normalize to some extent, but it will remain negative during the course of this year because we're going to support the Pet GPS, you know, launch and sort of getting that in the hands of people. I think Q1 was a very high level of negative margin, primarily because that on top of the Pet GPS testing that we were doing, we also had the brick-and-mortar exit and the exit costs related to that. It will come back substantially in Q2 and over the balance of the year. I would sort of still expect, call it, you know, high-teen negative margins in hardware. As we've always noted, you know, hardware revenue as a proportion of our total revenue continues to get smaller and smaller.

Awesome. Thanks.

Thanks, Annabel. We had [Eric Choi] re-queue. Eric, can you unmute your line and ask a question?

Thanks, RJ. I wonder if I could do two since if I'm the last one. I had a follow-up on the subscription revenues and a follow-up on the buyback. Just on the subscription revenues, sorry if I stuff up the math, Russell. Just for the full year, nominally you're guiding to about $104 million of subscription revenue growth, which is, in the first quarter you did about $26 million of normal subscription revenue growth. If you just annualize that first quarter, you get the full year. You had hardware disruption in the first quarter and PCP growth, typically that's lower in the first quarter. The obvious question is that conservative? The second question, just following on Chris.

I know you said you're considering a buyback, but just, like what are the natural consideration points? Like I know you just finished Nativo and you've deployed the cash for that, but are you waiting on any other sort of, like key milestones before you make a decision on whether to do a buyback or something else? Thank you.

In terms of the progression of subscription revenue over the course of the year, you know, we do expect similar levels of growth. You know, when you look at it on a period by period comparison, as we maintain that sort of percentage revenue growth, we're really getting more and more volume there. You know, that I think it's sort of fair assumption that we maintain that growth over the year. You know, in terms of the capital management side, you know, there's a few things that we need to consider.

We as you point out, we're, you know, effectively finalizing the integration of the Nativo acquisition. We're looking at our, you know, strategic planning over the next few years, and, you know, factoring in our very significant growth aspirations there. You know, all of those will be factored in as well as the, you know, the market conditions at the time.

Awesome. Thanks, Russell.

Thanks, Eric. All right, that concludes our questions. Lauren, I'll turn it over to you to sign off.

Okay. Well, we're pretty excited with the momentum that we're seeing in the core business, and excited for what's to come. We've got a lot of great end user value, and good GTM stuff planned for the back half of the year, so we're excited to talk about that next time we meet with you.