What is the outlook for subscriber churn rates following the record subscription revenue numbers?

Fundamental outlook:

Life360’s Q2 2025 results highlighted a record‑high subscription‑revenue run‑rate and an upgrade to full‑year guidance. When a company hits a new revenue ceiling, the most common driver is a net reduction in churn—either through better product stickiness, successful upsell campaigns, or a broader‑based pricing strategy. Management’s willingness to raise guidance despite the higher‑growth baseline signals that they expect churn to stay well below historical levels and possibly continue to tighten as the subscriber base matures. In the near term, this translates into a positive earnings momentum and a higher multiple on the subscription‑revenue stream, which should keep the stock on the upside as long as churn does not surprise to the downside.

Technical and trading implications:

Since the beat, Life360’s price has tested the $1.20–$1.30 range on strong volume, holding above the 50‑day moving average and finding support near the 20‑day EMA. A break back toward the $1.10‑$1.05 support zone could be a healthy pull‑back for a long‑position entry, especially if the move is accompanied by a bounce off the 20‑day EMA—typical of a “buy‑the‑dip” in a low‑churn, high‑growth story. Conversely, a breach of $1.35 with sustained volume would suggest the market is already pricing in the churn‑improvement narrative, and a short‑side stop‑loss could be placed just above $1.38. Key watch points are the next subscriber‑churn update (likely in the Q3 call) and any forward‑looking guidance on net‑adds; a miss would invalidate the bullish bias, while a beat would reinforce the upside.

Actionable take‑away:

- Long on dips to $1.10–$1.15 with a stop just below $1.05, targeting $1.30–$1.35 as the next upside swing.

- Monitor the upcoming churn disclosure (Q3 earnings or investor webcast). A churn rate that holds steady or improves will keep the bullish thesis intact; a deterioration should trigger a defensive exit.

Overall, the record subscription‑revenue figures point to declining churn and a favorable near‑term outlook for Life360, making the stock a potentially attractive addition on modest pull‑backs.