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.