Life360 Inc (LIF) shares plummeted 11.78% in after-hours trading on Monday, as investors reacted to the company's second-quarter earnings report that revealed a sharp decline in profitability despite top-line growth.

The family safety platform reported Q2 2026 revenue of $159 million, up 38% year-over-year and surpassing analyst estimates of $156.1 million. Adjusted EBITDA also came in above expectations at $31.1 million, representing a 20% margin. However, GAAP net income dropped 28% to $5.06 million from $7.01 million a year earlier, overshadowing the positive metrics and triggering a sell-off in extended trading.

The company showcased strong user growth, with monthly active users climbing 16% to 102.4 million and paying circles rising 27% to 3.2 million. Life360 also issued full-year 2026 guidance targeting revenue of $650 million to $685 million and adjusted EBITDA of $130 million to $140 million. Despite these operational milestones, the bottom-line contraction weighed heavily on investor sentiment, leading to the steep after-hours decline.