Q1 25 EPS
$0.13
BEAT +0.85%
Est. $0.13
Q1 25 Revenue
$183.1M
BEAT +3.56%
Est. $176.8M
vs S&P Since Q1 25
-33.6%
TRAILING MARKET
LZ -0.6% vs S&P +33.0%
Market Reaction
Did LZ Beat Earnings? Q1 2025 Results
LegalZoom posted a solid first quarter for 2025, with revenue of $183.11 million, up 5% year-over-year and ahead of the high end of its own outlook, while non-GAAP EPS of $0.13 reflected a 44% improvement from the $0.09 earned a year ago. The headlin… Read more LegalZoom posted a solid first quarter for 2025, with revenue of $183.11 million, up 5% year-over-year and ahead of the high end of its own outlook, while non-GAAP EPS of $0.13 reflected a 44% improvement from the $0.09 earned a year ago. The headline driver was accelerating subscription momentum: subscription revenue grew 8% to $116.26 million as subscription units surged 20% to approximately 1.92 million, underscoring the company's ongoing push to convert one-time customers into recurring subscribers. Gross margin expanded to 64% from 61%, and Adjusted EBITDA climbed 33% to $37.01 million, lifting margin by 400 basis points to 20%. The February acquisition of Formation Nation contributed $8.60 million in partial-quarter revenue and broadens LegalZoom's reach across both premium and value-oriented formation customers. Analysts have been watching how the company navigates macroeconomic uncertainty, and management reiterated full-year guidance of approximately 5% revenue growth with Adjusted EBITDA of roughly $165 million, while targeting double-digit subscription revenue growth by Q4 2025.
Key Takeaways
- • Subscription unit growth of 20% year-over-year to 1.924 million units
- • Subscription revenue growth of 8% YoY driven by subscription initiatives
- • Gross margin expansion to 64% from 61% year-over-year
- • Cost discipline contributing to 400 basis point Adjusted EBITDA margin expansion
- • Formation Nation acquisition contributing $8.6 million in revenue for the partial quarter
- • Gain on sale of office property of $14.3 million
LZ YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
LZ Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our first quarter results reflect accelerating subscription growth and solid progress towards our goal of double-digit subscription revenue growth in the fourth quarter. While no company is immune to today's volatile environment, our first quarter results exceeded our expectations based on the success of our subscription initiatives, the early rollout of higher value products and solid progress from our Formation Nation integration. We are confident in our ability to execute, and are reiterating our full year revenue outlook of 5% year-over-year growth.”
— Jeff Stibel, Q1 2025 Earnings Press Release
LZ Earnings Trends
LZ vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
LZ EPS Trend
Earnings per share: estimate vs actual
LZ Revenue Trend
Quarterly revenue: estimate vs actual
LZ Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.13 | $0.12 | -8.12% | $206.8M | +2.30% |
| Q4 25 MISS FY | $0.18 | $0.17 | -4.17% | $190.3M | +2.93% |
| FY Full Year | $0.64 | $0.62 | -2.87% | $756.0M | +0.75% |
| Q3 25 MISS | $0.19 | $0.17 | -8.94% | $190.2M | +3.76% |
| Q2 25 BEAT | $0.15 | $0.15 | +0.87% | $192.5M | +5.49% |
| Q1 25 BEAT | $0.13 | $0.13 | +0.85% | $183.1M | +3.56% |