LegalZoom

LegalZoom (LZ) Q2 2025 Earnings

Reported Aug 7, 2025 at 12:04 PM ET · SEC Source

Q2 25 EPS

$0.15

BEAT +0.87%

Est. $0.15

Q2 25 Revenue

$192.5M

BEAT +5.49%

Est. $182.5M

vs S&P Since Q2 25

-31.8%

TRAILING MARKET

LZ -13.9% vs S&P +18.0%

Market Reaction

Did LZ Beat Earnings? Q2 2025 Results

LegalZoom posted a standout second quarter for 2025, with revenue climbing 8.5% year-over-year to $192.51 million against a consensus estimate of $182.49 million, a 5.49% beat, while adjusted EPS of $0.15 edged past the $0.15 consensus by 0.87%, mark… Read more LegalZoom posted a standout second quarter for 2025, with revenue climbing 8.5% year-over-year to $192.51 million against a consensus estimate of $182.49 million, a 5.49% beat, while adjusted EPS of $0.15 edged past the $0.15 consensus by 0.87%, marking the third consecutive quarter of accelerating top-line growth. The primary engine behind the outperformance was subscription revenue, which rose 10% year-over-year to $119.90 million as subscription units surged 22% to 1,955 thousand, a milestone the company says arrived two quarters ahead of its internal plan. That subscriber momentum prompted management to raise its full-year 2025 revenue growth outlook from approximately 5% to approximately 8%, while Adjusted EBITDA expanded 35% to $38.97 million with margins widening to 20% from 16% a year ago. Analyst attention has been building around the name, and with Q3 guidance calling for revenue of $182 to $184 million and an Adjusted EBITDA margin of approximately 25%, LegalZoom appears to be entering the back half of the year with strengthening operational leverage.

Key Takeaways

  • Third consecutive quarter of accelerated revenue growth
  • Double-digit subscription growth achieved two quarters ahead of plan
  • Subscription units at period end grew 22% year-over-year to 1,955 thousand
  • Average order value (AOV) increased 12% year-over-year to $262
  • Adjusted EBITDA margin expanded to 20% from 16% year-over-year
  • Non-GAAP net income grew 51% year-over-year to $28.3 million
24/7 Wall St

LZ YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

LZ Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Our second quarter results clearly demonstrate the advances we have made against our strategic priorities. We accelerated revenue growth for the third consecutive quarter and delivered double digit subscription growth two quarters ahead of plan while maintaining strong profitability and a healthy balance sheet. As the leader in online legal services with a suite of premium solution-based products along with access to an expert attorney network, we are uniquely positioned to capture the greenfield opportunity in front of us.”

— Jeff Stibel, Q2 2025 Earnings Press Release