LegalZoom.com Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
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 $0.1487 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. <a href="https://247wallst.com/investing/2025/08/08/here-are-some-of-todays-biggest-analyst-calls-2/">Analyst attention has been building</a> 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.
- 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
“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.”
LegalZoom CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, LegalZoom expects revenue in the range of $182 million to $184 million (approximately 9% year-over-year growth at the midpoint) and Adjusted EBITDA of $44 million to $46 million (approximately 25% margin at the midpoint). For the full year 2025, the company raised its revenue growth outlook from approximately 5% to approximately 8% year-over-year, while maintaining its Adjusted EBITDA margin expectation of approximately 23%.
LZ YoY Financials
LZ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.