Q3 25 EPS
$0.17
MISS 8.94%
Est. $0.19
Q3 25 Revenue
$190.2M
BEAT +3.76%
Est. $183.3M
vs S&P Since Q3 25
-43.9%
TRAILING MARKET
LZ -31.7% vs S&P +12.1%
Market Reaction
Did LZ Beat Earnings? Q3 2025 Results
LegalZoom delivered a mixed but largely encouraging third quarter for fiscal 2025, posting revenue of $190.16 million, a 12.8% year-over-year gain that cleared the $183.27 million consensus by 3.76%, while earnings per share of $0.17 fell short of th… Read more LegalZoom delivered a mixed but largely encouraging third quarter for fiscal 2025, posting revenue of $190.16 million, a 12.8% year-over-year gain that cleared the $183.27 million consensus by 3.76%, while earnings per share of $0.17 fell short of the $0.19 analyst estimate by 8.94%. The EPS shortfall traced directly to a strategic investment surge: sales and marketing spend jumped to $67.83 million from $46.29 million a year earlier, and stock-based compensation nearly doubled to $28.37 million, compressing GAAP net income to $4.51 million from $11.05 million in Q3 2024. Subscription revenue was the standout engine, climbing 13% year-over-year to $125.36 million as subscription units grew 14% to nearly 1.96 million, validating CEO Jeff Stibel's pivot toward serving the roughly 36 million existing U.S. Small businesses rather than relying solely on business formations. Free cash flow surged 114% to $46.99 million, underscoring the underlying business health. Management responded with a raised full-year revenue outlook of $748 million to $752 million, implying roughly 10% growth, with Q4 guidance of $182 million to $186 million.
Key Takeaways
- • Subscription revenue growth of 13% YoY led by compliance offerings
- • Transaction revenue growth of 12% YoY
- • Business formations increased 12% YoY to 126 thousand
- • Average order value increased 11% YoY to $251
- • Subscription units at period end grew 14% YoY to 1,959 thousand
- • Free cash flow increased 114% YoY to $47.0 million
LZ YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
LZ Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our results further validate the strategic shift we made in our business. Importantly, the proof points we're seeing across the business give us confidence that we've built a strong foundation for our next phase of growth.”
— Jeff Stibel, Q3 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% |