LegalZoom Q2 revenue beats expectations

LegalZoom.com

07/08/2025 21:37

Overview

LegalZoom Q2 revenue rises 9% yr/yr, beating analyst expectations

Adjusted EPS meets analyst estimates, while adjusted EBITDA misses expectations

Company raises 2025 revenue growth outlook from 5% to 8%

Outlook

LegalZoom raises 2025 revenue growth outlook to 8% year-over-year

Company maintains full-year adjusted EBITDA margin outlook at 23%

LegalZoom expects Q3 revenue between $182 mln and $184 mln

Company sees Q3 adjusted EBITDA between $44 mln and $46 mln

Result Drivers

SUBSCRIPTION GROWTH - Subscription revenue increased 10% yr/yr, driven by initiatives to expand subscription business

STRATEGIC EXECUTION - CEO Jeff Stibel attributes revenue growth and profitability to advances in strategic priorities

CASH FLOW IMPROVEMENT - Cash from operating activities and free cash flow rose significantly compared to last year

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$192.50 mln
$182.70 mln (9 Analysts)
Q2 Adjusted EPS
Meet
$0.15
$0.15 (10 Analysts)
Q2 Adjusted Net Income
Meet
$28.30 mln
$28.30 mln (8 Analysts)
Q2 Adjusted EBITDA
Miss
$39 mln
$39.70 mln (9 Analysts)
Q2 Free Cash Flow
$31.60 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy."

Wall Street's median 12-month price target for LegalZoom.com Inc is $9.50, about 9.9% above its August 6 closing price of $8.56

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX9Vb35N

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)