LegalZoom Q3 revenue up 13%, beats estimates

LegalZoom.com

05/11/2025 21:11

Overview

LegalZoom Q3 revenue grows 13% yr/yr, beating analyst expectations

Adjusted EBITDA for Q3 beats analyst expectations

Company repurchased 1.8 mln shares for $17.6 mln

Outlook

LegalZoom raises full-year 2025 revenue guidance, expects 10% growth at midpoint

Company expects Q4 revenue between $182 mln and $186 mln, 14% growth at midpoint

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

Result Drivers

SUBSCRIPTION GROWTH - Subscription revenue increased 13% yr/yr, driven by compliance offerings

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$190.20 mln
$183.25 mln (9 Analysts)
Q3 Adjusted Net Income
Miss
$31 mln
$34.70 mln (8 Analysts)
Q3 Adjusted EBITDA
Beat
$46.30 mln
$45.34 mln (9 Analysts)
Q3 Free Cash Flow
$47 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "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 $12.00, about 17.3% above its November 4 closing price of $9.92

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

Press Release: ID:nGNX73HFps

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)