Business
LegalZoom Reports Strong Third Quarter 2025 Financial Results, Again Raises 2025 Revenue Growth Expectations
Strong execution with record third quarter revenue exceeding the high end of outlook rangeRevenue of $190.2 million, up 13% year-over-yearSubscription revenue
About this update from Legalzoom.com, Inc.
[{"type":"text","content":"Strong execution with record third quarter revenue exceeding the high end of outlook rangeRevenue of $190.2 million, up 13% year-over-yearSubscription revenue of $125.4 million, an increase of 13% year-over-year, led by growth in our compliance offeringsNet income of $4.5 million, compared to net income of $11.1 million in the same period in 2024. Third quarter net income margin of 2%, compared to net income margin of 7% in the same period in 2024Adjusted EBITDA of $46.3 million, compared to $47.1 million in the same period in 2024. Adjusted EBITDA margin of 24%, compared to 28% in the same period in 2024Ended the quarter with cash and cash equivalents of $237.2 million, delivered $54.2 million in cash from operating activities and $47.0 million in free cash flow MOUNTAIN VIEW, Calif., Nov. 05, 2025 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ) today announced results for its third quarter ended September 30, 2025. \"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,\" said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. \"We are more energized than ever to build on our momentum—expanding our focus beyond business formation to unlock new opportunities with the roughly 36 million U.S. existing small businesses, through a differentiated approach that combines AI and technology with human expertise. We are excited to unlock LegalZoom's next chapter of long-term value creation.\" Noel Watson, LegalZoom's Chief Operating Officer and Chief Financial Officer said, “We delivered record third quarter revenue as we execute on our strategic priorities and position our business for long-term growth. With continued momentum in our subscription business, we are raising our full-year 2025 revenue guidance and now anticipate approximately 10% year-over-year growth at the midpoint.” Third Quarter 2025 Highlights Revenue was $190.2 million for the quarter, up 13% year-over-year: Transaction revenue of $64.8 million increased 12% year-over-year.Subscription revenue of $125.4 million grew 13% year-over-year. Net income was $4.5 million for the quarter, or 2% of revenue, compared to net income of $11.1 million, or 7% of revenue, for the same period in 2024.N...