Legalzoom.Com, Inc. ( (LZ) ) has released its Q3 earnings. Here is a breakdown of the information Legalzoom.Com, Inc. presented to its investors.
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LegalZoom.com, Inc. is a leading online platform providing legal services to individuals and small businesses, leveraging technology and human expertise to simplify legal processes, particularly in business formation and compliance.
In its third quarter of 2025, LegalZoom reported a robust financial performance with record revenue of $190.2 million, marking a 13% increase from the previous year. The company’s subscription revenue also saw a 13% rise, driven by growth in compliance offerings. However, net income declined to $4.5 million from $11.1 million in the same period last year, reflecting a net income margin of 2% compared to 7% previously.
Key financial metrics highlighted include an adjusted EBITDA of $46.3 million, slightly down from $47.1 million in 2024, with a margin of 24%. The company ended the quarter with $237.2 million in cash and cash equivalents, significantly up from $142.1 million at the end of 2024. LegalZoom also repurchased 1.8 million shares of common stock, costing $17.6 million.
Despite the dip in net income, LegalZoom’s strategic focus on expanding its subscription business and leveraging AI and technology for small business solutions positions it for continued growth. The company has raised its full-year 2025 revenue guidance, anticipating approximately 10% growth.
Looking ahead, LegalZoom remains optimistic about its growth trajectory, with expectations of continued revenue increases and a stable adjusted EBITDA margin. The company is committed to building on its momentum and exploring new opportunities to create long-term value for its stakeholders.