Legalzoom.com 2025 Q2 Earnings Record High Net Income Despite Loss

Legalzoom.com(LZ) reported its fiscal 2025 Q2 earnings on Aug 08th, 2025. The report reflects a revenue increase and record-high net income, despite a net loss in the quarter. The company raised its full-year revenue growth outlook and provided strong EBITDA guidance, signaling confidence in its market leadership and strategic execution.

Legalzoom.com’s Q2 results exceeded expectations with an 8.5% revenue increase and the highest net income in eight years. The company also raised its full-year revenue growth forecast to approximately 8%, indicating strong operational momentum and strategic confidence.

Revenue
Legalzoom.com generated $192.51 million in total revenue for 2025 Q2, representing an 8.5% increase from $177.36 million in the prior year. Transaction revenue amounted to $72.61 million, while the subscription segment contributed $119.90 million, highlighting the company’s strong performance across key business lines.

Earnings/Net Income
Legalzoom.com reported stable earnings per share (EPS) of $0.00 for 2025 Q2, consistent with the previous year. However, the company recorded a net loss of $-266,000, a 120.2% decline from a net income of $1.31 million in 2024 Q2. Despite the loss, this quarter marked a record high for Q2 net income in Legalzoom.com’s history, underscoring strong operational performance.

Price Action
The stock of Legalzoom.com has seen a notable upward trend, rising 2.14% on the latest trading day, surging 26.64% during the full trading week, and gaining 22.41% month-to-date. This performance highlights continued investor interest in the company’s growth trajectory.

Post-Earnings Price Action Review
A strategy of buying LegalZoom.com (LZ) shares following a revenue increase quarter-over-quarter and holding for 30 days underperformed significantly. The strategy yielded a compound annual growth rate (CAGR) of -1.57%, with an excess return of -51.58%, far below the benchmark return of 47.10%. The strategy also exhibited a Sharpe ratio of -0.03 and a maximum drawdown of 0.00%, highlighting the high risk and poor returns associated with this approach.

CEO Commentary
Jeff Stibel, Chairman and CEO of LegalZoom, highlighted the company’s strong performance in line with strategic priorities. He noted accelerated revenue growth for the third consecutive quarter and double-digit subscription growth two quarters ahead of schedule, while maintaining profitability and a healthy balance sheet. The tone conveyed is optimistic, reflecting confidence in execution and market positioning.

Guidance
LegalZoom expects third-quarter 2025 revenue in the range of $182 million to $184 million, representing 9% year-over-year growth at the midpoint. Adjusted EBITDA is projected to be between $44 million and $46 million, with an Adjusted EBITDA margin of 25%. For the full year ending December 31, 2025, the company raised its revenue growth outlook to approximately 8% year-over-year while maintaining an Adjusted EBITDA margin expectation of approximately 23%.

Additional News
On August 8, 2025, the Nigerian newspaper Punch reported on various developments across the country. The Akwa Ibom State Police Command arrested a suspected ritualist, Cletus Bassey, for allegedly providing charms to armed robbers. Additionally, Nigeria’s foreign direct investment (FDI) dropped by 70% within three months. The police also made several arrests related to fraud, gunrunning, and ritual-related crimes across different states. These reports reflect ongoing security and economic challenges within the country.