LegalZoom Exceeds Q2 2025 Revenue Growth Expectations with 9% YoY Increase

LegalZoom has raised its 2025 revenue growth outlook to 8% after reporting Q2 2025 earnings. Total revenue reached $193 million, a 9% YoY increase, and subscription revenue grew 10%, marking the second consecutive quarter of growth. The company is advancing AI-powered solutions and its premium subscription model to drive growth and expand operating efficiencies.

LegalZoom.com, Inc. (Nasdaq: LZ) reported its second quarter (Q2) 2025 earnings, revealing a strong performance with total revenue reaching $192.5 million, up 9% year-over-year (YoY). This marks the third consecutive quarter of revenue growth, with subscription revenue growing 10% to $119.9 million. The company also reported a net loss of $0.3 million for the quarter, compared to net income of $1.3 million in the same period in 2024. Despite the net loss, the company maintained a healthy balance sheet with cash and cash equivalents of $217.0 million as of June 30, 2025.

The company's Adjusted EBITDA for the quarter was $39.0 million, representing a 20% margin, up from 16% in the same period in 2024. LegalZoom also reported $39.1 million in cash from operating activities and $31.6 million in free cash flow, reflecting improved operating efficiency.

Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom, commented, "Our second quarter results clearly demonstrate the advances we have made against our strategic priorities. We accelerated revenue growth for the third consecutive quarter and delivered double-digit subscription growth two quarters ahead of plan while maintaining strong profitability and a healthy balance sheet."

Noel Watson, LegalZoom’s Chief Operating Officer and Chief Financial Officer, added, "Our second quarter performance reflects strong execution and a focused strategy. As a result of our better-than-expected performance and the traction we are gaining across our key focus areas, we are raising our 2025 revenue growth outlook from 5% to 8% while maintaining our Adjusted EBITDA margin expectations of 23%."

For the third quarter ending September 30, 2025, LegalZoom expects revenue in the range of $182 million to $184 million, representing a 9% YoY growth at the midpoint. The company also expects Adjusted EBITDA in the range of $44 million to $46 million, reflecting an Adjusted EBITDA margin of 25% at the midpoint.

LegalZoom is increasing its revenue outlook and maintaining its Adjusted EBITDA margin outlook for the full year ending December 31, 2025 as follows: Revenue growth of approximately 8% YoY and Adjusted EBITDA margin of approximately 23%.

The company is leveraging AI-powered solutions and its premium subscription model to drive growth and expand operating efficiencies. The advancements in technology and strategic focus are positioning LegalZoom to capture the greenfield opportunity in the online legal services market.

A webcast and conference call to discuss the second quarter 2025 results is scheduled for today, August 7, 2025, at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Those interested in participating in the conference call are invited to register [here](https://investors.legalzoom.com).

[1] https://investors.legalzoom.com/news-releases/news-release-details/legalzoom-reports-strong-second-quarter-2025-financial-results