LegalZoom shares surge 39.71% after-hours on Q2 results, AI partnerships, and raised revenue outlook.

LegalZoom.com, Inc. (NASDAQ:LZ) surged 39.71% in after-hours trading following the announcement of strong Q2 2025 financial results, including exceeding sales estimates and raising its 2025 revenue growth outlook to 8%. The stock also gained momentum from a strategic collaboration with OpenAI’s ChatGPT, positioning LegalZoom as a leader in AI-driven legal services. Analyst upgrades from Barclays and Bank of America, raising price targets to $10.00 and reinforcing a “Buy” rating, further bolstered investor confidence. Additionally, the company’s introduction of a streamlined provisional patent filing product and positive sentiment from institutional investors, including significant share purchases by Nuveen LLC and Deutsche Bank AG, contributed to the sharp rally. These developments collectively highlighted LegalZoom’s evolving business strategy and growth potential, driving the substantial after-hours price increase.