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Jun 30, 2025
LegalZoom Q2 2025 Earnings Report
LegalZoom reported strong second quarter 2025 financial results, exceeding revenue outlook and raising full-year revenue growth expectations.
Key Takeaways
LegalZoom delivered a strong second quarter in 2025, with revenue reaching $192.5 million, a 9% increase year-over-year. The company achieved double-digit subscription growth ahead of schedule and maintained strong profitability, reporting an Adjusted EBITDA of $39.0 million. Despite a net loss of $0.3 million, the company demonstrated solid execution against its strategic priorities and raised its full-year revenue growth outlook.
Second quarter revenue of $192.5 million exceeded the high end of the outlook range, growing 9% year-over-year.
Subscription revenue increased by 10% year-over-year to $119.9 million, achieving double-digit growth two quarters ahead of plan.
Adjusted EBITDA for the quarter was $39.0 million, with an Adjusted EBITDA margin of 20%, demonstrating strong profitability.
The company ended the quarter with a healthy balance sheet, including $217.0 million in cash and cash equivalents, and delivered $31.6 million in free cash flow.
Revenue by Segment
Forward Guidance
For the third quarter ending September 30, 2025, LegalZoom expects 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, reflecting an Adjusted EBITDA margin of 25% at the midpoint. For the full year ending December 31, 2025, LegalZoom is increasing its revenue growth outlook to approximately 8% year-over-year while maintaining its Adjusted EBITDA margin expectation of approximately 23%.
Positive Outlook
- Expected revenue growth of 9% year-over-year at the midpoint for Q3 2025.
- Anticipated Adjusted EBITDA margin of 25% at the midpoint for Q3 2025, indicating strong profitability.
- Increased full-year 2025 revenue growth outlook to approximately 8% year-over-year.
- Maintenance of full-year 2025 Adjusted EBITDA margin outlook at approximately 23%.
- Continued focus on strategic priorities to accelerate revenue growth and achieve double-digit subscription growth.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- The report does not detail potential challenges in achieving the raised revenue outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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