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Dec 31, 2025
LegalZoom Q4 2025 Earnings Report
LegalZoom reported strong financial results for the fourth quarter and full year 2025, exceeding its revenue and Adjusted EBITDA outlook.
Key Takeaways
LegalZoom delivered strong fourth quarter and full year 2025 results, with revenue up 18% year-over-year to $190.3 million and Adjusted EBITDA increasing by 13% to $49.9 million for the quarter. The company also announced a $100 million increase to its share repurchase authorization, underscoring confidence in future growth and commitment to shareholder returns.
Q4 2025 revenue reached $190.3 million, an 18% increase year-over-year, exceeding outlook.
Adjusted EBITDA for Q4 2025 was $49.9 million, up 13% year-over-year, also surpassing outlook.
Full-year 2025 revenue grew 11% to $756.0 million, driven by subscription initiatives and the Formation Nation acquisition.
The Board approved a $100 million increase to the existing share repurchase authorization.
Revenue by Segment
Forward Guidance
For the first quarter ending March 31, 2026, LegalZoom expects revenue between $200 million and $203 million, representing 10% year-over-year growth at the midpoint. Adjusted EBITDA is projected to be between $34 million and $36 million, a 5% year-over-year decrease at the midpoint.
Positive Outlook
- Revenue expected to grow 10% year-over-year at the midpoint for Q1 2026.
- Full-year 2026 revenue expected to be between $805 million and $825 million, an 8% year-over-year growth at the midpoint.
- Full-year 2026 outlook reflects continued momentum of growth initiatives, including higher-value customer acquisition.
- Full-year 2026 outlook emphasizes differentiated human-in-the-loop service offerings.
- Full-year 2026 Adjusted EBITDA expected to grow 13% year-over-year at the midpoint, reflecting improved gross margins and disciplined cost management.
Challenges Ahead
- Adjusted EBITDA for Q1 2026 is expected to decrease 5% year-over-year at the midpoint.
- The decrease in Q1 2026 Adjusted EBITDA reflects a shift in timing of marketing investments.
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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