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LegalZoom (LZ)
NASDAQ:LZ
Earnings Data
Report Date
Aug 07, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
0.15Last Year’s EPS
0.1Same Quarter Last Year
Based on 9 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:May 07, 2025
|% Change Since: 26.90%
|Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment|Neutral
The earnings call highlights a solid financial performance with positive revenue and subscription growth despite macroeconomic challenges. The company successfully integrated Formation Nation, contributing to revenue, and maintained a strong cash position. However, there were challenges with weaker business formations, ARPU decline, and macroeconomic uncertainties affecting growth projections. The overall sentiment is balanced, with both positive and negative aspects considered.Company Guidance
In the LegalZoom First Quarter 2025 Earnings Conference Call, the company reported strong performance, exceeding its guidance with $183 million in revenue, a 5% year-over-year increase, and a subscription revenue growth of 8%, attributed to pricing strategies and the introduction of higher-value subscriptions. The adjusted EBITDA for the quarter was $37 million, with a margin of 20%, demonstrating effective cost management. LegalZoom reiterated its full-year revenue growth outlook of 5% and an adjusted EBITDA margin of 23%, projecting an adjusted EBITDA of approximately $165 million. Despite challenges in the macroeconomic environment, including a projected decline in Census EIN applications, the company remains confident in achieving double-digit subscription revenue growth by Q4 2025, driven by strategic shifts towards quality share acquisition and subscription-based offerings. The acquisition of Formation Nation contributed $8.6 million in revenue, and LegalZoom continues to leverage partnerships and technology innovations to enhance its market position and ensure long-term growth.Revenue and Subscription Growth
First quarter revenue of $183 million increased 5% year-over-year, with subscription revenue growing 8% year-over-year from compliance-related and virtual mail subscriptions.
Adjusted EBITDA Performance
First quarter adjusted EBITDA of $37 million exceeded expectations, with an adjusted EBITDA margin of 20%, benefiting from strong revenue performance and cost efficiencies.
Formation Nation Integration Success
Formation Nation contributed approximately $8.6 million in revenues in the first quarter, and early integration efforts are promising.
Strong Cash Position
Ended the quarter with $210 million in cash and cash equivalents, with no debt, and generated free cash flow of $41 million, up 67% compared to $25 million in 2024.
Growth in Subscription Units
Approximately 1.9 million subscription units at the end of the quarter, a 20% increase driven by bundling forms and e-signature and bookkeeping subscriptions.
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LZ Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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LZ Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2025 | $7.25 | $8.96 | +23.59% |
Feb 26, 2025 | $8.85 | $10.02 | +13.22% |
Nov 06, 2024 | $8.15 | $9.22 | +13.13% |
Aug 07, 2024 | $5.93 | $5.84 | -1.52% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does LegalZoom (LZ) report earnings?
LegalZoom (LZ) is schdueled to report earning on Aug 07, 2025, TBA Not Confirmed.
What is LegalZoom (LZ) earnings time?
LegalZoom (LZ) earnings time is at Aug 07, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is LZ EPS forecast?
LZ EPS forecast for the fiscal quarter 2025 (Q2) is 0.15.
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