Overview

* LegalZoom Q2 revenue rises 9% yr/yr, beating analyst expectations

* Adjusted EPS meets analyst estimates, while adjusted EBITDA misses expectations

* Company raises 2025 revenue growth outlook from 5% to 8%

Outlook

* LegalZoom raises 2025 revenue growth outlook to 8% year-over-year

* Company maintains full-year adjusted EBITDA margin outlook at 23%

* LegalZoom expects Q3 revenue between $182 mln and $184 mln

* Company sees Q3 adjusted EBITDA between $44 mln and $46 mln

Result Drivers

* SUBSCRIPTION GROWTH - Subscription revenue increased 10% yr/yr, driven by initiatives to expand subscription business

* STRATEGIC EXECUTION - CEO Jeff Stibel attributes revenue growth and profitability to advances in strategic priorities

* CASH FLOW IMPROVEMENT - Cash from operating activities and free cash flow rose significantly compared to last year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $192.50 $182.70

Revenue mln mln (9

Analysts

)

Q2 Meet $0.15 $0.15

Adjusted (10

EPS Analysts

)

Q2 Meet $28.30 $28.30

Adjusted mln mln (8

Net Analysts

Income )

Q2 Miss $39 mln $39.70

Adjusted mln (9

EBITDA Analysts

)

Q2 Free $31.60

Cash mln

Flow

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the online services peer group is "buy."

* Wall Street's median 12-month price target for LegalZoom.com Inc ( LZ ) is $9.50, about 9.9% above its August 6 closing price of $8.56

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)