Overview

* LegalZoom Q3 revenue grows 13% yr/yr, beating analyst expectations

* Adjusted EBITDA for Q3 beats analyst expectations

* Company repurchased 1.8 mln shares for $17.6 mln

Outlook

* LegalZoom raises full-year 2025 revenue guidance, expects 10% growth at midpoint

* Company expects Q4 revenue between $182 mln and $186 mln, 14% growth at midpoint

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

Result Drivers

* SUBSCRIPTION GROWTH - Subscription revenue increased 13% yr/yr, driven by compliance offerings

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $190.20 $183.25

Revenue mln mln (9

Analysts

)

Q3 Miss $31 mln $34.70

Adjusted mln (8

Net Analysts

Income )

Q3 Beat $46.30 $45.34

Adjusted mln mln (9

EBITDA Analysts

)

Q3 Free $47 mln

Cash

Flow

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "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 $12.00, about 17.3% above its November 4 closing price of $9.92

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

Press Release:

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(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.)