LegalZoom.com (LZ) Is Up 5.5% After Record Q3 Revenue And Raised 2025 Outlook What's Changed

• In November 2025, LegalZoom.com reported record third-quarter revenue of US$190.2 million, up 13% year over year, and raised its full-year 2025 revenue outlook, while Chief Legal Officer Nicole Miller sold 23,506 shares on November 18 as part of routine insider activity.
• The combination of stronger-than-expected operating performance and higher guidance highlights LegalZoom’s growing scale in online legal services despite its relatively expensive earnings multiple.
• We’ll now examine how LegalZoom’s record quarterly revenue and upgraded 2025 outlook may influence its existing investment narrative and risk profile.

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LegalZoom.com Investment Narrative Recap

To own LegalZoom.com, you need to believe that online legal and compliance services will keep gaining share as more consumers and small businesses shift away from traditional law firms. The latest record quarter and higher 2025 revenue outlook reinforce this thesis but do not materially change the near term catalyst, which is continued subscription growth, or the key risk from intensifying AI driven and low cost competition.

The raised full year 2025 revenue guidance to US$748 million to US$752 million, implying around 10% growth, directly supports the idea that LegalZoom is scaling its higher margin subscription and do it for me offerings. That momentum is helpful for the story of improving earnings quality, but it also heightens scrutiny of the company’s already expensive earnings multiple, especially as net income has been pressured this year.

However, investors should be aware that rising AI powered alternatives could pressure LegalZoom’s core formation and compliance services over time...

Read the full narrative on LegalZoom.com (it's free!)

LegalZoom.com's narrative projects $876.4 million revenue and $72.3 million earnings by 2028.

Uncover how LegalZoom.com's forecasts yield a $12.36 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently estimate LegalZoom’s fair value between US$8.75 and US$29.11, illustrating how far opinions can diverge. Against that backdrop, the recent record revenue and upgraded 2025 outlook highlight how closely you may want to weigh growth expectations against the risk of commoditized, AI driven legal services.

Explore 4 other fair value estimates on LegalZoom.com - why the stock might be worth 14% less than the current price!

Build Your Own LegalZoom.com Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your LegalZoom.com research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free LegalZoom.com research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate LegalZoom.com's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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