LegalZoom (LZ) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

By Zacks Equity Research | November 05, 2025, 6:30 PM

For the quarter ended September 2025, LegalZoom (LZ) reported revenue of $190.16 million, up 12.8% over the same period last year. EPS came in at $0.17, compared to $0.17 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $183.64 million, representing a surprise of +3.55%. The company delivered an EPS surprise of -15%, with the consensus EPS estimate being $0.20.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how LegalZoom performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Average revenue per subscription unit (ARPU) at period end: $0.26 million compared to the $0.26 million average estimate based on three analysts.
  • Subscription units at period end: 1,959 compared to the 1,981 average estimate based on three analysts.
  • Average order value (AOV): $251.00 compared to the $255.02 average estimate based on three analysts.
  • Transaction units: 259 compared to the 244 average estimate based on three analysts.
  • Business formations: 126 compared to the 112 average estimate based on two analysts.
  • Revenue- Subscription: $125.36 million compared to the $121.65 million average estimate based on three analysts. The reported number represents a change of +13.2% year over year.
  • Revenue- Transaction: $64.8 million versus the three-analyst average estimate of $62.27 million. The reported number represents a year-over-year change of +12%.

View all Key Company Metrics for LegalZoom here>>>

Shares of LegalZoom have returned -0.6% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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