Filing Flows › Legalzoom.com (LZ) › Q1 2025
Legalzoom.com (LZ) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
Legalzoom.com (LZ) reported revenue of $183M for the first quarter 2025 (Q1 2025), +5% from a year earlier and +13% from the quarter before. Operating margin was 4.9%, net earnings $5.1M (2.8% of revenue).
Legalzoom.com, Q1 2025: revenue $183M (+5% year over year), operating margin 4.9%, net earnings $5.1M, operating cash flow $50.7M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $183M | +13% | +5% |
| Gross profit | $117M | +8% | +10% |
| Operating profit | $9.0M | -32% | +77% |
| Net earnings | $5.1M | -60% | +8% |
| Operating cash flow | $50.7M | +19% | +48% |
| Free cash flow | $41.3M | — | +67% |
What changed
Revenue was $183.1M in Q1 2025, up 5% year over year and up 13% from the previous quarter.
Gross margin was 63.7%, up 2.9 points from a year earlier. Operating profit was $9.0M, a 4.9% margin (up 2.0 points year over year). Of the extra revenue versus a year earlier, 44% reached operating profit, above the 3% margin then. Operating expenses grew 7% against revenue growth of 5%. The fastest-growing cost line was Sales & marketing (+14%). Net earnings were $5.1M, up 8% year over year. The effective tax rate was 51.7%.
Operating cash flow was $50.7M (up 48% year over year), 989% of net earnings. Non-cash charges added back $29.8M of share-based compensation. Working capital and other items added $15.8M. After purchase of property and equipment ($9.4M), free cash flow as the company reports it was $41.3M.
Questions
What was Legalzoom.com's revenue in the first quarter 2025?
Legalzoom.com (LZ) reported revenue of $183M for the first quarter 2025 (Q1 2025), +5% from a year earlier and +13% from the quarter before.
Was Legalzoom.com profitable in the first quarter 2025?
Operating profit was $9.0M (4.9% of revenue) and net earnings $5.1M.
Source: Legalzoom.com 10-Q on SEC EDGAR.