Filing Flows › Legalzoom.com (LZ) › Q3 2025
Legalzoom.com (LZ) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 5, 2025
Legalzoom.com (LZ) reported revenue of $190M for the third quarter 2025 (Q3 2025), +13% from a year earlier and -1% from the quarter before. Operating margin was 3.4%, net earnings $4.5M (2.4% of revenue).
Legalzoom.com, Q3 2025: revenue $190M (+13% year over year), operating margin 3.4%, net earnings $4.5M, operating cash flow $54.2M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $190M | -1% | +13% |
| Gross profit | $128M | +2% | +12% |
| Operating profit | $6.5M | — | -60% |
| Net earnings | $4.5M | — | -59% |
| Operating cash flow | $54.2M | +39% | +72% |
| Free cash flow | $47.0M | — | +114% |
What changed
Revenue was $190.2M in Q3 2025, up 13% year over year and down 1% from the previous quarter.
Gross margin was 67.3%, down 0.3 points from a year earlier. Operating profit was $6.5M, a 3.4% margin (down 6.2 points year over year). Operating profit fell $9.8M even though revenue rose $21.6M versus a year earlier, so costs grew faster than sales. Operating expenses grew 24% against revenue growth of 13%. The fastest-growing cost line was Sales & marketing (+47%). Net earnings were $4.5M, down 59% year over year. The effective tax rate was 46.2%. Non-operating items added $1.9M, 22% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $54.2M (up 72% year over year), 1203% of net earnings. Non-cash charges added back $28.4M of share-based compensation. Working capital and other items added $21.3M. After purchase of property and equipment ($7.2M), free cash flow as the company reports it was $47.0M.
Questions
What was Legalzoom.com's revenue in the third quarter 2025?
Legalzoom.com (LZ) reported revenue of $190M for the third quarter 2025 (Q3 2025), +13% from a year earlier and -1% from the quarter before.
Was Legalzoom.com profitable in the third quarter 2025?
Operating profit was $6.5M (3.4% of revenue) and net earnings $4.5M.
Source: Legalzoom.com 10-Q on SEC EDGAR.