LegalZoom.com, Inc. (LZ) saw its stock price surge 14.99% in after-hours trading on Wednesday, following the release of its impressive third-quarter financial results and an upward revision of its full-year revenue guidance. The online legal technology company demonstrated robust growth and beat analyst expectations on several key metrics.

The company reported third-quarter revenue of $190.2 million, representing a 13% year-over-year increase and surpassing the analyst consensus estimate of $183.3 million. This strong performance was driven by significant growth in both transaction and subscription revenues. Notably, subscription revenue, which includes the company's compliance offerings, grew by 13% year-over-year to reach $125.4 million.

LegalZoom's financial health was further underscored by its strong cash flow generation. The company reported free cash flow of $47 million for the quarter, more than doubling from $22 million in the same period last year. Additionally, Adjusted EBITDA came in at $46.3 million, exceeding analyst expectations of $45.3 million, despite a slight year-over-year decrease. In light of these strong results, LegalZoom raised its full-year 2025 revenue guidance, now anticipating approximately 10% year-over-year growth at the midpoint. This upward revision, coupled with the company's strategic focus on expanding beyond business formation to serve existing small businesses, has bolstered investor confidence in LegalZoom's growth trajectory.