LegalZoom.com, Inc. (NASDAQ: LZ) saw its stock price surge 11.72% in after-hours trading on Wednesday following the release of its impressive first-quarter 2025 financial results. The legal technology company not only exceeded analyst expectations but also reaffirmed its full-year guidance, demonstrating strong momentum in its subscription business and improved profitability.

The company reported Q1 revenue of $183.1 million, up 5% year-over-year and surpassing the IBES estimate of $177.1 million. Notably, subscription revenue, a key focus area for LegalZoom, grew by 8% to $116.3 million, reflecting the success of its initiatives to expand this recurring revenue stream. The company's adjusted EBITDA of $37 million also beat the IBES estimate of $34.9 million, showing a significant 33% year-over-year increase and an improved margin of 20%.

LegalZoom's CEO, Jeff Stibel, expressed confidence in the company's execution, stating, "Our first quarter results reflect accelerating subscription growth and solid progress towards our goal of double-digit subscription revenue growth in the fourth quarter." The company reaffirmed its full-year 2025 guidance of 5% revenue growth and an adjusted EBITDA of approximately $165 million. Additionally, LegalZoom announced a $100 million increase in its share repurchase authorization, signaling management's confidence in the company's future prospects. These factors combined to drive investor enthusiasm, resulting in the significant after-hours stock price increase.