LegalZoom.com, Inc. (LZ) shares surged 14.99% in after-hours trading on Wednesday following the release of its impressive third-quarter 2025 financial results and an upward revision of its full-year revenue growth expectations.

The online legal technology company reported a total revenue of $190.2 million for Q3, marking a 13% year-over-year increase and surpassing analyst expectations of $183.3 million. Subscription revenue, a key growth driver, rose by 13% to reach $125.4 million, primarily fueled by the company's compliance offerings. Despite a slight decline in adjusted EBITDA to $46.3 million from $47.1 million in the same period last year, it still outperformed the consensus estimate of $45.3 million.

LegalZoom's management expressed confidence in the company's strategic direction, with CEO Jeff Stibel stating, "Our results further validate the strategic shift we made in our business." The company has raised its full-year 2025 revenue guidance, now anticipating approximately 10% year-over-year growth at the midpoint. For Q4, LegalZoom expects revenue between $182 million and $186 million, representing a 14% year-over-year growth at the midpoint. The strong performance and optimistic outlook have resonated well with investors, as reflected in the significant after-hours stock price jump.