LegalZoom.com, Inc. (LZ) saw its stock soar 15.48% 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's performance exceeded analyst estimates, demonstrating robust growth across key metrics.

LegalZoom reported total revenue of $190.2 million for Q3, marking a 13% year-over-year increase and surpassing analyst expectations of $183.3 million. The company's subscription revenue, a crucial growth driver, rose by 13% to reach $125.4 million, primarily fueled by its compliance offerings. Additionally, LegalZoom's financial health was underscored by its strong cash flow generation, with free cash flow reaching $47 million for the quarter, more than doubling from $22 million in the same period last year.

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. The company's CEO, Jeff Stibel, expressed confidence in their strategic direction, stating, "Our results further validate the strategic shift we made in our business." This upward revision, coupled with the company's focus on expanding beyond business formation to serve existing small businesses, has significantly bolstered investor confidence in LegalZoom's growth trajectory, as reflected in the substantial stock price increase.