LegalZoom.com, Inc. (NASDAQ: LZ) saw its stock price surge 15.59% in the 24-hour period following the release of its impressive first-quarter 2025 financial results. The legal technology company not only exceeded analyst expectations but also announced an increase in its share repurchase authorization, signaling confidence in its future performance.

The company reported first-quarter revenue of $183.1 million, surpassing the analyst estimate of $177.1 million and marking a 5% year-over-year increase. Subscription revenue, a key focus area for LegalZoom, grew by 8% to reach $116.3 million. The company's Adjusted EBITDA came in at $37 million, exceeding the estimate of $34.9 million and representing a substantial 33% year-over-year growth. Additionally, LegalZoom's free cash flow increased significantly to $41.3 million, up from $24.7 million in the same period last year.

CEO Jeff Stibel expressed confidence in the company's execution, reiterating the full-year revenue outlook of 5% year-over-year growth. Adding to investor enthusiasm, LegalZoom announced a $100 million increase in its share repurchase authorization, bringing the total remaining authorization to approximately $150 million. This move, coupled with the company's solid financial results and positive outlook, contributed to the significant stock price jump. The market's reaction reflects growing optimism about LegalZoom's ability to capitalize on its subscription business model and maintain strong profitability in the coming quarters.