LegalZoom.com, Inc. (NASDAQ: LZ) saw its stock soar 20% in pre-market trading on Thursday, following the release of its impressive first-quarter 2025 financial results. The legal technology company not only surpassed analyst expectations but also announced an increase in its share repurchase program, fueling investor enthusiasm.

LegalZoom reported Q1 revenue of $183.1 million, up 5% year-over-year and exceeding the analyst estimate of $177.1 million. Notably, subscription revenue, a key focus area for the company, grew by 8% to $116.3 million. The company's adjusted EBITDA of $37 million also beat expectations, showing a significant 33% year-over-year increase and an improved margin of 20%. Furthermore, LegalZoom's free cash flow surged to $41.3 million, up from $24.7 million in the same period last year.

Adding to the positive sentiment, LegalZoom announced a $100 million increase in its share repurchase authorization, bringing the total remaining authorization to approximately $150 million. The company also reaffirmed its full-year 2025 guidance of 5% revenue growth and an adjusted EBITDA of approximately $165 million, demonstrating confidence in its growth trajectory. CEO Jeff Stibel expressed optimism about the company's performance, 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 market's reaction reflects growing confidence in LegalZoom's ability to capitalize on its subscription business model and maintain strong profitability in the coming quarters.