LegalZoom.com, Inc. (NASDAQ: LZ) saw its stock surge 16.28% in pre-market trading on Thursday, 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 program, driving investor enthusiasm.

The company reported Q1 revenue of $183.1 million, up 5% year-over-year and surpassing the analyst estimate of $177.1 million. Notably, subscription revenue, a key focus area for LegalZoom, 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%. LegalZoom reaffirmed its full-year 2025 guidance of 5% revenue growth and an adjusted EBITDA of approximately $165 million, demonstrating confidence in its growth trajectory.

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. This move, coupled with the company's solid financial results and positive outlook, likely contributed to the significant stock price jump. 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 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.