LegalZoom Reports Mixed 2025 Financials with Strong Cash Flow, Boosts Share Buyback to $415M
LZ is trading near its 52-week low of $6.14 (1.5% above the low).
Summary
LegalZoom's 2025 annual report details mixed financial results with revenue, Adjusted EBITDA, and free cash flow growth, but a significant drop in net income. The company also increased its share repurchase authorization by $100 million to a total of $415 million.
Key Events · Earnings and Guidance · LZ
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Full-Year 2025 Financial Performance
Total revenue increased by 11% to $756.043 million, Adjusted EBITDA grew by 16.2% to $172.193 million, and Free Cash Flow surged by 48% to $147.920 million. However, net income decreased by 48.5% to $15.427 million, and diluted EPS fell by 50% to $0.08.
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Share Repurchase Program Expanded
The board approved an additional $100 million for the stock repurchase program in February 2026, increasing the total authorized amount to $415 million. The company repurchased $80.5 million in common stock during 2025.
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Acquisition of Formation Nation
LegalZoom acquired Formation Nation in February 2025 for $83.2 million. Since the acquisition date, Formation Nation contributed $51.4 million in revenue but also a net loss of $4.9 million.
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Chief Legal Officer Adopts 10b5-1 Plan
Nicole Miller, Chief Legal Officer, adopted a Rule 10b5-1 trading arrangement on November 9, 2025, to sell up to 89,461 shares by May 29, 2026. This is a pre-planned sale.
Analysis · LZ · Technology
This annual report formalizes LegalZoom's full-year 2025 financial results and capital allocation strategy, following the preliminary announcement on February 19, 2026. While the company reported an 11% increase in total revenue and strong growth in Adjusted EBITDA and Free Cash Flow, net income and diluted EPS saw significant declines. The board's approval of an additional $100 million for the share repurchase program, bringing the total authorization to $415 million, is a notable positive signal, especially with the stock trading near its 52-week low. This move indicates management's confidence and commitment to shareholder returns amidst mixed profitability metrics.
How filings like this one have moved
In the 30 days to Sep 20, 2026, 29.3% of the 1581 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.42%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, LZ was trading at $6.23 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $6.14 to $12.40. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.