For the quarter ended December 2025, LegalZoom (LZ) reported revenue of $190.27 million, up 17.7% over the same period last year. EPS came in at $0.17, compared to $0.19 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $184.33 million, representing a surprise of +3.22%. The company delivered an EPS surprise of -7.61%, with the consensus EPS estimate being $0.18.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how LegalZoom performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average revenue per subscription unit (ARPU) at period end: $0.27 million compared to the $0.26 million average estimate based on three analysts. Subscription units at period end: 1,939 versus the three-analyst average estimate of 1,969. Average order value (AOV): $248.00 versus the three-analyst average estimate of $244.10. Transaction units: 239 versus the three-analyst average estimate of 243. Business formations: 112 compared to the 108 average estimate based on two analysts. Revenue- Subscription: $130.95 million versus the three-analyst average estimate of $125.44 million. The reported number represents a year-over-year change of +20.4%. Revenue- Transaction: $59.32 million versus $59.3 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +12% change.View all Key Company Metrics for LegalZoom here>>>
Shares of LegalZoom have returned -17.9% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
LegalZoom.com, Inc. (LZ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).