LegalZoom.com, Inc. stock research
FY2025 Q1
LegalZoom.com (LZ) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both increased relative to the prior quarter and the same quarter a year earlier. Cost of revenue rose from the prior quarter but fell from the year-ago period, resulting in a gross margin that weakened sequentially but improved year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both increased relative to the prior quarter and the same quarter a year earlier. Cost of revenue rose from the prior quarter but fell from the year-ago period, resulting in a gross margin that weakened sequentially but improved year-over-year.
- The primary driver of the margin change was the movement in cost of revenue. Compared to the previous quarter, cost of revenue grew faster than revenue, compressing gross margin; versus the prior year, cost of revenue declined while revenue grew, expanding margin.
- Gross margin decreased from the prior quarter, reflecting a higher proportion of cost of revenue relative to revenue. Compared to the same quarter last year, gross margin increased as revenue grew and cost of revenue declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.7%
Gross profit
$116.5M
Revenue
$183.1M
Cost of revenue
$66.6M
Quarter-over-quarter change
-3.3 pts
Year-over-year change
+2.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $177.4M | $113.8M | $63.6M | 64.1% |
| Sep 30, 2024 | $168.6M | $113.9M | $54.7M | 67.5% |
| Dec 31, 2024 | $161.7M | $108.3M | $53.4M | 67.0% |
| Mar 31, 2025 | $183.1M | $116.5M | $66.6M | 63.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-3.3 pts
Year-over-year change
Mar 31, 2024
+2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the margin change was the movement in cost of revenue. Compared to the previous quarter, cost of revenue grew faster than revenue, compressing gross margin; versus the prior year, cost of revenue declined while revenue grew, expanding margin.
Gross margin decreased from the prior quarter, reflecting a higher proportion of cost of revenue relative to revenue. Compared to the same quarter last year, gross margin increased as revenue grew and cost of revenue declined.
Monitor the trend in cost of revenue relative to revenue, as its recent increase outpaced revenue growth.