LegalZoom.com, Inc. stock research
FY2025 Q3
LegalZoom.com (LZ) Gross Margin — Quarter Ended Sep 30, 2025
Revenue decreased slightly from the prior quarter but increased compared to the same quarter last year. Gross profit improved sequentially, while cost of revenue declined, resulting in a higher gross margin compared to the prior quarter, though it remained stable relative to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue decreased slightly from the prior quarter but increased compared to the same quarter last year. Gross profit improved sequentially, while cost of revenue declined, resulting in a higher gross margin compared to the prior quarter, though it remained stable relative to the same quarter last year.
- The sequential improvement in gross margin was driven by a reduction in cost of revenue relative to revenue, as gross profit increased while revenue declined slightly.
- Compared to the prior quarter, gross margin improved as cost of revenue decreased more than revenue. Compared to the same quarter last year, gross margin was stable, with revenue and gross profit both higher but cost of revenue also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.3%
Gross profit
$127.9M
Revenue
$190.2M
Cost of revenue
$62.3M
Quarter-over-quarter change
+2.3 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $161.7M | $108.3M | $53.4M | 67.0% |
| Mar 31, 2025 | $183.1M | $116.5M | $66.6M | 63.7% |
| Jun 30, 2025 | $192.5M | $125.1M | $67.4M | 65.0% |
| Sep 30, 2025 | $190.2M | $127.9M | $62.3M | 67.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+2.3 pts
Year-over-year change
Sep 30, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a reduction in cost of revenue relative to revenue, as gross profit increased while revenue declined slightly.
Compared to the prior quarter, gross margin improved as cost of revenue decreased more than revenue. Compared to the same quarter last year, gross margin was stable, with revenue and gross profit both higher but cost of revenue also higher.
Monitor the trend in cost of revenue, as its decline was the primary factor behind the sequential gross margin improvement.