olivLaw · US equity research
LegalZoom.com, Inc. LZ
Services-Computer Processing & Data Preparation · SIC 7374 · Vertical: Services-Computer Processing & Data Preparation (SIC 7374)
LegalZoom is an online platform for legal services for individuals and small businesses, combining technology with independent attorneys and its own law firm. In 2026 it faces a shift in how customers discover it, as organic traffic from traditional search declines while subscriptions grow and represented 65% of revenue in 2025.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, LegalZoom.com, Inc. (LZ) stock was 6.90 USD (+3.14% on the day), with market capitalisation 1.1 bn USD, P/E 56.0 on diluted EPS of 0.12 USD over the last 12 months, beta 0.98, 52-week range 5.43–10.93 USD. Latest reported quarter (Q3 2026): revenue of 195.1 m USD (+2.6% YoY), net income of 8.1 m USD (+78.8% YoY), diluted EPS 0.05 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 60.6
- strong (55–70)
- Bollinger (20, 2)
- 5.72 – 7.27
- in the upper half of the band · %B 0.76 · band width 23.9%
- SMA 50 / 200
- 6.16 / 6.53
- mixed trend
- MACD (12, 26, 9)
- 0.22 / 0.20
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +17.5% | −1.1% | +18.6 pp | — |
| 3 months | −14.8% | −0.5% | −14.4 pp | — |
| 6 months | +9.9% | +4.4% | +5.5 pp | — |
| Year to date | −31.7% | +12.3% | −44.0 pp | — |
| 1 year | −30.4% | +13.5% | −44.0 pp | −24.6% |
| 3 years | −34.7% | +76.4% | −111.1 pp | −19.7% |
| 5 years | −72.6% | +63.7% | −136.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 161.7 m | 183.1 m | 192.5 m | 190.2 m | 190.3 m | 206.8 m | 205.3 m | 195.1 m |
| Cost of revenue | 53.4 m | 66.6 m | 67.4 m | 62.3 m | 61.7 m | 74.5 m | 65.4 m | 57.1 m |
| Gross profit | 108.3 m | 116.6 m | 125.1 m | 127.9 m | 128.5 m | 132.3 m | 139.9 m | 138.1 m |
| Operating income | 13.1 m | 9.0 m | -3.1 m | 6.5 m | 12.6 m | 2.8 m | 10.7 m | 13.5 m |
| Interest expense | 201.0 k | 182.0 k | 165.0 k | 152.0 k | 795.0 k | 676.0 k | 126.0 k | 77.0 k |
| Pre-tax income | 12.5 m | 10.6 m | -544.0 k | 8.4 m | 14.0 m | 3.8 m | 12.1 m | 14.9 m |
| Income tax | -388.0 k | 5.5 m | -278.0 k | 3.9 m | 7.9 m | 2.7 m | 7.0 m | 6.8 m |
| Net income | 12.9 m | 5.1 m | -266.0 k | 4.5 m | 6.1 m | 1.1 m | 5.2 m | 8.1 m |
| Diluted EPS | 0.07 ≈ | 0.03 | 0.00 | 0.02 | 0.03 ≈ | 0.01 | 0.03 | 0.05 |
| Operating cash flow | 42.6 m | 50.7 m | 39.1 m ≈ | 54.2 m ≈ | 34.1 m | 47.3 m | 39.5 m ≈ | 39.9 m ≈ |
| Capex | 6.7 m | 9.4 m | 7.5 m ≈ | 7.2 m ≈ | 6.1 m | 6.3 m | 5.9 m ≈ | 5.8 m ≈ |
| Share repurchases | 3.1 m | 0 | 20.4 m ≈ | 17.2 m ≈ | 42.9 m | 43.5 m | 45.5 m ≈ | 14.2 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 38 percentile of its own 13-quarter history (min 45.6, median 77.5, max 218.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Revenue | 408.4 m | 470.6 m | 575.1 m | 620.0 m | 660.7 m | 681.9 m | 756.0 m |
| Revenue YoY | unavailable | +15.2% | +22.2% | +7.8% | +6.6% | +3.2% | +10.9% |
| Net income | 7.4 m | 9.9 m | -108.7 m | -48.7 m | 14.0 m | 30.0 m | 15.4 m |
| Net income YoY | unavailable | +33.0% | −1,198.1% | unavailable | unavailable | +114.7% | −48.5% |
| Diluted EPS | 0.04 | 0.06 | -0.67 | -0.25 | 0.07 | 0.16 | 0.08 |
| Diluted EPS YoY | unavailable | +50.0% | −1,216.7% | unavailable | unavailable | +128.6% | −50.0% |
| net % | 1.8% | 2.1% | -18.9% | -7.9% | 2.1% | 4.4% | 2.0% |
| Free cash flow | 34.3 m | 82.5 m | 42.4 m | 51.7 m | 92.7 m | 99.9 m | 147.9 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 203.1 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 171.9 m USD
- Total assets
- 511.5 m USD
- Debt / equity
- unavailable
- Current ratio
- 0.76x
- ROE
- 11.6%
- ROA
- 3.5%
- FCF margin
- 19.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 470.6 m | 575.1 m | 620.0 m | 660.7 m | 681.9 m | 756.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Cost of revenue | 154.6 m | 189.4 m | 211.1 m | 239.3 m | 240.1 m | 258.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Gross profit | 316.1 m | 385.7 m | 408.9 m | 421.5 m | 441.8 m | 498.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Operating income | 48.9 m | -85.1 m | -41.7 m | 21.1 m | 35.6 m | 25.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Depreciation & amortisation | 17.3 m | 15.7 m | 18.2 m | 20.2 m | 29.8 m | 36.3 m | SEC (XBRL)· 23 Feb 2026verified |
| EBITDA | 66.2 m ≈ | -69.4 m ≈ | -23.5 m ≈ | 41.3 m ≈ | 65.4 m ≈ | 61.3 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Interest expense | 35.5 m | 28.0 m | 260.0 k | 493.0 k | 446.0 k | 1.3 m | SEC (XBRL)· 23 Feb 2026verified |
| Pre-tax income | 12.3 m | -119.6 m | -47.7 m | 31.5 m | 43.1 m | 32.4 m | SEC (XBRL)· 23 Feb 2026verified |
| Income tax | 2.4 m | -11.0 m | 1.1 m | 17.5 m | 13.1 m | 17.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Net income | 9.9 m | -108.7 m | -48.7 m | 14.0 m | 30.0 m | 15.4 m | SEC (XBRL)· 23 Feb 2026verified |
| Diluted EPS | 0.06 | -0.67 | -0.25 | 0.07 | 0.16 | 0.08 | SEC (XBRL)· 23 Feb 2026verified |
| Weighted average diluted shares | 127.3 m | 161.4 m | 195.8 m | 194.4 m | 182.9 m | 184.7 m | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 114.5 m | 239.3 m | 189.1 m | 225.7 m | 142.1 m | 203.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Receivables | 8.6 m | 10.6 m | 13.2 m | 11.7 m | 8.5 m | 20.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Current assets | 133.6 m | 266.5 m | 241.7 m | 275.3 m | 191.2 m | 241.9 m | SEC (XBRL)· 23 Feb 2026verified |
| Property, plant & equipment, net | 51.4 m | 47.0 m | 30.8 m | — | — | — | SEC (XBRL)· 01 Mar 2023verified |
| Goodwill | 11.4 m | 59.9 m | 63.2 m | 63.3 m | 63.3 m | 140.7 m | SEC (XBRL)· 23 Feb 2026verified |
| Intangibles (excl. goodwill) | 815.0 k | 16.0 m | 18.9 m | 13.7 m | 8.7 m | 18.2 m | SEC (XBRL)· 23 Feb 2026verified |
| Total assets | 252.1 m | 431.0 m | 405.4 m | 447.8 m | 373.9 m | 511.5 m | SEC (XBRL)· 23 Feb 2026verified |
| Accounts payable | 28.7 m | 31.8 m | 25.3 m | 32.3 m | 31.2 m | 27.2 m | SEC (XBRL)· 23 Feb 2026verified |
| Short-term debt | 3.0 m | 0 | — | — | — | — | SEC (XBRL)· 24 Mar 2022verified |
| Long-term debt | 512.4 m | 0 | — | — | — | — | SEC (XBRL)· 24 Mar 2022verified |
| Current liabilities | 199.9 m | 229.0 m | 249.2 m | 264.0 m | 265.6 m | 318.5 m | SEC (XBRL)· 23 Feb 2026verified |
| Total liabilities | 731.8 m | 233.5 m | 263.0 m | 279.0 m | 280.6 m | 339.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Equity | -550.6 m † | 197.6 m † | 142.4 m † | 168.8 m † | 93.3 m † | 171.9 m † | SEC (XBRL)· 23 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 93.0 m | 54.2 m | 73.8 m | 124.3 m | 135.6 m | 178.2 m | SEC (XBRL)· 23 Feb 2026verified |
| Capex | 10.6 m | 11.7 m | 22.1 m | 31.6 m | 35.7 m | 30.3 m | SEC (XBRL)· 23 Feb 2026verified |
| Free cash flow | 82.5 m ≈ | 42.4 m ≈ | 51.7 m ≈ | 92.7 m ≈ | 99.9 m ≈ | 147.9 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Investing cash flow | -12.7 m | -77.7 m | -30.6 m | -31.6 m | -35.7 m | -40.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Financing cash flow | -15.1 m | 123.4 m | -93.3 m | -56.2 m | -183.3 m | -77.3 m | SEC (XBRL)· 23 Feb 2026verified |
| Share repurchases | 4.8 m | 0 | 95.1 m | 54.9 m | 165.0 m | 80.5 m | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.1 bn USD
Key indicators
Coverage and freshness
Score by group
77% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 67.6% | 69 (on a fixed band) | 14% |
| EBIT margin · Quality | 5.0% | 51 (vs peers) | 11% |
| FCF margin · Quality | 17.2% | 69 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 6.8% | 27 (on a fixed band) | 22% |
| Revenue growth (YoY) · Growth | 10.9% | 39 (vs peers) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.7x | 0 (on a fixed band) | 8% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 12.0% | 100 (on a fixed band) | 17% |
| Shareholder yield (distributions) · Returns | 12.8% | 100 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial0/100 · 1/2 factors with a value
- Growth31/100 · 2/2 factors with a value
- Quality63/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation· partial100/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
LegalZoom.com, Inc. (LZ). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 756.0 m USD in 2025; YoY growth 10.9%; net margin 2.6%; ROE 12.1%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF yield: 12.0%
- Shareholder yield (distributions): 12.8%
What contradicts it
- Revenue CAGR 3Y: 6.8%
- Current ratio: 0.7x
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.
Versus the vertical median
Services-Computer Processing & Data Preparation (SIC 7374) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ADPAutomatic Data Processing, Inc. | 119.8 bn | 27.7 | 77.0% | 20.1% | +6.7% | +19% / +32% |
| WDAYWorkday, Inc. | 44.4 bn | 40.9 | 16.0% | 12.3% | +13.1% | −6% / −25% |
| VRSKVerisk Analytics, Inc. | 25.9 bn | 30.1 | — | 29.3% | +6.6% | −12% / −18% |
| ATHMAutohome Inc. | 10.4 bn | 53.5 | 6.3% | 443.2% | +11.1% | −5% / −18% |
| PEGAPegasystems Inc. | 5.6 bn | 21.3 | 51.4% | 16.9% | +16.6% | −37% / +32% |
| FAFirst Advantage Corp | 3.9 bn | 160.5 | 1.9% | 1.5% | +83.0% | +62% / +45% |
| QBTSD-Wave Quantum Inc. | 3.8 bn | — | -28.0% | -2,001.6% | +178.5% | −54% / +1,166% |
| RAMPLiveRamp Holdings, Inc. | 2.3 bn | 15.8 | 16.2% | 18.7% | +9.0% | +41% / +39% |
| GLOBGlobant S.A. | 2.1 bn | 21.0 | 5.1% | 4.2% | +1.6% | −25% / −78% |
| INODInnodata Inc | 1.5 bn | 32.8 | 37.7% | 14.7% | +47.6% | −25% / +541% |
| LZLegalZoom.com, Inc. | 1.1 bn | 56.0 | 12.1% | 2.6% | +10.9% | −30% / −35% |
| NRDSNerdWallet, Inc. | 754.4 m | 13.3 | 18.2% | 7.6% | +21.7% | −21% / +1% |
| NXTTNext Technology Holding Inc. | 736.5 m | — | -59.4% | -2,356.0% | +545.3% | −99% / −100% |
| CARSCars.com Inc. | 682.5 m | 22.4 | 7.4% | 4.7% | +0.6% | +10% / −32% |
| IBEXIBEX Limited | 593.6 m | 14.3 | 30.4% | 7.2% | +15.4% | +27% / +152% |
| SOPHSOPHiA GENETICS SA | 477.3 m | — | -110.0% | -102.2% | +18.6% | +42% / +73% |
| GRVYGravity Co., Ltd. | 475.7 m | 0.0 | 16.5% | 17.0% | −31.0% | +19% / −6% |
| EGHT8x8, Inc. | 326.4 m | 55.5 | 3.5% | 0.6% | +2.9% | +16% / −27% |
| TCXTucows Inc | 140.3 m | — | — | -21.2% | +7.7% | −42% / −41% |
| TRAKRepositrak, Inc. | 132.7 m | 18.7 | 14.9% | 32.5% | +3.0% | −46% / −29% |
| BIRDSmartbird, Inc. | 92.1 m | — | -164.0% | -72.8% | −19.7% | −68% / −91% |
| VERIVeritone, Inc. | 56.7 m | — | -517.7% | -117.5% | −0.5% | −87% / −73% |
| GMHSGamehaus Holdings Inc. | 51.4 m | 8.5 | 11.8% | 4.1% | −11.3% | −35% / −93% |
| DGNXDiginex Limited | 38.7 m | — | — | -255.5% | +57.0% | −99% / unavailable |
| CHRCheer Holding, Inc. | 14.0 m | 0.1 | 7.6% | 17.2% | +1.1% | −77% / −100% |
1- and 3-year price returns: for LZ from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 4.19 Total return -39% · Per year -39% | 7.40 Total return 7% · Per year 7% | 11.13 Total return 61% · Per year 61% |
| 3 years | 4.26 Total return -38% · Per year -15% | 8.44 Total return 22% · Per year 7% | 13.92 Total return 102% · Per year 26% |
| 5 years | 4.33 Total return -37% · Per year -9% | 9.64 Total return 40% · Per year 7% | 17.41 Total return 152% · Per year 20% |
- Exit P/E± 2.11
- Net margin± 1.48
- Annual revenue growth± 1.19
- Annual dilution± 0.12
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).
In brief
LegalZoom is an online platform for legal services for individuals and small businesses, combining technology with independent attorneys and its own law firm. In 2026 it faces a shift in how customers discover it, as organic traffic from traditional search declines while subscriptions grow and represented 65% of revenue in 2025 1.
SWOT
Strengths
- Recognised brand and a large customer base built over many years, which supports traffic and trust in formations 1.
- A high share of subscription revenue with steady growth, providing more predictable recurring revenue 3.
- No debt outstanding and positive operating cash flow in the second quarter of 2026 3.
Weaknesses
- Significant dependence on business formations, which fell in 2026 and are sensitive to the economic environment 12.
- A history of net losses and a large accumulated deficit, although the company reported net income in the second quarter of 2026 13.
- Vulnerability to changes in search algorithms, which have reduced organic traffic and raised acquisition costs 2.
Opportunities
- Expansion into AI channels and partnerships, which could bring more qualified traffic if they develop 23.
- Growth of higher-value DIFM offerings, which could raise subscription revenue if customers adopt them 1.
- Existing small businesses that never formed through the platform represent a broad pool of potential customers 1.
Threats
- A decline in company formations or in small business survival could reduce customer entry into the platform 1.
- Entry of large platform companies or stronger online competition from traditional players could pressure prices and margins 1.
- Changes in public policy and taxes on business registration could alter formation volumes 1.
Risks
- Dependence on business formationshigh
Formations are the largest transaction segment and fell in 2026, which could affect the entry point of customers into the ecosystem 12.
- Changes in search discoveryhigh
Google changes have reduced organic traffic and increased dependence on paid advertising, which could compress margins if acquisition costs rise 2.
- Subscriber retentionmedium
The company cannot accurately predict renewal rates, and a slowdown in subscription growth could affect results if the trend does not improve 1.
- Integration and restructuringmedium
The restructuring and the integration of Formation Nation carry costs and operational risks, which could affect service quality if poorly managed 12.
- Volatility of quarterly resultslow
Results vary considerably from quarter to quarter because of seasonality and the macroeconomic environment, making performance hard to anticipate 1.
Investment thesis
What would need to be true (bull case)
- If human-supported subscriptions keep growing at double-digit rates and AI channels develop, the company could stabilise revenue and expand margins, as recent results suggest 3.
- The brand, customer volume and debt-free balance sheet give flexibility to invest in acquisition and new products, which could support long-term growth if they work 13.
- Restructuring and cost control could improve adjusted profitability if revenue stays within guidance 23.
What would break the thesis
- Guidance for 2026 was lowered and the decline in organic traffic shows that an important acquisition channel is unreliable, which could slow growth 23.
- Dependence on business formations, which fell in the second quarter, remains a vulnerability, especially if the economic environment worsens 12.
- A history of losses and a large accumulated deficit could limit the company's capacity to fund investment if profitability does not consolidate 1.
What to watch
- Subscription revenue and subscription units versus the 795 to 805 million dollar revenue guidanceQ3 2026
- Effects of the restructuring on costs and adjusted EBITDA marginQ3 2026
- Trend in organic traffic and acquisition cost after search changes2027
- Pace of business formations and whether partnerships offset the search declinenext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).
The business
LegalZoom offers business formation, compliance, intellectual property protection and ongoing business management, through both transaction products and subscriptions. It operates in all 50 U.S. states and over 3,000 counties 1, and customers typically start with a formation product that the company then tries to convert into a long-term subscription. At period end for the second quarter of 2026 there were 1,892 thousand subscription units, against 1,955 thousand a year earlier 3. The company acquired Formation Nation in February 2025 to cover low-cost formation under the Inc Authority brand 1.
The model pairs a technology platform using artificial intelligence and automation with human experts: attorneys in the independent network, concierge managers, and staff for virtual mail and registered agent services 1. This allows cheap DIY offerings alongside higher-priced DIFM services, which the company is currently pushing.
In August 2026 the company committed to a restructuring that reduces its workforce by about 13% and aims at a more agile, AI-native organisation 2.
Segments
Subscriptions
Subscriptions include registered agent, compliance, legal advice through legal plans, legal forms, concierge services and virtual mail. Subscription revenue grew 11% in the second quarter of 2026, to 133.4 million dollars, driven mainly by human-in-the-loop offerings and pricing changes 3.
Transactions
Transaction products include formation of LLCs, corporations and nonprofits, trademarks, patents and wills. Transaction revenue fell 1% in the second quarter of 2026, to 71.9 million dollars, as business formations declined 3.
Market context
The online legal services market for small businesses is fragmented, and the company says the number of small businesses in the U.S. is very large and many must remain compliant with federal and state rules 1. However, the opportunity depends on the company's ability to reach new discovery channels, because formations, the traditional entry point, are sensitive to the economic cycle and policy.
Competition includes online formation and registered agent providers, traditional law firms and solo attorneys, online legal document services and secretaries of state, and potentially large platform companies that could develop competing solutions 1.
Trends
- Shift in customer discoveryheadwind
Changes in Google search algorithms and the prominence of AI-generated summaries have reduced organic traffic, and the company acknowledges greater reliance on paid advertising 2. If these changes persist, acquisition costs could rise.
- AI platforms as a new channeltailwind
The company has partnered with AI companies and invests in educational content visible in AI answer engines, which could bring more qualified traffic if these channels grow 13.
- Growth of human-supported subscriptionstailwind
Subscription revenue has grown at double-digit rates for five consecutive quarters, supported by DIFM services and higher prices, making the company less dependent on formations 3.
- Decline in business formationsheadwind
Formations fell in the second quarter of 2026 and are the largest transaction segment, so any economic or regulatory slowdown could affect them directly 12.
Competitive position
The company competes with online formation and registered agent providers, traditional and solo law firms, online legal document services and secretaries of state, and over time large platform companies could enter 1. Its advantages are brand recognition, customer volume and its attorney network, but because of rules on unauthorised practice of law, direct advice is limited to structures such as the Arizona law firm and the legal plan network 1.
- Traditional law firms and solo attorneys
Provide direct legal advice and face structural barriers to technological adaptation, although some are developing their own online services 1.
- Online business formation and registered agent providers
Compete directly for formations and registered agent services, which are the customer's entry points 1.
- Online legal document services
Offer standardised documents and compete on price and ease of use, with a focus on simpler products 1.
- Large platform companies
Could develop or partner to offer competing technology solutions, a risk that remains hypothetical for now 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- LegalZoom review: Basic legal services starting at $39.95 per monthCNBC — Top News · 23 Sept 2026 · EN
The latest news item in our archive is from 23 Sept 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report04 Nov 2026
- Current report04 Nov 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report04 Jun 2026Shareholder vote
- Quarterly report06 May 2026
- Current report06 May 2026Results of operations · Regulation FD disclosure
- Proxy statement22 Apr 2026
- Annual report23 Feb 2026
- Current report19 Feb 2026Results of operations · Regulation FD disclosure · Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / LegalZoom.com, Inc. · 23 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / LegalZoom.com, Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / LegalZoom.com, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.