LegalZoom.com, Inc.
- Open
- 6.23
- Day high
- 6.58
- Day low
- 6.23
- Prev close
- 6.13
- Volume
- 1.3M
- Mkt cap
- $1.1B
- P/E (TTM)
- 101.2
- EPS (TTM)
- $0.06
- P/B
- 7.6
- P/S
- 1.4
- Yield
- —
- Per share
- —
- ▲Insiders net buying $546K over the last 3 months (1 open-market buy, 2 sales)
- 🏛Institutions mixed (13F)
LegalZoom.com, Inc. (LZ) is a Industrials company listed on NASDAQ. The stock is down 32% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 2 sales (SEC Form 4).
LegalZoom.com, Inc. (LZ) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LZ earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.13 | $0.12 | -7.7% | $207M | +2.3% |
| Feb 19, 2026 | $0.18 | $0.17 | -5.6% | $190M | -4.8% |
| Nov 5, 2025 | $0.20 | $0.17 | -15.0% | $190M | +2.9% |
| Aug 7, 2025 | $0.15 | $0.15 | +0.0% | $193M | +5.8% |
| Feb 26, 2025 | $0.16 | $0.19 | +18.8% | $162M | +0.6% |
| Feb 22, 2024 | $0.10 | $0.13 | +30.0% | $159M | +1.4% |
| Feb 23, 2023 | $0.08 | $0.10 | +25.0% | $147M | +0.5% |
| Nov 10, 2022 | $0.05 | $0.05 | +0.0% | $154M | +3.0% |
| Aug 11, 2022 | $0.01 | $0.05 | +265.0% | $164M | +1.6% |
| May 12, 2022 | $-0.02 | $-0.05 | -126.2% | $154M | +2.4% |
| Mar 10, 2022 | $0.01 | $0.02 | +281.7% | $142M | -1.1% |
| Nov 10, 2021 | $0.03 | $0.01 | -69.5% | $148M | -9.1% |
LZ insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 19, 2026 | Thomas Charles C.officer: Chief Accounting Officer | Tax | 3,777 | $6.00 |
| May 19, 2026 | Watson Noel Bertramofficer: Chief Operating Officer & CFO | Tax | 82,501 | $6.00 |
| May 19, 2026 | Stibel Jeffrey Mdirector, officer: Chief Executive Officer | Tax | 110,321 | $6.00 |
| May 19, 2026 | Miller Nicoleofficer: CHIEF LEGAL OFFICER | Sell | 19,199 | $6.58 |
| May 19, 2026 | Watson Noel Bertramofficer: Chief Operating Officer & CFO | Sell | 15,000 | $6.45 |
| May 19, 2026 | Miller Nicoleofficer: CHIEF LEGAL OFFICER | Tax | 46,749 | $6.00 |
| May 11, 2026 | Stibel Jeffrey Mdirector, officer: Chief Executive Officer | Buy | 125,000 | $6.15 |
| Mar 10, 2026 | Thomas Charles C.officer: Chief Accounting Officer | Grant | 39,694 | — |
| Mar 10, 2026 | Miller Nicoleofficer: CHIEF LEGAL OFFICER | Grant | 372,137 | — |
| Mar 10, 2026 | Stibel Jeffrey Mdirector, officer: Chief Executive Officer | Grant | 622,900 | — |
| Mar 10, 2026 | Watson Noel Bertramofficer: Chief Operating Officer & CFO | Grant | 656,488 | — |
| Feb 27, 2026 | Miller Nicoleofficer: CHIEF LEGAL OFFICER | Sell | 23,325 | $6.63 |
| Feb 19, 2026 | Watson Noel Bertramofficer: Chief Operating Officer & CFO | Sell | 15,000 | $6.96 |
| Feb 18, 2026 | Miller Nicoleofficer: CHIEF LEGAL OFFICER | Tax | 32,269 | $6.87 |
| Feb 18, 2026 | Stibel Jeffrey Mdirector, officer: Chief Executive Officer | Tax | 78,357 | $6.87 |
Source: LZ SEC Form 4 filings, latest May 19, 2026. For informational purposes only — not investment advice.
See the full LZ insider & 13F page →LegalZoom.com, Inc. company profile
Overview
LegalZoom.com, Inc. (NASDAQ:LZ) is an online legal services platform founded in 1999 and headquartered in Glendale, California. The company went public in June 2021 and has established itself as a leading provider of do-it-yourself legal solutions for small businesses and consumers in the United States. LegalZoom operates in the legal technology sector, offering an accessible alternative to traditional law firms by providing standardized legal services through its digital platform. The company has evolved from a simple document preparation service into a comprehensive ecosystem of legal, compliance, and business services designed to support entrepreneurs and small business owners throughout their business lifecycle.
Business
LegalZoom operates in the legal technology industry, specifically focusing on democratizing access to legal services through its online platform. The company's core business revolves around providing self-service legal solutions that traditionally required expensive attorney consultations. The company's primary offerings include business formation services, which help entrepreneurs establish legal business entities such as LLCs, corporations, and partnerships. This involves preparing and filing the necessary paperwork with state governments, a process that historically required legal expertise. LegalZoom simplifies this by offering standardized packages that guide customers through the formation process online. Beyond business formations, LegalZoom provides estate planning services including wills, trusts, and related documents. These services allow individuals to create legally binding estate planning documents without hiring an attorney, using guided questionnaires and template-based systems. The company also offers intellectual property services such as trademark and copyright registrations, helping small businesses protect their brands and creative works. Additionally, LegalZoom provides ongoing compliance services including registered agent services, annual report filings, and other regulatory requirements that businesses must maintain. LegalZoom's revenue is divided into two main segments: 1. Transaction revenue (approximately 35% of total revenue) from one-time services like business formations and document preparation, and 2. Subscription revenue (approximately 65% of total revenue) from recurring services such as registered agent services, compliance monitoring, and ongoing legal support. The company has been strategically shifting toward subscription-based offerings to create more predictable, recurring revenue streams.
Revenue model
LegalZoom generates revenue through two primary business models. The transaction model involves one-time fees for services like business formations, estate planning documents, and intellectual property filings. Customers pay upfront fees ranging from basic packages to premium offerings that include additional services and faster processing times. The subscription model provides ongoing services such as registered agent representation, compliance monitoring, annual report filings, and access to legal advice networks for monthly or annual fees. The company's paying customers are primarily small business owners and individual consumers. Small businesses represent the majority of revenue, particularly entrepreneurs forming new companies or existing businesses needing ongoing compliance services. Individual consumers typically purchase estate planning services, legal document preparation, and intellectual property protection. Several factors influence LegalZoom's profitability margins. Positive factors include the company's ability to standardize and automate legal processes, reducing variable costs per transaction. The shift toward subscription revenue provides more predictable cash flows and higher lifetime customer value. Technology improvements, particularly AI integration, help reduce operational costs while improving service quality. The company's strong brand recognition in the legal services space allows for premium pricing compared to generic competitors. Negative factors affecting margins include macroeconomic conditions that impact business formation rates, as economic uncertainty typically reduces entrepreneurial activity. Increased competition from both traditional law firms adopting technology and new legal tech startups puts pressure on pricing. Customer acquisition costs can be substantial, particularly for brand marketing and performance advertising. Regulatory changes in the legal industry could impact service offerings or require additional compliance investments. The company's margins are also sensitive to the mix between transaction and subscription revenue, with subscriptions generally providing higher margins due to their recurring nature and lower variable costs once customers are onboarded.
Competitive moat
LegalZoom's competitive moat is moderately strong but faces ongoing challenges from multiple directions. The company's primary advantages include strong brand recognition in the legal services space, having been one of the first movers in online legal services over two decades ago. This brand strength provides customer trust in an industry where credibility is crucial, as consumers are naturally cautious about legal matters. The company has built operational scale advantages through years of processing millions of legal documents, creating efficient systems and processes that newer competitors struggle to replicate quickly. LegalZoom's established relationships with state filing offices and regulatory bodies provide operational advantages and faster processing times. However, the moat faces significant competitive pressures. Traditional law firms are increasingly adopting technology to offer competitive services, particularly for standardized legal work. New legal tech startups continue to enter the market with innovative approaches and often lower pricing. The core services LegalZoom provides - document preparation and filing - are becoming increasingly commoditized as legal processes become more standardized and automated. The company's network effects are limited compared to traditional platform businesses. While LegalZoom has built an attorney network and partner ecosystem, customers don't necessarily benefit from other customers using the platform. The switching costs for customers are relatively low, as legal document preparation is largely transactional. LegalZoom's strongest defensive position lies in its comprehensive service ecosystem and customer lifecycle approach. By offering services from business formation through ongoing compliance and additional business services, the company creates some customer stickiness, particularly through its subscription offerings. The integration of AI and technology improvements could strengthen this moat if executed effectively, but the fundamental challenge remains that legal document preparation is becoming increasingly commoditized across the industry.
Risks & safety
LegalZoom demonstrates strong financial safety with minimal solvency risk and solid cash generation capabilities. **Cash and Liquidity Position:** - Cash and short-term investments: $210 million (Q1 2025) - Strong free cash flow generation: $41 million in Q1 2025, $100 million for full year 2024 - No significant debt burden with debt-to-equity ratio of only 0.08 **Operational Cash Flow:** - Consistent positive operating cash flow: $51 million in Q1 2025 - Healthy EBITDA margins around 23-28% in recent quarters - Business model generates cash upfront from customers, particularly in subscription services **Valuation Metrics:** - Current P/E ratio: 74x (elevated due to modest net income) - EV/EBITDA: 37x (relatively high for a mature service business) - Price-to-book ratio: 8.1x - Graham number suggests potential undervaluation at current levels **Other Considerations:** - Current ratio below 1.0 indicates working capital management focus but not concerning given cash position - Subscription revenue growth provides predictable cash flows - Share buyback program demonstrates capital allocation discipline - Low capital expenditure requirements for the business model
Recent development
Over the past few years, LegalZoom has undergone significant strategic transformation focused on three key areas. The company has pivoted toward subscription-based revenue, moving away from purely transactional business formations to create recurring revenue streams. This shift included restructuring product offerings to bundle entry-level services into premium packages and implementing pricing changes across the legal and compliance portfolio. The company has made several strategic acquisitions to expand its ecosystem, most notably acquiring Formation Nation to strengthen its market position and reach different customer segments. LegalZoom also partnered with 1-800Accountant to offer tax preparation and bookkeeping services, expanding beyond core legal services into adjacent business support areas. Technology and AI integration has become a central focus, with LegalZoom launching AI-powered tools including a business name generator and estate planning assistant. The company welcomed a new Chief Technology Officer and is leveraging artificial intelligence to simplify legal processes and improve customer experience. These technology investments aim to reduce operational costs while providing more sophisticated services. LegalZoom has also diversified its go-to-market strategy, launching new brand campaigns to position itself as the premier online legal services provider. The company expanded its consumer business, particularly in estate planning, and developed new marketing channels including AI-driven search engine optimization. Management reduced the workforce by 15% in 2024 to focus resources on higher-value customer acquisition and subscription growth. The company has been optimizing its customer mix, deliberately reducing free formation offerings to under 50% of total volume and focusing on attracting high-intent customers who are more likely to purchase additional services and maintain long-term relationships. This strategic shift prioritizes customer lifetime value over pure volume metrics.
LZ company profile · for informational purposes only — not investment advice.
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