LEGALZOOM.COM (LZ) Company Report

LegalZoom.com, Inc. (Nasdaq: LZ) announced the launch of its LegalZoom Connector, integrating its attorney services directly into the Claude ecosystem, powered by Anthropic.
This integration allows Claude users to access LegalZoom's network of independent attorneys for guidance on complex legal issues after AI performs initial document review.
The initiative aims to disrupt the traditional billable hour model by providing ongoing legal advice at a semi-annual fee that costs less than a typical hour at a law firm.
LegalZoom emphasizes a "human-in-the-loop" AI approach, combining AI efficiency with licensed professional accountability, as AI cannot provide legal advice.

4 days ago

Press Release

LZ Reports Q4 and Full Year 2025 Results, Provides 2026 Outlook

Earnings

Guidance Update

Share Buyback

LegalZoom.com (LZ) reported full year 2025 revenue of $756 million, an 11% increase (3% organic growth), and Adjusted EBITDA of $172 million (23% margin).
For Q4 2025, total revenue grew 18% to $190 million, with subscription revenue increasing 20% to $131 million.
The company provided full year 2026 revenue guidance of $805 million to $825 million (8% growth at midpoint) and Adjusted EBITDA guidance of $100 million to $200 million (13% growth at midpoint).
LZ returned approximately $80 million to shareholders through share repurchases in 2025 and approved a $100 million increase to its share repurchase authorization.
Strategically, LZ is focusing on a "human-in-the-loop" approach with higher-value subscription offerings and AI integration, and recently completed a 5% headcount reduction to improve operating leverage.

Feb 19, 2026, 9:30 PM

Transcript

LegalZoom Reports Q4 and Full-Year 2025 Results, Provides 2026 Guidance

Earnings

Guidance Update

M&A

LegalZoom reported FY 2025 revenue of $756 million, an 11% year-over-year increase, with subscription revenue growing 13% to $492 million and transaction revenue up 7% to $264 million. Non-GAAP Net Income for FY 2025 was $114 million, a 15% increase, and Adjusted EBITDA reached $172 million, up 16%.
For Q4 2025, revenue increased 18% year-over-year to $190 million, and Adjusted EBITDA grew 13% to $50 million.
The company issued FY 2026 guidance, projecting total revenue between $805 million and $825 million and Adjusted EBITDA between $190 million and $200 million. This guidance implies approximately 8% YoY revenue growth and 13% YoY Adjusted EBITDA growth.
LegalZoom completed the acquisition of Formation Nation, Inc. on February 10, 2025. The company is strategically focused on optimizing its subscription business, reorienting its go-to-market strategy, and leveraging AI through partnerships with companies like Perplexity, OpenAI, and Design.com.

Feb 19, 2026, 9:30 PM

Presentation

LegalZoom.com Reports Strong Q4 and Full-Year 2025 Results, Issues 2026 Guidance, and Increases Share Repurchase Authorization

Earnings

Guidance Update

Share Buyback

LegalZoom.com reported full-year 2025 revenue of $756 million, an 11% increase year-over-year, with subscription revenue growing 13% and Adjusted EBITDA reaching $172 million.
For Q4 2025, total revenue was $190 million, up 18%, and subscription revenue increased 20% to $131 million, marking the fourth consecutive quarter of accelerating growth.
The company provided full-year 2026 revenue guidance of $805 million to $825 million (approximately 8% growth at the midpoint) and Adjusted EBITDA guidance of $100 million to $200 million (approximately 13% growth at the midpoint).
LegalZoom.com returned approximately $80 million to shareholders through share repurchases in 2025 and approved a $100 million increase to its existing share repurchase authorization.
The company is focusing on a human-in-the-loop strategy combining AI and expert services, which contributed to 10% year-over-year growth in subscription units to 1.94 million by the end of Q4 2025, and recently completed a 5% headcount reduction.

Feb 19, 2026, 9:30 PM

Transcript

LegalZoom.com Reports Strong Q4 and Full-Year 2025 Results, Provides Optimistic 2026 Guidance, and Increases Share Repurchase Authorization

Earnings

Guidance Update

Share Buyback

LegalZoom.com reported Q4 2025 revenue of $190 million, an 18% increase, and full-year 2025 revenue of $756 million, up 11%, with subscription revenue growing 13% for the full year.
For full-year 2025, Adjusted EBITDA reached $172 million (23% margin), an increase of 100 basis points year-over-year, and free cash flow was a record $148 million, up 48%.
The company issued full-year 2026 revenue guidance of $805 million to $825 million, representing approximately 8% year-over-year growth at the midpoint, and Adjusted EBITDA guidance of $100 million to $200 million, reflecting 13% growth at the midpoint.
Strategically, LegalZoom is focusing on a "human-in-the-loop" model combining AI with human expertise, prioritizing high-value subscription offerings like concierge services, and expanding its partner channel.
The board approved a $100 million increase to its share repurchase authorization, following $80 million in repurchases during 2025 which reduced the share count by approximately 10% since IPO.

Feb 19, 2026, 9:30 PM

Transcript

LegalZoom Reports Strong Q4 and Full Year 2025 Results, Issues 2026 Guidance, and Increases Share Repurchase Authorization

Earnings

Guidance Update

Share Buyback

LegalZoom reported Q4 2025 revenue of $190.3 million, an 18% year-over-year increase, and full-year 2025 revenue of $756.0 million, up 11% year-over-year.
For the full year 2025, Adjusted EBITDA was $172.2 million, with a 23% margin, and the company achieved record free cash flow of $147.9 million, up 48% year-over-year.
The company provided full-year 2026 revenue guidance in the range of $805 million to $825 million (8% year-over-year growth at midpoint) and Adjusted EBITDA guidance between $190 million and $200 million (13% year-over-year growth at midpoint).
LegalZoom announced a $100 million increase to its existing share repurchase authorization.

Feb 19, 2026, 9:04 PM

8-K

LegalZoom Outlines Strategy for Accelerated Growth and Market Expansion

Revenue Acceleration/Inflection

M&A

New Projects/Investments

LegalZoom (LZ) has successfully re-accelerated subscription growth and driven top-line growth, both organically and through M&A, by shifting its strategy to become a more subscription-focused, premium brand.
The acquisition of Formation Nation has been successfully integrated, allowing LZ to reposition its core brand as premium while leveraging Inc Authority for value-oriented formations, with cross-sell and upsell opportunities planned for 2026.
LZ is expanding its total addressable market by offering "Do It For Me" and Compliance Concierge services to existing businesses, targeting over 30 million U.S. businesses that require compliance.
The company aims for accelerated top-line growth, maintaining or growing margins, and accelerating EBITDA, driven by subscription growth, while balancing opportunistic M&A with share repurchases given its strong cash position and debt-free status.

Dec 11, 2025, 9:20 PM

Transcript

LegalZoom Discusses Strategic Reset, Growth Acceleration, and Market Expansion

Revenue Acceleration/Inflection

M&A

New Projects/Investments

LegalZoom has re-accelerated subscription growth and is driving top-line growth organically and through M&A, stabilizing the business after previous deceleration.
The company is strategically diversifying its go-to-market by focusing on premium services, expanding into "Do It For Me" offerings, and targeting the 30 million+ existing businesses in the U.S. for compliance services, representing a significant new addressable market.
The Formation Nation acquisition is considered a "huge success," helping to reorient LegalZoom as a premium brand and providing a white-glove service model that informed the new Compliance Concierge product.
LegalZoom is targeting double-digit top-line growth with expanding margins and EBITDA growth outpacing revenue, supported by strong free cash flow, a healthy M&A pipeline, and ongoing share repurchases.

Dec 11, 2025, 9:20 PM

Transcript

LegalZoom (LZ) Reports Record Q3 2025 Revenue and Raises Full-Year Outlook

Earnings

Guidance Update

New Projects/Investments

LegalZoom (LZ) achieved record Q3 2025 revenue of $190 million, a 13% year-over-year increase, with subscription revenue also growing 13%.
The company generated $47 million in free cash flow, an increase of 114% compared to Q3 2024, and ended the quarter with $237 million in cash and cash equivalents.
LZ raised its full-year 2025 revenue outlook to $748-$752 million, representing 10% growth at the midpoint, while maintaining its 23% adjusted EBITDA margin outlook.
Strategic initiatives include deepening its partnership with OpenAI through an enterprise deal, significant investments in AI integration across products and operations, and organizational changes to support this focus.

Nov 5, 2025, 9:30 PM

Transcript

LZ Announces Q3 2025 Results and Future Guidance

Earnings

Guidance Update

Product Launch

LegalZoom reported Q3 2025 revenue of $190 million, marking a 13% increase year-over-year, driven by 13% growth in subscription revenue to $125 million and 12% growth in transaction revenue to $65 million.
For Q3 2025, net income was $5 million, a 59% decrease year-over-year, while Non-GAAP Net Income increased 4% to $31 million and Adjusted EBITDA was $46 million, representing a 24% margin.
The company issued Q4 2025 guidance projecting total revenue between $182 million and $186 million and Adjusted EBITDA between $46 million and $48 million.
LegalZoom is enhancing its go-to-market strategy through strategic partnerships (e.g., Perplexity, OpenAI, Design.com) and leveraging AI to deliver expertise, improve operational efficiency, and expand its platform.

Nov 5, 2025, 9:30 PM

Presentation

Earnings Transcripts

Quarterly earnings call transcripts for LEGALZOOM.COM.

Q4 2025

Feb 19, 2026

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Q3 2025

Nov 5, 2025

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Q2 2025

Aug 7, 2025

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View All Transcripts

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LEGALZOOM.COM (LZ)

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Q3 2025

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Jeffrey Stibel

Charles Thomas

Nicole Miller

Noel Watson

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Elizabeth Hamren

John Murphy

Nathan Gooden

Neil Tolaney

Sivan Whiteley

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Patrick McIlwee

Andrew Boone

Kishan Patel

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Stephen Ju

Brent Thill

Elizabeth Porter

Josh Beck

Kathleen Keyser

Matthew Condon

Patrick [Analyst Name Inaudible]

Ronald Josey

Sang-Jin Byun

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