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LegalZoom.com, Inc. (LZ) is a leading online platform in the United States that specializes in simplifying legal, tax, accounting, and compliance processes for small businesses and their families. The company provides a range of services, including business formation, ongoing legal and compliance support, and tax solutions, leveraging technology to enhance customer experience. LegalZoom's offerings are designed to empower entrepreneurs and small businesses by making complex processes more accessible and efficient.
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Subscription-Based Services - Provides ongoing legal, tax, and compliance support to small businesses, including tools like registered agent services, business licenses, and beneficial ownership information reports.
- Sub-products:
- LZ Books - An online accounting tool tailored for small businesses.
- eSignature Services - Enables businesses to manage document signing digitally.
- Sub-products:
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Transaction-Based Services - Offers business formation services, assisting entrepreneurs in forming businesses across all 50 U.S. states and over 3,000 counties by filing necessary legal documents.
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Tax and Accounting Solutions - Includes tax advisory and preparation services, along with accounting tools to support small business financial needs.
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Technology-Driven Offerings - Features innovative tools like Doc Assist, a generative AI-powered document summarization tool, and a redesigned customer portal, myLZ, to improve user experience.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Jeff Stibel ExecutiveBoard | CEO and Chair of the Board | Partner at Bryant Stibel & Company | Jeff Stibel became CEO of LegalZoom in July 2024 and has been Chair of the Board since October 2018. He has extensive experience scaling subscription-based businesses and previously served as Vice Chairman of Dun & Bradstreet. | View Report → |
Nicole Miller Executive | Chief Legal Officer & Secretary | Board Member at Defy Ventures, Inc. | Nicole Miller has been with LegalZoom since June 2020, serving as CLO since March 2024. She has a background in corporate law and previously worked at The Honest Company and Cooley LLP. | |
Noel Watson Executive | CFO and COO | Board Member at Affirm Holdings, Inc. | Noel Watson joined LegalZoom as CFO in November 2020 and was appointed COO in August 2024. He has driven financial growth and operational efficiencies, including a 74% YoY increase in Adjusted EBITDA margin in 2023. | |
Elizabeth Hamren Board | Director | CEO of Ring, Inc.; Board Member at Hasbro, Inc. | Elizabeth Hamren joined LegalZoom's Board in 2021. She is the CEO of Ring, Inc. and has held leadership roles at Discord, Microsoft, and Meta Platforms, focusing on technology and digital products. | |
John Murphy Board | Director | Board Member at Pure Storage, Inc. and Roper Technologies, Inc. | John Murphy joined LegalZoom's Board in 2021. He is a financial expert with prior CFO roles at Adobe and DIRECTV, and he chairs the Audit Committee at Pure Storage. | |
Nathan Gooden Board | Director | CFO at Squarespace, Inc. | Nathan Gooden joined LegalZoom's Board in November 2024. He is the CFO of Squarespace and has extensive experience in subscription-based businesses, including prior roles at Amazon Alexa and Solavei. |
- Given the competitive landscape where some companies offer free or lower-priced formation services, how do you anticipate your recent price increases on key products like registered agent services impacting your market share and customer acquisition efforts?
- With your strategic shift from focusing on market share to quality share by targeting higher-intent customers, how will this affect your overall growth and revenue projections, especially in the face of declining business formations and increased competition?
- Considering the macro environment showing consecutive declines in business formations, what specific measures are you taking to mitigate the impact on transaction revenues, and how confident are you in your ability to achieve a rebound in 2025?
- Can you elaborate on your AI strategy, particularly how you plan to leverage your extensive legal documents and formation data to drive efficiencies or generate new revenue streams, and what is the expected timeline for realizing these benefits?
- As you reinvest in the consumer channel after years of focusing on SMBs, how do you plan to balance the necessary investment with your current goals of profitability and margin expansion, and what are your expectations for the consumer segment's contribution to future revenues?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Formation Nation | 2025 | Deal value: LegalZoom paid $49.3 million cash upfront with up to an additional $15.4 million holdback and issued about 2.2 million restricted shares, subject to a two-year lock-up. Strategic rationale: The acquisition enhances LegalZoom's go-to-market strategy by integrating Formation Nation’s premium and low-cost brand portfolio along with its customer service expertise from 140 small business experts. |
Revvsales, Inc. (Revv) | 2022 | Deal value: Completed for $8.5 million paid in cash with customary purchase price adjustments. Strategic rationale: The acquisition bolsters LegalZoom’s legal template offerings by adding a self-service document automation and e-signature platform, modernizing product experiences and establishing a talent foothold in Bangalore to drive an integrated SMB ecosystem. |
United Agent Services Corp (UA Services) | 2022 | Deal value: Acquired for a total of $3.5 million, structured with $2.6 million cash at acquisition, up to $1.0 million contingent earnout, plus an additional $0.4 million linked to service conditions. Strategic rationale: The acquisition is aimed at building a durable registered agency platform, with goodwill of $3.3 million driven by its workforce and synergies, and it is treated as a business combination for accounting purposes. |
Recent press releases and 8-K filings for LZ.
- LegalZoom reported $183 million in Q1 2025 revenue, up 5% YoY, driven by strong subscription performance with $116 million in subscription revenue (up 8% YoY) .
- The quarter delivered $37.0 million in Adjusted EBITDA at a 20% margin and $5.1 million in net income (3% margin) .
- Formation Nation integration contributed approximately $8.6 million in revenue, advancing LegalZoom’s shift toward higher-value, subscription-based services .
- Guidance remains robust with full-year revenue growth at 5%, an expected adjusted EBITDA margin of 23% (around $165 million), and a Q2 revenue forecast between $181 million and $185 million .
- The company bolstered financial flexibility with an expanded share repurchase program, including a $100 million increase in share repurchase authorization .
- LegalZoom ended the quarter with $210 million in cash and cash equivalents, underpinning a strong balance sheet .