L

LegalZoom.com Inc
NASDAQ:LZ

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LegalZoom.com Inc
NASDAQ:LZ
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Price: 9.38 USD -0.74% Market Closed
Market Cap: 1.7B USD

LegalZoom.com Inc
Investor Relations

Founded in 2001, LegalZoom.com Inc. emerged as a transformative force in the legal services industry by democratizing access to legal expertise, an area traditionally dominated by high-cost law firms. From its humble beginnings, LegalZoom leveraged the internet to disrupt conventional practices, offering individuals and small businesses a platform to secure legal documents like wills, business formations, and trademarks. Its user-friendly interface and step-by-step guidance make it feasible for non-experts to navigate complex legal requirements without excessive costs. LegalZoom tapped into the growing demand for affordable legal solutions by employing a technology-driven business model, which not only simplified the process but also broadened its appeal and accessibility to a wider audience.

At the core of its revenue model, LegalZoom operates on a dual service structure that offers DIY legal document kits and personalized legal advice from an extensive network of partner attorneys. Customers can choose from subscriptions providing ongoing legal counsel or one-time document preparation services, allowing flexibility according to their needs. This hybrid model mixes technology with personalized service, creating a scalable business that earns from both one-time transactions and recurring revenue streams. By maintaining a robust online presence and continuously expanding its portfolio of services to include tax advices and compliance solutions, LegalZoom reinforces its position as a pioneer in the legal-tech space, sustaining growth through strategic partnerships and constant innovation.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 5, 2025
AI Summary
Q3 2025

Record Revenue: LegalZoom delivered record Q3 revenue of $190 million, up 13% year-over-year and well above expectations.

Subscription Momentum: Subscription revenue also grew 13% YoY, with compliance offerings leading growth and improved first-year retention rates.

Profitability: Adjusted EBITDA margin was 24%, and free cash flow hit $47 million, up 114% from last year.

Raised Guidance: Full-year 2025 revenue growth guidance doubled to 10%, with revenue expected between $748 million and $752 million; adjusted EBITDA guidance maintained at a 23% margin.

AI & Product Expansion: Deepening integration with OpenAI and launching multiple AI-driven tools and concierge products to expand into serving existing SMBs.

Partnership Success: Partner channel revenue grew about 25% YoY, boosted by new embedded flows and strategic relationships like 1-800 Accountant.

Brand & Marketing: Recent brand campaign increased both awareness and return on ad spend, supporting growth in both new and existing SMB markets.

Organizational Changes: Leadership changes were made to accelerate AI integration and product delivery, including the appointment of a new Chief Business and Customer Officer and SVP of Product.

Key Financials
Revenue
$190 million
Subscription Revenue
Not specified
Subscription Units
1.96 million
ARPU
$256
Transaction Revenue
$65 million
Transaction Units
259,000
Business Formations
126,000
Average Order Value
$251
Deferred Revenue
Decreased by $0.1 million from Q2
Gross Margin
71%
Adjusted EBITDA
$46 million (Q3); $168–$170 million (2025E); $46–$48 million (Q4E)
Adjusted EBITDA Margin
24% (Q3); 23% (2025E); 26% (Q4E)
Free Cash Flow
$47 million
Cash and Cash Equivalents
$237 million
Share Repurchases
1.8 million shares at $9.91 per share; $17.6 million total in Q3
Formation Nation Transaction Revenue Contribution
$9 million
Formation Nation Subscription Revenue Contribution
Over $5.5 million
Partner Channel Revenue Growth
Approximately 25% year-over-year increase
Earnings Call Recording
Other Earnings Calls

Management

Mr. Jeffrey M. Stibel
CEO & Chairman
No Bio Available
Madeleine Crane
Head of Investor Relations
No Bio Available
Ms. Kathy Tsitovich
Chief Corporate Development & Partnerships Officer
No Bio Available
Daniel Lysaught
Chief Marketing Officer
No Bio Available
Ms. Sheily Chhabria Panchal
Chief People Officer
No Bio Available

Contacts

Address
CALIFORNIA
Glendale
101 N Brand Blvd Ste 1100
Contacts
+13239628600.0
www.legalzoom.com