LegalZoom.com (NASDAQ:LZ) Issues Earnings Results
by Jessica Moore · The Cerbat GemLegalZoom.com (NASDAQ:LZ – Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.12 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.01), FiscalAI reports. The business had revenue of $206.78 million during the quarter, compared to analyst estimates of $202.14 million. LegalZoom.com had a return on equity of 10.88% and a net margin of 1.46%.The firm’s quarterly revenue was up 12.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.13 earnings per share.
Here are the key takeaways from LegalZoom.com’s conference call:
- LegalZoom beat expectations in Q1 with $207M revenue (+13% YoY) and $36M adjusted EBITDA (18% margin)), and raised its full-year revenue guide to $810M–$830M and adjusted EBITDA to $190M–$200M.
- The business is shifting to higher-value subscriptions — subscription revenue was $130M (+12% YoY) (fourth consecutive quarter of double-digit subscription growth), ARPU rose 4%, and subscription units remained ~1.92M reflecting mix upgrade.
- Expert-led offerings are accelerating (revenue grew >2x the company rate), with the Concierge Suite delivering over three times average ARPU and demand consistently exceeding expectations as a strategic entry to higher‑value customers.
- Partnerships and AI channels are scaling acquisition — partner-driven orders rose to 10% of total (from 4%), with new relationships including GoDaddy (exclusive), LinkedIn, and Chase, plus early integrations with ChatGPT and Claude to capture intent.
- AI is materially improving operations and expected margins — LegalZoom cites a 55% reduction in trademark classification time, 30% faster patent drafting, AI resolving ~40% of chat interactions end‑to‑end, and AI coaching cutting missed sales ~33%, which management says will drive back‑half margin expansion.
LegalZoom.com Stock Performance
Shares of NASDAQ:LZ traded down $0.02 on Friday, hitting $6.06. The company’s stock had a trading volume of 1,354,485 shares, compared to its average volume of 3,194,846. LegalZoom.com has a 12 month low of $5.28 and a 12 month high of $12.40. The company has a market capitalization of $1.05 billion, a price-to-earnings ratio of 100.80, a price-to-earnings-growth ratio of 1.35 and a beta of 1.33. The stock’s 50-day moving average is $6.25 and its two-hundred day moving average is $8.22.
Insider Buying and Selling at LegalZoom.com
In other news, insider Nicole Miller sold 23,325 shares of the company’s stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $6.63, for a total value of $154,644.75. Following the completion of the sale, the insider owned 813,033 shares in the company, valued at $5,390,408.79. This represents a 2.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Noel Bertram Watson sold 15,000 shares of LegalZoom.com stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $6.96, for a total value of $104,400.00. Following the transaction, the chief financial officer directly owned 1,480,860 shares in the company, valued at approximately $10,306,785.60. The trade was a 1.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 5.90% of the company’s stock.
Institutional Investors Weigh In On LegalZoom.com
A number of institutional investors and hedge funds have recently bought and sold shares of LZ. Arrowstreet Capital Limited Partnership lifted its holdings in shares of LegalZoom.com by 20.8% during the third quarter. Arrowstreet Capital Limited Partnership now owns 4,408,170 shares of the company’s stock valued at $45,757,000 after purchasing an additional 758,367 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of LegalZoom.com by 165.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 3,730,487 shares of the company’s stock valued at $37,044,000 after purchasing an additional 2,324,481 shares during the period. Boston Partners boosted its position in shares of LegalZoom.com by 81.0% in the 4th quarter. Boston Partners now owns 3,623,111 shares of the company’s stock valued at $36,054,000 after purchasing an additional 1,621,125 shares during the period. Franklin Resources Inc. boosted its position in shares of LegalZoom.com by 2.8% in the 3rd quarter. Franklin Resources Inc. now owns 3,327,296 shares of the company’s stock valued at $34,537,000 after purchasing an additional 90,599 shares during the period. Finally, Dimensional Fund Advisors LP boosted its position in shares of LegalZoom.com by 12.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,021,764 shares of the company’s stock valued at $30,007,000 after purchasing an additional 340,780 shares during the period. 81.99% of the stock is owned by institutional investors and hedge funds.
Analyst Ratings Changes
Several research firms have issued reports on LZ. UBS Group dropped their price objective on LegalZoom.com from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday. Weiss Ratings downgraded LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, April 6th. JPMorgan Chase & Co. dropped their price objective on LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating on the stock in a report on Wednesday, February 18th. Barclays restated an “underweight” rating and set a $6.00 price objective (down from $9.00) on shares of LegalZoom.com in a report on Wednesday, March 4th. Finally, Zacks Research upgraded LegalZoom.com from a “strong sell” rating to a “hold” rating in a report on Monday, February 23rd. Three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $9.25.
LegalZoom.com declared that its board has initiated a stock buyback program on Thursday, February 19th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the company to buy up to 8.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board believes its stock is undervalued.
LegalZoom.com Company Profile
LegalZoom.com, Inc (NASDAQ: LZ) operates as a leading online legal technology company that provides a broad range of legal and business services to individuals, families and small businesses. Through its digital platform, the company offers customized legal documents and filing services, including business formation (LLCs, corporations and nonprofits), estate planning (wills and trusts), intellectual property protection (trademarks and copyrights), and ongoing compliance support. LegalZoom also connects customers with independent attorneys for consultations on matters such as family law, immigration and real estate.
Founded in 2001 by entrepreneurs Brian Lee, Brian P.