LegalZoom.com, Inc. (LZ) AI Stock Analysis

LegalZoom.com, Inc. operates an online platform tailored for legal and compliance solutions across the United States. Founded in 1999 and based in Glendale, California, the company serves small businesses and individual consumers. Its offerings include business formations, estate planning document preparation, and intellectual property protection. The platform helps clients complete forms and agreements required for legal compliance and provides access to independent attorney advice. LegalZoom also connects users with experts for tax preparation and bookkeeping services, creating a unified ecosystem for legal, compliance, and financial needs.

Annual revenue expanded from $575.1M in FY2021 to $756.0M in FY2025, delivering a 5-year compound annual growth rate of 9.9%. Operating margins shifted from -14.8% in FY2021 to a positive 1.9% in FY2025, peaking at 5.2% in FY2024. Net income rebounded from -$108.7M in FY2021 to $30.0M in FY2024 before settling at $15.4M in FY2025. Over the trailing twelve months ended June 30, 2026, revenue stood at $792.5M with an operating margin of 5.4% and net profit margin of 2.1%. For the latest quarter ended June 30, 2026, quarterly revenue rose 6.6% year-over-year, while quarterly earnings declined 78.2%.

As of June 30, 2026, LegalZoom held $167.2M in cash and short-term investments against total debt of $15.1M, yielding a net cash position of $152.1M. Shareholders' equity was $127.2M with a debt-to-equity ratio of 0.12 and a current ratio of 0.67. In FY2025, the company generated operating cash flow of $178.2M and allocated $30.3M to capital expenditures, producing $147.9M in free cash flow. It deployed capital toward $80.5M in share buybacks during FY2025.

At a market cap of $1.04B and enterprise value of $841.2M, LegalZoom trades at a trailing P/E of 67.3x, compared to the median of 24.8x for US-listed Industrials peers. Its forward P/E of 10.4x sits below the peer median of 17.2x. The company's EV/EBITDA of 9.5x and price-to-sales of 1.3x both trade below the peer medians of 13.9x and 1.5x, respectively. Over the past year, LegalZoom's stock fell 38.7%, underperforming the S&P 500 gain of 16.8%. Over a 5-year span, the stock fell 75.8% while the S&P 500 gained 83.0%.

Wall Street analyst sentiment includes 2 Strong Buy ratings, 6 Hold ratings, and no Sell ratings. The mean price target is $7.60, representing a 25.4% upside over the October 16, 2026 closing price of $6.06. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $0.71, an increase of 14.7%, on revenue of $800.1M. The company recorded 0 EPS beats over the last 4 quarters. The next earnings date is November 4, 2026.

This page is an AI-written research summary of LegalZoom.com, Inc. (LZ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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