LegalZoom.com

LZ

Market cap $1.23B

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #ai--LegalZoom.com, Inc. (Nasdaq: LZ), America's #1 online legal services company, today announced LegalZoom's attorney-services integration directly into the Claude ecosystem, powered by Anthropic, with the launch of LegalZoom's Connector. While the Claude platform fast-tracks the initial review of a legal document with AI, it still leaves a small business or consumer face-to-face with the realities of a complex liability or compliance issue they need to navi.

The online legal assistance specialist posted a mixed fourth quarter. It easily topped the consensus analyst estimate for revenue, but whiffed on profitability.

LegalZoom has suffered a 35%+ share price collapse amid AI-driven fears, yet continues to post double-digit subscription growth. LZ's diversified revenue streams and $51 billion serviceable addressable market position it to weather AI disruption, especially in complex legal services. Guidance for FY26 calls for 8% y/y revenue growth and a 23.9% adjusted EBITDA margin, with no signs of AI-induced revenue erosion.

LegalZoom.com, Inc. (LZ) Q4 2025 Earnings Call Transcript

The headline numbers for LegalZoom (LZ) give insight into how the company performed in the quarter ended December 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

LegalZoom (LZ) came out with quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.19 per share a year ago.

Q4 2025 revenue and Adjusted EBITDA exceeds outlook Introduces strong 2026 guidance Announces $100 million increase to share repurchase authorization Full-year revenue of $756.0 million up 11% year-over-year, reflecting emphasis on subscription initiatives and contributions from the Formation Nation acquisition     Full-year subscription revenue of $492.5 million up 13% year-over-year, driven by  focus on higher-value customers and differentiated human-in-the-loop service offerings  Full-year net income of $15.4 million and net income margin of 2% Full-year Adjusted EBITDA of $172.2 million and Adjusted EBITDA margin of 23% Record full-year operating cash flow of $178.2 million, up 31% year-over-year, and record free cash flow of $147.9 million, up 48% year-over-year   $203.1 million of cash and cash equivalents and no debt outstanding as of December 31, 2025 MOUNTAIN VIEW, Calif., Feb. 19, 2026 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), a leading online platform for legal services, today announced results for its fourth quarter and year ended December 31, 2025.

Looking beyond Wall Street's top-and-bottom-line estimate forecasts for LegalZoom (LZ), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended December 2025.

MOUNTAIN VIEW, Calif., Feb. 17, 2026 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), a leading online platform for legal services, today announced that Noel Watson, Chief Operating Officer and Chief Financial Officer will participate in the following upcoming investor conferences: The Morgan Stanley Technology, Media & Telecom Conference in San Francisco, California on Monday, March 2, 2026.

New AI tools from Anthropic sparked a broad sell-off in software and data stocks. Executives say fears are overblown, but analysts warn of margin and pricing pressure.