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LegalZoom ( (LZ) ) has provided an announcement.
On February 19, 2026, LegalZoom reported that full-year 2025 revenue rose 11% to $756.0 million, driven by 13% growth in subscription revenue to $492.5 million and contributions from its Formation Nation acquisition. The company posted 2025 net income of $15.4 million, Adjusted EBITDA of $172.2 million with a 23% margin, and record operating and free cash flow, ending the year with $203.1 million in cash and no debt, while highlighting AI-enabled services and a shift toward higher-value subscriptions.
For the fourth quarter of 2025, revenue increased 18% year-over-year to $190.3 million with 20% growth in subscription revenue, though net income for the period declined to $6.1 million as margins compressed. Alongside introducing 2026 guidance that calls for mid‑single‑digit to high‑single‑digit revenue growth and continued margin expansion, LegalZoom’s board approved a $100 million increase to the company’s share repurchase authorization on February 19, 2026, underscoring management’s confidence in its cash generation and long-term growth strategy.
The most recent analyst rating on (LZ) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on LegalZoom stock, see the LZ Stock Forecast page.
Spark’s Take on LZ Stock
According to Spark, TipRanks’ AI Analyst, LZ is a Neutral.
The score is supported by strong financial stability and cash generation, reinforced by an upbeat earnings call with raised guidance. It is held back by weak price/indicator trends and a high P/E valuation without a dividend yield.
To see Spark’s full report on LZ stock, click here.
More about LegalZoom
LegalZoom.com, Inc., based in Mountain View, California, operates as a leading online platform for legal services, focusing on automation combined with human-in-the-loop expertise. The company targets both new entrepreneurs and established businesses with subscription-based and transaction legal offerings, aiming to serve customers across their full business lifecycle.
Average Trading Volume: 2,820,960
Technical Sentiment Signal: Strong Sell
Current Market Cap: $1.22B
Learn more about LZ stock on TipRanks’ Stock Analysis page.