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LegalZoom (LZ)
NASDAQ:LZ
Earnings Data
Report Date
May 12, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.13Last Year’s EPS
0.13Same Quarter Last Year
Moderate Buy
Based on 8 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicated solid, broad-based progress: accelerating subscription growth, stronger revenue and margin expansion for FY2025, record full-year free cash flow, successful integration of Formation Nation, and a clear strategic shift toward higher-value human-in-the-loop services and partner distribution. Near-term headwinds include higher sales and marketing spend (front-loaded into Q1), a Q4 free cash flow dip, slight transactional unit pressure from BOIR elimination, and a modest ARPU uplift so far. Management provided constructive 2026 guidance emphasizing continued margin improvement and durable subscription-led growth while investing in brand, partnerships and concierge offerings.Company Guidance
Full-Year Revenue and Growth
Total revenue for FY2025 grew 11% to $756 million (inclusive of Formation Nation), with organic revenue growth of 3% year-over-year.
Subscription Momentum
Full-year subscription revenue increased 13%; Q4 subscription revenue was $131 million, up 20% year-over-year and marking the fourth consecutive quarter of accelerating subscription growth. Subscription units ended the quarter at ~1.94 million, up 10% year-over-year.
Profitability and Margin Expansion
Full-year adjusted EBITDA was $172 million, representing a 23% margin (approximately +100 basis points year-over-year). Q4 adjusted EBITDA was $50 million with a 26% margin (non-GAAP).
Record Free Cash Flow and Strong Cash Position
Full-year free cash flow was a record $148 million, up 48% year-over-year. Q4 cash and cash equivalents were $203 million.
Q4 Revenue and Transactions Performance
Q4 total revenue was $190 million, up 18% year-over-year. Transaction revenue increased 12% to $59 million; the company processed 112,000 business formations in the quarter, up 17% year-over-year.
Higher Order Value and ARPU Progress
Average order value in Q4 was $248, up 13% year-over-year. Q4 ARPU was $266, up 1% year-over-year, with management highlighting ARPU expansion as a key 2026 driver as mix shifts toward higher-value human-in-the-loop subscriptions.
Strategic Acquisitions and Partnerships
Formation Nation contributed ~$9.8 million of transaction revenue and ~$5.7 million of subscription revenue in Q4. The company added 100+ partners including Perplexity, OpenAI (ChatGPT), VistaPrint, SoFi and American Express to expand distribution and embedded integrations.
Capital Return and Balance Sheet Actions
Returned ~$80 million to shareholders via share repurchases during FY2025 (8.3 million shares at an average $9.71), reduced share count by ~10% since IPO, and Board approved a $100 million increase to the share repurchase authorization. $100 million revolving credit facility remains undrawn.
2026 Outlook: Continued Growth and Profitability
Full-year 2026 guidance: revenue $805 million–$825 million (approximately 8% growth at midpoint) and adjusted EBITDA $190 million–$200 million (about 13% growth at midpoint). Q1 2026 revenue guide $200M–$203M (~10% growth at midpoint).
LZ Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
LZ Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 19, 2026 | $7.05 | $6.56 | -6.95% |
Nov 05, 2025 | $10.18 | $10.93 | +7.42% |
Aug 07, 2025 | $8.37 | $10.98 | +31.18% |
May 07, 2025 | $7.25 | $8.96 | +23.59% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does LegalZoom (LZ) report earnings?
LegalZoom (LZ) is schdueled to report earning on May 12, 2026, After Close (Confirmed).
What is LegalZoom (LZ) earnings time?
LegalZoom (LZ) earnings time is at May 12, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is LZ EPS forecast?
LZ EPS forecast for the fiscal quarter 2026 (Q1) is 0.13.
