10-K · February 23, 2026
LegalZoom (LZ) is explicitly shifting toward a subscription-first model and higher-value DIFM offerings while integrating AI across its platform. The 10-K notes that for the year ended December 31, 2025 approximately…
Earnings analysis · 10-Q
LZ earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
LegalZoom reported a strong Q1 2026 performance with revenue reaching $206.8 million, a 13% increase from $183.1 million year-over-year. Despite an EPS of $0.12, exceeding estimates, and robust growth in subscription…
Read full summary
LegalZoom reported a strong Q1 2026 performance with revenue reaching $206.8 million, a 13% increase from $183.1 million year-over-year. Despite an EPS of $0.12, exceeding estimates, and robust growth in subscription and transaction revenue, management highlighted pressure in operating expenses and a drop in net income, indicating the need for focus on cost management and operational efficiency.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.12
- Segment
- Transaction revenue: $76.6 million; Subscription revenue: $130.2 million
What stood out
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Revenue Growth
Q1 2026 revenue increased by 13% year-over-year to $206.8 million from $183.1 million.
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EPS Surprises
EPS for Q1 2026 was $0.12, surpassing estimates of $0.11, reflecting positive market sentiment.
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Strong Subscription Growth
Subscription revenue increased by 12%, contributing significantly to total revenue.
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FCF Consistency
Free cash flow remains resilient at $41.0 million, supporting liquidity.
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Net Income Rise
Despite pressures, net income reached $1.1 million in Q1 2026, though this represents a decline from $5.1 million in Q1 2025.
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Effective Cost Management Focus
Management acknowledged rising costs, particularly in sales and marketing, emphasizing ongoing efficiency measures.
What to watch
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Increased Operating Expenses
Operating expenses rose 20% year-over-year, reaching $129.5 million, putting pressure on margins.
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Decline in Net Income
Net income decreased significantly, down from $5.1 million in Q1 2025 to $1.1 million in Q1 2026.
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Ongoing Market Uncertainty
Customer acquisition could be adversely impacted by prevailing economic conditions, including inflation and regulatory changes.
Management's outlook
Management raised full-year revenue guidance to between $810 million and $830 million, reflecting ongoing growth expectations.
Earlier filings 4
10-Q · August 7, 2025
LegalZoom reported Q2 revenue of $192.509 million, up $15.147 million (+8.5%) year-over-year, with gross margin of 65.0% (vs 64.1% prior year). Operating loss widened to $(3.100) million (−1.6% margin) versus operating…
10-Q · May 8, 2025
LegalZoom reported Q1 revenue of $183,110 (in thousands), up $8,896 or 5.1% versus $174,214 in Q1 2024. Gross profit rose to $116,550 (63.7% margin) and operating income increased to $8,966 (4.9% margin); diluted EPS…
10-K · February 26, 2025
LegalZoom positions itself as a leading online legal platform focused on converting customers acquired at business formation into higher-value, recurring subscribers; as of December 31, 2024 it had formed over 4.6…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.