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Overview
LegalZoom provides online legal services for individuals, families, and small businesses across all 50 states. Clients use an online platform to create legal documents, form businesses, and access attorney consultations, with flat-rate pricing that makes costs predictable. It differentiates itself by offering a wide range of services on a single platform, transparent pricing, nationwide coverage, and an attorney network for consultations. Its goal is to make legal services affordable and accessible through technology and professional support, reducing the need to visit a lawyer’s office.
About LegalZoom
Industries
Consumer Software
Legal
Company Size
1,001-5,000
Company Stage
IPO
Headquarters
Glendale, California
Founded
2001
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Simplify's Take
What believers are saying
- Higher-touch subscriptions grew 20% in Q2 2026 and drove 65% of subscription revenue.
- Microsoft 365 Copilot opens new distribution inside daily small-business workflows on August 4, 2026.
- AI and automation lifted Q2 adjusted EBITDA margin to 22%, while repurchases continued.
What critics are saying
- Management cut revenue guidance and slashed 13% of staff after Google search traffic weakened.
- Google AI answers and paid-search inflation can sever LegalZoom's customer acquisition funnel entirely.
- Levi & Korsinsky launched an August 11, 2026 securities investigation; shareholder suits follow.
What makes LegalZoom unique
- LegalZoom embeds attorneys into software workflows, now inside Microsoft 365 Copilot, August 4, 2026.
- Its AI-enabled Virtual Mail processed 17.8 million pieces and 1.7 million checks.
- Nationwide online formation, compliance, estate, and trademark services standardize legal work across all states.
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Funding
Total Funding
$111M
Above
Industry Average
Funded Over
5 Rounds
Kleiner PerkinsBenefits
Health Insurance
Dental Insurance
Vision Insurance
401(k) Company Match
Paid Time Off
Health Savings Account/Flexible Spending Account
Short-Term/Long-Term Disability Insurance
Fertility Treatment Support
Mental Health Support
Wellness Program
Stock Price
Growth & Insights and Company News
6 month growth
↑ 0%1 year growth
↑ 0%2 year growth
↓ -2%LegalZoom.com shares dropped after the company reduced its full-year revenue guidance to approximately $795 million to $805 million from $810 million to $830 million in its 5 August second-quarter release. The company also announced a workforce reduction of roughly 13%. Third-quarter revenue was guided to approximately $194 million, below analyst estimates. Second-quarter revenue came in at approximately $205.3 million, essentially in line with expectations, whilst adjusted earnings per share of $0.16 beat the $0.15 consensus. JPMorgan and William Blair each downgraded the stock following the release. Law firm Levi & Korsinsky is now investigating potential securities law violations at LegalZoom, inviting shareholders who purchased shares and suffered losses to have their losses evaluated at no cost.
LegalZoom's higher-touch services drive 11% subscription growth. LegalZoom's human-supported subscription services grew about 20% as revenue per subscription increased, even while subscription units declined and traditional-search acquisition weakened. LegalZoom increased subscription revenue 11% year over year to $133.4 million during the second quarter. It was the company's fifth consecutive quarter of double-digit subscription revenue growth. That growth did not come from a larger subscription base. LegalZoom ended the quarter with approximately 1.9 million subscription units, down 3% from a year earlier. Average revenue per subscription unit increased 5% to $270. LegalZoom attributed the revenue growth to strength in its "human-in-the-loop" offerings and pricing initiatives. Revenue from these services grew approximately 20% and accounted for 65% of subscription revenue. The services combine technology with ongoing professional or operational support. They include registered agent services, virtual mail, legal plans and Business Manager, formerly called Do It For Me Concierge. Higher-Value services change the revenue mix. LegalZoom's subscription mix is shifting as lower-value subscriptions bundled with business formation packages decline. Its focus is moving toward services designed to support customers over time. The company attributed subscription revenue growth to pricing, stable retention and greater adoption of legal, compliance and expert services. LegalZoom expects average revenue per subscription unit to remain the primary driver of subscription growth this year. Legal plan usage increased more than 35% from a year earlier. LegalZoom said bundling legal subscriptions into some formation packages introduced more customers to ongoing legal guidance and increased attorney consultations. The model gives customers technology for routine tasks and access to people when the work becomes more complicated. LegalZoom is betting that these services can support higher prices and longer customer relationships. The company did not disclose retention rates by service, renewal performance for its newer higher-touch products or the number of customers using more than one subscription. Subscription revenue grows as units decline. LegalZoom said the unit decline was expected as lower-value subscriptions bundled into formation packages continued to fall. Management said retention remained stable but did not report a specific rate. Pricing and increased adoption of higher-value services helped offset the smaller subscription base. Subscription revenue also increased its importance to the business, accounting for 65% of LegalZoom's total quarterly revenue. That was up approximately three percentage points from a year earlier. LegalZoom reported two separate 65% figures. Human-in-the-loop services generated 65% of subscription revenue. All subscription products together generated 65% of total company revenue. AI changes how customers find LegalZoom. LegalZoom said Google's AI-generated answers reduced click-through from informational searches. At the same time, greater competition for paid inventory increased the cost of paid search. The company processed approximately 125,000 business formations during the quarter, down 5% from a year earlier. Transaction revenue declined 1% to $71.9 million. LegalZoom lowered its full-year revenue outlook from a range of $810 million to $830 million to a range of $795 million to $805 million. The revised forecast assumes continued pressure from traditional search through the end of the year. The company is expanding partnerships and pursuing traffic from AI platforms to reduce its dependence on Google. Orders from partners accounted for 11% of total orders, up from 4% a year earlier. Traffic from AI platforms increased more than 250% from the previous quarter and accounted for approximately 3% of LegalZoom's LLC formation traffic in June. The growth came from a small base and is not yet large enough to replace the traffic lost through traditional search. LegalZoom announces another workforce reduction. Total revenue increased 7% to $205.3 million. Adjusted EBITDA rose 18% to $45.9 million, while adjusted EBITDA margin increased from 20% to 22%. LegalZoom also announced a company-wide workforce reduction of approximately 13%. That follows a 5% reduction announced earlier this year. The latest reduction is expected to produce approximately $7 million in savings during 2026 and $14 million annually. LegalZoom expects to record approximately $6 million in restructuring and related charges, primarily during the third quarter. The company said AI and automation are improving the efficiency of customer care, service fulfillment and internal operations. Insider take. LegalZoom generated more subscription revenue from each unit while the number of units declined. Pricing and increased adoption of professional services helped subscription revenue rise 11%. Human-supported subscriptions grew even faster and now produce most of the company's subscription revenue. For operators, the results show how a recurring-revenue business can grow by changing what customers buy, even when the number of subscriptions falls. Unit growth and revenue growth tell different stories. Product and service mix can change the economics. LegalZoom's results also show AI affecting different parts of the business in different ways. It supports service delivery and internal efficiency, while Google's AI search changes are making customer acquisition through traditional search harder. Human expertise remains central to the products generating LegalZoom's strongest subscription growth. Key questions remain. LegalZoom has not disclosed retention or renewal rates for its higher-touch services, the number of customers moving from basic subscriptions into higher-value services or how acquisition costs compare across Google, partnerships and AI platforms. The unanswered question is whether higher-value services can keep producing double-digit subscription revenue growth as lower-value units decline and traditional search becomes less dependable. Related Member Resource LegalZoom's experience shows how quickly AI search can change customer acquisition. This playbook helps subscription teams assess their reliance on traditional search and build a broader acquisition strategy.
LegalZoom reported second quarter 2026 revenue of $205.3 million, up 7% year-over-year, marking its fifth consecutive quarter of double-digit subscription revenue growth. Subscription revenue reached $133.4 million, increasing 11% year-over-year, driven by human-assisted offerings and pricing initiatives. The company posted net income of $5.2 million and adjusted EBITDA of $45.9 million, with margins expanding approximately 260 and 220 basis points respectively. LegalZoom completed $45.5 million in share repurchases during the quarter. The company updated its full-year 2026 revenue guidance to $795–805 million and adjusted EBITDA to $190–195 million, citing an industry-wide shift in customer discovery away from traditional search engines. CEO Jeff Stibel noted the company has partnered with leading AI companies to capture growth in emerging discovery channels.
LegalZoom has launched an agent integrated with Microsoft 365 Copilot, bringing its legal services directly into the Microsoft productivity environment. Available through the Microsoft Marketplace, the integration allows users to access business formation services, compliance filings, and attorney consultations without leaving Copilot. The agent helps entrepreneurs compare business structures such as LLCs, corporations, and nonprofits, then guides them through formation and compliance processes. Users can review documents, explore legal options, and connect with attorneys in LegalZoom's network within their existing workflow. "Small business owners shouldn't have to leave their work environment to access legal information," said Liz Baker, vice president of business development at LegalZoom. The integration aims to make legal support more accessible by embedding it in tools that small businesses already use daily.
Wall Street Zen upgrades LegalZoom.com (NASDAQ:LZ) to buy. July 28, 2026 Key points. * Wall Street Zen upgraded LegalZoom.com to "buy" from "hold," though the broader analyst consensus remains "hold," with three buy, three hold, and three sell ratings and an average target price of $8.25. * LegalZoom reported quarterly revenue of $206.78 million, up 12.9% year over year and above estimates, but earnings per share of $0.12 narrowly missed the $0.13 consensus forecast. * CEO Jeffrey Stibel purchased 125,000 shares, while the CFO sold 15,000 shares under a pre-arranged plan to cover tax obligations. Institutional investors own approximately 81.99% of the company. * Five stocks to consider instead of LegalZoom.com. LegalZoom.com (NASDAQ:LZ - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Tuesday. Several other equities analysts have also weighed in on LZ. Weiss Ratings restated a "sell (d+)" rating on shares of LegalZoom.com in a research report on Thursday, July 2nd. UBS Group cut their target price on shares of LegalZoom.com from $8.00 to $7.00 and set a "neutral" rating for the company in a research note on Thursday, May 7th. JPMorgan Chase & Co. reduced their target price on shares of LegalZoom.com from $11.00 to $8.00 and set an "overweight" rating for the company in a report on Wednesday, June 24th. Finally, Citigroup decreased their price target on shares of LegalZoom.com from $8.50 to $7.50 and set a "neutral" rating on the stock in a research report on Friday, May 22nd. Three analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $8.25. LegalZoom.com stock performance. LZ opened at $7.56 on Tuesday. LegalZoom.com has a one year low of $5.22 and a one year high of $12.40. The stock's fifty day moving average is $6.51 and its 200-day moving average is $6.84. The company has a market capitalization of $1.30 billion, a PE ratio of 126.02, a P/E/G ratio of 1.27 and a beta of 1.31. LegalZoom.com (NASDAQ:LZ - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.13 by ($0.01). LegalZoom.com had a net margin of 1.46% and a return on equity of 11.53%. The firm had revenue of $206.78 million for the quarter, compared to the consensus estimate of $202.14 million. During the same period in the prior year, the business earned $0.13 EPS. The company's quarterly revenue was up 12.9% compared to the same quarter last year. On average, equities research analysts forecast that LegalZoom.com will post 0.32 EPS for the current fiscal year. Insider buying and selling. In other news, CEO Jeffrey M. Stibel bought 125,000 shares of the firm's stock in a transaction on Monday, May 11th. The stock was bought at an average cost of $6.15 per share, for a total transaction of $768,750.00. Following the completion of the acquisition, the chief executive officer directly owned 2,955,609 shares in the company, valued at $18,176,995.35. This represents a 4.42% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Noel Bertram Watson sold 15,000 shares of LegalZoom.com stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $6.45, for a total transaction of $96,750.00. Following the completion of the transaction, the chief financial officer directly owned 2,041,847 shares in the company, valued at approximately $13,169,913.15. This trade represents a 0.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 7.40% of the stock is currently owned by company insiders. Institutional investors weigh in on LegalZoom.com. Hedge funds have recently made changes to their positions in the company. Pacer Advisors Inc. grew its position in LegalZoom.com by 53.6% during the 1st quarter. Pacer Advisors Inc. now owns 926,425 shares of the company's stock worth $5,253,000 after purchasing an additional 323,201 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of LegalZoom.com by 187.4% during the first quarter. Bank of America Corp DE now owns 2,509,891 shares of the company's stock valued at $14,231,000 after buying an additional 1,636,487 shares in the last quarter. Arkadios Wealth Advisors raised its position in LegalZoom.com by 5.6% during the first quarter. Arkadios Wealth Advisors now owns 74,819 shares of the company's stock valued at $424,000 after buying an additional 3,953 shares during the period. Amundi raised its position in LegalZoom.com by 83.2% during the first quarter. Amundi now owns 101,925 shares of the company's stock valued at $578,000 after buying an additional 46,285 shares during the period. Finally, Royal Bank of Canada lifted its stake in LegalZoom.com by 1,656.5% in the 1st quarter. Royal Bank of Canada now owns 188,505 shares of the company's stock worth $1,069,000 after acquiring an additional 177,773 shares in the last quarter. Hedge funds and other institutional investors own 81.99% of the company's stock. LegalZoom.com company profile. LegalZoom.com, Inc NASDAQ: LZ operates as a leading online legal technology company that provides a broad range of legal and business services to individuals, families and small businesses. Through its digital platform, the company offers customized legal documents and filing services, including business formation (LLCs, corporations and nonprofits), estate planning (wills and trusts), intellectual property protection (trademarks and copyrights), and ongoing compliance support. LegalZoom also connects customers with independent attorneys for consultations on matters such as family law, immigration and real estate. Founded in 2001 by entrepreneurs Brian Lee, Brian P. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider LegalZoom.com, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and LegalZoom.com wasn't on the list. While LegalZoom.com currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.
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About LegalZoom
Industries
Consumer Software
Legal
Company Size
1,001-5,000
Company Stage
IPO
Headquarters
Glendale, California
Founded
2001
LegalZoom is Hiring for 17 Jobs on Simplify!
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