LegalZoom.com (NASDAQ:LZ) Announces Quarterly Earnings Results

LegalZoom.com (NASDAQ:LZ) released its quarterly earnings data on Wednesday. The company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.01), FiscalAI reports. The business had revenue of $206.78 million during the quarter, compared to analysts’ expectations of $202.14 million. LegalZoom.com had a net margin of 2.04% and a return on equity of 6.35%. The firm’s revenue was up 12.9% on a year-over-year basis. During the same period last year, the company earned $0.13 earnings per share.

Here are the key takeaways from LegalZoom.com’s conference call:

• LegalZoom beat expectations in Q1 with $207M revenue (+13% YoY) and $36M adjusted EBITDA (18% margin)$810M–$830M and adjusted EBITDA to $190M–$200M.
• The business is shifting to higher-value subscriptions — subscription revenue was $130M (+12% YoY) (fourth consecutive quarter of double-digit subscription growth), ARPU rose 4%, and subscription units remained ~1.92M reflecting mix upgrade.
• Expert-led offerings are accelerating (revenue grew >2x the company rate), with the Concierge Suite delivering over three times average ARPU and demand consistently exceeding expectations as a strategic entry to higher‑value customers.
• Partnerships and AI channels are scaling acquisition — partner-driven orders rose to 10% of total (from 4%), with new relationships including GoDaddy (exclusive), LinkedIn, and Chase, plus early integrations with ChatGPT and Claude to capture intent.
• AI is materially improving operations and expected margins — LegalZoom cites a 55% reduction in trademark classification time, 30% faster patent drafting, AI resolving ~40% of chat interactions end‑to‑end, and AI coaching cutting missed sales ~33%, which management says will drive back‑half margin expansion.

LegalZoom.com Price Performance

LZ stock traded down $0.43 during midday trading on Wednesday, hitting $6.28. 3,300,382 shares of the stock traded hands, compared to its average volume of 2,407,154. LegalZoom.com has a 1-year low of $5.28 and a 1-year high of $12.40. The stock’s fifty day simple moving average is $6.26 and its 200-day simple moving average is $8.25. The firm has a market cap of $1.09 billion, a P/E ratio of 78.51, a PEG ratio of 1.45 and a beta of 1.33.

Insider Transactions at LegalZoom.com

In other news, insider Nicole Miller sold 23,325 shares of the stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $6.63, for a total transaction of $154,644.75. Following the sale, the insider directly owned 813,033 shares of the company’s stock, valued at $5,390,408.79. This represents a 2.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Noel Bertram Watson sold 15,000 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $6.96, for a total value of $104,400.00. Following the sale, the chief financial officer owned 1,480,860 shares in the company, valued at $10,306,785.60. This trade represents a 1.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 5.90% of the company’s stock.

Institutional Trading of LegalZoom.com

Several institutional investors have recently bought and sold shares of LZ. Brighton Jones LLC acquired a new position in shares of LegalZoom.com during the 4th quarter worth approximately $185,000. Polymer Capital Management US LLC acquired a new stake in LegalZoom.com in the 4th quarter valued at $134,000. Sender Co & Partners Inc. purchased a new stake in LegalZoom.com in the 3rd quarter worth $134,000. Thrivent Financial for Lutherans purchased a new stake in LegalZoom.com in the 2nd quarter worth $133,000. Finally, CIBC Bancorp USA Inc. acquired a new position in LegalZoom.com during the third quarter worth $131,000. 81.99% of the stock is owned by institutional investors and hedge funds.

LegalZoom.com announced that its Board of Directors has initiated a share buyback program on Thursday, February 19th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 8.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

LZ has been the subject of a number of research reports. Weiss Ratings downgraded shares of LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, April 6th. Zacks Research raised LegalZoom.com from a “strong sell” rating to a “hold” rating in a research report on Monday, February 23rd. Barclays reiterated an “underweight” rating and set a $6.00 price objective (down from $9.00) on shares of LegalZoom.com in a research note on Wednesday, March 4th. JPMorgan Chase & Co. lowered their target price on LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 18th. Finally, UBS Group dropped their target price on LegalZoom.com from $12.00 to $8.00 and set a “neutral” rating on the stock in a report on Friday, February 20th. Three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, LegalZoom.com presently has an average rating of “Hold” and an average price target of $9.42.

About LegalZoom.com

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.