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Legalzoom.Com, Inc. Financials

LZ
Trailing 12 months to June 30, 2026
Revenue $792.5M +12.3% YoY
Net Income $16.9M -41.4% YoY
EPS (Diluted) $0.09 -43.8% YoY
Free Cash Flow $149.7M +14.4% YoY
Source SEC Filings (10-K/10-Q) Latest period Q2 FY2026, ended Jun 30, 2026 Reported Currency USD FYE December

Legalzoom.Com, Inc. (LZ) reported $792.5M in revenue over the twelve months to Jun 30, 2026, up 12.3% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI LZ FY2025

LegalZoom’s dominant mechanic is cash-rich earnings conversion paired with buybacks that leave short-term liquidity tighter than profits suggest.

In FY2025, operating cash flow reached $178M while net income was only $15M, showing that cash generation was not dependent on reported profit. Free cash flow margin reached 19.6% despite a 3.3% operating margin, pointing to relatively light reinvestment compared with cash produced rather than high accounting margins.

Profitability is positive but thin: FY2025 operating margin was 3.3%, while net margin was 2.0%, leaving modest room for cost or mix changes to affect earnings. That margin shape makes cash conversion a clearer operating signal than gross margin alone.

FY2025 buybacks of $81M occurred alongside equity of $172M, so capital returns materially shaped financing rather than simply reflecting excess earnings. Debt-to-equity was 2.0x and current ratio was 0.8x, combining meaningful leverage with short-term obligations greater than current assets.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity CashFlow Returns 47 / 100
Financial Health Score 47/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Legalzoom.Com, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
38

Legalzoom.Com, Inc. has an operating margin of 3.3%, meaning the company retains $3 of operating profit per $100 of revenue. This results in a moderate score of 38/100, indicating healthy but not exceptional operating efficiency. This is down from 5.2% the prior year.

Growth
57

Legalzoom.Com, Inc.'s revenue grew 10.9% year-over-year to $756.0M, a solid pace of expansion. This earns a growth score of 57/100.

Leverage
31

Legalzoom.Com, Inc. has a moderate D/E ratio of 1.98. This balance of debt and equity financing earns a leverage score of 31/100.

Liquidity
11

Legalzoom.Com, Inc.'s current ratio of 0.76 is below the typical benchmark, resulting in a score of 11/100. However, the company holds substantial cash reserves (64% of current liabilities), which buffers actual liquidity risk. Large mature operators often run tight current ratios by design.

Cash Flow
82

Legalzoom.Com, Inc. converts 19.6% of revenue into free cash flow ($147.9M). This strong cash generation earns a score of 82/100.

Returns
62

Legalzoom.Com, Inc.'s ROE of 9.0% shows moderate profitability relative to equity, earning a score of 62/100. This is down from 32.1% the prior year.

Altman Z-Score Distress
0.22

Legalzoom.Com, Inc. scores 0.22, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($1.1B) relative to total liabilities ($339.6M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial
6/8

Legalzoom.Com, Inc. passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, all 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed
11.55x

For every $1 of reported earnings, Legalzoom.Com, Inc. generates $11.55 in operating cash flow ($178.2M OCF vs $15.4M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe
19.30x

Legalzoom.Com, Inc. earns $19.30 in operating income for every $1 of interest expense ($25.0M vs $1.3M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue
$756.0M
YoY+10.9%
5Y CAGR+9.9%

Legalzoom.Com, Inc. generated $756.0M in revenue in fiscal year 2025. This represents an increase of 10.9% from the prior year.

EBITDA
$61.3M
YoY-6.3%
5Y CAGR-1.5%

Legalzoom.Com, Inc.'s EBITDA was $61.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 6.3% from the prior year.

Net Income
$15.4M
YoY-48.5%
5Y CAGR+9.3%

Legalzoom.Com, Inc. reported $15.4M in net income in fiscal year 2025. This represents a decrease of 48.5% from the prior year.

EPS (Diluted)
$0.08
YoY-50.0%
5Y CAGR+5.9%

Legalzoom.Com, Inc. earned $0.08 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 50.0% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$147.9M
YoY+48.0%
5Y CAGR+12.4%

Legalzoom.Com, Inc. generated $147.9M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 48.0% from the prior year.

Cash & Debt
$203.1M
YoY+43.0%
5Y CAGR+12.2%

Legalzoom.Com, Inc. held $203.1M in cash as of fiscal year 2025; long-term debt is not reported for that period.

Shares Outstanding
173M
YoY-1.8%
5Y CAGR+6.7%

Legalzoom.Com, Inc. had 173M shares outstanding in fiscal year 2025. This represents a decrease of 1.8% from the prior year.

Dividends Per Share

Not reported for fiscal year 2025.

Margins & Returns

Gross Margin
65.9%
YoY+1.1pp
5Y CAGR-1.3pp

Legalzoom.Com, Inc.'s gross margin was 65.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.1 percentage points from the prior year.

Operating Margin
3.3%
YoY-1.9pp
5Y CAGR-7.1pp

Legalzoom.Com, Inc.'s operating margin was 3.3% in fiscal year 2025, reflecting core business profitability. This is down 1.9 percentage points from the prior year.

Net Margin
2.0%
YoY-2.4pp
5Y CAGR-0.1pp

Legalzoom.Com, Inc.'s net profit margin was 2.0% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.4 percentage points from the prior year.

Return on Equity
9.0%
YoY-23.1pp

Legalzoom.Com, Inc.'s ROE was 9.0% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 23.1 percentage points from the prior year.

Capital Allocation

Share Buybacks
$80.5M
YoY-51.2%
5Y CAGR+75.7%

Legalzoom.Com, Inc. spent $80.5M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 51.2% from the prior year.

Capital Expenditures
$30.3M
YoY-15.2%
5Y CAGR+23.4%

Legalzoom.Com, Inc. invested $30.3M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 15.2% from the prior year.

R&D Spending

Not reported for fiscal year 2025.

LZ Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

LZ quarterly income statement
MetricQ2'26Q1'26Q4'25Q3'25Q2'25Q1'25Q4'24Q3'24
Revenue$205.3M-0.7%$206.8M+8.7%$190.3M+0.1%$190.2M-1.2%$192.5M+5.1%$183.1M+13.2%$161.7M-4.1%$168.6M
Cost of Revenue$65.4M-12.3%$74.5M+20.7%$61.7M-0.9%$62.3M-7.6%$67.4M+1.3%$66.6M+24.7%$53.4M-2.4%$54.7M
Gross Profit$139.9M+5.8%$132.3M+2.9%$128.5M+0.5%$127.9M+2.2%$125.1M+7.3%$116.5M+7.6%$108.3M-4.9%$113.9M
Operating Income$10.7M+285.3%$2.8M-78.1%$12.6M+94.3%$6.5M+309.5%-$3.1M-134.6%$9.0M-31.6%$13.1M-19.4%$16.3M
Interest Expense$126K-81.4%$676K-15.0%$795K+423.0%$152K-7.9%$165K-9.3%$182K-9.5%$201K+179.2%$72K
Income Tax$7.0M+156.7%$2.7M-65.8%$7.9M+105.0%$3.9M+1491.7%-$278K-105.1%$5.5M+1514.2%-$388K-104.7%$8.2M
Net Income$5.2M+369.5%$1.1M-81.8%$6.1M+34.3%$4.5M+1795.1%-$266K-105.2%$5.1M-60.1%$12.9M+16.3%$11.1M
EPS (Diluted)$0.03$0.01$0.03+50.0%$0.02$0.00-100.0%$0.03-57.1%$0.07+16.7%$0.06

Not reported in any period shown, so not listed: R&D Expenses, SG&A Expenses.

LZ Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

LZ quarterly balance sheet
MetricQ2'26Q1'26Q4'25Q3'25Q2'25Q1'25Q4'24Q3'24
Total Assets$466.4M-5.2%$491.9M-3.8%$511.5M-7.2%$551.1M+1.5%$543.0M+1.9%$532.7M+42.5%$373.9M+7.2%$348.8M
Current Assets$212.2M-7.1%$228.3M-5.6%$241.9M-12.5%$276.5M+8.6%$254.6M+2.5%$248.3M+29.9%$191.2M+14.4%$167.2M
Cash & Equivalents$167.2M-8.7%$183.2M-9.8%$203.1M-14.4%$237.2M+9.3%$217.0M+3.4%$210.0M+47.8%$142.1M+26.3%$112.5M
Accounts Receivable$19.8M-19.6%$24.6M+19.4%$20.6M+0.7%$20.4M-11.3%$23.0M+28.5%$17.9M+110.7%$8.5M-26.1%$11.5M
Goodwill$140.7M0.0%$140.7M0.0%$140.7M+0.4%$140.1M+0.4%$139.6M-1.1%$141.1M+122.9%$63.3M0.0%$63.3M
Total Liabilities$339.2M-1.7%$344.9M+1.6%$339.6M-2.7%$349.2M+0.1%$349.0M+1.0%$345.5M+23.1%$280.6M-2.8%$288.7M
Current Liabilities$318.1M-1.7%$323.5M+1.6%$318.5M-2.7%$327.4M+0.3%$326.5M+1.2%$322.5M+21.4%$265.6M-2.6%$272.6M
Total Equity$127.2M-13.4%$146.9M-14.5%$171.9M-14.9%$201.9M+4.1%$194.1M+3.7%$187.2M+100.7%$93.3M+55.1%$60.1M
Retained Earnings-$1.2B-3.5%-$1.2B-3.8%-$1.1B-3.3%-$1.1B-1.2%-$1.1B-1.9%-$1.1B+0.5%-$1.1B+1.0%-$1.1B

Not reported in any period shown, so not listed: Inventory, Long-Term Debt.

LZ Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

LZ quarterly cash flow statement
MetricQ2'26Q1'26Q4'25Q3'25Q2'25Q1'25Q4'24Q3'24
Operating Cash Flow$39.5M-16.4%$47.3M+38.5%$34.1M-37.1%$54.2M+38.5%$39.1M-22.8%$50.7M+19.1%$42.6M+34.7%$31.6M
Capital Expenditures$5.9M-7.1%$6.3M+2.9%$6.1M-15.2%$7.2M-3.9%$7.5M-19.7%$9.4M+39.8%$6.7M-30.4%$9.6M
Free Cash Flow$33.7M-17.8%$41.0M+46.4%$28.0M-40.4%$47.0M+48.7%$31.6M-23.5%$41.3M+15.2%$35.9M+63.3%$22.0M
Investing Cash Flow-$5.9M+7.1%-$6.3M-4.7%-$6.0M+16.8%-$7.2M-13.6%-$6.4M+68.9%-$20.4M-204.9%-$6.7M+30.4%-$9.6M
Financing Cash Flow-$49.6M+18.5%-$60.9M+2.2%-$62.2M-131.9%-$26.8M-4.0%-$25.8M-168.6%$37.6M+731.7%-$6.0M+79.0%-$28.4M
Share Buybacks$45.5M+4.8%$43.5M+1.3%$42.9M+149.5%$17.2M-15.8%$20.4M$0-100.0%$3.1M-88.0%$25.5M

Not reported in any period shown, so not listed: Dividends Paid.

LZ Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples.

LZ quarterly financial ratios
MetricQ2'26Q1'26Q4'25Q3'25Q2'25Q1'25Q4'24Q3'24
Gross Margin68.2%+4.2pp64.0%-3.6pp67.6%+0.3pp67.3%+2.3pp65.0%+1.3pp63.6%-3.3pp67.0%-0.6pp67.5%
Operating Margin5.2%+3.9pp1.3%-5.3pp6.6%+3.2pp3.4%+5.0pp-1.6%-6.5pp4.9%-3.2pp8.1%-1.5pp9.7%
Net Margin2.5%+2.0pp0.5%-2.7pp3.2%+0.8pp2.4%+2.5pp-0.1%-2.9pp2.8%-5.2pp8.0%+1.4pp6.6%
Return on Equity4.1%+3.3pp0.8%-2.8pp3.5%+1.3pp2.2%+2.4pp-0.1%-2.9pp2.7%-11.0pp13.8%-4.6pp18.4%
Return on Assets1.1%+0.9pp0.2%-1.0pp1.2%+0.4pp0.8%+0.9pp-0.1%-1.0pp1.0%-2.5pp3.4%+0.3pp3.2%
Current Ratio0.670.0x0.71-0.1x0.76-0.1x0.84+0.1x0.780.0x0.77+0.1x0.72+0.1x0.61
Debt-to-Equity2.67+0.3x2.35+0.4x1.98+0.2x1.73-0.1x1.800.0x1.85-1.2x3.01-1.8x4.80
FCF Margin16.4%-3.4pp19.8%+5.1pp14.7%-10.0pp24.7%+8.3pp16.4%-6.2pp22.6%+0.4pp22.2%+9.2pp13.0%

Note: The current ratio is below 1.0 (0.76), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

What is Legalzoom.Com, Inc.'s annual revenue?

Legalzoom.Com, Inc. (LZ) reported $756.0M in total revenue for fiscal year 2025. This represents a 10.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Legalzoom.Com, Inc.'s revenue growing?

Legalzoom.Com, Inc. (LZ) revenue grew by 10.9% year-over-year, from $681.9M to $756.0M in fiscal year 2025.

Is Legalzoom.Com, Inc. profitable?

Yes, Legalzoom.Com, Inc. (LZ) reported a net income of $15.4M in fiscal year 2025, with a net profit margin of 2.0%.

Legalzoom.Com, Inc. (LZ) reported diluted earnings per share of $0.08 for fiscal year 2025. This represents a -50.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Legalzoom.Com, Inc. (LZ) had EBITDA of $61.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

Legalzoom.Com, Inc. (LZ) had a gross margin of 65.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Legalzoom.Com, Inc. (LZ) had an operating margin of 3.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Legalzoom.Com, Inc. (LZ) had a net profit margin of 2.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Legalzoom.Com, Inc. (LZ) has a return on equity of 9.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Legalzoom.Com, Inc. (LZ) generated $147.9M in free cash flow during fiscal year 2025. This represents a 48.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Legalzoom.Com, Inc. (LZ) generated $178.2M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Legalzoom.Com, Inc. (LZ) had $511.5M in total assets as of fiscal year 2025, including both current and long-term assets.

Legalzoom.Com, Inc. (LZ) invested $30.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Yes, Legalzoom.Com, Inc. (LZ) spent $80.5M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Legalzoom.Com, Inc. (LZ) had 173M shares outstanding as of fiscal year 2025.

Legalzoom.Com, Inc. (LZ) had a current ratio of 0.76 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

Legalzoom.Com, Inc. (LZ) had a debt-to-equity ratio of 1.98 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Legalzoom.Com, Inc. (LZ) had a return on assets of 3.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Legalzoom.Com, Inc. (LZ) has an Altman Z-Score of 0.22, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Legalzoom.Com, Inc. (LZ) has a Piotroski F-Score of 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Legalzoom.Com, Inc. (LZ) has an earnings quality ratio of 11.55x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Legalzoom.Com, Inc. (LZ) has an interest coverage ratio of 19.30x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Legalzoom.Com, Inc. (LZ) scores 47 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.

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