LegalZoom Announces Inclusion in the S&P SmallCap 600® Index

Rhea-AI Summary

LegalZoom (Nasdaq: LZ) was added to the S&P SmallCap 600® Index effective prior to market open on February 2, 2026. The company framed the inclusion as a milestone, highlighting its stated strong growth and profitability and its focus on scaling online legal services for individuals and small businesses.

The index inclusion increases LegalZoom’s visibility among institutional and index investors and underscores its position at the small‑cap market scale.

Positive

• Inclusion in the S&P SmallCap 600 effective February 2, 2026
• Company states it has achieved strong growth and profitability
• Raises company visibility to index and passive investors

Negative

• None.

News Market Reaction – LZ

+2.59% 1.7x vol

59 alerts

+2.59% News Effect

-16.7% Trough in 6 hr 32 min

+$41M Valuation Impact

$1.62B Market Cap

1.7x Rel. Volume

On the day this news was published, LZ gained 2.59%, reflecting a moderate positive market reaction. Argus tracked a trough of -16.7% from its starting point during tracking. Our momentum scanner triggered 59 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $41M to the company's valuation, bringing the market cap to $1.62B at that time. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Index name: S&P SmallCap 600 Inclusion effective date: February 2, 2026 Experience duration: Over two decades +1 more

4 metrics

Index name S&P SmallCap 600 Index LegalZoom joined effective February 2, 2026

Inclusion effective date February 2, 2026 Date LZ was added to the S&P SmallCap 600 index

Experience duration Over two decades LegalZoom’s history operating its online legal services platform

Customer base Millions of customers Cumulative individuals and small businesses served by LegalZoom

Market Reality Check

Price: $6.56 Vol: Volume 21,979,092 is 6.23...

high vol

$6.56 Last Close

Volume Volume 21,979,092 is 6.23x the 20-day average of 3,525,686, indicating unusually heavy trading ahead of the index inclusion. high

Technical Shares at $8.89 are trading below the 200-day moving average of $9.52 and sit 28.31% under the 52-week high of $12.40.

Peers on Argus

While LZ was down 2.41%, key peers like CMPR, BV, TH, CASS, and TRNS showed mode...

While LZ was down 2.41%, key peers like CMPR, BV, TH, CASS, and TRNS showed modest gains between 1.53% and 3.11%, pointing to a stock-specific move rather than a sector-wide trend.

Historical Context

5 past events · Latest: Jan 29 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 29	Earnings date set	Neutral	-2.3%	Scheduled Q4 and full-year 2025 results and conference call date.
Jan 15	Market research news	Neutral	-0.4%	Survey on entrepreneurship interest among underemployed adults.
Dec 02	Social impact partnership	Positive	+0.2%	Renewed Defy Ventures partnership supporting entrepreneurship programs.
Nov 19	Conference participation	Neutral	-3.0%	Announced participation in December 2025 investor conferences.
Nov 05	Earnings results	Positive	+2.6%	Record Q3 2025 results and increased full-year 2025 revenue guidance.

Pattern Detected

Over the last few months, LZ showed a positive reaction to strong earnings but mostly mild or negative moves around general news and event announcements.

Recent Company History

In recent months, LegalZoom’s news flow has ranged from operational updates to financial results. On Nov 5, 2025, strong Q3 2025 earnings and raised revenue guidance coincided with a 2.57% gain. Subsequent items—conference participation on Nov 19, 2025, a social-impact partnership on Dec 2, 2025, and a January 2026 survey release—produced only small price moves. An earnings date announcement on Jan 29, 2026 also saw a modest decline, suggesting investors reserved stronger reactions for concrete financial results.

Market Pulse Summary

This announcement highlights LegalZoom’s addition to the S&P SmallCap 600, signaling that it met the...

Analysis

This announcement highlights LegalZoom’s addition to the S&P SmallCap 600, signaling that it met the index provider’s criteria for companies at its scale. In the past six months, the most material stock reaction followed strong Q3 2025 results and raised guidance on Nov 5, 2025, while other news produced modest moves. Investors may monitor how index inclusion interacts with forthcoming earnings on February 19, 2026 and ongoing execution of its online legal services strategy.

Key Terms

s&p smallcap 600, s&p dow jones indices

2 terms

s&p smallcap 600 financial

"announced its inclusion into the S&P SmallCap 600® Index, effective prior"

A stock market index made up of 600 small-cap U.S. companies chosen to represent the performance of smaller publicly traded firms. It matters to investors because it acts like a temperature gauge for the small-company segment of the market, serving as a benchmark for fund managers, a basis for index funds and ETFs, and a way to compare returns and risk when building a diversified portfolio.

s&p dow jones indices financial

"The S&P SmallCap 600, produced by S&P Dow Jones Indices, includes companies"

S&P Dow Jones Indices is the organization that creates and maintains widely used stock market benchmarks, such as broad market and sector indexes. Think of it as the scorekeeper that measures how groups of stocks are performing; investors and fund managers use these benchmarks to compare results, build passive funds and ETFs, and gauge overall market health, so index changes can affect investment flows and portfolio strategies.

AI-generated analysis. Not financial advice.

MOUNTAIN VIEW, Calif., Feb. 02, 2026 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), a leading online platform for legal services, today announced its inclusion into the S&P SmallCap 600® Index, effective prior to the opening of trading today, February 2, 2026.

“The addition to the S&P SmallCap 600® Index marks a significant milestone for our company,” said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. “We are proud that the S&P has recognized LegalZoom’s accomplishments as we are building a durable business model and have achieved strong growth and profitability. We look forward to continuing to execute our strategic priorities as we capitalize on the large market for online legal services while enhancing shareholder value.”

The S&P SmallCap 600, produced by S&P Dow Jones Indices, includes companies that reflect the performance of U.S. equities at LegalZoom’s scale. For more information on the S&P SmallCap 600^® and S&P Dow Jones Indices, please visit www.spdji.com.

About LegalZoom
LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys—whether through our vast independent attorney network or our own law firm—we offer the tools and guidance people need to confidently manage everything from business formation and compliance to estate planning and ongoing legal support.

With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence. For more information, please visit www.legalzoom.com

Contact

Investor Relations
investor@legalzoom.com

FAQ

What does LegalZoom (LZ) inclusion in the S&P SmallCap 600 mean for shareholders?

It means LegalZoom (LZ) was added to the index effective February 2, 2026, which can increase demand from index funds. According to the company, the addition recognizes its growth and profitability and may broaden investor exposure via indices and passive strategies.

When did LegalZoom (LZ) become part of the S&P SmallCap 600 index?

LegalZoom (LZ) was included effective prior to the opening of trading on February 2, 2026. According to the company, the change took effect at the market open on that date as announced in their investor communication.

Why did S&P add LegalZoom (LZ) to the SmallCap 600 on February 2, 2026?

The S&P SmallCap 600 includes companies that reflect U.S. equities at LegalZoom’s scale, prompting the addition. According to the company, the inclusion reflects its position, growth trajectory, and stated profitability at the small‑cap scale.

How might LegalZoom's (LZ) index inclusion affect trading and liquidity?

Index inclusion can increase buying from funds tracking the S&P SmallCap 600, potentially improving liquidity. According to the company, the listing increases visibility among institutional and passive investors, which frequently follow index rebalances.

Where can investors find more information about LegalZoom’s (LZ) S&P SmallCap 600 inclusion?

Investors can refer to LegalZoom’s investor relations contact and S&P Dow Jones Indices for details on the index and methodology. According to the company, additional context is available via its investor relations channels and spdji.com.