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LegalZoom (Nasdaq: LZ) grows Q2 2026 sales 7%, trims 2026 outlook

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

LegalZoom.com, Inc. reported second quarter 2026 results with revenue of $205.3 million, up 7% year-over-year, driven by subscription revenue of $133.4 million, up 11%, while transaction revenue was $71.9 million, down 1%. Gross margin improved to 68% from 65%.

The company generated net income of $5.2 million, a 3% margin, compared with a small loss a year earlier. Adjusted EBITDA was $45.9 million, or a 22% margin, up from $39.0 million and 20%. Free cash flow was $33.7 million, and cash and equivalents were $167.2 million with no debt outstanding.

LegalZoom repurchased $45.5 million of shares, leaving $80.4 million under its authorization. For 2026, it now expects revenue of $795.0–$805.0 million and Adjusted EBITDA of $190.0–$195.0 million, and disclosed a 13% workforce reduction. Third-quarter revenue is projected at $192–$196 million with Adjusted EBITDA of $49–$51 million.

Positive

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Negative

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Filing Explained

By June 30, outstanding common shares were 167,451 after quarterly repurchases, versus 177,624 at year-end.

Under Form 8-K, LegalZoom furnished its second-quarter results and updated outlook on August 5, 2026; the outlook remains an expectation rather than a completed result.

The balance sheet reported 167,451 shares of common stock issued and outstanding at June 30, 2026, compared with 177,624 shares at December 31, 2025, alongside $45.5 million of quarterly repurchases.

Liquidity was also lower at the quarter-end comparison date: cash and cash equivalents were $167.2 million on June 30, 2026, versus $203.1 million at December 31, 2025.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 revenue $205.3 million Three months ended June 30, 2026; up 7% year-over-year
Q2 2026 subscription revenue $133.4 million Subscription revenue grew 11% year-over-year in Q2 2026
Q2 2026 net income $5.2 million Net income margin of 3% versus a small net loss in Q2 2025
Q2 2026 Adjusted EBITDA $45.9 million Adjusted EBITDA margin 22%, compared with $39.0 million and 20% in Q2 2025
Q2 2026 free cash flow $33.7 million Free cash flow for the quarter ended June 30, 2026, up from $31.6 million
Cash and cash equivalents $167.2 million Balance as of June 30, 2026, with no debt outstanding
2026 revenue outlook range $795.0–$805.0 million Full-year 2026 revenue guidance; prior range was $810.0–$830.0 million
Workforce reduction 13% Workforce reduction referenced as contributing to cost management and margins
Adjusted EBITDA financial
"Adjusted EBITDA of $45.9 million and Adjusted EBITDA margin of 22%"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Non-GAAP net income financial
"Non-GAAP net income was $27.4 million for the quarter"
Non-GAAP net income is a company's profit figure that excludes certain costs or income that are included in standard accounting methods. Companies often use it to show what their earnings might look like without one-time expenses or other unusual items, helping investors see the company's core performance more clearly.
free cash flow financial
"Free cash flow was $33.7 million for the quarter ended June 30, 2026"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
deferred revenue financial
"Deferred revenue was $221,180 in current liabilities at June 30, 2026"
Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.
human-in-the-loop technical
"strength in human-in-the-loop offerings and pricing initiatives"
Human-in-the-loop describes systems where people supervise, check, or make final decisions on work performed by automated tools or algorithms. Like a pilot overseeing an autopilot, humans step in to catch errors, interpret nuance, and apply judgment that machines may miss. For investors, this matters because human oversight can reduce operational and regulatory risk, improve decision quality, and increase trust in results produced by automated systems.
Revenue $205.3 million up 7% year-over-year
Net income $5.2 million compared to net loss of $0.3 million in Q2 2025
Adjusted EBITDA $45.9 million up from $39.0 million in Q2 2025
Free cash flow $33.7 million up from $31.6 million in Q2 2025
2026 revenue outlook $795.0–$805.0 million prior outlook was $810.0–$830.0 million
2026 Adjusted EBITDA outlook $190.0–$195.0 million prior outlook was $190.0–$200.0 million
Guidance

LegalZoom expects full-year 2026 revenue of $795.0–$805.0 million and Adjusted EBITDA of $190.0–$195.0 million, and Q3 2026 revenue of $192–$196 million with Adjusted EBITDA of $49–$51 million.

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FAQ

How did LegalZoom (LZ) perform financially in Q2 2026?
LegalZoom reported Q2 2026 revenue of $205.3 million, up 7% year-over-year, with net income of $5.2 million. Adjusted EBITDA was $45.9 million, a 22% margin, compared with $39.0 million and a 20% margin in Q2 2025.

How did subscription and transaction revenue trend for LegalZoom (LZ) in Q2 2026?
In Q2 2026, subscription revenue was $133.4 million, up 11% year-over-year, while transaction revenue was $71.9 million, down 1%. This mix reflects continued growth in subscription relationships and slightly lower one-time transaction activity versus the prior-year quarter.

What guidance did LegalZoom (LZ) give for full-year 2026?
LegalZoom expects 2026 revenue of $795.0–$805.0 million, about 6% growth at the midpoint, and Adjusted EBITDA of $190.0–$195.0 million with a 24% margin. This compares with prior revenue guidance of $810.0–$830.0 million and Adjusted EBITDA of $190.0–$200.0 million.

What are LegalZoom’s (LZ) expectations for Q3 2026?
For Q3 2026, LegalZoom expects revenue of $192–$196 million, about 2% year-over-year growth at the midpoint, and Adjusted EBITDA of $49–$51 million, implying roughly an 8% year-over-year increase at the midpoint and a 26% Adjusted EBITDA margin.

How strong was LegalZoom’s (LZ) cash flow and balance sheet in Q2 2026?
LegalZoom generated Q2 2026 free cash flow of $33.7 million and cash from operating activities of $39.5 million. It ended June 30, 2026 with $167.2 million in cash and cash equivalents, no debt outstanding, and continued to invest while returning capital via share repurchases.

Did LegalZoom (LZ) return capital to shareholders in Q2 2026?
Yes. LegalZoom completed $45.5 million of share repurchases in Q2 2026 and reported that approximately $80.4 million remained under its existing authorization, highlighting ongoing capital returns alongside investment in growth and efficiency initiatives.

Why did LegalZoom (LZ) update its 2026 outlook?
LegalZoom stated its revised 2026 outlook reflects industry-wide shifts in customer discovery away from traditional search. The company cited continued scaling of higher-value initiatives and partner-channel momentum, partially offset by a more cautious view of customer acquisition for the rest of the year.
FALSE0001286139954 Villa StreetMountain ViewCalifornia00012861392026-08-052026-08-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________
FORM 8-K
____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 2026
____________________
LegalZoom.com, Inc.
(Exact name of Registrant as Specified in Its Charter)
____________________
Delaware001-3561895-4752856
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
954 Villa Street,
Mountain View, California
94041
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (323) 962-8600
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class  
Trading
Symbol(s)
Name of each exchange
on which registered
Common Stock, par value $0.001 per shareLZThe Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Condition.
On August 5, 2026, LegalZoom.com, Inc. (“LegalZoom”) issued a press release announcing its results of operations for the three and six months ended June 30, 2026. A copy of that press release is furnished as Exhibit 99.1 to this report.
The information furnished pursuant to Item 2.02 of this report, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless LegalZoom specifically states that the information is to be considered “filed” under the Exchange Act or incorporates it by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 7.01 Regulation FD Disclosure.
Also on August 5, 2026, LegalZoom updated its investor presentation and supplemental financial report, which contain financial results and related information regarding LegalZoom. The investor presentation and supplemental financial report are available on LegalZoom’s Investor Relations website at https://investors.legalzoom.com.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number
Description
99.1
Earnings Press Release of LegalZoom.com, Inc. dated August 5, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
LegalZoom.com, Inc.
Date: August 5, 2026
By:/s/ Noel Watson
Noel Watson
Chief Financial Officer
3

Exhibit 99.1
lz_logoxblackxnopaddinga.jpg
LegalZoom Reports Second Quarter 2026 Financial Results

•Revenue of $205.3 million, up 7% year-over-year, driven by subscription revenue increasing 11% year-over-year, representing LegalZoom’s fifth consecutive quarter of double digit subscription revenue growth
•Subscription revenue of $133.4 million up 11% year-over-year from strength in human-in-the-loop offerings and pricing initiatives
•Net income of $5.2 million and net income margin of 3%; with net income margin increasing approximately 260 basis points year-over-year
•Adjusted EBITDA of $45.9 million and Adjusted EBITDA margin of 22%, ahead of the high end of our guidance range; with Adjusted EBITDA margin increasing approximately 220 basis points year-over-year
•Commitment to shareholder returns; completed $45.5 million of share repurchases in the quarter, with approximately $80.4 million remaining under the existing authorization
•Ended the quarter with cash and cash equivalents of $167.2 million and delivered $39.5 million in cash from operating activities and $33.7 million in free cash flow with no debt outstanding as of June 30, 2026
•Updating full-year 2026 revenue outlook to $795.0–$805.0 million and Adjusted EBITDA to $190.0–$195.0 million, reflecting the recent industry-wide shift in customer discovery away from traditional search, while maintaining strong margin discipline


MOUNTAIN VIEW, California – August 5, 2026 – LegalZoom (Nasdaq: LZ), America’s #1 online legal services company, today announced results for its second quarter ended June 30, 2026.

"Since late 2024, we've deliberately repositioned LegalZoom around subscription relationships that pair AI with trusted human expertise," said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. "That strategy is working. While demand for what we do is intact, discovery is moving. We have been actively building new customer acquisition channels for more than a year, and our outlook fully reflects today's environment, with no recovery in traditional search assumed. In the AI channels where discovery is heading, every visit is incremental. We've partnered with the leading AI companies, we have more brand references across AI platforms than any competitor, and we haven't assumed how quickly this scales. That's the upside we're positioned to capture."

"We're updating our revenue expectations based on recent changes in the customer acquisition environment, while our profitability outlook reflects the discipline of our operating model," said Noel Watson, Chief Operating Officer and Chief Financial Officer. "We continue to improve operating efficiency, expand margins and generate strong cash flow while investing behind the initiatives that support our long-term growth strategy."


Second Quarter 2026 Highlights

•Revenue was $205.3 million for the quarter, up 7% year-over-year.
◦Transaction revenue of $71.9 million decreased 1% year-over-year.
◦Subscription revenue of $133.4 million grew 11% year-over-year.
•Net income was $5.2 million for the quarter, or 3% of revenue, compared to a net loss of $0.3 million, or less than 1% of revenue, in the same period in 2025.
•Adjusted EBITDA was $45.9 million for the quarter, or 22% of revenue, compared to $39.0 million, or 20% of revenue, in the same period in 2025.
•Non-GAAP net income was $27.4 million for the quarter compared to $28.3 million in the same period in 2025.


•Cash and cash equivalents were $167.2 million as of June 30, 2026 compared to $203.1 million as of December 31, 2025.
•Cash flows provided by operating activities were $39.5 million for the quarter ended June 30, 2026 compared to $39.1 million in the same period in 2025.
•Free cash flow was $33.7 million for the quarter ended June 30, 2026 compared to $31.6 million in the same period in 2025.
•Basic and diluted net income per share was $0.03 for the quarter compared to a basic and diluted net loss per share of $— for the same period in 2025. Basic and diluted Non-GAAP net income per share was $0.16 for the quarter compared to basic and diluted Non-GAAP net income per share of $0.16 and $0.15, respectively, for the same period in 2025.

Key Business Metrics and Non-GAAP Financial Measures
(Unaudited, in thousands except AOV, ARPU and percentages)
Three Months Ended June 30,% GrowthSix Months Ended June 30,% Growth
(Decline)(Decline)
20262025YOY20262025YOY
Total revenue$205,289 $192,509 7 %$412,070 $375,619 10 %
Transaction revenue$71,890 $72,611 (1)%$148,513 $139,464 6 %
Subscription revenue$133,399 $119,898 11 %$263,557 $236,155 12 %
Gross profit$139,930 $125,111 12 %$272,183 $241,661 13 %
Gross margin68 %65 %5 %66 %64 %3 %
Net Income (loss)$5,183 $(266)n/m$6,287 $4,861 29 %
Net income (loss) margin3 %— %n/m2 %1 %100 %
Net Income (loss) per share — basic:$0.03 $— n/m$0.04 $0.03 33 %
Net Income (loss) per share — diluted:$0.03 $— n/m$0.04 $0.03 33 %
Net cash provided by operating activities$39,547 $39,139 1 %$86,829 $89,842 (3)%
Non-GAAP Financial Measures
Non GAAP net income $27,444 $28,329 (3)%$49,515 $52,151 (5)%
Non GAAP net income per share — basic:$0.16 $0.16 — %$0.28 $0.29 (3)%
Non GAAP net income per share — diluted:$0.16 $0.15 7 %$0.28 $0.29 (3)%
Adjusted EBITDA$45,898 $38,965 18 %$82,360 $75,977 8 %
Adjusted EBITDA margin22 %20 %10 %20 %20 %— %
Free cash flow$33,690 $31,609 7 %$74,664 $72,934 2 %
Key Business Metrics
Transaction units281 278 1 %656 619 6 %
Business formations125 131 (5)%267 262 2 %
Average order value (AOV)$256 $262 (2)%$227 $225 1 %
Subscription units at period end1,892 1,955 (3)%1,892 1,955 (3)%
Average revenue per subscription unit (ARPU) at period end$270 $256 5 %$270 $256 5 %
Certain percentages may not recalculate due to rounding.


Financial Guidance and Outlook
LegalZoom is updating its revenue outlook and Adjusted EBITDA outlook for the full year ending December 31, 2026 as follows:
•Revenue is expected to be in the range of $795 million to $805 million, or 6% year-over-year growth at the midpoint. This compares to the Company’s previous revenue outlook in the range of $810 million to $830 million, or 8% growth at the midpoint. LegalZoom’s outlook reflects the continued scaling of our higher-value growth initiatives and ongoing momentum from our partner channel, partially offset by a more cautious view of customer acquisition for the remainder of the year.

•Adjusted EBITDA is expected to be in the range of $190 million to $195 million, reflecting 12% year-over-year growth at the midpoint, and a 24% margin. This compares to the Company’s previous Adjusted EBITDA outlook of $190 million to $200 million, or 13% year-over-year growth, and a 24% margin. LegalZoom’s outlook reflects disciplined cost management, ongoing gross margin improvement and the benefits from a 13% workforce reduction announced today.

For the third quarter ending September 30, 2026 LegalZoom expects:

•Revenue in the range of $192 million to $196 million, or 2% year-over-year growth at the midpoint.

•Adjusted EBITDA in the range of $49 million to $51 million, an 8% year-over-year increase at the midpoint, and a 26% margin.

Webcast and Conference Call Information
A webcast and conference call to discuss second quarter 2026 results is scheduled for today, August 5, 2026, at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Those interested in participating in the conference call are invited to register Here.
A live audio webcast of the event will be available on the LegalZoom Investor Relations website: https://investors.legalzoom.com. An archived replay of the webcast also will be available shortly after the live event.
Forward-Looking Statements
This press release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to, statements regarding our quarterly and annual guidance.
The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the following: our dependence on business formations; our dependence on customers expanding the use of our platform, including converting our transactional customers to subscribers and our subscribers renewing their subscriptions with us; the impact of macroeconomic challenges or uncertainty on our business; our ability to remain profitable in the future; our ability to provide high-quality products and services, customer care and customer experience; our ability to continue to innovate and provide a platform that is useful to our customers and that meets our customers’ expectations; the competitive legal solutions market; our dependence on our brand and reputation; our ability to maintain and expand strategic relationships with third parties; our ability to hire and retain top talent and motivate our employees; risks and costs associated with complex and evolving laws and regulations; our ability to maintain effective in our internal control over financial reporting; and any factors discussed in the section titled “Risk Factors” included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2026 filed with the Securities and Exchange Commission (the “SEC”) on May 6, 2026, as well as any factors in our subsequent filings with the SEC. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have


conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
You should read this press release with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net income, Non-GAAP net income (loss) margin, Non-GAAP net income per share and free cash flow. We use these non-GAAP financial measures to better understand and evaluate our core operating performance. We believe that these non-GAAP financial measures provide management and our investors with useful information about our financial performance and liquidity, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important measures used by our management for financial and operational decision-making. We also believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. These non-GAAP measures should not be considered in isolation of, or as a substitute or an alternative to, measures prepared and presented in accordance with GAAP.
We define Adjusted EBITDA as net income (loss) adjusted to exclude interest expense, interest income, provision for (benefit from) income taxes, depreciation and amortization, other expense (income), net, stock-based compensation and certain non-recurring income and expenses from time to time. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of revenue.
Adjusted EBITDA is one of the primary performance measures used by our management and our board of directors to understand and evaluate our financial performance and operating trends, including period-to-period comparisons, preparing and approving our annual budget and operational planning. In assessing our performance, we exclude certain expenses that we believe are not comparable period over period or that we believe are not indicative of our underlying operating performance. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which include that Adjusted EBITDA:
•may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure;
•does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments;
•excludes depreciation and amortization and, although these are non-cash expenses, the assets being depreciated may be replaced in the future;
•does not reflect changes in, or cash requirements for, our working capital needs;
•excludes stock-based compensation expense, which has been, and will continue to be, a significant recurring expense for our business and an important part of our compensation strategy; and
•does not reflect certain expenses that we do not consider representative of our underlying operating performance, but that reduce cash available to us.
We define Non-GAAP net income as net income (loss) adjusted to exclude amortization of acquired intangible assets, stock-based compensation expense and certain non-recurring income and expenses from time to time, net of related income tax impacts. We define net income (loss) margin as net loss as a percentage of revenue. We define Non-GAAP net income (loss) margin as Non-GAAP net income as a percentage of revenue. We define Non-GAAP net income (loss) per share attributable to common stockholders as Non-GAAP net income (loss) divided by basic and diluted weighted-average common stock.
Free cash flow is a liquidity measure used by management in evaluating the cash generated by our operations after purchases of property and equipment including capitalized internal-use software. We believe free cash flow provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet, once our business needs and obligations are met. The usefulness of free cash flow as an analytical tool has limitations because it excludes certain items that are settled in cash, does not represent residual cash flow available for discretionary expenses, does not reflect our future contractual commitments, and may be calculated differently by other companies in our industry.

We are not providing a reconciliation for our non-GAAP outlook on a forward-looking basis (including the information under “Financial Guidance and Outlook” above), as we are unable to provide a meaningful


calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure that have not yet occurred, are out of LegalZoom’s control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

The tables in this press release contain more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
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 intellectual property protection and ongoing business management and legal support.
As AI reshapes how legal work gets done, LegalZoom is at the forefront of the human-in-the-loop approach, ensuring that the speed and efficiency of AI is always backed by the judgment and accountability of qualified professionals. 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


LegalZoom.com, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except par values)
June 30, 2026December 31, 2025
Assets
Current assets:
Cash and cash equivalents
$167,227 $203,100 
Accounts receivable, net of allowance
19,759 20,589 
Prepaid expenses and other current assets
25,187 18,234 
Total current assets
212,173 241,923 
Property and equipment, net
53,540 58,045 
Goodwill
140,705 140,705 
Intangible assets, net
14,932 18,152 
Operating lease right-of-use assets
14,150 13,414 
Deferred income taxes
24,095 31,884 
Other assets
6,764 7,399 
Total assets
$466,359 $511,522 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$35,875 $27,167 
Accrued expenses and other current liabilities
56,055 83,361 
Deferred revenue
221,180 203,653 
Operating lease liabilities
5,003 4,338 
Total current liabilities
318,113 318,519 
Operating lease liabilities, non-current
10,133 10,025 
Deferred revenue
234 277 
Other liabilities
10,723 10,819 
Total liabilities
339,203 339,640 
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 100,000 shares authorized at June 30, 2026 and December 31, 2025, none issued or outstanding at June 30, 2026 and December 31, 2025
— — 
Common stock, $0.001 par value; 1,000,000 shares authorized; 167,451 shares and 177,624 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
169 179 
Additional paid-in capital
1,344,473 1,305,936 
Accumulated deficit
(1,217,855)(1,134,414)
Accumulated other comprehensive income
369 181 
Total stockholders’ equity
127,156 171,882 
Total liabilities and stockholders’ equity
$466,359 $511,522 



LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenue
$205,289 $192,509 $412,070 $375,619 
Cost of revenue65,359 67,398 139,887 133,958 
Gross profit
139,930 125,111 272,183 241,661 
Operating expenses:
Sales and marketing78,849 69,580 157,517 130,958 
Technology and development
20,047 21,635 39,652 42,957 
General and administrative
30,384 36,996 61,600 76,217 
Gain on sale of assets held for sale— — — (14,337)
Total operating expenses
129,280 128,211 258,769 235,795 
Income (loss) from operations
10,650 (3,100)13,414 5,866 
Interest expense(126)(165)(802)(347)
Interest income1,627 2,069 3,275 3,552 
Other (expense) income, net
(3)652 78 999 
Income (loss) before income taxes
12,148 (544)15,965 10,070 
Provision for (benefit from) income taxes
6,965 (278)9,678 5,209 
Net income (loss)$5,183 $(266)$6,287 $4,861 
Net income (loss) attributable to common stockholders—basic and diluted
Net income (loss) per share — basic:
$0.03 $— $0.04 $0.03 
Net income (loss) per share — diluted:
$0.03 $— $0.04 $0.03 
Weighted-average shares used to compute net income (loss) per share:
Weighted-average shares used to compute net income (loss) per share — basic:170,189 180,880 175,568 178,837 
Weighted-average shares used to compute net income (loss) per share — diluted:171,641 180,880 177,627 182,694 


LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
Six Months Ended June 30,
20262025
Cash flows from operating activities
Net income
$6,287 $4,861 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
22,411 21,745 
Amortization of debt issuance costs
95 112 
Amortization of right-of-use assets1,887 1,484 
Stock-based compensation
44,910 60,394 
Gain on sale of assets held for sale
— (14,337)
Gain on sale of available-for-sale debt security— (648)
Loss on disposal of property and equipment
15 97 
Deferred income taxes
7,825 (5,725)
Change in fair value of other equity security— (302)
Unrealized foreign exchange loss
248 31 
Changes in operating assets and liabilities, net of effects of business combination:
Accounts receivable
828 (14,254)
Prepaid expenses and other current assets
(6,979)3,726 
Other assets
522 83 
Accounts payable
8,698 4,454 
Accrued expenses and other liabilities
(15,566)(697)
Operating lease liabilities(1,852)(1,056)
Income tax payable
15 239 
Deferred revenue
17,485 29,635 
Net cash provided by operating activities
86,829 89,842 
Cash flows from investing activities
Acquisition, net of cash acquired— (48,468)
Purchase of property and equipment
(12,165)(16,908)
Proceeds from sale of available-for-sale debt security— 1,507 
Proceeds from sale of assets held for sale— 37,051 
Net cash used in investing activities
(12,165)(26,818)
Cash flows from financing activities
Repayment of capital lease obligations
— (2)
Payment of deferred consideration from business acquisition
(12,514)— 
Share repurchase costs (excise tax)— (1,264)
Repurchase of common stock(89,010)(20,419)
Shares surrendered for settlement of minimum statutory tax withholding
(9,459)(11,172)
Proceeds from issuance of stock under employee stock plans518 44,657 
Net cash (used in) provided by financing activities
(110,465)11,800 
Effect of exchange rate changes on cash and cash equivalents
(72)147 
Net (decrease) increase in cash and cash equivalents
(35,873)74,971 
Cash and cash equivalents, at beginning of the period
203,100 142,064 
Cash and cash equivalents, at end of the period
$167,227$217,035
Adjusted EBITDA and Adjusted EBITDA Margin
The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for each of the periods indicated (unaudited):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in thousands, except percentages)
Reconciliation of net income (loss) to Adjusted EBITDA
Net income (loss)$5,183 $(266)$6,287 $4,861 
Interest expense126 165 802 347 
Interest income(1,627)(2,069)(3,275)(3,552)
Provision for (benefit from) income taxes6,965 (278)9,678 5,209 
Depreciation and amortization11,274 11,339 22,411 21,745 
Other expense (income), net3 (652)(78)(999)
Stock-based compensation23,596 30,638 44,910 60,394 
Transaction-related expenses(1)
— — 604 1,543 
Gain on sale of assets held for sale— — — (14,337)
Restructuring costs(2)
378 88 1,021 766 
Adjusted EBITDA$45,898 $38,965 $82,360 $75,977 
Net income (loss) margin3 %— %2 %1 %
Adjusted EBITDA margin22 %20 %20 %20 %
(1)     For 2025, transaction-related expenses are primarily related to our acquisition of Formation Nation. For 2026, transaction-related expenses are related to the evaluation and pursuit of strategic transactions.
(2)    For 2026 and 2025, restructuring costs are related to the reduction of our global headcount.
Non-GAAP Net Income, Non-GAAP Net Income (Loss) Margin and diluted Non-GAAP Net Income Per Share
The following table presents a reconciliation of net income (loss) to Non-GAAP net income for each of the periods indicated (unaudited):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in thousands, except per share amounts)
Reconciliation of net income to Non-GAAP net income
Net income (loss)$5,183 $(266)$6,287 $4,861 
Amortization of acquired intangible assets1,610 2,381 3,220 4,028 
Stock-based compensation23,596 30,638 44,910 60,394 
Transaction-related expenses(1)
— — 604 1,543 
Restructuring costs(2)
378 88 1,021 766 
Gain on sale of assets held for sale— — — (14,337)
Income tax effects(3)
(3,323)(4,512)(6,527)(5,104)
Non-GAAP net income27,444 28,329 49,515 52,151 
Net income (loss) margin3%—%2%1%
Non-GAAP net income (loss) margin13 %15%12 %14%
Net income (loss) per share — basic$0.03 $— $0.04 $0.03 
Net income (loss) per share — diluted$0.03 $— $0.04 $0.03 
Non-GAAP net income per share — basic$0.16 $0.16 $0.28 $0.29 
Non-GAAP net income per share — diluted$0.16 $0.15 $0.28 $0.29 
Weighted-average shares used to compute net income (loss) per share — basic170,189 180,880 175,568 178,837 
Weighted-average shares used to compute net income (loss) per share — diluted171,641 180,880 177,627 182,694 
Weighted-average shares used to compute Non-GAAP net income per share — basic170,189 180,880 175,568 178,837 
Weighted-average shares used to compute Non-GAAP net income per share — diluted171,641 184,482 177,627 182,694 
(1)For 2025, transaction-related expenses are primarily related to our acquisition of Formation Nation. For 2026, transaction-related expenses are related to the evaluation and pursuit of strategic transactions.
(2)For 2026 and 2025, restructuring costs are related to the reduction of our global headcount.
(3)The estimated income tax effect of the non-GAAP pre-tax adjustments is determined by applying the statutory rate of the originating jurisdiction, if applicable.


The following table shows the computation of basic and diluted Non-GAAP net income per share (unaudited):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in thousands, except per share amounts)
Non-GAAP net income and Non-GAAP net income per share:
Non-GAAP net income$27,444 $28,329 $49,515 $52,151 
Reconciliation of denominator for net income per share to Non-GAAP net income per share:
Weighted-average shares used to compute net income (loss) per share — basic:170,189 180,880 175,568 178,837 
Effect of potentially dilutive securities:
Options to purchase common stock31 58 34 59 
RSUs and PSUs1,410 3,526 2,019 3,782 
Employee stock purchase plan11 18 6 16 
Weighted-average common stock used in computing Non-GAAP net income per share — diluted171,641 184,482 177,627 182,694 
Non-GAAP net income per share — basic$0.16 $0.16 $0.28 $0.29 
Non-GAAP net income per share — diluted$0.16 $0.15 $0.28 $0.29 
Free Cash Flow
The following table presents a reconciliation of net cash provided by operating activities to free cash flow (unaudited):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in thousands)
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Net cash provided by operating activities39,547 39,139 86,829 89,842 
Purchase of property and equipment(5,857)(7,530)(12,165)(16,908)
Free cash flow$33,690 $31,609 $74,664 $72,934 

Source: View Original Filing on SEC EDGAR

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