LegalZoom.com(NASDAQ) LZ

LegalZoom.com, Inc. helps people start and run their own businesses. The platform lets users create legal documents like wills and business filings. It also connects small business owners with attorneys and tax professionals.

What LegalZoom Does for You

• Business Formations: Filings for LLCs, corporations, and non-profits that serve as an entry point for customers.
• Subscription Services: Ongoing support for registered agents, compliance, and legal advice; accounted for 65% of revenue in the three months ended June 30, 2026.
• Transaction Revenue: One-time customized legal documents and document-filing services; represented 35% of revenue in the three months ended June 30, 2026.
• Business Management: Tools for virtual mail, bookkeeping, and eSignatures designed for small business needs.
• Intellectual Property: Trademark and patent filing services that protect creative works and brands.

Strategic Moves and New Directions

• Acquired Formation Nation on Feb. 10, 2025, to strengthen its business formation offerings.
• Committed to a restructuring plan in August 2026 to reduce its workforce by 13% and incur $6.0 million in charges.
• Shifted its focus toward becoming an agile, AI-native company with a simpler operating structure.
• Bundled legal advisory subscriptions into formation packages to increase recurring revenue.

The Tech Behind the Law

The company operates across all 50 U.S. states and in over 3,000 counties. It combines automated technology with a network of independent attorneys to provide professional guidance.

By the Numbers

• Total revenue was $205.3 million in the three months ended June 30, 2026, up 7% year over year.
• Subscription revenue grew 11% to $133.4 million during the three-month period ended June 30, 2026.
• Net income hit $5.2 million in the three months ended June 30, 2026, following a $0.3 million prior-year loss.
• Adjusted EBITDA hit $45.9 million in the three months ended June 30, 2026, up from $39.0 million.
• Free cash flow reached $74.7 million for the six months ended June 30, 2026, up from $72.9 million.

The Final Word

LegalZoom has evolved from a filing service into a digital platform for ongoing business management. By combining artificial intelligence with professional expertise, it aims to simplify the regulatory requirements of small business ownership.