At a glance
LegalZoom.com Inc is worth $1.13B, about 83 times its fiscal 2025 earnings. Revenue grew 10.9% to $756.0M in fiscal 2025, with 2.0% kept as profit; over 5 years it has grown 9.9% a year. It pays no dividend; it spent $395.5M buying back its shares over FY2021–FY2025. The stock returned −35.8% over the past year with dividends reinvested and −24.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 52.0% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The business in plain English
LegalZoom runs an online platform that helps small businesses and individuals handle legal and compliance tasks without hiring a traditional law firm. A customer's first purchase is usually business formation, which means setting up a legal entity so the owner's personal assets are better protected. As of December 31, 2025, LegalZoom had formed over 5.0 million businesses. It also offers registered agent service (a required official address that receives legal and tax notices), virtual mail, compliance filings, trademark and patent help, legal forms, bookkeeping and estate planning.
The company earns money in two ways: one-time transactions, led by formations, and subscriptions that many customers add later. Subscriptions include attorney advice plans, compliance concierge and registered agent service. About 65% of 2025 revenue came from subscriptions, and total revenue rose 10.9% to $756 million. Its legal plans rely on more than 1,000 independent attorneys, whom LegalZoom pays monthly based on the number of enrolled members. Most trademark and patent work goes through its own Arizona law firm. That firm is licensed as an alternative business structure, a setup that lets a company not owned by lawyers offer legal services.
In February 2025 LegalZoom acquired Formation Nation. The deal added the low-cost Inc Authority formation brand and the higher-touch Nevada Corporate Headquarters business. LegalZoom operates in all 50 U.S. states. The main revenue split it discloses is subscriptions versus one-time transactions.
Price history
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LZ -35.8% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $205.3M, up 6.6% from a year earlier, and net income was $5.2M.
- For fiscal 2025, revenue was $756.0M (+10.9% year over year; +9.9% a year from FY2020 to FY2025) with a 2% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +9.9% good |
|---|---|
| Operating margin | 3.3% weak |
| Free cash flow margin | 19.6% good |
| Return on equity (FY2025) | 9% watch |
| Return on assets (FY2025) | 3% watch |
| Cash and investments | $167.2M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $470.6M | $9.9M | $82.5M |
| FY2021 | $575.1M | $-108.7M | $42.4M |
| FY2022 | $620.0M | $-48.7M | $51.7M |
| FY2023 | $660.7M | $14.0M | $92.7M |
| FY2024 | $681.9M | $30.0M | $99.9M |
| FY2025 | $756.0M | $15.4M | $147.9M |
Valuation snapshot
| Market value | $1.13B |
|---|---|
| P/E ratio | 82.6 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
LegalZoom.com’s market value went from $3.17B at the end of 2021 to $1.13B on Oct 28, 2026, down 64%; since the end of 2025 it is down 36%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $1.13B | -35.7% |
| 2025 | $1.76B | +35.6% |
| 2024 | $1.30B | -38.9% |
| 2023 | $2.12B | +42.4% |
| 2022 | $1.49B | -52.9% |
| 2021 | $3.17B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| LZ price data to Oct 28, 2026 | -33.4% | -35.8% | -13.5% | -24.9% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -33.4% |
| 2025 | +32.2% |
| 2024 | -33.5% |
| 2023 | +46.0% |
| 2022 | -51.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 49.2% over that stretch · deepest drop along the way 52%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 1 open-market purchases ($769K) and 8 sales ($3.9M), 6 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 20, 2026 | Noel Bertram Watson Chief Operating Officer & CFO | sell | $2.5M |
| May 11, 2026 | Jeffrey M Stibel Chief Executive Officer, Director | buy | $769K |
| Aug 21, 2026 | Noel Bertram Watson Chief Operating Officer & CFO | sell | $488K |
| Aug 17, 2026 | Nicole Miller CHIEF LEGAL OFFICER | sell (plan) | $242K |
| Aug 18, 2026 | Nicole Miller CHIEF LEGAL OFFICER | sell (plan) | $184K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 10.1% | Feb 28, 2026 |
| Vanguard Portfolio Management | 6.62% | Mar 31, 2026 |
ETFs with the most weight in LZ
| SFLO VictoryShares Small Cap Free Cash Flow ETF | 0.37% |
| AVSC Avantis U.S Small Cap Equity ETF | 0.18% |
| FLQS Franklin U.S. Small Cap Multifactor Index ETF | 0.18% |
| GSSC TR Activebeta US Small Cap Equity ETF | 0.18% |
| VFQY Vanguard U.S. Quality Factor ETF | 0.17% |
| EES WisdomTree U.S. SmallCap Fund | 0.13% |
| CSA VictoryShares US Small Cap Volatility Wtd ETF | 0.11% |
| SMLF iShares U.S. Small‑Cap Equity Factor ETF | 0.11% |
What could go wrong
- Heavy reliance on new business formations. Most transaction revenue comes from business formations, which also bring in future subscribers. When fewer U.S. businesses start up because of a weaker economy, inflation, tariffs, interest rates or tax changes, results have suffered before.
- Subscribers can cancel at any time. About 65% of 2025 revenue came from subscriptions, which customers can end whenever they choose. Subscription growth slowed in 2024, and the company says it cannot accurately predict renewal rates.
- Rules on who may give legal advice. Laws against the unauthorized practice of law generally stop LegalZoom from giving legal advice directly. Its Arizona-licensed law firm may not protect it from such claims and must follow Arizona court rules.
- Crowded field, from law firms to platforms. Online formation and registered agent firms, law firms, solo attorneys, online legal document services and secretaries of state all compete for customers. Large technology platforms could also build rival tools or partner with competitors.
- AI brings compliance and reputation risks. LegalZoom is building AI into its offerings and internal workflows. Mistakes or new rules on AI could create compliance problems or damage trust in a brand the business depends on.
- A history of thin or negative profits. LegalZoom lost money in 2021 and 2022. In 2025, net income fell 48.5% to about $15 million, just 2% of revenue. That leaves little cushion if growth slows.
Recent events
- Quarterly results released; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement; Other company announcement
- Quarterly results released; Investor presentation or announcement
For income and retirement investors
LegalZoom pays no dividend, so holders get no regular income and depend on the share price rising. The company hands cash back through share repurchases (buybacks) instead. It spent about $396 million on them from 2021 through 2025, including $80.5 million in 2025. Free cash flow (cash left after operating and investment spending) was $147.9 million that year. Shares outstanding fell 13.1%, from about 197 million in October 2021 to about 171 million on July 31, 2026, so each remaining share represents a larger slice of the business.
The share price has swung widely. In the 2022 bear market the stock fell 52% from its February 15, 2022 peak to its October 7 low. It had not regained that peak as of October 28, 2026. Its deepest drop in about five years of price history was 80.6%. That history does not reach back to the 2008 crisis or the 2020 crash. Single stocks like LegalZoom carry more risk than diversified funds.
Questions investors ask
How does LegalZoom make money?
Mostly through subscriptions. About 65% of LegalZoom's 2025 revenue came from recurring services such as attorney advice plans, registered agent service, compliance concierge and virtual mail. The rest came from one-time transactions, led by business formations, which are usually a customer's first purchase. LegalZoom then tries to turn those customers into subscribers. Total revenue was $756 million in 2025, up 10.9% from 2024.
Does LegalZoom pay a dividend?
No. LegalZoom does not pay a dividend, so it provides no regular income. Instead it hands cash back through share repurchases (buybacks), spending about $396 million from 2021 through 2025. Shares outstanding fell 13.1%, from about 197 million in October 2021 to about 171 million as of July 31, 2026. For investors who rely on steady cash payments, it is worth comparing with dividend-paying stocks or income funds.
Is LegalZoom profitable?
Yes, but only slightly. LegalZoom's net income was $15.4 million in 2025, down 48.5% from 2024, for a net margin of 2%. It lost money in 2021 and 2022. It generates more cash than its earnings suggest: free cash flow was $147.9 million in 2025, or 19.6% of revenue. Because earnings are thin, the price-to-earnings ratio (share price divided by yearly earnings per share) was a high 82.6 as of October 28, 2026, based on 2025 earnings.
Is LegalZoom still growing?
Yes, at a moderate pace. Revenue rose 10.9% in 2025 to $756 million and grew an average of 9.9% a year over the five years since 2020. Growth was slower in the quarter ended June 30, 2026, when revenue was $205.3 million, up 6.6% from a year earlier. The company also says subscription revenue growth slowed during 2024. It names turning customers into subscribers, and keeping them, as a key risk.
How has LegalZoom stock performed?
Poorly over longer periods, with large swings along the way. As of October 28, 2026, the shares were down 33.4% year to date, down 35.8% over one year and down 76% in total over five years. Calendar-year returns swung back and forth: down 51.8% in 2022, up 46.0% in 2023, down 33.5% in 2024 and up 32.2% in 2025. One-year volatility, a measure of how widely the price moves, was 64.3%.