LZ
LegalZoom.com, Inc.

LegalZoom.com, Inc.LZ

Industrials · Specialty Business Services
5.60USD
-2.27%
Oct 05, 2026
LZ overview ready
AI-Mediated High-Intent Legal Service Discovery Through Digital Acquisition and Subscription
LegalZoom is a digitally acquired legal-services platform whose business-formation, compliance, intellectual-property, attorney-assisted, and estate-planning offerings depend materially on reaching consumers and small businesses at moments of high legal intent.
Narrative is still early
Exposed to the AI-Mediated Digital Discovery narrative through AI-Mediated High-Intent Service Discovery.
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Competition from traditional law firms and other online legal service providers.
Market Oct 2Filing Jun 30Price action Oct 4Research Aug 21

Conviction Level

NarrativeHeat6.3ThemeHeat5.6PriceAction3.4Valuation6.9CompanyPosition7.3
Price
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Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$959.1M
Avg Volume (60D)
3.0M
60 sessions
Revenue Growth YoY
+10.9%
FY2025 vs FY2024
Gross Margin
+66.7%
Trailing twelve months
Operating Margin
+4.1%
Trailing twelve months
Free Cash Flow Yield
+15.6%
Distance from 200DMA
-19.1%
Next Earnings
2026-11-04
P/E
56.9x
Market metrics as of Oct 2, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

Both valuation perspectives agree this company is cheap.
LegalZoom.com, Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces. It trades at a 15.6% free-cash-flow yield, which the underlying economics comfortably support.

Company Research

Thesis
LegalZoom is a digitally acquired legal-services platform whose business-formation, compliance, intellectual-property, attorney-assisted, and estate-planning offerings depend materially on reaching consumers and small businesses at moments of high legal intent.
Opportunity
Limited opportunity
The migration of consumer and small-business research from conventional search results toward AI answer engines, conversational interfaces, and agent-assisted recommendations, changing customer acquisition economics for digital platforms selling high-intent services.
Key risk
Competition from traditional law firms and other online legal service providers.

Narrative & Theme

AI-Mediated Digital Discovery
Part of AI-Mediated High-Intent Service Discovery, with limited fit.
LZ has a real exposure to the emerging shift in online discovery toward AI interfaces: management explicitly cited an industry-wide move away from traditional search in its August 5, 2026 results and reduced its 2026 outlook accordingly, while describing AI-channel visits as incremental.
Narrative HeatNeutral6.3 / 10
Theme HeatNeutral5.6 / 10
This is the company’s own research reading. The canonical heat measurement for this story has not run.

Business & Markets

Industrials · Specialty Business Services
What they do

LegalZoom.com, Inc. operates an online platform providing legal, compliance, and business management services primarily for small businesses and consumers in the U.S.

How it earns

The company generates revenue mainly through transactional fees and subscriptions for its legal and business services.

Products & services
Business formation services
Intellectual property filings
Customers & end markets
Small businesses
Individual consumers
Market position

LegalZoom is a leader in the online legal services market for small businesses and consumers.

Demand drivers
Low cyclicality

Demand for legal and compliance services tends to be stable and less sensitive to economic cycles.