LegalZoom.com, Inc. (LZ) Earnings
LegalZoom.com, Inc. is expected to report next earnings on August 6, 2026 (in NaN days), with a consensus EPS estimate of $0.15. LZ has beaten EPS estimates in 5 of its last 12 reported quarters (average surprise -7.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.13 | $0.12 | -7.7% | $207M | +2.3% |
| Feb 19, 2026 | $0.18 | $0.17 | -5.6% | $190M | -4.8% |
| Nov 5, 2025 | $0.20 | $0.17 | -15.0% | $190M | +2.9% |
| Aug 7, 2025 | $0.15 | $0.15 | +0.0% | $193M | +5.8% |
| Feb 26, 2025 | $0.16 | $0.19 | +18.8% | $162M | +0.6% |
| Feb 22, 2024 | $0.10 | $0.13 | +30.0% | $159M | +1.4% |
| Feb 23, 2023 | $0.08 | $0.10 | +25.0% | $147M | +0.5% |
| Nov 10, 2022 | $0.05 | $0.05 | +0.0% | $154M | +3.0% |
| Aug 11, 2022 | $0.01 | $0.05 | +265.0% | $164M | +1.6% |
| May 12, 2022 | $-0.02 | $-0.05 | -126.2% | $154M | +2.4% |
| Mar 10, 2022 | $0.01 | $0.02 | +281.7% | $142M | -1.1% |
| Nov 10, 2021 | $0.03 | $0.01 | -69.5% | $148M | -9.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
LegalZoom is a more focused and differentiated company building a subscription-led, AI-enabled platform for small businesses. Focused on three core growth levers: driving high quality subscription growth through premium human in the loop offerings, scaling customer acquisition through partnerships and AI channels, and leveraging AI to enhance the customer experience and drive efficiency. Saw fourth consecutive quarter of double digit subscription growth led by human-in-the-loop offerings. Expert-led offerings revenue grew more than two times faster than overall business. Concierge suite at over three times average ARPU. Extended strategy through curated high-value formation and concierge bundles. Diversified go-to-market model with expanded partner portfolio, including partnerships with LinkedIn, Chase, and GoDaddy. Front-loaded marketing investment led to increased unaided brand awareness and direct traffic. Embedded into AI ecosystems with integrations like LegalZoom Connector for Claude and LegalZoom Chat GPT Formations app. Embedding AI across workflows to increase speed, improve quality, and drive efficiency, with tangible impact on experts, sales, and customer care.
Guidance
For the full year, revenue outlook increased to $810 to $830 million, approximately 8% growth at midpoint. Adjusted EBITDA expected in range of $190 to $200 million, approximately 13% growth at midpoint. Second quarter revenue expected in range of $203 to $207 million, approximately 6% growth at midpoint. Adjusted EBITDA expected in range of $40 to $42 million. Adjusted EBITDA expected to build throughout the year from improved gross margin, disciplined cost management, and AI-driven efficiencies in the back half.
Segment performance
Total revenue was $207 million, up 13% year over year. Subscription revenue increased 12% to $130 million, marking the fourth consecutive quarter of double-digit growth, led by human-in-the-loop services. Revenue across expert-led offerings grew more than two times faster than the overall business year over year, with the concierge suite at over three times average ARPU. Transaction revenue was $77 million, up 15%, driven by higher annual report filing activity, strength in trademark and IP offerings, and a full quarter of contribution from Formation Nation. ARPU increased 4% year over year. Gross margin was 67%, flat year over year. Sales and marketing costs were $72 million, or 35% of revenue, up 29%. Technology and development costs were $14 million, down 6%. General and administrative expenses were $15 million, up 2%. Adjusted EBITDA was $36 million, a margin of 18%.
Analyst Q&A
Q: How are you seeing the customer acquisition funnel change with AI partnerships and what kind of conversion are you seeing from that kind of customer?
A: Excited about AI, launched products into ChatGPT and Claude, embedding into what they're doing, driving throughput and incremental formation volume from higher value customers.
Q: How do you see ARPU contributing to growth in 2026?
A: Two sequential quarters of ARPU growth, driven by pricing initiatives and shift in customer mix towards higher value human in the loop offerings, seen as sustainable driver.
Q: Confirm if cloud open AI and perplexity partnerships are driving material traffic?
A: Too early for material impact, but strategically positioned.
Q: Evaluate ROI on CAM and spending plans?
A: Spent up in Q1, expect spend up rest of year, measure by ROAS, unaided brand awareness.
Q: Utilizing AI internally to grow number of SMBs managed per expert?
A: Tremendous progress in all areas, seen in reduced trademark search time, increased patent drafting efficiency, AI handling chat volume.
Q: Roadmap for concierge suite and partnership growth?
A: Concierge is successful, will leverage to grow other products, partnership channel has more opportunity.
Q: Size up concierge suite contribution and lead gen sources, formation nation sales rep productivity?
A: Concierge contribution not disclosed yet, using base leads, investing in sales across brands with ROI in mind