LegalZoom Reports Mixed Q4 Results with Revenue Beat but Profit Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy LZ?
Source: NASDAQ.COM
- Significant Revenue Growth: LegalZoom reported over $190 million in revenue for Q4 2025, marking an 18% year-over-year increase, with subscription revenue rising 20% to nearly $131 million and transaction revenue up 12% to just over $59 million, indicating strong market performance.
- Profitability Decline: Despite beating revenue expectations, net income fell by 5% to just over $31 million, or $0.17 per share, missing analysts' consensus of $0.18, highlighting pressure on the company's profitability.
- Cautious Future Outlook: LegalZoom forecasts 2026 full-year revenue between $805 million and $825 million, representing a maximum growth of 9%, yet this is lower than the growth rate seen in the last quarter of 2025, suggesting challenges ahead for sustained growth.
- Share Buyback Program Expansion: The company expanded its existing share repurchase program by $100 million, adding to the approximately $70 million from its previous initiative, which may enhance shareholder value in the long run despite the negative market reaction.
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Analyst Views on LZ
Wall Street analysts forecast LZ stock price to rise
7 Analyst Rating
4 Buy
2 Hold
1 Sell
Moderate Buy
Current: 6.950
Low
9.00
Averages
12.42
High
15.00
Current: 6.950
Low
9.00
Averages
12.42
High
15.00
About LZ
LegalZoom.com, Inc. provides an online platform for legal services, transforming how individuals and small businesses navigate the legal system. The Company offers the tools and guidance people need to confidently manage everything from business formation and compliance to estate planning and ongoing legal support. Its platform includes professional expertise and other products, both legal and non-legal, to meet the needs of small businesses. Its offerings include ongoing compliance, business licenses, accounting, virtual mailbox and e-signature solutions, trademark filings, and estate plans. Its transaction products for small businesses include business formation and intellectual property. Its transaction products for consumers include consumer, estate planning and other. Its compliance subscriptions provide assistance with state-mandated regulatory filings, such as corporate annual reports. The Company operates across 50 states and in over 3,000 counties in the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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