LegalZoom.com, Inc. (LZ)

NASDAQIndustrialsSoftware - ApplicationSnapshot 2026-10-23

$6.99-1.83%

Close 2026-10-23 · 1-day change

Investment OutlookAs of Oct 24, 2026

What could strengthen or challenge LegalZoom.com, Inc.’s outlook?

The long-term thesis, the evidence coming in, and the environment around it. Thesis dated Jul 8, 2026.

Higher potential upsideImproving expectations

Next-FY EPS estimate change · 30 days

0.0%

+10% or more+5%0%−5%−10% or less

0.83 → 0.83 EPS · FY ending Dec 31, 2027 · 6 analysts

Higher risk of downsideWeakening expectations

One observable signal. This measures changing earnings expectations, not the probability of a gain or loss.

How this is measured

Change in the same fiscal period’s mean EPS estimate from Sep 24, 2026 to Oct 24, 2026: (new ÷ prior − 1). Contributor count changed from 6 to 6; this is not the number of analysts revising. Source: FMP consensus snapshots. The ±10% axis is a display range.

Measure / period	Management expectations	Analyst expectations
FY 2026 · Q4
Revenue	—	194.23M
EPS	—	0.247
FY 2026 · Annual
Revenue	$795M–$805M	800.13M
EPS	—	0.728
FY 2027 · Annual
Revenue	—	836.53M
EPS	—	0.826

What the Thesis Depends On

Three published thesis conditions, with dated milestones shown separately.

Key Factor	Why It Matters	Current Status	Break Condition	Latest Evidence
Cash from operations improves or holds steady near $195M annually	Cash flow is solid near $195 million annually.	Broken	Annualized cash from operations falls below $180 million in FY26	Direct metric needs a verified mapping The published measure or accounting basis is not supported by an exact source binding. Source date unavailableLast status assessment Oct 24, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.
Operating income stabilizes or improves from recent lows	A supporting condition in LegalZoom.com, Inc.'s published investment case. The stated target is Operating income >= $5 million quarterly.	Intact	Operating income remains below $5 million per quarter over next 4 quarters	Operating income: $10.65M FY2026-Q2; GAAP. Published target: Operating income >= $5 million quarterly. Target period is not explicitly aligned with this observation. Source published Aug 5, 202610,650,000 USD · source valueSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 30, 2026 Source: company_financial_results. Reference: 54de7268-821b-4643-bdb0-393410fa3102. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.
Revenue growth at or above 8% annually	A primary condition in LegalZoom.com, Inc.'s published investment case. The stated target is >=8% YoY.	Broken	YoY revenue growth falls below 8% in FY26	Revenue growth: 6.64% FY2026-Q2; GAAP. Published target: >=8% YoY. Target period is not explicitly aligned with this observation. Source published Aug 5, 20266.638651 percent · calculatedSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 30, 2026 Source: company_financial_results. Reference: 54de7268-821b-4643-bdb0-393410fa3102. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 4 of last 4 quarters. Revenue grew from $190.3 million in 2025-Q4 to $205.3 million in 2026-Q2, a 7.8% increase, with subscription revenue up 11% year-over-year in 2026-Q2. Management's focus on subscription growth and AI-driven customer acquisition channels is delivering consistent revenue growth. Delivery assessment Oct 24, 2026

Stored thesis · Jul 8, 2026. Latest Evidence uses source-matched measurements where available, alongside the last thesis-monitor assessment. Source periods and assessment dates are shown separately. A new measurement does not automatically change the published status or verify an older target.

Incoming Evidence

Compare these dated observations with the operating requirements above

Expectations trend

Same fiscal period

FY2027 · fiscal year ending 2027-12-31 · fmp

FY2027 EPS$0.83

$0.84 → $0.83 · observed estimates

FY2027 revenue$0.84B

$0.88B → $0.84B · observed estimates

Exact estimates & source dates

One fiscal period and provider throughout. At least five contributors are required for each plotted metric; missing coverage stays a gap. Axes show the observed range. Counts measure coverage, not revisions.

FY2027 estimate observations · fmp
Snapshot	EPS	Revenue	EPS / revenue analysts
2026-07-24	$0.84	$876,360,639	6 / 7
2026-07-25	$0.84	$876,360,639	6 / 7
2026-07-26	$0.82	$876,360,640	8 / 9
2026-07-27	$0.84	$876,360,639	6 / 7
2026-07-28	$0.82	$876,360,640	8 / 9
2026-07-29	$0.82	$876,360,640	8 / 9
2026-07-30	$0.82	$876,360,640	8 / 9
2026-07-31	$0.82	$876,360,640	8 / 9
2026-08-01	$0.84	$876,360,639	6 / 7
2026-08-02	$0.81	$876,129,120	7 / 8
2026-08-03	$0.81	$876,129,120	7 / 8
2026-08-04	$0.81	$876,129,120	7 / 8
2026-08-05	$0.84	$876,360,639	6 / 7
2026-08-06	$0.84	$876,360,639	6 / 7
2026-08-07	$0.84	$848,985,211	5 / 6
2026-08-08	$0.80	$850,368,710	7 / 7
2026-08-09	$0.80	$850,368,710	7 / 7
2026-08-10	$0.84	$848,985,211	5 / 6
2026-08-12	$0.81	$843,948,620	7 / 8
2026-08-13	$0.81	$843,948,620	7 / 8
2026-08-14	$0.84	$848,985,211	5 / 6
2026-08-15	$0.84	$848,985,211	5 / 6
2026-08-16	$0.84	$848,985,211	5 / 6
2026-08-17	$0.84	$848,985,211	5 / 6
2026-08-18	$0.84	$848,985,211	5 / 6
2026-08-19	$0.84	$848,985,211	5 / 6
2026-08-20	$0.83	$836,531,762	6 / 6
2026-08-21	$0.83	$836,531,762	6 / 6
2026-08-22	$0.83	$836,531,762	6 / 6
2026-08-23	$0.83	$836,531,762	6 / 6
2026-08-24	$0.83	$836,531,762	6 / 6
2026-08-25	$0.83	$836,531,762	6 / 6
2026-08-26	$0.83	$836,531,762	6 / 6
2026-08-27	$0.83	$836,531,762	6 / 6
2026-08-28	$0.83	$836,531,762	6 / 6
2026-08-29	$0.83	$836,531,762	6 / 6
2026-08-30	$0.83	$836,531,762	6 / 6
2026-08-31	$0.83	$836,531,762	6 / 6
2026-09-01	$0.83	$836,531,762	6 / 6
2026-09-02	$0.83	$836,531,762	6 / 6
2026-09-03	$0.83	$836,531,762	6 / 6
2026-09-04	$0.83	$836,531,762	6 / 6
2026-09-05	$0.83	$836,531,762	6 / 6
2026-09-06	$0.83	$836,531,762	6 / 6
2026-09-07	$0.83	$836,531,762	6 / 6
2026-09-08	$0.83	$836,531,762	6 / 6
2026-09-09	$0.83	$836,531,762	6 / 6
2026-09-10	$0.83	$836,531,762	6 / 6
2026-09-11	$0.83	$836,531,762	6 / 6
2026-09-12	$0.83	$836,531,762	6 / 6
2026-09-13	$0.83	$836,531,762	6 / 6
2026-09-14	$0.83	$836,531,762	6 / 6
2026-09-15	$0.83	$836,531,762	6 / 6
2026-09-16	$0.83	$836,531,762	6 / 6
2026-09-17	$0.83	$836,531,762	6 / 6
2026-09-18	$0.83	$836,531,762	6 / 6
2026-09-19	$0.83	$836,531,762	6 / 6
2026-09-20	$0.83	$836,531,762	6 / 6
2026-09-21	$0.83	$836,531,762	6 / 6
2026-09-22	$0.83	$836,531,762	6 / 6
2026-09-23	$0.83	$836,531,762	6 / 6
2026-09-24	$0.83	$836,531,762	6 / 6
2026-09-25	$0.83	$836,531,762	6 / 6
2026-09-26	$0.83	$836,531,762	6 / 6
2026-09-27	$0.83	$836,531,762	6 / 6
2026-09-28	$0.83	$836,531,762	6 / 6
2026-09-29	$0.83	$836,531,762	6 / 6
2026-09-30	$0.83	$836,531,762	6 / 6
2026-10-01	$0.83	$836,531,762	6 / 6
2026-10-02	$0.83	$836,531,762	6 / 6
2026-10-03	$0.83	$836,531,762	6 / 6
2026-10-04	$0.83	$836,531,762	6 / 6
2026-10-05	$0.83	$836,531,762	6 / 6
2026-10-06	$0.83	$836,531,762	6 / 6
2026-10-07	$0.83	$836,531,762	6 / 6
2026-10-08	$0.83	$836,531,762	6 / 6
2026-10-09	$0.83	$836,531,762	6 / 6
2026-10-10	$0.83	$836,531,762	6 / 6
2026-10-11	$0.83	$836,531,762	6 / 6
2026-10-12	$0.83	$836,531,762	6 / 6
2026-10-13	$0.83	$836,531,762	6 / 6
2026-10-14	$0.83	$836,531,762	6 / 6
2026-10-15	$0.83	$836,531,762	6 / 6
2026-10-16	$0.83	$836,531,762	6 / 6
2026-10-17	$0.83	$836,531,762	6 / 6
2026-10-18	$0.83	$836,531,762	6 / 6
2026-10-19	$0.83	$836,531,762	6 / 6
2026-10-20	$0.83	$836,531,762	6 / 6
2026-10-21	$0.83	$836,531,762	6 / 6
2026-10-22	$0.83	$836,531,762	6 / 6
2026-10-23	$0.83	$836,531,762	6 / 6
2026-10-24	$0.83	$836,531,762	6 / 6

Revenue and EPS estimates track expectations. They are not delivered results or like-for-like proof of a required annual path.

Compare required revenue and earnings

Analyst view

Monthly observations

Buy / Strong BuyHoldSell / Strong Sell

Exact monthly counts

Monthly rating snapshots · fmp. Missing snapshots are not zero.
Date	Buy*	Hold	Sell*
2026-05-01	4	4	2
2026-06-01	4	4	1
2026-07-01	4	4	1
2026-08-01	4	6	0
2026-09-01	2	6	0
2026-10-01	2	6	0

*Buy includes Strong Buy; Sell includes Strong Sell. Monthly counts describe the analyst mix, not the firms behind each recent action.

Latest: 2 Buy / Strong Buy · 6 Hold · 0 Sell / Strong Sell

0 upgrades0 downgrades0 maintains

Recent actions · Sep 25–Oct 24 · 0 recorded

Price-target changes

30 days

Individual price-target observations are unavailable.

0 raises · 0 cuts · 0 unchanged · 0 without a comparable prior

How this is measured

Sep 25, 2026–Oct 24, 2026. Each firm's latest positive target is paired only with its immediately prior positive target from the same provider, at most 180 days earlier. Unmatched observations have one dot; conflicting observations are not compared.

Outlook in Brief

The evidence, the remaining questions, and what comes next

What's improving

No recovery evidence is reported in the available driver assessments.

Still unresolved / key risks

Cash from operations improves or holds steady near $195M annuallyPublished status: Broken
Operating income stabilizes or improves from recent lowsOperating income: $10.65M
Revenue growth at or above 8% annuallyPublished status: Broken

Next proof point

Nov 4, 2026

Look for updated results and guidance against the published targets, plus direct evidence for unresolved drivers.

Review earnings

Bottom line

3 of 3 published conditions remain under pressure or need verification. The next results need to address those conditions.

The dated weekly assessment and its assumptions are available in Read detailed Outlook.

Historical risk context

Observed price history; separate from operating scenarios

Price sensitivity

2.2%Typical daily move · historical

Downside history

-50.3%Maximum drawdown · trailing year

Read detailed Outlook Company context, assumptions & risks

LegalZoom.com, Inc. outlook in detail

The weekly editorial context below is a separate assessment from the dated monitor evidence above. Recovery observations do not automatically change the published thesis. Unverified outside influences are hypotheses, not measured driver evidence.

Updated Oct 24, 2026

What kind of bet this is

LZ is a growth-and-efficiency story, with robust earnings quality and stable management. The long-term thesis is intact, but confidence has eased from high to medium and near-term execution risk is elevated.

What's priced into LegalZoom.com, Inc.

Valuation signals are mixed: LZ is described as cheap versus peers, while the overall value assessment is expensive and its premium versus peers is high. The expectations gap is negative, suggesting expectations may be demanding; the priced-in assessment is tagged as justified, with low fragility.

What the fundamentals likely do

Over the multi-year view, revenue growth and margin progress have support from management’s consistent priorities: subscription revenue grew 11% year over year in 2026-Q2, and adjusted EBITDA margin reached 22%. Near term, consecutive earnings misses and recent peer misses raise risk, even though the August 2026 update was in line; the sector backdrop is also a headwind.

What LegalZoom.com, Inc. hinges on

A favorable shift would require guidance to recover after the prior lowering, alongside continued subscription growth and cost discipline. The sector backdrop could improve if UBER, ADP, and PAYC keep beating and raising guidance, or worsen if they begin missing or guiding lower.