LegalZoom.com, Inc. (LZ) Stock

LegalZoom.com, Inc. (LZ) is a Technology stock trading at $5.86 (as of 2026-08-20), with a market capitalization of $1.00B and a trailing P/E of 84.3. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

LegalZoom.com, Inc. operates an online platform in the United States that provides legal and compliance solutions for individuals and small businesses, including business formation, estate planning document creation, and intellectual property protection. The platform also helps customers complete certain forms and agreements and provides access to related expert services such as tax preparation and bookkeeping.

Understand LegalZoom.com, Inc.: how it makes money

LegalZoom.com provides an online platform for legal and compliance solutions in the United States, including business formations, estate planning documents, intellectual property protection, and access to independent attorney advice, and it makes money from recurring subscriptions and per-transaction fees.

The profit model is driven by recurring subscription revenue from outstanding subscription units, supported by per-transaction completed services, so the direction of results is closely tied to subscription unit growth and retention, plus transaction volume and pricing.

Revenue by segment (latest quarter)
Subscr.	$0.1B
Transact.	$0.1B
Partner	$0.0B

Business quality (Mixed): Strong gross margin (64.0%) alongside a low operating margin (1.3%) suggests the business has meaningful revenue economics, but profitability is likely sensitive to cost levels and operating leverage.

Valuation: Trades at 92× trailing earnings · $1B market cap.

Bull case

Recurring revenue base: Subscription Revenue is 0.13 USD_B, which comes alongside Transaction Revenue of 0.06 USD_B and Partner Revenue of 0.01 USD_B.
Subscription growth: Net New Subscription Units Added was 200000 (count).
Customer staying power and engagement signals: Aggregated Retention Rate was 59%, and the Net Promoter Score for Expert Interactions was 87 (ratio), with DocAssist Beta Click-Through Rate to Attorney Offering at 40%.

Bear case

Transaction pricing pressure: Transaction Average Order Value Year over Year Decline was 26% (percent).
Macro or category headwind: U.S. Census Formations Decline was -2.0% (percent), and Business Formations Processed was 142000 (count).
Thin operating profitability: Operating margin was 1.3%, so results may be sensitive to cost changes even with a 64.0% gross margin.

Valuation — source: SEC EDGAR (first-party)
Price	$5.86
Market Cap	$1.00B
P/E Ratio	84.3
EV / EBITDA	36.9
Price / Book	7.89
Price / Sales	1.24
FCF Yield	27.6%
DCF Value (model)	$13.59
DCF Upside vs Price	131.9%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$756.04M
Net Margin	2.0%
Revenue Growth (YoY)	10.9%
EPS Growth (YoY)	-47.1%
FCF Growth (YoY)	48.0%

Financial Health — source: SEC EDGAR
Altman Z-Score	0.14 (distress)

Valuation vs Sector & Industry
Stock P/E	84.3
Sector P/E (Technology)	33.9
Industry P/E (Business Services)	30.0
vs Sector	148.6%
vs Industry	181.6%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($182.17M)
Institutional Holders Tracked	10
Congressional Trades (recent)	1

Company
Sector	Technology
Industry	Business Services
CEO	Jeffrey Stibel
Employees	964
Country	US
IPO Date	2021-06-30

Related Companies (Business model: SaaS / Subscription Software (Enterprise); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.