LegalZoom beats Q1 revenue estimates on subscription growth, lifts FY revenue forecast

LegalZoom.com

06/05/2026 21:11

Overview

US online legal services firm's Q1 revenue rose 13%, beating analyst expectations

Q1 adjusted net income missed analyst estimates; adjusted EBITDA slightly beat consensus

Company completed $43.5 mln in share repurchases during the quarter

Outlook

LegalZoom raises full-year revenue outlook to $810 mln-$830 mln, 8% growth at midpoint

Company maintains full-year adjusted EBITDA forecast at $190 mln-$200 mln, 13% growth at midpoint

LegalZoom expects Q2 revenue of $203 mln-$207 mln, 6% growth at midpoint

Result Drivers

HIGHER-VALUE SUBSCRIPTIONS - Growth in higher-value subscriptions and differentiated human-in-the-loop service offerings drove revenue and subscription growth, per COO/CFO Noel Watson

COMPLIANCE PRODUCT ENHANCEMENTS - Increased seasonal strength in annual report filings from enhanced compliance offerings contributed to revenue growth, according to COO/CFO Noel Watson

TRANSACTION REVENUE GROWTH - Transaction revenue rose 15% year-over-year, reflecting increased business formations and higher average order value

Company press release: ID:nGNX9dXxkt

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$206.78 mln
$202.16 mln (9 Analysts)
Q1 EPS
$0.01
Q1 Adjusted Net Income
Miss
$22.07 mln
$24.66 mln (8 Analysts)
Q1 Adjusted EBITDA
Slight Beat*
$36.46 mln
$36.19 mln (9 Analysts)
Q1 Free Cash Flow
$41 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for LegalZoom.com Inc is $8.25, about 23% above its May 5 closing price of $6.71

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)