Lumida
/LZ
⌘K
LegalZoom.com Inc

LegalZoom.com Inc

LZ
$7.72USD↓-2.03%-0.16 today

MARKET CAP

1.3B

P/E (TTM)

12.7x

FWD P/E

9.0x

DAY RANGE

$8 – $8

52W RANGE

$5
$12

AI Summary

Stalk
StalkMedium

LZ remains in a Stage 2 advancing regime following a momentum breakout with rising EMAs, confirming bullish medium-term structure. However, price is extended above EMAs into extreme overbought territory and pressing against the declining 200-day SMA. Execution should be deferred—stalking for a pullback or consolidation near EMAs or prior support zones before engaging in line with the Free Cash Flow + Buybacks strategy.

  • ↑Q1 total revenue hit $207M, up 13% YoY.
  • ↑Subscription revenue increased 12% to $130M with 142K business formations.
  • ↓Retention rates dropped to 59%, foreshadowing slower unit growth.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

LegalZoom.com, Inc. (NASDAQ:LZ) operates as a leading online notary, providing crucial legal and compliance solutions primarily to small businesses and individuals. The company is strategically positioned within the legal technology sector, leveraging subscription models supported by artificial intelligence and human expertise. Its focus on transforming the legal services paradigm through innovative offerings like concierge services and compliance products highlights its role within the rising demand for accessible, tech-enabled legal solutions.

Bull says

  • ↑Q1 total revenue hit $207M, up 13% YoY.
  • ↑Subscription revenue increased 12% to $130M with 142K business formations.
  • ↑Raised FY guide to $810–830M revenue (+8%) and adj. EBITDA of $190–200M.
  • ↑Strong cash position of $210M; repurchased $43M of stock.
  • ↑AI partnerships with OpenAI and Perplexity boost service quality.
  • ↑Favorable factor profile: high earnings yield, robust growth, low leverage.

Bear says

  • ↓Retention rates dropped to 59%, foreshadowing slower unit growth.
  • ↓Sales & marketing costs spiked to $72M (+29% YoY), compressing margins.
  • ↓Formation Nation acquisition may pose integration and efficiency risks.
  • ↓Competitive legal-tech landscape threatens market share expansion.
  • ↓AI integrations remain immaterial, execution and conversion risks high.
  • ↓Factor flags: weak profitability, high volatility, negative size & QS.

Investment themes with LZ

Others↑ +0.32%

Miscellaneous or uncategorized companies

ATAI · SVIX · SVXY

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-08-2026bullish

Transcript signals

Bull points

  • Total revenue growth of 13% year over year and adjusted EBITDA of over $36 million, both exceeded our expectations.
  • We are seeing clear traction across each of these areas. Q1 marked our fourth consecutive quarter of double digit subscription growth, led by strong momentum in our human in the loop offerings.
  • In Q1, revenue across our expert-led offerings grew more than two times faster than our overall business year over year and continues to accelerate.
Read full transcript analysis ›