AI Earnings Predictions for LegalZoom.com Inc. (LZ)

EX-99.1

2 lz-q22026earningsxexx991.htm

EX-99.1

Document

Exhibit 99.1

LegalZoom Reports Second Quarter 2026 Financial Results

•Revenue of $205.3 million, up 7% year-over-year, driven by subscription revenue increasing 11% year-over-year, representing LegalZoom’s fifth consecutive quarter of double digit subscription revenue growth

•Subscription revenue of $133.4 million up 11% year-over-year from strength in human-in-the-loop offerings and pricing initiatives

•Net income of $5.2 million and net income margin of 3%; with net income margin increasing approximately 260 basis points year-over-year

•Adjusted EBITDA of $45.9 million and Adjusted EBITDA margin of 22%, ahead of the high end of our guidance range; with Adjusted EBITDA margin increasing approximately 220 basis points year-over-year

•Commitment to shareholder returns; completed $45.5 million of share repurchases in the quarter, with approximately $80.4 million remaining under the existing authorization

•Ended the quarter with cash and cash equivalents of $167.2 million and delivered $39.5 million in cash from operating activities and $33.7 million in free cash flow with no debt outstanding as of June 30, 2026

•Updating full-year 2026 revenue outlook to $795.0–$805.0 million and Adjusted EBITDA to $190.0–$195.0 million, reflecting the recent industry-wide shift in customer discovery away from traditional search, while maintaining strong margin discipline

MOUNTAIN VIEW, California – August 5, 2026 – LegalZoom (Nasdaq: LZ), America’s #1 online legal services company, today announced results for its second quarter ended June 30, 2026.

"Since late 2024, we've deliberately repositioned LegalZoom around subscription relationships that pair AI with trusted human expertise," said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. "That strategy is working. While demand for what we do is intact, discovery is moving. We have been actively building new customer acquisition channels for more than a year, and our outlook fully reflects today's environment, with no recovery in traditional search assumed. In the AI channels where discovery is heading, every visit is incremental. We've partnered with the leading AI companies, we have more brand references across AI platforms than any competitor, and we haven't assumed how quickly this scales. That's the upside we're positioned to capture."

"We're updating our revenue expectations based on recent changes in the customer acquisition environment, while our profitability outlook reflects the discipline of our operating model," said Noel Watson, Chief Operating Officer and Chief Financial Officer. "We continue to improve operating efficiency, expand margins and generate strong cash flow while investing behind the initiatives that support our long-term growth strategy."

Second Quarter 2026 Highlights

•Revenue was $205.3 million for the quarter, up 7% year-over-year.

◦Transaction revenue of $71.9 million decreased 1% year-over-year.

◦Subscription revenue of $133.4 million grew 11% year-over-year.

•Net income was $5.2 million for the quarter, or 3% of revenue, compared to a net loss of $0.3 million, or less than 1% of revenue, in the same period in 2025.

•Adjusted EBITDA was $45.9 million for the quarter, or 22% of revenue, compared to $39.0 million, or 20% of revenue, in the same period in 2025.

•Non-GAAP net income was $27.4 million for the quarter compared to $28.3 million in the same period in 2025.

•Cash and cash equivalents were $167.2 million as of June 30, 2026 compared to $203.1 million as of December 31, 2025.

•Cash flows provided by operating activities were $39.5 million for the quarter ended June 30, 2026 compared to $39.1 million in the same period in 2025.

•Free cash flow was $33.7 million for the quarter ended June 30, 2026 compared to $31.6 million in the same period in 2025.

•Basic and diluted net income per share was $0.03 for the quarter compared to a basic and diluted net loss per share of $— for the same period in 2025. Basic and diluted Non-GAAP net income per share was $0.16 for the quarter compared to basic and diluted Non-GAAP net income per share of $0.16 and $0.15, respectively, for the same period in 2025.

Key Business Metrics and Non-GAAP Financial Measures

(Unaudited, in thousands except AOV, ARPU and percentages)

Three Months Ended June 30,% GrowthSix Months Ended June 30,% Growth

(Decline)(Decline)

20262025YOY20262025YOY

Total revenue$205,289 $192,509 7 %$412,070 $375,619 10 %

Transaction revenue$71,890 $72,611 (1)%$148,513 $139,464 6 %

Subscription revenue$133,399 $119,898 11 %$263,557 $236,155 12 %

Gross profit$139,930 $125,111 12 %$272,183 $241,661 13 %

Gross margin68 %65 %5 %66 %64 %3 %

Net Income (loss)$5,183 $(266)n/m$6,287 $4,861 29 %

Net income (loss) margin3 %— %n/m2 %1 %100 %

Net Income (loss) per share — basic:$0.03 $— n/m$0.04 $0.03 33 %

Net Income (loss) per share — diluted:$0.03 $— n/m$0.04 $0.03 33 %

Net cash provided by operati

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lz-20260219FALSE0001286139954 Villa StreetMountain ViewCalifornia00012861392026-02-192026-02-19

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 19, 2026

LegalZoom.com, Inc. (Exact name of Registrant as Specified in Its Charter)

Delaware001-3561895-4752856 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)

954 Villa Street, Mountain View, California 94041 (Address of Principal Executive Offices)(Zip Code)

Registrant’s Telephone Number, Including Area Code: (323) 962-8600 Not Applicable (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class  Trading Symbol(s) Name of each exchange on which registered

Common Stock, par value $0.001 per shareLZThe Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition. On February 19, 2026, LegalZoom.com, Inc. (“LegalZoom”) issued a press release announcing its results of operations for the year ended December 31, 2025. A copy of that press release is furnished as Exhibit 99.1 to this report. The information furnished pursuant to Item 2.02 of this report, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless LegalZoom specifically states that the information is to be considered “filed” under the Exchange Act or incorporates it by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act. Item 7.01 Regulation FD Disclosure. Also on February 19, 2026, LegalZoom updated its investor presentation and supplemental financial report, which contain financial results and related information regarding LegalZoom. The investor presentation and supplemental financial report are available on LegalZoom’s Investor Relations website at https://investors.legalzoom.com.

Item 8.01 Other Events.

Also on February 19, 2026, LegalZoom announced that its Board of Directors approved a $100.0 million increase in LegalZoom’s stock repurchase program. Repurchases pursuant to LegalZoom’s stock repurchase program may be made from time to time, based on market conditions, legal requirements and other corporate considerations, through any manner, including open market transactions, accelerated stock repurchase agreements, or privately negotiated transactions with third parties, and in such amounts as management deems appropriate. LegalZoom may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares of common stock. The stock repurchase program, which has no fixed expiration date, does not obligate LegalZoom to acquire any particular amount of common stock and may be modified, suspended or terminated at any time at the discretion of LegalZoom’s Board of Directors.

Item 9.01 Financial Statements and Exhibits. (d) Exhibits.

Exhibit Number Description 99.1 Earnings Press Release of LegalZoom.com, Inc. dated February 19, 2026.

104Cover Page Interactive Data File (embedded within the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

LegalZoom.com, Inc.

Date: February 19, 2026 By:/s/ Noel Watson Noel Watson Chief Financial Officer

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