LegalZoom.com (NASDAQ:LZ) Reaches New 12-Month Low After Analyst Downgrade
LegalZoom.com (NASDAQ:LZ) stock hit a new 52-week low after UBS Group downgraded its price target from $12 to $8, moving its rating to Neutral. Despite beating revenue estimates with $190.3M and strong cash flow, the company missed EPS by $0.01. Several analysts have adjusted their ratings, resulting in a consensus "Hold" with an average price target of $10.42.
AI Advancements Drop LegalZoom Stock Amid Tech Disruption
LegalZoom.com Inc. (NASDAQ: LZ) stock has declined by 9.57% due to the disruptive impact of AI advancements on traditional legal tools and research databases, pushing companies like LegalZoom into financial challenges. Despite current profitability pressures and a share price drop, the company's financial overview shows robust assets and positive operating cash flows, suggesting potential for adaptation within the evolving tech landscape. The article highlights the critical need for LegalZoom to strategically navigate AI integration for its future survival and market position.
LegalZoom.com (NASDAQ:LZ) Trading Down 5.8% Following Weak Earnings
LegalZoom.com's shares (NASDAQ:LZ) dropped 5.8% after the company reported Q4 EPS of $0.17, missing the consensus by $0.01, despite revenue beating estimates at $190.27 million. The company's board authorized a $100 million share buyback, suggesting management believes the stock is undervalued, while analysts have issued mixed ratings and price targets. Key risks include maintaining margin and earnings leverage, though revenue and cash flow metrics showed strength.
UBS Adjusts LegalZoom.com Price Target to $8 From $12, Maintains Neutral Rating
UBS has revised its price target for LegalZoom.com (LZ) to $8, down from the previous $12, while reaffirming a Neutral rating on the stock. This adjustment comes amidst other recent analyst actions, including Morgan Stanley cutting its price target to $6.50 with an Underweight rating. The article also notes LegalZoom's recent Q4 2025 earnings report, which showed a rise in revenue and provided Q1 2026 guidance.
LegalZoom.com, Inc. (NASDAQ:LZ) Q4 2025 Earnings Call Transcript
LegalZoom.com, Inc. reported its Q4 and full-year 2025 earnings, with full-year revenue reaching $756 million, up 11%. The company missed EPS expectations at $0.17 against a forecast of $0.18. LegalZoom highlighted its strategy of combining AI with human expertise to serve small businesses, focusing on higher-value subscription offerings and targeting existing businesses for growth.
LegalZoom (NASDAQ:LZ) Surprises With Q4 CY2025 Sales
LegalZoom (NASDAQ:LZ) announced better-than-expected revenue of $190.3 million for Q4 CY2025, a 17.7% increase year-on-year, and provided a strong revenue guidance of $201.5 million for Q1 CY2026. The company also reported an in-line GAAP EPS of $0.03 and beat analyst estimates for Adjusted EBITDA. LegalZoom's CEO highlighted the company's focus on AI transformation in legal work and strong user growth with 1.94 million subscription units.
LegalZoom Posts Strong 2025 Results, Expands Buyback Plan
LegalZoom reported strong financial results for 2025, with revenue up 11% to $756.0 million and subscription revenue growing 13%, driven partly by the Formation Nation acquisition. The company achieved a net income of $15.4 million, $172.2 million in Adjusted EBITDA, and ended the year debt-free with $203.1 million in cash. Additionally, LegalZoom announced a $100 million increase to its share repurchase authorization and provided positive 2026 guidance, reflecting confidence in its growth strategy.
LegalZoom: Q4 Earnings Snapshot
LegalZoom.com Inc. (LZ) reported fourth-quarter net income of $6.1 million, or 3 cents per share, which was below Wall Street's expectations of 18 cents per share. Despite missing profit estimates, the company's revenue of $190.3 million surpassed forecasts. LegalZoom also provided revenue guidance for the current quarter, projecting $200 million to $203 million, and full-year revenue of $805 million to $825 million.
LegalZoom.com (LZ) Releases Q4 2025 Earnings: Revenue and Gross Profit Rise but EPS Miss
LegalZoom.com (LZ) reported Q4 2025 revenue of $190.3 million, a 17.7% year-over-year increase, with gross profit also rising to $128.5 million. However, diluted earnings per share at $0.03 missed analyst estimates significantly, leading to a 52.9% drop in net income despite a healthy cash position. Insider trading activity shows notable sales by executives, while institutional investors have mixed views, with some adding and others decreasing their holdings.
LegalZoom.com (NASDAQ:LZ) Issues Quarterly Earnings Results
LegalZoom.com (NASDAQ:LZ) announced its quarterly earnings, reporting an EPS of $0.17, missing analyst estimates of $0.18, but exceeding revenue expectations with $190.27 million against a $184.85 million consensus. Following the report, shares rose 1.1% to $7.05, though they remain below key moving averages. Analysts' sentiment is mixed, holding a "Hold" rating with an average target price of $10.90, and institutional ownership remains high at 81.99%.
LegalZoom Reports Strong Fourth Quarter and Full Year 2025 Financial Results
LegalZoom.com, Inc. (Nasdaq: LZ) announced strong financial results for the fourth quarter and full year 2025, with full-year revenue up 11% to $756.0 million and subscription revenue up 13% to $492.5 million. The company reported a full-year net income of $15.4 million and Adjusted EBITDA of $172.2 million, alongside record operating and free cash flow. LegalZoom also introduced strong 2026 guidance, expecting 8% revenue growth at the midpoint and a $100 million increase to its share repurchase authorization.
LegalZoom Reports Strong Fourth Quarter and Full Year 2025 Financial Results
LegalZoom.com, Inc. announced strong financial results for the fourth quarter and full year ended December 31, 2025, with full-year revenue up 11% and subscription revenue up 13% year-over-year. The company reported record operating cash flow and free cash flow and increased its share repurchase authorization by $100 million. LegalZoom also provided optimistic guidance for 2026, anticipating continued revenue growth and Adjusted EBITDA expansion, driven by its focus on AI-driven automation, higher-value customer acquisition, and human-in-the-loop service offerings.
LegalZoom earnings on deck: Can upmarket shift sustain growth? By Investing.com
LegalZoom (LZ) is set to announce its fourth-quarter earnings, with analysts focusing on whether its strategic shift towards premium customers can drive sustainable growth amidst a surge in business formation applications. While the company's revenue topped expectations last quarter, profitability has been pressured by this transition away from lower-margin services. Investors will be assessing if LegalZoom can maintain pricing power and market share against competitors, and if its high-value offerings can offset the impact of reduced transaction volumes.
LegalZoom earnings on deck: Can upmarket shift sustain growth?
LegalZoom (LZ) is set to report fourth-quarter earnings and investors will be looking at how their shift towards premium customers impacts growth and profitability. Analysts anticipate EPS of 18 cents on $184.85 million in revenue. Despite a recent dip in share price, Wall Street maintains a Buy rating, but JPMorgan has lowered its price target, highlighting execution risks for LZ's upmarket strategy.
LegalZoom.com (NASDAQ:LZ) Price Target Lowered to $11.00 at JPMorgan Chase & Co.
JPMorgan Chase & Co. has lowered its price target for LegalZoom.com (NASDAQ:LZ) shares from $14.00 to $11.00, while maintaining an "overweight" rating. This new target implies a potential 58.62% upside from the current share price. The analyst consensus for LegalZoom is a "Hold" with an average target price of $10.90, reflecting a mix of Buy, Hold, and Sell ratings from various brokerages.
What To Expect From LegalZoom's (LZ) Q4 Earnings
LegalZoom (NASDAQ:LZ) is set to report its Q4 earnings this Thursday. Analysts anticipate a 14.2% year-on-year revenue growth to $184.6 million and adjusted earnings of $0.18 per share. Despite a strong history of exceeding revenue estimates, the company's stock has seen a 21.1% decline in the last month amidst broader struggles in the consumer internet sector due to economic uncertainties and AI concerns.
LegalZoom Announces Upcoming Conference Participation
LegalZoom.com, Inc. (Nasdaq: LZ) announced that its Chief Operating Officer and Chief Financial Officer, Noel Watson, will participate in two upcoming investor conferences: The Morgan Stanley Technology, Media & Telecom Conference on March 2, 2026, and The Citizens Technology Conference on March 3, 2026. Watson is scheduled for a fireside chat presentation at the Citizens Technology Conference. The company provides online legal services for individuals and small businesses.
LegalZoom Announces Upcoming Conference Participation
LegalZoom.com, Inc. (Nasdaq: LZ) announced that its Chief Operating Officer and Chief Financial Officer, Noel Watson, will participate in two upcoming investor conferences: The Morgan Stanley Technology, Media & Telecom Conference and The Citizens Technology Conference. Watson will deliver a fireside chat presentation at the Citizens Technology Conference, which will be webcast live on the company's Investor Relations website. LegalZoom is an online platform providing legal services to individuals and small businesses.
LegalZoom.com (LZ) to Release Quarterly Earnings on Thursday
LegalZoom.com (NASDAQ:LZ) is scheduled to release its Q4 2025 earnings after market close on Thursday, February 19th, with analysts forecasting $0.18 EPS and $184.85 million in revenue. The stock has seen a 7.5% decline, trading at $7.11, and holds a consensus "Hold" rating with an average target price of $11.50. Recent insider selling by Nicole Miller and CFO Noel Watson has been noted, while institutional investors like Goldman Sachs and Arrowstreet Capital have increased their holdings.
LegalZoom.com, Inc.'s (NASDAQ:LZ) 30% Share Price Plunge Could Signal Some Risk
LegalZoom.com, Inc. (NASDAQ:LZ) has experienced a 30% share price drop in the last month, contributing to a 23% decline over the past year for shareholders. Despite this plunge, its high P/E ratio of 56.7x is significantly above the market average, raising concerns about its valuation, especially given recent negative earnings growth. Analysts forecast only a 5.2% growth for the company next year, much lower than the broader market's projected 16%, suggesting that its current high P/E may not be sustainable without substantial improvement in earnings performance.
LegalZoom.com, Inc.'s (NASDAQ:LZ) 30% Dip Still Leaving Some Shareholders Feeling Restless Over Its P/ERatio
LegalZoom.com, Inc. (NASDAQ:LZ) has experienced a significant 30% share price drop over the last month, contributing to a 23% decline over the past year. Despite this dip, the company's P/E ratio of 56.7x remains high compared to the broader U.S. market, which raises concerns given its declining earnings and projected future growth of only 5.2% against a market average of 16%. Analysts suggest that investors hoping for a turnaround might be overly optimistic, placing their investments at risk due to the unsustainably high P/E ratio relative to its earnings prospects.
LegalZoom Faces Claude AI Questions As Investors Reassess Valuation And Growth
LegalZoom (NasdaqGS:LZ) is facing investor scrutiny over the potential impact of Anthropic's Claude AI plugin on its online legal services. The company's CEO acknowledges both risks and opportunities, aiming to integrate AI as a complement rather than a replacement. LegalZoom's stock has seen a recent decline, prompting investors to assess its long-term competitive positioning and ability to adapt to evolving legal-tech tools.
LegalZoom Faces Claude AI Questions As Investors Reassess Valuation And Growth
LegalZoom.com is under investor scrutiny due to concerns about how Anthropic's Claude AI plugin could impact its online legal services businesses. The company's management has acknowledged both the risks and opportunities of integrating AI. LegalZoom's stock has declined significantly, and investors are watching closely to see if the company can successfully integrate AI tools as a complement rather than a replacement for its current offerings.
Is LegalZoom (LZ) Prepared For Index Inclusion Just As AI Challenges Its Core Model?
LegalZoom (LZ) was recently added to multiple S&P indices, including the S&P SmallCap 600, which could improve its visibility among institutional investors. However, the company faces increasing challenges from AI-based lawyer automation tools, leading to investor concerns and a sharp drop in share price. The article explores how these developments impact LegalZoom's investment narrative, highlighting that despite the index inclusions, competitive AI disruption poses a significant risk to its valuation and profitability.
Is LegalZoom (LZ) Prepared For Index Inclusion Just As AI Challenges Its Core Model?
LegalZoom (LZ) was recently added to several S&P indices, like the S&P SmallCap 600, which could boost its liquidity and institutional visibility. However, concerns about new AI-based lawyer automation tools, particularly after Anthropic's launch, are challenging LegalZoom's business model and have caused its share price to drop. The company's future investment narrative depends on its ability to leverage AI, convert partnerships into recurring revenue, and achieve cleaner earnings growth amidst competitive AI disruption risks and its premium valuation.
Software 'SaaSpocalypse:' BTIG Sees Salesforce, ServiceNow Rebound, But jim Cramer Warns Of Permanent AI Obsolescence
The software sector is experiencing a "SaaSpocalypse" with significant declines, as AI's impact creates a divide between technical analysts predicting a rebound and fundamentalists fearing obsolescence. While BTIG sees potential for a tactical bounce due to extreme oversold conditions, Jim Cramer warns that AI might permanently erode the traditional software business model, leading to shrinking price-to-earnings multiples even for strong companies.
LegalZoom.com, Inc. (NASDAQ:LZ) Short Interest Update
LegalZoom.com (NASDAQ:LZ) experienced a significant increase in short interest, rising 22.3% to 13,232,198 shares as of January 15th, representing 7.9% of shares sold short and a 6.8 days-to-cover ratio. The company's stock is down 19.7%, with a market cap of $1.30 billion, and it missed EPS estimates last quarter while beating revenue. Analysts currently have a "Hold" rating on the stock with a consensus target price of $11.50.
LegalZoom Announces Inclusion in the S&P SmallCap 600® Index
LegalZoom.com, Inc. (Nasdaq: LZ) has been included in the S&P SmallCap 600® Index, effective February 2, 2026. CEO Jeff Stibel highlighted this as a significant milestone, recognizing the company's strong growth and profitability in the online legal services market. LegalZoom aims to continue executing its strategic priorities and enhancing shareholder value.
Why LegalZoom (LZ) Shares Are Trading Lower Today
LegalZoom (NASDAQ:LZ) shares dropped 19.3% after an AI firm, Anthropic, released an automation tool for lawyers, sparking fears about AI's potential disruption to the software and data services sector. This widespread sell-off affected several companies, with LegalZoom closing at $7.33, down 19.7%. This downturn follows a recent gain when LegalZoom was announced for inclusion in the S&P SmallCap 600 index.
LegalZoom.com, Inc. (NASDAQ:LZ) Receives Consensus Rating of "Hold" from Brokerages
LegalZoom.com, Inc. (NASDAQ:LZ) has received an average "Hold" rating from nine brokerages, with an average 12-month price target of $11.50. Recent insider transactions show sales by Nicole Miller and CFO Noel Bertram Watson in November. The company reported $0.17 EPS for the last quarter, missing estimates, but exceeded revenue expectations with $190.2 million, a 12.8% year-over-year increase.
LegalZoom Announces Inclusion in the S&P SmallCap 600® Index
LegalZoom.com, Inc. (Nasdaq: LZ) has announced its inclusion in the S&P SmallCap 600® Index, effective February 2, 2026. CEO Jeff Stibel highlighted this as a significant milestone, recognizing the company's growth, profitability, and durable business model in the online legal services market. The inclusion is expected to enhance shareholder value as LegalZoom continues to execute its strategic priorities.
LegalZoom added to S&P SmallCap 600 index
LegalZoom (LZ) has been selected to join the S&P SmallCap 600 index, effective prior to the open of trading on February 2, 2026. This inclusion means it will replace PDC Energy (PDCE) in the index. The move is a result of PDC Energy's acquisition by Chevron Corp.
LegalZoom Announces Inclusion in the S&P SmallCap 600® Index
LegalZoom.com, Inc. (Nasdaq: LZ) has announced its inclusion in the S&P SmallCap 600® Index, effective February 2, 2026. CEO Jeff Stibel highlighted this as a significant milestone, recognizing LegalZoom's strong growth, profitability, and durable business model. The company aims to continue executing its strategic priorities in the online legal services market and enhance shareholder value.
LegalZoom.com, Inc. Joins S&P SmallCap 600® Index, Marking Significant Company Milestone
LegalZoom.com, Inc. has been included in the S&P SmallCap 600® Index, effective February 2, 2026, a move that the company's Chairman and CEO, Jeff Stibel, highlighted as a significant milestone recognizing their growth, profitability, and strong business model. This inclusion is expected to enhance LegalZoom's visibility and credibility in financial markets, potentially attracting more institutional investors. The company, which provides online legal services, has also shown recent insider selling activity and mixed hedge fund sentiment.
Online legal platform LegalZoom lands spot in S&P SmallCap 600
LegalZoom (Nasdaq: LZ) has been added to the S&P SmallCap 600 Index, a move effective prior to market open on February 2, 2026. The company views this inclusion as a significant milestone, recognizing its strong growth and profitability in scaling online legal services. This addition is expected to increase LegalZoom's visibility among institutional and index investors, reinforcing its position within the small-cap market.
LegalZoom Announces Inclusion in the S&P SmallCap 600® Index
LegalZoom.com, Inc. (Nasdaq: LZ), a prominent online legal services platform, has been added to the S&P SmallCap 600® Index, effective February 2, 2026. This inclusion is a significant acknowledgment of LegalZoom's growth, profitability, and durable business model. The company plans to continue executing its strategic priorities to capitalize on the online legal services market and enhance shareholder value.
LegalZoom Announces Inclusion in the S&P SmallCap 600® Index
LegalZoom.com, Inc. (Nasdaq: LZ) has announced its inclusion in the S&P SmallCap 600® Index, effective prior to the opening of trading on February 2, 2026. This milestone recognizes LegalZoom's strong growth, profitability, and durable business model as it continues to capitalize on the online legal services market, enhancing shareholder value. The S&P SmallCap 600 includes U.S. equities reflecting companies of LegalZoom's scale.
LegalZoom Stock Up on S&P Index Inclusion: Market Impact and 2025 Outlook - News and Statistics
LegalZoom (NASDAQ:LZ) shares rose 5.1% after the announcement of its inclusion in the S&P SmallCap 600 index, effective February 2, 2026. This move typically prompts institutional buying, creating demand for the stock. The company's recent performance has been volatile, but it saw a significant gain six months ago following an upgrade from Bank of America and strong Q2 2025 financial results, driven by a successful shift to a subscription model and AI partnerships.
LegalZoom to Announce Fourth Quarter and Full Year 2025 Financial Results on Thursday, February 19, 2026
LegalZoom.com, Inc. (Nasdaq: LZ) announced it will report its financial results for the fourth quarter and full year ended December 31, 2025, on Thursday, February 19, 2026, after the market closes. The company's Chairman and CEO, Jeff Stibel, and COO/CFO, Noel Watson, will host a conference call and webcast on the same day at 4:30 p.m. ET to discuss the results. A replay of the webcast will be available on LegalZoom's investor relations website.
Coastal Bridge Advisors LLC Sells 122,375 Shares of LegalZoom.com, Inc. $LZ
Coastal Bridge Advisors LLC has reduced its stake in LegalZoom.com (NASDAQ:LZ) by 9.9% in the third quarter, selling 122,375 shares and bringing its total holdings to 1,115,260 shares, valued at approximately $11.58 million. This makes LegalZoom.com its 26th largest holding, representing 0.62% of the company's stock. The article also notes mixed analyst ratings, with a consensus "Hold" and a $11.50 target price, alongside recent insider selling activity by the CFO and another insider.
LegalZoom to Announce Fourth Quarter and Full Year 2025 Financial Results on Thursday, February 19, 2026
LegalZoom.com, Inc. (Nasdaq: LZ) announced it will release its financial results for the fourth quarter and full year ended December 31, 2025, on Thursday, February 19, 2026, after market close. Company executives Jeff Stibel and Noel Watson will host a conference call and webcast to discuss these results at 4:30 p.m. ET on the same day. A replay will be available on the LegalZoom Investor Relations website.
LegalZoom to Announce Fourth Quarter and Full Year 2025 Financial Results on Thursday, February 19, 2026
LegalZoom will release its financial results for the fourth quarter and full fiscal year 2025 on Thursday, February 19, 2026, after the market closes. Following the release, the company will host a conference call and webcast at 4:30 p.m. ET to discuss the results. A replay of the webcast will be available on LegalZoom's Investor Relations website.
LegalZoom Index Addition Tests Belief In Online Legal Growth Story
LegalZoom.com is joining the S&P SmallCap 600 index, replacing Elme Communities, a move expected to increase its visibility and trading activity. This inclusion comes alongside encouraging revenue growth and guidance, reinforcing the company's focus on subscription-led small-business services and AI. Investors are now watching how trading volumes evolve and how LegalZoom addresses subscription trends and AI competition.
A Look At LegalZoom.com (LZ) Valuation As Sentiment And Support Signals Weaken
Recent analysis indicates a cautious sentiment for LegalZoom.com (LZ) due to weakening support signals and perceived downside risk, despite its stock showing modest long-term returns. While one narrative suggests the company is 28.1% undervalued with a fair value of $12.36, highlighting strong growth in subscription offerings, another view points to a very high P/E ratio of 70.8x, suggesting that high expectations might already be priced in. Investors are advised to consider these conflicting signals and conduct further research into the company's valuation and risks.
Why Is LegalZoom (LZ) Stock Soaring Today
LegalZoom (LZ) stock jumped over 5% after S&P Dow Jones Indices announced its inclusion in the S&P SmallCap 600 index, effective February 2, 2026. This move typically drives demand from institutional investors whose funds track the index. Earlier, Bank of America had upgraded LegalZoom to Buy with a boosted price target, citing its shift to a subscription model and AI partnerships, following strong Q2 2025 earnings.
A Look At LegalZoom.com (LZ) Valuation As Sentiment And Support Signals Weaken
Recent analysis indicates weakening sentiment and support signals for LegalZoom.com (LZ), suggesting potential downside risk despite a narrative fair value pointing to undervaluation. While the company's subscription-based offerings and growth in predictable revenues are positive, its high P/E ratio compared to industry averages raises concerns that current expectations may be overly optimistic. Investors are encouraged to consider both the potential value and the inherent risks, including the impact of AI on legal services and regulatory scrutiny.
Reflecting On Online Marketplace Stocks' Q3 Earnings: LegalZoom (NASDAQ:LZ)
This article reviews the Q3 earnings of several online marketplace stocks, focusing on LegalZoom (NASDAQ:LZ). LegalZoom reported revenues of $190.2 million, up 12.8% year over year, exceeding analysts' expectations but missing subscription unit estimates. The article also highlights EverQuote (NASDAQ:EVER) as the best performer, and ACV Auctions (NYSE:ACVA) as the weakest in Q3, while also covering MercadoLibre (NASDAQ:MELI) and Cars.com (NYSE:CARS).
(LZ) Movement as an Input in Quant Signal Sets
This article analyzes Legalzoom.com Inc. (NYSE: LZ) using AI models to generate trading strategies and signals. Despite weak near and mid-term sentiment, the stock exhibits a strong long-term positive outlook. The analysis provides specific entry/target/stop-loss levels for position trading, momentum breakout, and risk hedging strategies, alongside multi-timeframe signal analysis.
Zacks Research Downgrades LegalZoom.com (NASDAQ:LZ) to Strong Sell
Zacks Research has downgraded LegalZoom.com (NASDAQ:LZ) from a "hold" to a "strong sell" rating. The stock has a mixed analyst consensus of "Hold" with a target price of $11.50, and recently missed EPS estimates in its quarterly report. Insider selling has been noted, while institutional investors hold a significant portion of its shares.
First Week of September 18th Options Trading For LegalZoom.com (LZ)
LegalZoom.com (LZ) has new options contracts available with a September 18th expiration. This article highlights specific put and call options at strike prices of $9.00 and $10.00 respectively, analyzing potential returns and risks for investors. It discusses the "YieldBoost" strategy for both selling puts and covered calls, providing insights into potential premiums and annualized returns based on current trading prices and implied volatility.
