LegalZoom Reports Third Quarter 2026 Financial Results
Key Highlights
- ➤LegalZoom (LZ) Q3 revenue $195.1M, up 3% year-over-year, above guidance midpoint
- ➤Subscription revenue $139.7M, up 11% year-over-year; transaction revenue fell 14%
- ➤Q3 Adjusted EBITDA $50.0M, with margin rising to 26% from 24%
- ➤Full-year revenue outlook narrowed to $797M–$803M, retaining approximately $800M midpoint
- ➤Full-year Adjusted EBITDA outlook cut to $180M–$185M from $190M–$195M
Expert Statements
Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom
“Revenue from human-in-the-loop subscription services grew 17% year-over-year and now represents 49% of total revenue.”
Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom
“These results give us confidence to accelerate our investment in bringing expert support into the customer relationship from the first purchase, pairing AI with accountable expertise to make our services more useful.”
Noel Watson, Chief Operating Officer and Chief Financial Officer of LegalZoom
“Subscription growth continues to offset customer acquisition pressure, supporting an unchanged $800 million midpoint for our full-year revenue outlook.”
Noel Watson, Chief Operating Officer and Chief Financial Officer of LegalZoom
“Our updated Adjusted EBITDA outlook reflects the cost of that environment and our continued investment in channel diversification and the sales and service capabilities behind our higher-value offerings. With $181.7 million in cash and no debt, we have the financial capacity to fund these priorities.”
* Revenue of $195.1 million, up 3% year-over-year, above the midpoint of the Company’s guidance range * Subscription revenue of $139.7 million, up 11% year-over-year, marking the sixth consecutive quarter of double digit-subscription revenue growth * Net income of $8.1 million and net income margin of 4%, with net income margin increasing approximately 180 basis points year-over-year * Adjusted EBITDA of $50.0 million and Adjusted EBITDA margin of 26%, at the midpoint of the Company’s guidance range, with Adjusted EBITDA margin increasing approximately 130 basis points year-over-year * Completed $14.6 million of share repurchases in the quarter, with approximately $65.8 million remaining under the existing authorization as of September 30, 2026 * Ended the quarter with cash and cash equivalents of $181.7 million and delivered $39.9 million in cash from operating activities and $34.1 million in free cash flow with no debt outstanding as of September 30, 2026 * Reiterating the midpoint of full-year 2026 revenue outlook of approximately $800.0 million, or 6% year-over-year growth, and narrowing the range to $797.0–$803.0 million; updating Adjusted EBITDA outlook to a range of $180.0-$185.0 million, or Adjusted EBITDA margin of approximately 23% at the midpoint, reflecting a challenging customer acquisition environment and continued investment behind LegalZoom’s growth priorities and channel diversification MOUNTAIN VIEW, Calif., Nov. 04, 2026 (GLOBE NEWSWIRE) -- LegalZoom (Nasdaq: LZ), America’s #1 online legal services company, today announced results for its third quarter ended September 30, 2026.
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