LZ Stock Analysis: LegalZoom.com | NASDAQ
Specialty Business Services | NASDAQ, USA | Market Cap: 1.244m USD | 12M Return: -13.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 16.8M
EPS Trend: -2.1%
Qual. Beats: 0
Rev. Trend: 95.8%
Qual. Beats: 5
Warnings
Tailwinds
No distinct edge detected
Seasonality 5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
LegalZoom.com, Inc. (NASDAQ: LZ) operates an online platform serving the legal, compliance, and business management needs of small businesses and consumers across the United States. The company generates revenue through a mix of transactional product sales-such as business formations, intellectual property filings (trademarks, patents, copyrights), and estate planning documents-and recurring subscription services, including registered agent, compliance concierge, legal plans with attorney access, bookkeeping, virtual mail, and trademark monitoring. The platform follows a hybrid business model common in online legal services, combining one-time document filings with subscription-based ongoing compliance support, and was incorporated in 1999 with headquarters in Mountain View, California.
- Subscription revenue growth drives recurring base expansion
- Small business formation demand weakens amid macro slowdown
- Competition from AI legal tools pressures pricing and margins
| Net Income: 11.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.30 > 0.02 and ΔFCF/TA 8.12 > 1.0 |
| NWC/Revenue: -12.21% < 20% (prev -10.73%; Δ -1.48% < -1%) |
| CFO/TA 0.36 > 3% & CFO 174.8m > Net Income 11.4m |
| Net Debt (-167.9m) to EBITDA (75.0m): -2.24 < 3 |
| Current Ratio: 0.71 > 1.5 & < 3 |
| Outstanding Shares: last quarter (177.0m) vs 12m ago -1.99% < -2% |
| Gross Margin: 65.89% > 18% (prev 65.51%; Δ 0.39% > 0.5%) |
| Asset Turnover: 152.2% > 50% (prev 129.7%; Δ 22.53% > 0%) |
| Interest Coverage Ratio: 15.34 > 6 (EBIT TTM 27.4m / Interest Expense TTM 1.79m) |
| A: -0.19 (Total Current Assets 228.3m - Total Current Liabilities 323.5m) / Total Assets 491.9m |
| B: -2.39 (Retained Earnings -1.18b / Total Assets 491.9m) |
| C: 0.05 (EBIT TTM 27.4m / Avg Total Assets 512.3m) |
| D: 0.43 (Book Value of Equity 146.9m / Total Liabilities 344.9m) |
| Altman-Z'' = -8.26 = D |
| DSRI: 1.27 (Receivables 27.9m/19.5m, Revenue 779.7m/690.8m) |
| GMI: 0.99 (GM 65.51% / 65.89%) |
| AQI: 1.00 (AQ_t 0.39 / AQ_t-1 0.39) |
| SGI: 1.13 (Revenue 779.7m / 690.8m) |
| TATA: -0.33 (NI 11.4m - CFO 174.8m) / TA 491.9m) |
| Beneish M = -2.75 (Cap -4..+1) = A |
As of July 14, 2026, the stock is trading at USD 7.72 with a total of 2,175,425 shares traded. Over the past week, the price has changed by +9.66%, over one month by +29.10%, over three months by +30.63% and over the past year by -13.55%.
Current recommended Stop Loss: 7.30 (which is 5.4% or 1.3 ATR below the current price).
LegalZoom.com has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold LZ.
- StrongBuy: 1
- Buy: 1
- Hold: 6
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 8 | 3.6% |
P/E Trailing = 120.8333
P/E Forward = 6.2228
P/S = 1.596
P/B = 8.4826
Revenue TTM = 779.7m USD
EBIT TTM = 27.4m USD
EBITDA TTM = 75.0m USD
Long Term Debt = 10.5m USD (estimated: total debt 15.2m - short term 4.74m)
Short Term Debt = 4.74m USD (from shortTermDebt, last quarter)
Debt = 15.2m USD (from shortLongTermDebtTotal, last quarter) (leases 15.2m already included)
Net Debt = -167.9m USD (calculated: Debt 15.2m - CCE 183.2m)
Enterprise Value = 1.08b USD (1.24b + Debt 15.2m - CCE 183.2m)
Interest Coverage Ratio = 15.34 (Ebit TTM 27.4m / Interest Expense TTM 1.79m)
EV/FCF = 7.30x (Enterprise Value 1.08b / FCF TTM 147.6m)
FCF Yield = 13.71% (FCF TTM 147.6m / Enterprise Value 1.08b)
FCF Margin = 18.93% (FCF TTM 147.6m / Revenue TTM 779.7m)
Net Margin = 1.46% (Net Income TTM 11.4m / Revenue TTM 779.7m)
Gross Margin = 65.89% ((Revenue TTM 779.7m - Cost of Revenue TTM 265.9m) / Revenue TTM)
Gross Margin QoQ = 63.96% (prev 67.56%)
Tobins Q-Ratio = 2.19 (Enterprise Value 1.08b / Total Assets 491.9m)
Interest Expense / Debt = 11.75% (Interest Expense 1.79m / Debt 15.2m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 21.7m (EBIT 27.4m * (1 - 21.00%))
Current Ratio = 0.71 (Total Current Assets 228.3m / Total Current Liabilities 323.5m)
Debt / Equity = 0.10 (Debt 15.2m / totalStockholderEquity, last quarter 146.9m)
Debt / EBITDA = -2.24 (Net Debt -167.9m / EBITDA 75.0m)
Debt / FCF = -1.14 (Net Debt -167.9m / FCF TTM 147.6m)
Total Stockholder Equity = 178.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.23% (Net Income 11.4m / Total Assets 491.9m)
RoE = 6.38% (Net Income TTM 11.4m / Total Stockholder Equity 178.7m)
RoCE = 14.50% (EBIT 27.4m / Capital Employed (Equity 178.7m + L.T.Debt 10.5m))
RoIC = 16.16% (NOPAT 21.7m / Invested Capital 134.1m)
WACC = 11.42% (E(1.24b)/V(1.26b) * Re(11.45%) + D(15.2m)/V(1.26b) * Rd(11.75%) * (1-Tc(0.21)))
Discount Rate = 11.45% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -37.78 | Cagr: -3.73%
[DCF] Terminal Value 68.70% ; FCFF base≈135.2m ; Y1≈154.9m ; Y5≈228.0m
[DCF] Fair Price = 13.91 (EV 2.22b - Net Debt -167.9m = Equity 2.39b / Shares 171.6m; r=11.42% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -2.12 | EPS CAGR: -0.48% | SUE: -0.45 | # QB: 0
Revenue Correlation: 95.85 | Revenue CAGR: 6.62% | SUE: 1.27 | # QB: 5
EPS current Quarter (2026-06-30): EPS=0.15 | Chg30d=+0.14% | Revisions=+25% | Analysts=8
EPS next Quarter (2026-09-30): EPS=0.21 | Chg30d=+0.56% | Revisions=+25% | Analysts=8
EPS current Year (2026-12-31): EPS=0.73 | Chg30d=+0.41% | Revisions=+25% | GrowthEPS=+17.1% | GrowthRev=+8.7%
EPS next Year (2027-12-31): EPS=0.82 | Chg30d=+0.06% | Revisions=-25% | GrowthEPS=+13.3% | GrowthRev=+6.6%
[Analyst] Revisions Ratio: +29% (up=3, down=1)