Overview
Legal services platform's Q4 revenue rose 18% yr/yr, beating analyst expectations
Adjusted EBITDA for Q4 beat analyst expectations
Company announced $100 mln increase to share repurchase authorization
Outlook
LegalZoom expects Q1 2026 revenue between $200 mln and $203 mln
Company forecasts full-year 2026 revenue between $805 mln and $825 mln
LegalZoom anticipates full-year 2026 Adjusted EBITDA between $190 mln and $200 mln
Result Drivers
SUBSCRIPTION GROWTH - Subscription revenue rose 20% yr/yr, driven by focus on higher-value customers and human-in-the-loop services
FORMATION NATION ACQUISITION - Acquisition contributed to full-year revenue growth, reflecting emphasis on subscription initiatives
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $190.30 mln | $184.80 mln (8 Analysts) |
Q4 EPS | $0.03 | ||
Q4 Adjusted Net Income | Miss | $31.10 mln | $33.47 mln (7 Analysts) |
Q4 Adjusted EBITDA | Beat | $49.90 mln | $47.23 mln (8 Analysts) |
Q4 Gross Margin | 68% | ||
Q4 Free Cash Flow | $28 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for LegalZoom.com Inc is $11.63, about 66.8% above its February 18 closing price of $6.97
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nGNX1vyGf8
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)