Q4 2025 revenue and Adjusted EBITDA exceeds outlook
Introduces strong 2026 guidance
Announces $100 million increase to share repurchase authorization
-- Full-year revenue of $756.0 million up 11% year-over-year, reflecting
emphasis on subscription initiatives and contributions from the Formation
Nation acquisition
-- Full-year subscription revenue of $492.5 million up 13% year-over-year,
driven by focus on higher-value customers and differentiated
human-in-the-loop service offerings
-- Full-year net income of $15.4 million and net income margin of 2%
-- Full-year Adjusted EBITDA of $172.2 million and Adjusted EBITDA margin of
23%
-- Record full-year operating cash flow of $178.2 million, up 31%
year-over-year, and record free cash flow of $147.9 million, up 48%
year-over-year
-- $203.1 million of cash and cash equivalents and no debt outstanding as of
December 31, 2025
MOUNTAIN VIEW, Calif., Feb. 19, 2026 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), a leading online platform for legal services, today announced results for its fourth quarter and year ended December 31, 2025.
"LegalZoom is built for where the market is going. AI is transforming how legal work starts, which is opening up new markets. We are winning by delivering customers to the finish line with trust, judgment, and execution," said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. "Our strategy is simple: lead in automation and win the last mile with human-in-the-loop expertise. By serving both new entrepreneurs and established businesses, and supporting them across their full lifecycle, we are expanding our role from a point solution to a long-term partner. We believe this evolution will strengthen our competitive position, deepen customer relationships, and position LegalZoom for sustained growth in the years ahead."
Noel Watson, LegalZoom's Chief Operating Officer and Chief Financial Officer, added, "We delivered strong results in 2025 with continued subscription momentum, expanding margins, and record free cash flow generation. Building on that performance, we are guiding to approximately 8% revenue growth at the midpoint in 2026 reflecting solid organic growth and continued Adjusted EBITDA expansion from disciplined execution and a focus on higher-value services, all of which we believe will accelerate in future years. Underscoring our confidence in the business and our commitment to shareholder returns, our Board has approved a $100 million increase to our existing share repurchase authorization."
Fourth Quarter 2025 Highlights
-- Revenue was $190.3 million for the quarter, up 18% year-over-year.
-- Transaction revenue was $59.3 million for the quarter, compared to
$53.0 million in the same period in 2024, up 12% year-over-year.
-- Subscription revenue was $130.9 million for the quarter, compared
to $108.7 million in the same period in 2024, up 20%
year-over-year.
-- Gross margin was 68% for the quarter compared to 67% in the same period
in 2024.
-- Net income was $6.1 million for the quarter, or 3% of revenue, compared
to $12.9 million, or 8% of revenue, in the same period in 2024.
-- Adjusted EBITDA was $49.9 million for the quarter, or 26% of revenue,
compared to $44.2 million, or 27% of revenue, in the same period in 2024.
-- Non-GAAP net income was $31.1 million for the quarter compared to $32.6
million in the same period in 2024.
-- Cash and cash equivalents were $203.1 million as of December 31, 2025
compared to $142.1 million as of December 31, 2024.
-- Cash flows provided by operating activities were $34.1 million for the
quarter ended December 31, 2025 compared to $42.6 million in the same
period in 2024.
-- Free cash flow was $28.0 million for the quarter ended December 31, 2025
compared to $35.9 million in the same period in 2024.
-- Basic and diluted net income per share was $0.03 for the quarter compared
to a basic and diluted net income per share of $0.07 for the same period
in 2024. Basic and diluted Non-GAAP net income per share was $0.18 and
$0.17, respectively, for the quarter in 2025 compared to basic and
diluted Non-GAAP net income per share of $0.19 for the same period in
2024.
Key Business Metrics and Non-GAAP Financial Measures
(Unaudited, in thousands except AOV, ARPU and percentages)
Three Months Ended % Growth Year Ended % Growth
December 31, (Decline) December 31, (Decline)
--------------------------
2025 2024 YOY 2025 2024 YOY
------- ------- ----------- ------- ------- -----------
Total revenue $190,266 $161,706 18% $756,043 $681,881 11%
Transaction
revenue $ 59,319 $ 52,959 12% $263,582 $245,692 7%
Subscription
revenue $130,947 $108,747 20% $492,461 $436,189 13%
Gross Profit $128,535 $108,321 19% 498,083 441,788 13%
Gross Margin 68% 67% 1% 66% 65% 2%
Net Income $ 6,058 $ 12,854 (53)% $ 15,427 $ 29,963 (49)%
Net income margin 3% 8% (63)% 2% 4% (50)%
Net Income per
share -- basic: $ 0.03 $ 0.07 (57)% $ 0.09 $ 0.17 (47)%
Net Income per
share --
diluted: $ 0.03 $ 0.07 (57)% $ 0.08 $ 0.16 (50)%
Net cash provided
by operating
activities $ 34,129 $ 42,586 (20)% 178,197 135,639 31%
Non-GAAP
Financial
Measures
Non-GAAP net
income $ 31,102 $ 32,598 (5)% $114,249 $ 99,451 15%
Non-GAAP net
income per share
-- basic: $ 0.18 $ 0.19 (5)% $ 0.64 $ 0.55 16%
Non-GAAP net
income per share
-- diluted: $ 0.17 $ 0.19 (11)% $ 0.62 $ 0.54 15%
Adjusted EBITDA $ 49,894 $ 44,204 13% $172,193 $148,114 16%
Adjusted EBITDA
margin 26% 27% (4)% 23% 22% 5%
Free cash flow $ 27,995 $ 35,879 (22)% $147,920 $ 99,943 48%
Key Business
Metrics
Transaction units 239 241 (1)% 1,117 1,123 (1)%
Business
formations 112 96 17% 500 482 4%
Average order
value (AOV) $ 248 $ 220 13% $ 236 $ 219 8%
Subscription
units at period
end 1,939 1,766 10% 1,939 1,766 10%
Average revenue
per subscription
unit (ARPU) at
period end $ 266 $ 263 1% $ 266 $ 263 1%
(Certain percentages may not recalculate due to rounding.)
Financial Guidance and Outlook
Our guidance for the first quarter ending March 31, 2026 is as follows:
-- Revenue is expected to be in the range of $200 million to $203 million,
or 10% year-over-year growth at the midpoint. Our outlook assumes
continued execution of our growth initiatives.
-- Adjusted EBITDA is expected to be in the range of $34 million to $36
million, a 5% year-over-year decrease at the midpoint, reflecting a shift
in timing of marketing investments to align with peak business formation
seasonality.
Our guidance for the full year ending December 31, 2026 is as follows:
-- Revenue is expected to be in the range of $805 million to $825 million,
or 8% year-over-year growth at the midpoint. Our outlook reflects
continued momentum of our growth initiatives including higher-value
customer acquisition and an emphasis on differentiated human-in-the-loop
service offerings.
-- Adjusted EBITDA is expected to be in the range of $190 million to $200
million, or 13% year-over-year growth at the midpoint, reflecting
improved gross margins and disciplined cost management.
Webcast and Conference Call Information
A webcast and conference call to discuss fourth quarter and full year 2025 results is scheduled for today, February 19, 2026, at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Those interested in participating in the conference call are invited to register Here.
A live audio webcast of the event will be available on the LegalZoom Investor Relations website: https://investors.legalzoom.com. An archived replay of the webcast also will be available shortly after the live event.
Forward-Looking Statements
This press release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to, statements regarding our quarterly and annual guidance.
The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the following: our dependence on business formations; our dependence on customers expanding the use of our platform, including converting our transactional customers to subscribers and our subscribers renewing their subscriptions with us; the impact of macroeconomic challenges or uncertainty on our business; our ability to sustain our revenue growth rate and remain profitable in the future; our ability to provide high-quality products and services, customer care and customer experience; our ability to continue to innovate and provide a platform that is useful to our customers and that meets our customers' expectations; the competitive legal solutions market; our dependence on our brand and reputation; our ability to maintain and expand strategic relationships with third parties; our ability to hire and retain top talent and motivate our employees; our ability to effectively integrate Formation Nation, Inc. into our existing operations; risks and costs associated with complex and evolving laws and regulations; our ability to maintain effective in our internal control over financial reporting; and any factors discussed in the section titled "Risk Factors" included in our Quarterly Report on Form 10-Q for the three months ended September 30, 2025 filed with the Securities and Exchange Commission, or SEC, on November 5, 2025, as well as any factors in our subsequent filings with the SEC. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
You should read this press release with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income per share and free cash flow. We use these non-GAAP financial measures to better understand and evaluate our core operating performance. We believe that these non-GAAP financial measures provide management and our investors with useful information about our financial performance and liquidity, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important measures used by our management for financial and operational decision-making. We also believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. These non-GAAP measures should not be considered in isolation of, or as a substitute or an alternative to, measures prepared and presented in accordance with GAAP.
We define Adjusted EBITDA as net income adjusted to exclude interest expense, interest income, provision for (benefit from) income taxes, depreciation and amortization, other expense (income), net, stock-based compensation and certain non-recurring income and expenses from time to time. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of revenue.
Adjusted EBITDA is one of the primary performance measures used by our management and our board of directors to understand and evaluate our financial performance and operating trends, including period-to-period comparisons, preparing and approving our annual budget and operational planning. In assessing our performance, we exclude certain expenses that we believe are not comparable period over period or that we believe are not indicative of our underlying operating performance. There are a number of limitations related to the use of Adjusted EBITDA rather than net income, which include that Adjusted EBITDA:
-- may be calculated differently by other companies in our industry,
limiting its usefulness as a comparative measure;
-- does not reflect our capital expenditures, future requirements for
capital expenditures or contractual commitments;
-- excludes depreciation and amortization and, although these are non-cash
expenses, the assets being depreciated may be replaced in the future;
-- does not reflect changes in, or cash requirements for, our working
capital needs;
-- excludes stock-based compensation expense, which has been, and will
continue to be, a significant recurring expense for our business and an
important part of our compensation strategy; and
-- does not reflect certain expenses that we do not consider representative
of our underlying operating performance, but that reduce cash available
to us.
We define Non-GAAP net income as net income adjusted to exclude amortization of acquired intangible assets, stock-based compensation expense and certain non-recurring income and expenses from time to time, net of related income tax impacts. We define net income margin as net loss as a percentage of revenue. We define Non-GAAP net income margin as Non-GAAP net income as a percentage of revenue. We define Non-GAAP net income per share attributable to common stockholders as Non-GAAP net income divided by basic and diluted weighted-average common stock.
Free cash flow is a liquidity measure used by management in evaluating the cash generated by our operations after purchases of property and equipment including capitalized internal-use software. We believe free cash flow provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet, once our business needs and obligations are met. The usefulness of free cash flow as an analytical tool has limitations because it excludes certain items that are settled in cash, does not represent residual cash flow available for discretionary expenses, does not reflect our future contractual commitments, and may be calculated differently by other companies in our industry.
We are not providing a reconciliation for our non-GAAP outlook on a forward-looking basis (including the information under "Financial Outlook" above), as we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure that have not yet occurred, are out of LegalZoom's control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
The tables in this press release contain more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
LegalZoom
LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys--whether through our vast independent attorney network or the LegalZoom-owned law firm--we offer the tools and guidance people need to confidently manage everything from business formation and compliance to estate planning and ongoing legal support.
With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence. For more information, please visit www.legalzoom.com.
Contact
Investor Relations
investor@legalzoom.com
LegalZoom.com, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except par values)
December 31,
2025 2024
---------- ----------
Assets
Current assets:
Cash and cash equivalents $ 203,100 $ 142,064
Accounts receivable, net of
allowances of $2,281 and $2,121,
respectively 20,589 8,511
Prepaid expenses and other current
assets 18,234 17,926
Current assets held for sale -- 22,722
---------- ----------
Total current assets 241,923 191,223
Property and equipment, net 58,045 59,788
Goodwill 140,705 63,318
Intangible assets, net 18,152 8,653
Operating lease right-of-use assets 13,414 7,189
Deferred income taxes 31,884 34,696
Available-for-sale debt security
(amortized cost of $0 and $848),
respectively -- 1,377
Other assets 7,399 7,639
---------- ----------
Total assets $ 511,522 $ 373,883
========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 27,167 $ 31,150
Accrued expenses and other current
liabilities 83,361 57,928
Deferred revenue 203,653 174,643
Operating lease liabilities 4,338 1,861
---------- ----------
Total current liabilities 318,519 265,582
Operating lease liabilities,
non-current 10,025 6,018
Deferred revenue 277 381
Other liabilities 10,819 8,645
---------- ----------
Total liabilities 339,640 280,626
---------- ----------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value
100,000 shares authorized at
December 31, 2025 and 2024, none
issued or outstanding at December
31, 2025 and 2024 -- --
Common stock, $0.001 par value;
1,000,000 and 1,000,000 shares
authorized; 177,624 and 173,619
shares issued and outstanding at
December 31, 2025 and 2024,
respectively 179 175
Additional paid-in capital 1,305,936 1,161,538
Accumulated deficit (1,134,414) (1,069,317)
Accumulated other comprehensive
income 181 861
---------- ----------
Total stockholders' equity 171,882 93,257
---------- ----------
Total liabilities and stockholders'
equity $ 511,522 $ 373,883
========== ==========
LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2025 2024 2025 2024
------- ------- ------- -------
Revenue $190,266 $161,706 $756,043 $681,881
Cost of revenue 61,731 53,385 257,960 240,093
------- ------- ------- -------
Gross profit 128,535 108,321 498,083 441,788
Operating
expenses:
Sales and
marketing 62,952 47,514 261,745 207,684
Technology and
development 19,499 16,650 81,941 89,584
General and
administrative 33,466 31,046 143,758 108,939
Gain on sale of
assets held for
sale -- -- (14,337) --
Total
operating
expenses 115,917 95,210 473,107 406,207
------- ------- ------- -------
Income from
operations 12,618 13,111 24,976 35,581
Interest expense (795) (201) (1,294) (446)
Interest income 1,878 1,303 7,569 7,850
Other income,
net 290 (1,747) 1,187 98
Income before
income taxes 13,991 12,466 32,438 43,083
Provision for
(benefit from)
income taxes 7,933 (388) 17,011 13,120
------- ------- ------- -------
Net income $ 6,058 $ 12,854 $ 15,427 $ 29,963
======= ======= ======= =======
Net income per
share:
Basic $ 0.03 $ 0.07 $ 0.09 $ 0.17
======= ======= ======= =======
Diluted $ 0.03 $ 0.07 $ 0.08 $ 0.16
======= ======= ======= =======
Weighted-average
shares used to
compute net income
per share:
Basic 177,561 173,239 178,798 180,210
======= ======= ======= =======
Diluted 182,360 175,393 184,690 182,865
======= ======= ======= =======
LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Cash
Flows
(In thousands)
Year Ended December 31,
-----------------------------
2025 2024
---------
Cash flows from operating activities
Net income $ 15,427 $ 29,963
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 44,123 34,927
Amortization of debt issuance costs 210 227
Amortization of right-of-use assets 3,287 2,132
Stock-based compensation 113,708 71,510
Gain on sale of assets held for sale (14,337) --
Change in fair value of other equity
security (302) --
Gain on sale of available-for-sale
debt security (758) --
Deferred income taxes 6,634 (4,552)
Unrealized foreign exchange loss 75 648
Non-cash interest expense 548 --
Other 293 --
Changes in operating assets and
liabilities, net of effects of
business combinations:
Accounts receivable (11,802) 3,227
Prepaid expenses and other current
assets (252) (2,775)
Other assets 926 707
Accounts payable (3,657) (817)
Accrued expenses and other
liabilities 7,147 (4,156)
Operating lease liabilities (2,647) (1,942)
Income tax payable 255 (44)
Deferred revenue 19,319 6,584
--------- ---------
Net cash provided by operating
activities 178,197 135,639
--------- ---------
Cash flows from investing activities
Acquisitions, net of cash acquired (48,468) --
Purchase of property and equipment (30,277) (35,696)
Proceeds from sale of
available-for-sale debt security 1,617 --
Proceeds from sale of assets held for
sale 37,051 --
--------- ---------
Net cash used in investing
activities (40,077) (35,696)
--------- ---------
Cash flows from financing activities
Repayment of finance lease obligations (2) (25)
Payment of debt issuance costs (841) --
Repurchase of common stock (80,532) (165,014)
Payment of share repurchase excise
taxes and repurchase costs (1,264) (169)
Shares surrendered for settlement of
minimum statutory tax withholding (40,387) (20,491)
Proceeds from issuance of stock under
employee stock plans 45,770 2,414
Net cash used in financing
activities (77,256) (183,285)
--------- ---------
Effect of exchange rate changes on cash
and cash equivalents 172 (313)
Net increase (decrease) in cash and
cash equivalents 61,036 (83,655)
Cash and cash equivalents, at beginning
of the period 142,064 225,719
--------- ---------
Cash and cash equivalents, at end of
the period $ 203,100 $ 142,064
========= =========
Adjusted EBITDA and Adjusted EBITDA Margin
The following table presents a reconciliation of net income to Adjusted EBITDA for each of the periods indicated (unaudited):
Three Months Ended Year Ended
December 31, December 31,
--------------------------
2025 2024 2025 2024
------ ------ -------
(in thousands, except percentages)
Reconciliation
of net income
to Adjusted
EBITDA
Net income $ 6,058 $12,854 $ 15,427 $ 29,963
Interest expense 795 201 1,294 446
Interest income (1,878) (1,303) (7,569) (7,850)
Provision for
(benefit from)
income taxes 7,933 (388) 17,011 13,120
Depreciation and
amortization 11,005 9,636 44,123 34,927
Other (income)
expense, net (290) 1,747 (1,187) (98)
Stock-based
compensation 24,945 22,024 113,708 71,510
Acquisition and
related
expenses(1) 1,326 -- 2,869 --
Gain on sale of
assets held for
sale -- -- (14,337) --
Restructuring
costs(2) -- (567) 854 6,096
Adjusted
EBITDA $49,894 $44,204 $172,193 $148,114
====== ====== ======= =======
Net income
margin 3% 8% 2% 4%
====== ====== ======= =======
Adjusted
EBITDA
margin 26% 27% 23% 22%
====== ====== ======= =======
(1) For 2025, acquisition and related expenses are primarily related to our acquisition of Formation Nation. Additional costs incurred are related to the evaluation and pursuit of strategic transactions.
(2) For 2025 and 2024, restructuring costs are related to the reduction of our U.S. headcount.
Non-GAAP Net Income, Non-GAAP Net Income Margin and diluted Non-GAAP Net Income Per Share
The following table presents a reconciliation of net income to Non-GAAP net income for each of the periods indicated (unaudited):
Three Months Ended Year Ended
December 31, December 31,
--------------------------
2025 2024 2025 2024
------- ------- -------
(in thousands, except per share amounts)
Reconciliation of
Net income to
Non-GAAP Net income
Net income $ 6,058 $ 12,854 $ 15,427 $ 29,963
Amortization of
acquired intangible
assets 1,610 1,266 7,801 5,082
Stock-based
compensation 24,945 22,024 113,708 71,510
Acquisition-related
expenses(1) 1,326 -- 2,869 --
Restructuring
expenses(2) -- (567) 854 6,096
Gain on sale of
assets held for
sale -- -- (14,337) --
Income tax effects(3) (2,837) (2,979) (12,073) (13,200)
------- ------- ------- -------
Non-GAAP net
income 31,102 32,598 114,249 99,451
======= ======= ======= =======
Net income margin 3% 8% 2% 4%
======= ======= ======= =======
Non-GAAP net
income margin 16% 20% 15% 15%
======= ======= ======= =======
Net income per
share--basic $ 0.03 $ 0.07 $ 0.09 $ 0.17
======= ======= ======= =======
Net income per
share-- diluted $ 0.03 $ 0.07 $ 0.08 $ 0.16
======= ======= ======= =======
Non-GAAP net income
per share--basic $ 0.18 $ 0.19 $ 0.64 $ 0.55
======= ======= ======= =======
Non-GAAP net income
per share--diluted $ 0.17 $ 0.19 $ 0.62 $ 0.54
======= ======= ======= =======
Weighted-average
shares used to
compute net income
per share--basic 177,561 173,239 178,798 180,210
======= ======= ======= =======
Weighted-average
shares used to
compute net income
per share--diluted 182,360 175,393 184,690 182,865
======= ======= ======= =======
Weighted-average
shares used to
compute Non-GAAP net
income per
share--basic 177,561 173,239 178,798 180,210
======= ======= ======= =======
Weighted-average
shares used to
compute Non-GAAP net
income per
share--diluted 182,360 175,393 184,690 182,865
======= ======= ======= =======
(1) For 2025, acquisition and related expenses are primarily related to our acquisition of Formation Nation. Additional costs incurred are related to the evaluation and pursuit of strategic transactions.
(2) For 2025 and 2024, restructuring costs are related to the reduction of our U.S. headcount.
(3) The estimated income tax effect of the non-GAAP pre-tax adjustments is determined by applying the statutory rate of the originating jurisdiction, if applicable.
The following table shows the computation of basic and diluted Non-GAAP net income per share (unaudited):
Three Months Ended Year Ended
December 31, December 31,
--------------------
2025 2024 2025 2024
------- ------- -------
(in thousands, except per share amounts)
Non-GAAP net income
and Non-GAAP net
income per share:
Non-GAAP net
income $ 31,102 $ 32,598 $114,249 $ 99,451
Reconciliation of
denominator for net
income per share to
Non-GAAP net income
per share:
Weighted-average
shares used to
compute net
income per
share--basic: 177,561 173,239 178,798 180,210
------- ------- ------- -------
Effect of
potentially
dilutive
securities:
Stock options 86 59 53 754
Restricted stock
units 4,690 2,092 5,808 1,893
Employee stock
purchase plan 23 3 31 8
------- ------- ------- -------
Weighted-average
common stock used
in computing
Non-GAAP net
income per
share--diluted 182,360 175,393 184,690 182,865
======= ======= ======= =======
Non-GAAP net
income per
share--basic $ 0.18 $ 0.19 $ 0.64 $ 0.55
======= ======= ======= =======
Non-GAAP net
income per
share--diluted $ 0.17 $ 0.19 $ 0.62 $ 0.54
======= ======= ======= =======
Free Cash Flow
The following table presents a reconciliation of net cash provided by operating activities to free cash flow (unaudited):
Three Months Ended Year Ended
December 31, December 31,
----------------------
2025 2024 2025 2024
------ ------ -------
(in thousands)
Reconciliation
of Net Cash
Provided by
Operating
Activities to
Free Cash Flow
Net cash
provided by
operating
activities 34,129 42,586 178,197 135,639
Purchase of
property and
equipment (6,134) (6,707) (30,277) (35,696)
------ ------ ------- -------
Total free
cash flow $27,995 $35,879 $147,920 $ 99,943
====== ====== ======= =======
(END) Dow Jones Newswires
February 19, 2026 16:00 ET (21:00 GMT)