LegalZoom

LegalZoom (LZ) Q1 2026 Earnings

Reported May 6, 2026 at 4:03 PM ET · SEC Source

Q1 26 EPS

$0.12

MISS 8.12%

Est. $0.13

Q1 26 Revenue

$206.8M

BEAT +2.30%

Est. $202.1M

Did LZ Beat Earnings? Q1 2026 Results

LegalZoom.com delivered a mixed first quarter for fiscal 2026, beating revenue expectations while falling short on earnings, as surging marketing costs weighed on the bottom line. Revenue climbed 12.9% year-over-year to $206.78 million, topping the $… Read more LegalZoom.com delivered a mixed first quarter for fiscal 2026, beating revenue expectations while falling short on earnings, as surging marketing costs weighed on the bottom line. Revenue climbed 12.9% year-over-year to $206.78 million, topping the $202.14 million consensus by 2.30%, with transaction revenue up 15% and subscription revenue rising 12% fueling the advance. Earnings per share, however, came in at $0.12, missing the $0.13 consensus by 8.12%, as sales and marketing expenses jumped to $78.67 million from $61.38 million a year ago, compressing GAAP net income sharply to $1.10 million from $5.13 million. Adjusted EBITDA of $36.46 million carried an 18% margin, down from 20% in the prior-year period. On the forward outlook, management raised full-year 2026 revenue guidance to $810 million to $830 million, up from the prior $805 million to $825 million range, while maintaining Adjusted EBITDA guidance of $190 million to $200 million, citing AI-driven efficiencies and an exclusive embedded legal services partnership with GoDaddy as growth catalysts heading into the back half of the year.

Key Takeaways

  • Growth in higher-value subscriptions
  • Increased seasonal strength in annual report filings from enhanced compliance offering
  • Growth in differentiated human-in-the-loop service offerings
  • Transaction unit growth of 10% YoY to 375,000
  • Business formations growth of 8% YoY to 142,000
  • Average order value increase of 5% YoY to $205
  • ARPU growth of 4% YoY to $263
24/7 Wall St

LZ YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

LZ Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“LegalZoom delivered another strong quarter, clearly illustrating that our strategy is working.”

— Jeff Stibel, Q1 2026 Earnings Press Release