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
LZ Forward Guidance & Outlook
LegalZoom raised its full-year 2026 revenue guidance to $810 million–$830 million (up from $805 million–$825 million previously), representing approximately 8% YoY growth at the midpoint. Full-year Adjusted EBITDA guidance was maintained at $190 million–$200 million, reflecting 13% YoY growth at the midpoint, with improved gross margin, disciplined cost management, and AI-driven efficiencies expected in the back half of the year. For Q2 2026, the company expects revenue of $203 million–$207 million (6% YoY growth at midpoint) and Adjusted EBITDA of $40 million–$42 million, with the sequential deceleration attributed to lapping the Formation Nation acquisition and reduced seasonal annual report filing volumes. Core growth drivers are expected to continue building and scaling through the back half of the year.
LZ YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
LZ Revenue by Segment
With YoY comparisons, source: SEC Filings
“LegalZoom delivered another strong quarter, clearly illustrating that our strategy is working.”
— Jeff Stibel, Q1 2026 Earnings Press Release
LZ Earnings Trends
LZ vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
LZ EPS Trend
Earnings per share: estimate vs actual
LZ Revenue Trend
Quarterly revenue: estimate vs actual
LZ Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.13 | $0.12 | -8.12% | $206.8M | +2.30% |
| Q4 25 MISS FY | $0.18 | $0.17 | -4.17% | $190.3M | +2.93% |
| FY Full Year | $0.64 | $0.62 | -2.87% | $756.0M | +0.75% |
| Q3 25 MISS | $0.19 | $0.17 | -8.94% | $190.2M | +3.76% |
| Q2 25 BEAT | $0.15 | $0.15 | +0.87% | $192.5M | +5.49% |
| Q1 25 BEAT | $0.13 | $0.13 | +0.85% | $183.1M | +3.56% |