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LegalZoom

LegalZoom (LZ) Q2 2026 Earnings

Reported Aug 5, 2026 at 4:06 PM ET · SEC Source

Q2 26 EPS Adjusted

$0.16

BEAT +6.95%

Est. $0.15

Q2 26 Revenue

$205.3M

MISS 0.27%

Est. $205.8M

vs S&P Since Q2 26

-31.8%

TRAILING MARKET

LZ -31.3% vs S&P +0.6%

Market Reaction

Did LZ Beat Earnings? Q2 2026 Results

LegalZoom.com delivered a mixed but broadly constructive second quarter for fiscal 2026, posting adjusted EPS of $0.16 against a consensus estimate of $0.15, a beat of 6.95%, even as revenue of $205.29 million came in just 0.27% below expectations an… Read more LegalZoom.com delivered a mixed but broadly constructive second quarter for fiscal 2026, posting adjusted EPS of $0.16 against a consensus estimate of $0.15, a beat of 6.95%, even as revenue of $205.29 million came in just 0.27% below expectations and grew 6.6% year over year. The real story beneath the headline numbers was the continued momentum in subscriptions, where revenue climbed 11% year over year to $133.40 million, marking five consecutive quarters of double-digit subscription revenue growth, while transaction revenue of $71.89 million slipped 1%. Adjusted EBITDA expanded 18% to $45.90 million, lifting margin to 22% from 20% a year earlier. However, the company also announced a 13% workforce reduction and trimmed its full-year 2026 revenue outlook to $795 million to $805 million from a prior range of $810 million to $830 million, citing a meaningful shift in legal services discovery away from traditional search toward AI platforms, a headwind management acknowledged has been building and that now shapes how LegalZoom is repositioning its customer acquisition strategy heading into the second half.

Key Takeaways

  • • Subscription revenue growth of 11% YoY driven by strength in human-in-the-loop offerings and pricing initiatives
  • • Adjusted EBITDA margin expansion to 22% from 20% YoY
  • • Average revenue per subscription unit (ARPU) increased 5% YoY to $270
  • • Gross margin improved to 68% from 65% YoY

LZ Forward Guidance & Outlook

LegalZoom updated its full-year 2026 revenue outlook to $795–$805 million (6% YoY growth at midpoint), down from a prior range of $810–$830 million, reflecting a more cautious view of customer acquisition due to industry-wide shifts in customer discovery away from traditional search. Full-year Adjusted EBITDA is expected to be $190–$195 million (24% margin, 12% YoY growth at midpoint), narrowed from $190–$200 million. For Q3 2026, revenue is expected at $192–$196 million (2% YoY growth at midpoint) and Adjusted EBITDA at $49–$51 million (26% margin, 8% YoY increase at midpoint). The outlook assumes no recovery in traditional search and reflects a 13% workforce reduction announced alongside results.

24/7 Wall St

LZ YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

LZ Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“Since late 2024, we've deliberately repositioned LegalZoom around subscription relationships that pair AI with trusted human expertise. That strategy is working. While demand for what we do is intact, discovery is moving. We have been actively building new customer acquisition channels for more than a year, and our outlook fully reflects today's environment, with no recovery in traditional search assumed. In the AI channels where discovery is heading, every visit is incremental. We've partnered with the leading AI companies, we have more brand references across AI platforms than any competitor, and we haven't assumed how quickly this scales. That's the upside we're positioned to capture.”

— Jeff Stibel, Q2 2026 Earnings Press Release

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