(LZ) LegalZoom.com - Overview
Stock: LLC, Trademark, Will, Subscription, License
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 55.6% |
| Relative Tail Risk | -19.3% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.02 |
| Alpha | -28.87 |
| Character TTM | |
|---|---|
| Beta | 1.096 |
| Beta Downside | 1.148 |
| Drawdowns 3y | |
|---|---|
| Max DD | 64.09% |
| CAGR/Max DD | 0.00 |
Description: LZ LegalZoom.com January 15, 2026
LegalZoom.com, Inc. (NASDAQ:LZ) operates a cloud-based marketplace that delivers legal formation, compliance, and business-management services to U.S. small businesses and consumers. Its product suite spans entity formation (LLCs, C- and S-corporations, nonprofits, DBAs), filing and licensing, intellectual-property filings (trademarks, patents, copyrights), and consumer estate-planning documents (wills, trusts, POAs). The company also monetizes recurring subscriptions for registered-agent services, compliance monitoring, on-demand attorney and tax advice, e-signatures, virtual mail, and trademark watch bundles.
Key metrics (as of FY 2023) show LegalZoom generating roughly $730 million in revenue, with a 13 % year-over-year increase driven primarily by subscription ARR growth of about 18 % and a churn rate under 7 %-both above the industry median for online legal platforms. The U.S. small-business formation market is expanding at ~5 % annually, bolstered by favorable financing conditions and a shift toward digital self-service solutions, which underpins LegalZoom’s top-line outlook. Additionally, the broader “legal tech” sector is projected to reach $25 billion by 2027, reflecting rising consumer demand for cost-effective, on-demand legal assistance and regulatory pressures that increase compliance spending.
For a deeper, data-driven view of LegalZoom’s valuation dynamics, you might explore ValueRay’s analyst toolkit, which aggregates real-time financials and sector benchmarks to help assess the stock’s risk-adjusted upside.
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income: 22.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.28 > 0.02 and ΔFCF/TA 5.86 > 1.0 |
| NWC/Revenue: -6.99% < 20% (prev -15.53%; Δ 8.54% < -1%) |
| CFO/TA 0.34 > 3% & CFO 186.7m > Net Income 22.2m |
| Net Debt (-222.5m) to EBITDA (76.1m): -2.92 < 3 |
| Current Ratio: 0.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (186.7m) vs 12m ago 5.88% < -2% |
| Gross Margin: 65.69% > 18% (prev 0.64%; Δ 6505 % > 0.5%) |
| Asset Turnover: 161.7% > 50% (prev 194.6%; Δ -32.93% > 0%) |
| Interest Coverage Ratio: 45.16 > 6 (EBITDA TTM 76.1m / Interest Expense TTM 700.0k) |
Altman Z'' -9.93
| A: -0.09 (Total Current Assets 276.5m - Total Current Liabilities 327.4m) / Total Assets 551.1m |
| B: -1.99 (Retained Earnings -1.10b / Total Assets 551.1m) |
| C: 0.07 (EBIT TTM 31.6m / Avg Total Assets 450.0m) |
| D: -3.14 (Book Value of Equity -1.10b / Total Liabilities 349.2m) |
| Altman-Z'' Score: -9.93 = D |
Beneish M -2.81
| DSRI: 1.51 (Receivables 28.1m/17.3m, Revenue 727.5m/678.8m) |
| GMI: 0.98 (GM 65.69% / 64.26%) |
| AQI: 1.11 (AQ_t 0.36 / AQ_t-1 0.33) |
| SGI: 1.07 (Revenue 727.5m / 678.8m) |
| TATA: -0.30 (NI 22.2m - CFO 186.7m) / TA 551.1m) |
| Beneish M-Score: -2.81 (Cap -4..+1) = A |
What is the price of LZ shares?
Over the past week, the price has changed by -9.45%, over one month by -22.60%, over three months by -26.35% and over the past year by -12.78%.
Is LZ a buy, sell or hold?
- StrongBuy: 1
- Buy: 1
- Hold: 6
- Sell: 1
- StrongSell: 1
What are the forecasts/targets for the LZ price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 12.4 | 53.5% |
| Analysts Target Price | 12.4 | 53.5% |
| ValueRay Target Price | 8 | -1.1% |
LZ Fundamental Data Overview February 03, 2026
P/E Forward = 9.058
P/S = 2.2027
P/B = 7.7959
Revenue TTM = 727.5m USD
EBIT TTM = 31.6m USD
EBITDA TTM = 76.1m USD
Long Term Debt = 14.7m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 4.25m USD (from shortTermDebt, last quarter)
Debt = 14.7m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -222.5m USD (from netDebt column, last quarter)
Enterprise Value = 1.38b USD (1.60b + Debt 14.7m - CCE 237.2m)
Interest Coverage Ratio = 45.16 (Ebit TTM 31.6m / Interest Expense TTM 700.0k)
EV/FCF = 8.86x (Enterprise Value 1.38b / FCF TTM 155.8m)
FCF Yield = 11.29% (FCF TTM 155.8m / Enterprise Value 1.38b)
FCF Margin = 21.42% (FCF TTM 155.8m / Revenue TTM 727.5m)
Net Margin = 3.05% (Net Income TTM 22.2m / Revenue TTM 727.5m)
Gross Margin = 65.69% ((Revenue TTM 727.5m - Cost of Revenue TTM 249.6m) / Revenue TTM)
Gross Margin QoQ = 67.25% (prev 64.99%)
Tobins Q-Ratio = 2.50 (Enterprise Value 1.38b / Total Assets 551.1m)
Interest Expense / Debt = 1.04% (Interest Expense 152.0k / Debt 14.7m)
Taxrate = 46.18% (3.87m / 8.38m)
NOPAT = 17.0m (EBIT 31.6m * (1 - 46.18%))
Current Ratio = 0.84 (Total Current Assets 276.5m / Total Current Liabilities 327.4m)
Debt / Equity = 0.07 (Debt 14.7m / totalStockholderEquity, last quarter 201.9m)
Debt / EBITDA = -2.92 (Net Debt -222.5m / EBITDA 76.1m)
Debt / FCF = -1.43 (Net Debt -222.5m / FCF TTM 155.8m)
Total Stockholder Equity = 169.1m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.94% (Net Income 22.2m / Total Assets 551.1m)
RoE = 13.14% (Net Income TTM 22.2m / Total Stockholder Equity 169.1m)
RoCE = 17.20% (EBIT 31.6m / Capital Employed (Equity 169.1m + L.T.Debt 14.7m))
RoIC = 10.06% (NOPAT 17.0m / Invested Capital 169.1m)
WACC = 9.86% (E(1.60b)/V(1.62b) * Re(9.95%) + D(14.7m)/V(1.62b) * Rd(1.04%) * (1-Tc(0.46)))
Discount Rate = 9.95% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.59%
[DCF Debug] Terminal Value 75.45% ; FCFF base≈124.8m ; Y1≈153.9m ; Y5≈262.1m
Fair Price DCF = 19.34 (EV 3.21b - Net Debt -222.5m = Equity 3.43b / Shares 177.3m; r=9.86% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 86.03 | EPS CAGR: 76.95% | SUE: -1.08 | # QB: 0
Revenue Correlation: 84.19 | Revenue CAGR: 8.07% | SUE: 1.86 | # QB: 3
EPS next Quarter (2026-03-31): EPS=0.16 | Chg30d=-0.003 | Revisions Net=-1 | Analysts=8
EPS next Year (2026-12-31): EPS=0.68 | Chg30d=-0.001 | Revisions Net=-1 | Growth EPS=+7.0% | Growth Revenue=+6.9%