LZ
IndustrialsLegalZoom.com, Inc. · Specialty Business Services · $1B
What is LegalZoom.com, Inc.?
LegalZoom.com is an online platform that makes legal and compliance services accessible to small businesses and individuals across the United States. The company simplifies tasks that once required expensive attorney retainers.
LegalZoom generates revenue by connecting customers with self-service legal tools and professional services through a subscription and transaction-based model. Its platform handles business formations, estate planning documents, intellectual property filings, and standard legal agreements. The company also connects users with independent attorneys for on-demand advice and links them to tax preparation and bookkeeping professionals — broadening its revenue streams beyond one-time document filings.
LegalZoom was incorporated in 1999 and is headquartered in Glendale, California.
- Business formation and registration services
- Estate planning and will creation tools
- Intellectual property and trademark filings
- On-demand independent attorney access
- Tax preparation and bookkeeping connections
Is LZ a Good Stock to Buy?
UQS Score rates LZ as Good overall, reflecting a balanced profile with meaningful strengths and notable areas of concern.
The Risk pillar stands out as a relative bright spot, suggesting the company's financial structure carries lower-than-average downside exposure. Valuation is rated Attractive, meaning the market may not be fully pricing in the platform's long-term potential relative to its current fundamentals.
The Moat pillar registers as Weak, indicating limited structural competitive advantages that could protect market share over time. Quality and Growth both sit at Neutral, pointing to an uneven earnings profile and modest near-term expansion signals.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does LZ pay dividends?
No — LegalZoom.com, Inc. does not currently pay a dividend.
LegalZoom does not currently pay a dividend. As a growth-oriented platform business, the company reinvests available capital into product development, customer acquisition, and expanding its professional services network. Investors seeking income will need to look elsewhere, but those focused on long-term platform growth may find the reinvestment approach aligned with their goals.
When does LZ report earnings?
LegalZoom reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
The company's recent results reflect the mixed signals visible in its Neutral Quality and Growth pillar ratings — progress in subscription revenue has been offset by ongoing investment in platform capabilities and professional network expansion. Profitability trends remain a key area for investors to monitor.
For the most recent quarter's results and guidance, visit LegalZoom's official investor relations page.
LZ Price History
-82.7% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in LegalZoom.com, Inc.?
Based on LegalZoom.com, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
LZ Long-term Outlook
LegalZoom's fundamental outlook is shaped by its Neutral Growth profile and Attractive Valuation rating. The platform has room to expand wallet share among existing small business customers, particularly through subscription services and professional referrals. However, the Weak Moat rating signals that competitive pressure from both traditional legal service providers and emerging tech-enabled alternatives could limit pricing power and customer retention over the medium term.
Growth drivers
- Subscription model expansion among small business customers
- Cross-selling tax, bookkeeping, and attorney services
- Growing demand for affordable online legal solutions
Key risks
- Weak competitive moat leaves the platform exposed to well-funded rivals
- Neutral quality metrics suggest inconsistent earnings conversion
- Regulatory changes affecting online legal service delivery
LZ vs Peers
LegalZoom operates in a fragmented services landscape alongside companies that serve adjacent professional and business service markets.
Pursuit operates in experiential hospitality rather than legal services, representing a different capital allocation and revenue model within the broader small-cap services space.
BrightView focuses on commercial landscaping services, competing for small-cap investor attention in the outsourced business services category rather than legal tech.
Resolute operates in a distinct niche within the services sector, offering a different risk and growth profile compared to LegalZoom's platform-driven legal services model.
Frequently Asked Questions
What does LegalZoom do?
LegalZoom operates an online platform that helps small businesses and individuals handle legal and compliance tasks — from forming a business entity to creating a will or filing a trademark. The platform also connects customers with independent attorneys, tax preparers, and bookkeepers, making professional services more accessible and affordable.
Does LZ pay dividends?
LZ does not currently pay a dividend. The company reinvests its capital into growing its platform and expanding professional service offerings. Investors seeking regular income distributions should be aware that LegalZoom is not structured as a dividend-paying stock at this time.
When does LZ report earnings?
LegalZoom reports financial results on a quarterly basis, in line with standard US-listed company practice. For precise dates and upcoming earnings schedules, check LegalZoom's investor relations page directly, as our data source does not cover specific calendar dates.
Is LZ a good stock to buy?
UQS Score rates LZ as Good overall. The Attractive Valuation and Good Risk ratings are positives, while the Weak Moat and Neutral Quality ratings introduce caution. Whether LZ fits your portfolio depends on your risk tolerance and investment horizon — the full pillar breakdown is available to UQS Pro members.
Is LZ overvalued?
Based on the UQS Valuation pillar, LZ is currently rated Attractive, suggesting the stock may be priced favorably relative to its fundamentals. This does not guarantee future price appreciation, but it indicates the market has not heavily priced in optimistic growth assumptions at current levels.
How does LZ compare to its competitors?
LegalZoom's listed peers — Pursuit Attractions, BrightView Holdings, and Resolute Holdings — operate in different service verticals, making direct operational comparisons limited. Within the broader small-cap services space, LZ's platform model and subscription revenue mix distinguish it from asset-heavy or operationally intensive service businesses.
What is LZ's market cap bracket?
LegalZoom is classified as a small-cap company. This places it in a segment of the market that can offer growth potential but also carries higher volatility and liquidity risk compared to large-cap or mega-cap peers. Small-cap stocks often require closer monitoring of business fundamentals.
Who founded LegalZoom?
LegalZoom was co-founded by attorneys Brian Lee and Edward Hartman, along with Robert Shapiro, and was incorporated in 1999. Founding details are widely available through public sources and the company's own history disclosures.
Is LZ a long-term quality investment?
From a long-term quality perspective, LZ's Good overall UQS Score reflects a mixed picture. The Attractive Valuation and Good Risk ratings provide a reasonable foundation, but the Weak Moat rating raises questions about the durability of competitive advantages over a multi-year horizon. Pro members can view the complete pillar analysis to assess long-term fit.
What is the main competitive advantage of LegalZoom?
LegalZoom's primary advantage lies in brand recognition and platform accessibility — it has built one of the most recognized names in online legal services for consumers and small businesses. However, the UQS Moat pillar rates this advantage as Weak, suggesting the platform faces meaningful competitive pressure that limits pricing power and switching costs.
What sector does LZ belong to?
LegalZoom is classified under the Industrials sector. While this may seem counterintuitive for a legal technology platform, sector classifications reflect the company's business services orientation and how it is grouped within standard market taxonomies used by index providers and analysts.
Is LZ a growth stock or value stock?
LZ sits somewhere in between. The Neutral Growth pillar suggests expansion has been modest rather than high-velocity, while the Attractive Valuation rating indicates the stock is not priced at a premium. This profile may appeal to investors looking for a reasonably priced platform business with room to improve its growth trajectory.
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Pro Analysis
LZ — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 56.0 | 46.5 | 29.0 | 59.6 | 74.2 | 93.8 | -0.2 |
| May 18, 2026 | 56.2 | 46.5 | 29.0 | 59.6 | 74.2 | 94.9 | -1.4 |
| Apr 26, 2026 | 57.6 | 49.5 | 29.0 | 59.8 | 78.8 | 94.7 | 0.0 |
| Apr 19, 2026 | 57.6 | 49.5 | 29.0 | 59.8 | 78.8 | 94.4 | -0.3 |
| Apr 18, 2026 | 57.9 | 49.5 | 29.0 | 59.8 | 78.8 | 96.4 | -0.5 |
| Apr 2, 2026 | 58.4 | 49.5 | 29.0 | 59.8 | 78.8 | 100.0 | — |
LZ — Pillar Breakdown
Quality
— 46.5/100 (25%)LegalZoom.com, Inc. has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 59.6/100 (20%)LegalZoom.com, Inc. demonstrates healthy growth trends across revenue and earnings.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 74.2/100 (15%)LegalZoom.com, Inc. maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 93.9/100 (15%)LegalZoom.com, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 29/100 (25%)LegalZoom.com, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for LZ.
Score Composition
Financial Data
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How is the LZ UQS Score Calculated?
The UQS (Unified Quality Score) for LegalZoom.com, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses LegalZoom.com, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether LegalZoom.com, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.