LegalZoom.com, Inc. (LZ)

LegalZoom's stock price has experienced fluctuations and analyst attention in the past six months. From January 2, 2025, to December 31, 2025, the share price increased by 31.35%. Over the past year, LZ has seen a 27.20% change, with its 52-week range falling between $6.47 and $12.40. Recent analyst ratings include Citigroup maintaining a "Neutral" recommendation, Morgan Stanley maintaining an "Underweight" recommendation, William Blair upgrading the stock, and Barclays maintaining an "Equal-Weight" recommendation. The company also missed its Q3 earnings estimates. In Q1 2025, LegalZoom made a strategic acquisition of Formation Nation, Inc., and appointed a new Chief Technology Officer. However, a report from January 6, 2026, raised concerns regarding the company's annual revenue growth, its emphasis on platform growth over monetization, and the impact of expensive marketing campaigns on profitability.

LegalZoom experiences clear demand seasonality for its products and services. The demand for its services typically declines around the beginning of the third quarter, which is attributed to summer vacations. Additionally, demand also tends to decrease in the last two months of the fourth quarter, likely due to the winter holidays. This seasonality is also reflected in the timing of the company's revenue recognition, with a high amount of revenue typically recognized in the second quarter from orders that were placed in the first quarter but fulfilled in the second quarter.

LegalZoom.com, Inc. (LZ) is an American online legal technology and services company that aims to make legal services accessible and affordable for individuals and small businesses. The company operates within the legal tech sector, focusing on applying technological solutions to the delivery of legal services. LegalZoom's major products and services include business formation, intellectual property protection, estate planning, and legal compliance services. They also offer attorney advice subscriptions, registered agent services, virtual mail subscriptions, and a library of customizable legal forms with eSignature capabilities. LegalZoom combines intuitive technology with access to experienced attorneys, either through its independent attorney network or its own law firm, LegalZoom Legal Services (LZLS).

LegalZoom operates across all 50 states in the U.S. and in over 3,000 counties. The company's headquarters are located in Mountain View, California, U.S. Additionally, LegalZoom has offices in Glendale, California, Austin, Texas, Lucan, Ireland, and London, England. The company has also adopted a remote-first policy, allowing a predominantly remote workforce.

Maintaining and enhancing the LegalZoom brand and its reputation is crucial for customer acquisition and retention. The company believes its brand name recognition and reputation are key drivers of customer trust and organic traffic. However, LegalZoom's reputation can be adversely affected by various factors, including regulatory proceedings, consumer claims, false and misleading advertising claims, litigation, customer complaints, and negative publicity. Data privacy or security issues could also diminish confidence in their services. In the past year, LegalZoom has been actively addressing brand protection, particularly for small businesses in the age of AI, encouraging small businesses to safeguard their intellectual property through trademark registration and other measures. The company is also incorporating generative artificial intelligence into some of its offerings, which may present compliance and reputational risks.

LegalZoom.com, Inc. (LZ) has a diverse ownership structure, with institutional investors holding a significant portion of the company's stock. Approximately 67.79% of the company's stock is owned by Institutional Investors, 6.56% by Insiders, and 25.65% by Public Companies and Individual Investors. Major institutional owners include Francisco Partners Management, LP, Vanguard Group Inc, Technology Crossover Management IX, Ltd., BlackRock, Inc., Renaissance Technologies Llc, Arrowstreet Capital, Limited Partnership, Franklin Resources Inc, and Geode Capital Management, Llc. Other notable institutional holders include T. Rowe Price Integrated Equity Funds, Inc., State Street Global Advisors, Inc., Punch & Associates Investment Management, Inc., Boston Partners Global Investors, Inc., D. E. Shaw & Co., L.P., JPMorgan Chase & Co., CIBC Bancorp USA Inc., Jacobs Levy Equity Management Inc., Sender Co & Partners Inc., MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., Alliancebernstein L.P., Ameriprise Financial Inc., Raymond James Financial Inc., Sei Investments Co., Russell Investments Group Ltd., and Victory Capital Management Inc.