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Upturn AI SWOT - About
LegalZoom.com Inc (LZ)

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Upturn Advisory Summary
10/23/2025: LZ (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $11.64
1 Year Target Price $11.64
| 1 | Strong Buy |
| 1 | Buy |
| 6 | Hold |
| 1 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -27.57% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.88B USD | Price to earnings Ratio 65.31 | 1Y Target Price 11.64 |
Price to earnings Ratio 65.31 | 1Y Target Price 11.64 | ||
Volume (30-day avg) 10 | Beta 1.24 | 52 Weeks Range 6.47 - 11.93 | Updated Date 10/24/2025 |
52 Weeks Range 6.47 - 11.93 | Updated Date 10/24/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.16 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 4.07% | Operating Margin (TTM) -1.57% |
Management Effectiveness
Return on Assets (TTM) 3.96% | Return on Equity (TTM) 22.58% |
Valuation
Trailing PE 65.31 | Forward PE 10.45 | Enterprise Value 1643104589 | Price to Sales(TTM) 2.67 |
Enterprise Value 1643104589 | Price to Sales(TTM) 2.67 | ||
Enterprise Value to Revenue 2.33 | Enterprise Value to EBITDA 19.27 | Shares Outstanding 180249374 | Shares Floating 115541651 |
Shares Outstanding 180249374 | Shares Floating 115541651 | ||
Percent Insiders 4.88 | Percent Institutions 89.2 |
Upturn AI SWOT
LegalZoom.com Inc
Company Overview
History and Background
LegalZoom.com Inc. was founded in 1999 and launched in 2001. It aimed to democratize legal services by offering online access to legal documents and advice. Over time, it has expanded its offerings beyond basic document preparation to include attorney consultations and business advisory services.
Core Business Areas
- Small Business Formation: Provides LLC formation, corporation formation, and related services like registered agent services.
- Personal Legal Solutions: Offers services such as wills, trusts, power of attorney documents, and divorce papers.
- Intellectual Property: Includes services for trademark and copyright registration.
- Attorney Advice: Connects users with independent attorneys for legal consultations and advice.
Leadership and Structure
The leadership team includes the CEO, CFO, and other key executives. The organizational structure is a typical corporate hierarchy with departments for technology, marketing, legal, and customer service. As of 2024, Nathan Wambold is Interim CEO.
Top Products and Market Share
Key Offerings
- LLC Formation: Helps businesses form limited liability companies. Competitors include Incfile, ZenBusiness, and Rocket Lawyer. Market share varies but LegalZoom is a major player in the online legal services market, estimated at 25% of the market of online legal incorporation services. Revenue is included with business formation revenues.
- Wills and Trusts: Provides tools and resources for creating wills and trusts. Competitors include Quicken WillMaker & Trust and Trust & Will. Estimated 20-30% market share of DIY and online will and trust creation services. Revenue is included with LegalZoom's consumer revenues.
- Registered Agent Services: Provides registered agent services to keep the company compliant with regulations. This is one of LegalZoom's most popular services for small businesses. Competitors include IncFile, ZenBusiness, and Northwest Registered Agent. Revenue is part of the subscriptions revenue.
Market Dynamics
Industry Overview
The legal services industry is undergoing digital transformation, with increasing demand for online and accessible legal solutions. The market is fragmented, with traditional law firms competing with online legal service providers.
Positioning
LegalZoom.com Inc positions itself as a cost-effective and convenient alternative to traditional law firms, targeting small businesses and individuals seeking affordable legal assistance.
Total Addressable Market (TAM)
The TAM for online legal services is estimated to be in the billions of dollars annually. LegalZoom.com Inc is well-positioned to capture a significant portion of this market through its brand recognition and wide range of service offerings. Estimated TAM: $50 Billion. LegalZoom captures 1% of this TAM.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Wide range of service offerings
- Large customer base
- Established online platform
- Partnerships with attorneys
Weaknesses
- Perception of not providing personalized legal advice
- Customer service issues
- Competition from traditional law firms
- Dependence on marketing spend
Opportunities
- Expanding into new legal service areas
- Increasing partnerships with attorneys
- Improving customer service
- Leveraging AI and automation
- International expansion
Threats
- Increased competition from other online legal service providers
- Changes in legal regulations
- Negative publicity or lawsuits
- Economic downturn
Competitors and Market Share
Key Competitors
- Rocket Lawyer (private)
- Incfile (private)
- ZenBusiness (private)
Competitive Landscape
LegalZoom.com Inc. has a strong brand and wide range of services, but faces competition from other online legal service providers and traditional law firms. Rocket Lawyer's subscription based model is popular, and IncFile and ZenBusiness offer low-cost incorporation services.
Major Acquisitions
Earth Class Mail
- Year: 2018
- Acquisition Price (USD millions): 17.7
- Strategic Rationale: Expand service offerings for small businesses with virtual address and mailroom solutions.
Growth Trajectory and Initiatives
Historical Growth: LegalZoom.com Inc. has experienced revenue growth in recent years, driven by increased demand for online legal services. However, profitability remains a challenge.
Future Projections: Analyst estimates suggest continued revenue growth for LegalZoom.com Inc, but profitability remains uncertain. Focus is on leveraging AI to reduce expenses and increase margin
Recent Initiatives: Recent initiatives include partnerships with law firms, investments in AI-powered legal tools, and expansion into new service areas.
Summary
LegalZoom has strong brand recognition and a wide range of services, and it has grown revenue, yet faces profitability challenges. Increasing competition and the perception of impersonal service are potential pitfalls. LegalZoom must continue to leverage technology and expand its services to maintain its market position and achieve sustainable profitability. Overall, LegalZoom is a very average company with good and bad points that may work out in the future.
Peer Comparison
Sources and Disclaimers
Data Sources:
- LegalZoom.com Inc. Investor Relations
- SEC Filings (10-K, 10-Q)
- Third-party market research reports
- Analyst estimates
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It is not financial advice. Market share estimates are approximate and based on available data.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About LegalZoom.com Inc
Exchange NASDAQ | Headquaters Mountain View, CA, United States | ||
IPO Launch date 2021-06-30 | CEO & Chairman Mr. Jeffrey M. Stibel | ||
Sector Industrials | Industry Specialty Business Services | Full time employees 964 | Website https://www.legalzoom.com |
Full time employees 964 | Website https://www.legalzoom.com | ||
LegalZoom.com, Inc. together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company's platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; and intellectual property products consisting of trademark and patent applications, and copyright registrations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and name change. In addition, the company offers subscriptions services, including registered agent, compliance, attorney advice, tax advice and preparation, eSignature, virtual mail and check deposit services, trademark monitoring, and estate planning bundle. The company was incorporated in 1999 and is headquartered in Mountain View, California.

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