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LegalZoom.com Inc (LZ)

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Upturn Advisory Summary
12/05/2025: LZ (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $12.36
1 Year Target Price $12.36
| 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 1.69B USD | Price to earnings Ratio 78.17 | 1Y Target Price 12.36 |
Price to earnings Ratio 78.17 | 1Y Target Price 12.36 | ||
Volume (30-day avg) 10 | Beta 1.24 | 52 Weeks Range 6.47 - 12.40 | Updated Date 12/6/2025 |
52 Weeks Range 6.47 - 12.40 | Updated Date 12/6/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.12 |
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 3.06% | Operating Margin (TTM) 3.46% |
Management Effectiveness
Return on Assets (TTM) 1.8% | Return on Equity (TTM) 16.96% |
Valuation
Trailing PE 78.17 | Forward PE 9.69 | Enterprise Value 1461589451 | Price to Sales(TTM) 2.32 |
Enterprise Value 1461589451 | Price to Sales(TTM) 2.32 | ||
Enterprise Value to Revenue 2.01 | Enterprise Value to EBITDA 18.98 | Shares Outstanding 177270258 | Shares Floating 122788017 |
Shares Outstanding 177270258 | Shares Floating 122788017 | ||
Percent Insiders 4.41 | Percent Institutions 91.38 |
Upturn AI SWOT
LegalZoom.com Inc
Company Overview
History and Background
LegalZoom.com Inc. was founded in 1999. It pioneered online legal document services, aiming to make legal help more accessible and affordable. Over time, it expanded its offerings from basic document creation to include legal advice and attorney consultations.
Core Business Areas
- Business Formations: Provides services for forming various business entities like LLCs, corporations, and nonprofits. Includes assistance with registration, operating agreements, and compliance.
- Personal Legal: Offers document creation and legal advice for personal matters such as wills, trusts, power of attorney, and name changes.
- Intellectual Property: Assists with trademark registration, copyright applications, and patent searches.
- Legal Advice Plans: Subscription-based services providing access to attorneys for legal advice and document review.
Leadership and Structure
The company is led by a CEO and has a typical corporate structure with departments such as marketing, technology, legal, and finance. The board of directors oversees the company's strategic direction.
Top Products and Market Share
Key Offerings
- LLC Formation: LegalZoom is a leader in LLC formation services. It provides a streamlined online process with varying packages. Market share is estimated at around 25% of the online LLC formation market. Competitors include Incfile, ZenBusiness, and Northwest Registered Agent. Revenue from this product makes up 40% of total revenue.
- Wills and Trusts: LegalZoom offers online will and trust creation services, including estate planning documents and access to attorney consultations. Market share is estimated at around 20% of the online wills and trust market. Competitors include Trust & Will, Fabric by Gerber Life, and Quicken WillMaker & Trust. Revenue from this product makes up 20% of total revenue.
- Trademark Registration: LegalZoom assists in registering trademarks with the USPTO, offering search and application services. Competitors include Trademark Engine, and UpCounsel.
Market Dynamics
Industry Overview
The legal services industry is undergoing digital transformation with increasing adoption of online legal solutions. There's growing demand for affordable and accessible legal services, particularly among small businesses and individuals.
Positioning
LegalZoom positions itself as a leading provider of online legal solutions, targeting small businesses and individuals who need affordable and convenient legal services. Its competitive advantages include brand recognition, a wide range of services, and a user-friendly platform.
Total Addressable Market (TAM)
The TAM for online legal services is estimated to be in the billions of dollars. LegalZoom is well-positioned to capture a significant portion of this market through its established brand and expanding service offerings.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Wide range of services
- User-friendly platform
- Large customer base
- Established partnerships
Weaknesses
- Customer service issues
- Complaints about upselling
- Reliance on third-party attorneys
- Higher price points compared to some competitors
- Subscription retention rates
Opportunities
- Expand into new legal service areas
- Develop AI-powered legal tools
- Increase international presence
- Improve customer service
- Partnerships with financial institutions
Threats
- Increasing competition from other online legal service providers
- Changes in legal regulations
- Negative reviews impacting brand reputation
- Economic downturn affecting small business formation
- Data security breaches
Competitors and Market Share
Key Competitors
- INCF
- ZENB
Competitive Landscape
LegalZoom faces competition from other online legal service providers and traditional law firms. Its advantages include brand recognition and a wide range of services. Disadvantages include higher price points compared to some competitors.
Major Acquisitions
Earth Class Mail
- Year: 2018
- Acquisition Price (USD millions): 17.7
- Strategic Rationale: Expanded LegalZoom's services to include virtual mailing addresses and mail management for small businesses.
Growth Trajectory and Initiatives
Historical Growth: LegalZoom has experienced revenue growth driven by increased adoption of online legal services and expansion of its service offerings.
Future Projections: Analyst estimates project continued revenue growth for LegalZoom driven by market trends and strategic initiatives.
Recent Initiatives: Recent initiatives include expanding legal advice plans, investing in technology, and partnering with other businesses.
Summary
LegalZoom is a recognized leader in online legal services, leveraging its brand and platform to serve small businesses and individuals. Strengths include strong brand recognition and service breadth, but weaknesses lie in customer service perceptions and premium pricing. Future opportunities involve expanding service lines and enhancing customer experience, while threats include intensifying competition and changing regulations.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Analyst Reports
- Industry Research
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share and financial data are estimates and may vary.
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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