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LZ
Upturn stock ratingUpturn stock rating

LegalZoom.com Inc (LZ)

Upturn stock ratingUpturn stock rating
$8.91
Last Close (24-hour delay)
upturn advisory
PASS
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK

Upturn Advisory Summary

06/30/2025: LZ (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

10 Analysts rated it

Well-followed company, solid analyst reports, reliable data for confident investing.

1 Year Target Price $9.79

1 Year Target Price $9.79

Analysts Price Target For last 52 week
$9.79Target price
Low$5.33
Current$8.91
high$10.6

Analysis of Past Performance

Type Stock
Historic Profit -20.03%
Avg. Invested days 32
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/30/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.60B USD
Price to earnings Ratio 52
1Y Target Price 9.79
Price to earnings Ratio 52
1Y Target Price 9.79
Volume (30-day avg) 10
Beta 1.25
52 Weeks Range 5.33 - 10.60
Updated Date 06/29/2025
52 Weeks Range 5.33 - 10.60
Updated Date 06/29/2025
Dividends yield (FY) -
Basic EPS (TTM) 0.17

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Earnings Date

Report Date 2025-06-06
When After Market
Estimate 0.1
Actual 0.13

Profitability

Profit Margin 4.39%
Operating Margin (TTM) -2.56%

Management Effectiveness

Return on Assets (TTM) 3.98%
Return on Equity (TTM) 17.09%

Valuation

Trailing PE 52
Forward PE 12.45
Enterprise Value 1406309034
Price to Sales(TTM) 2.32
Enterprise Value 1406309034
Price to Sales(TTM) 2.32
Enterprise Value to Revenue 2.04
Enterprise Value to EBITDA 16.35
Shares Outstanding 181184000
Shares Floating 117296964
Shares Outstanding 181184000
Shares Floating 117296964
Percent Insiders 4.62
Percent Institutions 86.17

Analyst Ratings

Rating 4
Target Price 9.79
Buy 1
Strong Buy 1
Buy 1
Strong Buy 1
Hold 6
Sell 1
Strong Sell 1
Strong Sell 1

ai summary icon Upturn AI SWOT

LegalZoom.com Inc

stock logo

Company Overview

overview logo History and Background

LegalZoom.com Inc. was founded in 1999. It aimed to democratize legal services by providing online legal solutions to individuals and small businesses. It has grown from offering basic legal documents to providing subscription-based legal advice and services.

business area logo Core Business Areas

  • Business Formation: Assists individuals and small businesses in forming legal entities such as LLCs, corporations, and nonprofits.
  • Estate Planning: Offers services for creating wills, trusts, and other estate planning documents.
  • Intellectual Property: Provides assistance with trademark registration and copyright filings.
  • Legal Advice: Connects customers with attorneys for legal advice through subscription plans.

leadership logo Leadership and Structure

The leadership team includes the CEO, CFO, and other key executives. The organizational structure consists of various departments including product development, marketing, sales, and legal services.

Top Products and Market Share

overview logo Key Offerings

  • Estimated Users/Revenue: Estimated revenue from business formations contribute a significant portion of total revenue; specific numbers are proprietary. They hold a leading market share.
  • LLC Formation: Helps entrepreneurs form limited liability companies. LegalZoom dominates the online LLC formation market. Competitors include Incfile, ZenBusiness, and Northwest Registered Agent.
  • Estimated Users/Revenue: This segment also drives considerable revenue. Specific market share data is not publicly available but is a major part of LegalZoom's business.
  • Wills and Trusts: Offers online tools and attorney assistance for creating wills and trusts. Competitors include Trust & Will, Quicken WillMaker & Trust.
  • Estimated Users/Revenue: Subscription revenue is a growing part of their business. Specific subscriber numbers are proprietary.
  • LegalZoom Legal Plan: Subscription service providing access to attorneys for legal advice and document review. Competitors include traditional law firms and other online legal service providers.

Market Dynamics

industry overview logo Industry Overview

The legal services industry is undergoing digital transformation, with increasing demand for online legal solutions due to convenience and affordability.

Positioning

LegalZoom is positioned as a leading online legal solutions provider, targeting individuals and small businesses seeking affordable and accessible legal services.

Total Addressable Market (TAM)

The total addressable market for online legal services is estimated to be billions of dollars. LegalZoom is positioned to capture a significant portion of this TAM through its brand recognition and range of services.

Upturn SWOT Analysis

Strengths

  • Strong brand recognition
  • Large customer base
  • Wide range of services
  • Subscription revenue model
  • Extensive online platform

Weaknesses

  • Customer service issues reported
  • Higher price points compared to some competitors
  • Dependency on marketing spend for customer acquisition
  • Scalability challenges with legal advice services

Opportunities

  • Expansion into new legal service areas
  • Partnerships with other businesses
  • International expansion
  • Increased adoption of online legal services
  • Further develop its AI legal tools

Threats

  • Competition from other online legal service providers
  • Changes in legal regulations
  • Economic downturn impacting small business formation
  • Data security breaches

Competitors and Market Share

competitor logo Key Competitors

  • CTAS
  • INCN
  • ZENB

Competitive Landscape

LegalZoom has a strong brand advantage but faces competition from other online legal service providers offering lower prices or specialized services. ZenBusiness focuses on business formation, and Incfile offers similar services at competitive rates.

Major Acquisitions

Earth Class Mail

  • Year: 2021
  • Acquisition Price (USD millions): 38
  • Strategic Rationale: The acquisition expands LegalZoomu2019s services to include virtual mail management for small businesses, enhancing their offerings for business formation clients.

Growth Trajectory and Initiatives

Historical Growth: LegalZoom has experienced significant growth in revenue and customer base since its founding.

Future Projections: Analyst estimates suggest continued growth in revenue and profitability, driven by increasing demand for online legal services. These estimations fluctuate with the market

Recent Initiatives: Strategic initiatives include expanding subscription services, improving customer service, and investing in technology to enhance the user experience.

Summary

LegalZoom is a well-established player in the online legal services market with a strong brand and a wide range of offerings. Its subscription-based model provides recurring revenue, but it needs to address customer service concerns and manage competitive pressures. The company's growth prospects are positive, driven by the increasing adoption of online legal solutions, though there are financial risks.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • LegalZoom.com Inc. Investor Relations
  • SEC Filings
  • Third-party Market Research Reports
  • Analyst Reports

Disclaimers:

This analysis is based on publicly available information and analyst estimates. The information is for informational purposes only and should not be considered investment advice. Market share data may vary based on different sources and methodologies.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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
Full time employees 964

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.