LZ
LZ 1-star rating from Upturn Advisory

LegalZoom.com Inc (LZ)

LegalZoom.com Inc (LZ) 1-star rating from Upturn Advisory
$9.38
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Upturn Advisory Summary

12/05/2025: LZ (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

Upturn 1 star rating for performance

Not Recommended Performance

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

Number of Analysts

3 star rating from financial analysts

10 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $12.36

1 Year Target Price $12.36

Analysts Price Target For last 52 week
$12.36 Target price
52w Low $6.47
Current$9.38
52w High $12.4

Analysis of Past Performance

Type Stock
Historic Profit -27.57%
Avg. Invested days 30
Today’s Advisory PASS
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 12/05/2025

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

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

LegalZoom.com Inc

LegalZoom.com Inc(LZ) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo 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.

Company business area logo 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 logo 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

Product Key Offerings logo 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 logo 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 competitor logo 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.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries 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.