| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 206.78 | 12.9% |
| Total Income | 206.78 | 12.9% |
| Expenditure | 204.02 | 17.2% |
| PBT | 3.82 | 64.0% |
| Net Profit | 1.10 | 78.6% |
| OPM | 1.34% | 3.56pp |
| NPM | 0.53% | 2.27pp |
| EPS | 0.01 | 66.7% |
LegalZoom Reports Q1 2026 Revenue Up 13% Y-o-Y
07 May 2026 · 7 May, 1:39 am
Summary
LegalZoom announced its first quarter 2026 results, reporting revenue of $206.8 million, a 13% increase year-over-year. Subscription revenue grew 12% to $130.2 million. Net income was $1.1 million, representing a 1% margin, while adjusted EBITDA was $36.5 million, with an 18% margin. The company is increasing its full-year revenue outlook to a range of $810 million to $830 million and maintaining its adjusted EBITDA outlook in the range of $190 million to $200 million.
Key Highlights
- 1
LegalZoom's revenue reached $206.8 million, reflecting a 13% increase year-over-year.
- 2
Subscription revenue grew by 12% year-over-year to $130.2 million, driven by human-in-the-loop service offerings.
- 3
The company reported a net income of $1.1 million, resulting in a net income margin of 1%.
- 4
Adjusted EBITDA stood at $36.5 million, with an Adjusted EBITDA margin of 18%.
- 5
LegalZoom completed $43.5 million in share repurchases during the quarter, demonstrating a commitment to shareholder returns.
- 6
Cash from operating activities was $47.3 million, and free cash flow was $41.0 million, with cash and cash equivalents ending the quarter at $183.2 million.
Management Comments
Jeff Stibel
LegalZoom delivered another strong quarter, clearly illustrating that our strategy is working. In an AI-driven world, we win by getting customers to the finish line, combining technology with real human expertise to complete the last mile.
Noel Watson
We delivered strong first quarter results, with 13% revenue growth ahead of expectations. Our performance was driven by momentum in higher-value subscriptions and increased seasonal strength in annual report filings from our enhanced compliance offering. Importantly, our core growth drivers continue to build and will scale through the back half of the year, supporting our increased full-year revenue outlook.
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