lz-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the three months ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-35618

LegalZoom.com, Inc.

(Exact name of registrant as specified in its charter)

___________________________________


Delaware			95-4752856
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

954 Villa Street, Mountain View, California 94041
(Address of Principal Executive Offices, including Zip code)

(323) 962-8600

(Registrant's telephone number, including area code)



(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	LZ	The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	☒	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 30, 2026, the registrant had outstanding 171,647,764 shares of common stock, $0.001 par value per share, outstanding.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding our future results of operations and financial position, industry and business trends, stock compensation, business strategy, plans, market growth and our objectives for future operations.

The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those factors discussed below under “Summary of Risk Factors” and in Part II, Item 1A, “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q, as well as any factors contained in our subsequent filings with the Securities and Exchange Commission (the “SEC”). The forward-looking statements in this Quarterly Report on Form 10-Q are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this Quarterly Report on Form 10-Q and the documents that we reference herein and have filed as exhibits to this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this Quarterly Report on Form 10-Q, whether as a result of any new information, future events or otherwise.

Summary of Risk Factors

Our business involves significant risks and you are urged to carefully consider the risks discussed under Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q prior to making an investment in our common stock. These risks include, but are not limited to, the following:

•Our business primarily depends on business formations.

•Our business depends substantially on our customers expanding their use of our platform, including our transactional customers converting to subscribers and our subscribers renewing their subscriptions with us.

•Failure to effectively manage our growth could adversely impact our business.

•Our future quarterly results of operations may fluctuate significantly due to a wide range of factors, which makes our future results difficult to predict.

•We have a history of net losses and we may not be able to maintain profitability.

•If we fail to provide high-quality products and services that meet our customers’ expectations, we may not be able to attract and retain customers.

•If we do not continue to innovate and provide a platform that is useful to our customers, we may not remain competitive and our results of operations could suffer.

•The legal solutions market is highly competitive and our failure to effectively compete successfully could materially and adversely affect our business, results of operations, financial condition and future prospects.

Table of Contents

•Our business depends on our brand and reputation, which could be adversely affected by numerous factors.

•We are incorporating generative artificial intelligence into some of our offerings, which may present compliance risks and reputational risks.

•If our marketing efforts are unsuccessful, our business, results of operations, financial condition and future prospects may be adversely affected.

•We depend on top talent, including our senior management team, to grow and operate our business, and if we are unable to hire, retain or motivate our employees, we may not be able to grow or operate effectively, which may adversely affect our business and future prospects.

•Our business and success depend in part on our strategic relationships with third parties, including our partner ecosystem, and our business may be harmed if we fail to maintain or expand these relationships.

•Our reliance on third-party providers could adversely affect our business.

•The acquisition of Formation Nation and any future acquisitions or investments may divert management’s attention, result in additional dilution to our stockholders or adversely affect our operating results.

•If we are unable to maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may decline.

•Our business and services subject us to complex and evolving U.S. and foreign laws and regulations and any failure or perceived failure by us to comply with applicable laws and regulations may subject us to regulatory inquiries, claims, suits, and prosecutions, as well as changes in our service offerings, potential liabilities, or additional costs.

Note Regarding Third Party Information

This Quarterly Report on Form 10-Q includes market data and certain other statistical information and estimates that are based on reports and other publications from independent third party sources, as well as management's own good faith estimates and analyses. We believe these third party reports to be reputable, but have not independently verified the underlying data sources, methodologies, or assumptions. The reports and other publications referenced are generally available to the public and were not commissioned by LegalZoom. Information that is based on estimates, forecasts, projections, market research, or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances reflected in this information.

Table of Contents

TABLE OF CONTENTS


		Page
Part I	FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	4
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Income	6
	Condensed Consolidated Statements of Stockholders’ Equity	7
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	35
Item 4.	Controls and Procedures	36
Part II	OTHER INFORMATION
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	58
Item 3.	Defaults Upon Senior Securities	59
Item 4.	Mine Safety Disclosures	59
Item 5.	Other Information	59
Item 6.	Exhibits	59
Signatures		60

Table of Contents

Part I

Item 1. Condensed Consolidated Financial Statements (Unaudited)

LegalZoom.com, Inc.

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except par values)


	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	183,152	$	203,100
Accounts receivable, net of allowances of $3,701 and $2,281, respectively	24,573		20,589
Prepaid expenses and other current assets	20,551		18,234

Total current assets	228,276		241,923
Property and equipment, net	55,589		58,045
Goodwill	140,705		140,705
Intangible assets, net	16,542		18,152
Operating lease right-of-use assets	14,199		13,414
Deferred income taxes	29,446		31,884

Other assets	7,101		7,399
Total assets	$	491,858	$	511,522
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	38,126	$	27,167
Accrued expenses and other current liabilities	57,373		83,361
Deferred revenue	223,242		203,653
Operating lease liabilities	4,743		4,338
Total current liabilities	323,484		318,519
Operating lease liabilities, non-current	10,479		10,025
Deferred revenue	260		277
Other liabilities	10,727		10,819
Total liabilities	$	344,950	$	339,640
Commitments and contingencies (Note 6)
Stockholders’ equity:
Preferred stock, $0.001 par value; 100,000 shares authorized at March 31, 2026 and December 31, 2025, none issued or outstanding at March 31, 2026 and December 31, 2025	—		—
Common stock, $0.001 par value; 1,000,000 shares authorized; 173,402 shares and 177,624 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively	175		179
Additional paid-in capital	1,323,587		1,305,936
Accumulated deficit	(1,177,128)		(1,134,414)
Accumulated other comprehensive income	274		181
Total stockholders’ equity	146,908		171,882
Total liabilities and stockholders’ equity	$	491,858	$	511,522

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

LegalZoom.com, Inc.

Unaudited Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)


	Three Months Ended March 31,
		2026		2025

Revenue		$	206,781	$	183,110
Cost of revenue		74,528		66,560
Gross profit		132,253		116,550
Operating expenses:
Sales and marketing		78,668		61,378
Technology and development		19,605		21,322
General and administrative		31,216		39,221
Gain on sale of assets held for sale		—		(14,337)

Total operating expenses		129,489		107,584
Income from operations		2,764		8,966
Interest expense		(676)		(182)
Interest income		1,648		1,483
Other income, net		81		347
Income before income taxes		3,817		10,614
Provision for income taxes		2,713		5,487
Net income		$	1,104	$	5,127
Net income per share — basic:		$	0.01	$	0.03
Net income per share — diluted:		$	0.01	$	0.03
Weighted-average shares used to compute net income per share — basic:		174,866		176,829
Weighted-average shares used to compute net income per share — diluted:		177,013		180,616

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

LegalZoom.com, Inc.

Unaudited Condensed Consolidated Statements of Comprehensive Income

(In thousands)


	Three Months Ended March 31,
		2026		2025

Net income		$	1,104	$	5,127
Other comprehensive income, net of tax:
Change in foreign currency translation adjustments		93		(73)
Change in available-for-sale debt security due to unrealized gains		—		153

Total other comprehensive income		93		80
Total comprehensive income		$	1,197	$	5,207

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

LegalZoom.com, Inc.

Unaudited Condensed Consolidated Statements of Stockholders’ Equity

(In thousands)


	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2025	177,624	$	179	$	1,305,936	$	(1,134,414)	$	181	$	171,882
Issuance of common stock upon exercise of stock options	4	—		16		—		—		16
Issuance of common stock upon vesting of restricted stock unit awards	1,790	2		(2)		—		—		—
Shares surrendered for settlement of minimum statutory tax withholdings	(696)	(1)		(4,886)		—		—		(4,887)
Stock-based compensation	—	—		22,523		—		—		22,523
Repurchased common stock	(5,320)	(5)		—		(43,462)		—		(43,467)
Stock repurchase excise tax	—	—		—		(356)		—		(356)
Other comprehensive income	—	—		—		—		93		93
Net income	—	—		—		1,104		—		1,104
Balance at March 31, 2026	173,402	$	175	$	1,323,587	$	(1,177,128)	$	274	$	146,908


	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2024	173,619	$	175	$	1,161,538	$	(1,069,317)	$	861	$	93,257
Issuance of common stock upon exercise of stock options	4,473	4		43,543		—		—		43,547
Issuance of common stock upon vesting of restricted stock unit awards	1,525	2		(2)		—		—		—
Shares surrendered for settlement of minimum statutory tax withholdings	(645)	(1)		(5,941)		—		—		(5,942)
Stock-based compensation	—	—		31,096		—		—		31,096


Other comprehensive income	—	—		—		—		80		80
Issuance of common stock for acquisition	2,205	2		20,045		—		—		20,047
Net income	—	—		—		5,127		—		5,127
Balance at March 31, 2025	181,177	$	182	$	1,250,279	$	(1,064,190)	$	941	$	187,212

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

LegalZoom.com, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(In thousands)


	Three Months Ended March 31,
	2026		2025
Cash flows from operating activities
Net income	$	1,104	$	5,127
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,137		10,406
Amortization of right-of-use assets	968		618
Amortization of debt issuance costs	47		56


Stock-based compensation	21,314		29,756
Deferred income taxes	2,438		1,996
Change in fair value of other equity security	—		(302)

Unrealized foreign exchange loss	143		76
Gain on sale of assets held for sale	—		(14,337)


Loss on disposal of property and equipment	—		99

Changes in operating assets and liabilities, net of effects of business combination:
Accounts receivable	(3,984)		(9,148)
Prepaid expenses and other current assets	(2,348)		(2,238)
Other assets	412		204
Accounts payable	11,248		5,329
Accrued expenses and other liabilities	(13,882)		(3,247)
Operating lease liabilities	(896)		(536)
Income tax payable

SEC Form 10-Q filed by LegalZoom.com Inc.