LEGALZOOM.COM, INC. (LZ) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does LEGALZOOM.COM, INC. Do?
LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company's platform offers products and services, including business formations, creating estate planning documents, protecting intellectual property, completing certain forms and agreements, providing access to independent attorney advice, and connecting customers with experts for tax preparation and bookkeeping services. It serves small businesses and individuals. LegalZoom.com, Inc. was incorporated in 1999 and is headquartered in Glendale, California. LEGALZOOM.COM, INC. (LZ) is classified as a small-cap stock in the Industrials sector, specifically within the Business Services industry. The company is led by CEO Daniel A. Wernikoff and employs approximately 1,220 people. With a market capitalization of $986M, LZ is one of the notable companies in the Industrials sector.
LEGALZOOM.COM, INC. (LZ) Stock Rating — Reduce (April 2026)
As of April 2026, LEGALZOOM.COM, INC. receives a Reduce rating with a composite score of 40.0/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.LZ ranks #3,107 out of 4,446 stocks in our coverage universe. Within the Industrials sector, LEGALZOOM.COM, INC. ranks #523 of 752 stocks, placing it in the lower half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
LZ Stock Price and 52-Week Range
LEGALZOOM.COM, INC. (LZ) currently trades at $5.63. The stock lost $0.03 (0.5%) in the most recent trading session. The 52-week high for LZ is $12.40, which means the stock is currently trading -54.6% from its annual peak. The 52-week low is $6.08, putting the stock -7.4% above its annual trough. Recent trading volume was 2.7M shares, reflecting moderate market activity.
Is LZ Overvalued or Undervalued? — Valuation Analysis
LEGALZOOM.COM, INC. (LZ) carries a value factor score of 49/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 50.72x, compared to the Industrials sector average of 28.33x — a premium of 79%. The price-to-book ratio stands at 6.03x, versus the sector average of 2.23x. The price-to-sales ratio is 1.41x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, LZ trades at 36.18x EV/EBITDA, versus 5.70x for the sector.
Overall, LZ's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
LEGALZOOM.COM, INC. Profitability — ROE, Margins, and Quality Score
LEGALZOOM.COM, INC. (LZ) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.9%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 4.0% versus the sector average of 3.3%.
On a margin basis, LEGALZOOM.COM, INC. reports gross margins of 65.9%, compared to 35.8% for the sector. The operating margin is 4.1% (sector: 6.2%). Net profit margin stands at 2.9%, versus 3.9% for the average Industrials stock. Revenue growth is running at 7.2% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
LZ Debt, Balance Sheet, and Financial Health
LEGALZOOM.COM, INC. has a debt-to-equity ratio of 198.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.76x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $0. Cash and equivalents stand at $237M.
LZ has a beta of 1.11, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for LEGALZOOM.COM, INC. is 44/100, reflecting average volatility within the normal range for its sector.
LEGALZOOM.COM, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, LEGALZOOM.COM, INC. reported revenue of $734M and earnings per share (EPS) of $0.09. Net income for the quarter was $20M. Gross margin was 65.9%. Operating income came in at $29M.
In FY 2025, LEGALZOOM.COM, INC. reported revenue of $756M and earnings per share (EPS) of $0.09. Net income for the quarter was $15M. Gross margin was 65.9%. Revenue grew 10.9% year-over-year compared to FY 2024. Operating income came in at $25M.
In Q3 2025, LEGALZOOM.COM, INC. reported revenue of $190M and earnings per share (EPS) of $0.03. Net income for the quarter was $5M. Gross margin was 67.3%. Revenue grew 12.8% year-over-year compared to Q3 2024. Operating income came in at $6M.
In Q2 2025, LEGALZOOM.COM, INC. reported revenue of $193M and earnings per share (EPS) of $0.00. Net income for the quarter was $-266,000. Gross margin was 65.0%. Revenue grew 8.5% year-over-year compared to Q2 2024. Operating income came in at $-3M.
Over the past 8 quarters, LEGALZOOM.COM, INC. has demonstrated a growth trajectory, with revenue expanding from $177M to $734M. Investors analyzing LZ stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
LZ Dividend Yield and Income Analysis
LEGALZOOM.COM, INC. (LZ) does not currently pay a dividend. This is common among smaller companies in the Business Services industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
LZ Momentum and Technical Analysis Profile
LEGALZOOM.COM, INC. (LZ) has a momentum factor score of 19/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 55/100 reflects moderate short selling activity.
LZ vs Competitors — Industrials Sector Ranking and Peer Comparison
Within the Industrials sector, LEGALZOOM.COM, INC. (LZ) ranks #523 out of 752 stocks based on the Blank Capital composite score. This places LZ in the lower half of all Industrials stocks in our coverage universe. Key competitors and sector peers include South Bow Corp (SOBO) with a score of 56.5/100, TSAKOS ENERGY NAVIGATION LTD (TEN) with a score of 61.4/100, Great Lakes Dredge & Dock CORP (GLDD) with a score of 56.7/100, Tri Pointe Homes, Inc. (TPH) with a score of 57.3/100, and Clear Channel Outdoor Holdings, Inc. (CCO) with a score of 52.2/100.
Comparing LZ against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LZ vs S&P 500 (SPY) comparison to assess how LEGALZOOM.COM, INC. stacks up against the broader market across all factor dimensions.
LZ Next Earnings Date
No upcoming earnings date has been announced for LEGALZOOM.COM, INC. (LZ) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy LZ? — Investment Thesis Summary
The quantitative profile for LEGALZOOM.COM, INC. suggests caution. Momentum is weak at 19/100, a headwind for near-term performance.
In summary, LEGALZOOM.COM, INC. (LZ) earns a Reduce rating with a composite score of 40.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LZ stock.
Related Resources for LZ Investors
Explore more research and tools: LZ vs S&P 500 comparison, top Industrials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare LZ head-to-head with peers: LZ vs SOBO, LZ vs TEN, LZ vs GLDD.