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Data-driven stock valuation

LegalZoom.com Inc (LZ) fair value: what the stock is really worth

As of Nov 6, 2026: fair value (intrinsic value) of LegalZoom.com Inc stock $6.34, price $5.24, upside +21.2%, quality 64 out of 100. Rating: undervalued. Calculated from audited financials with 22 of our 26 valuation models and 37 quality factors, updated daily.

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Industrials US

LC LegalZoom.com Inc logo Some data Nov 9, 2026

LegalZoom.com Inc

LZ · US
Undervalued, but in a downtrend

The stock costs 17% less than our calculation considers fair.

Fair value $6.34 · Undervalued
Quality 64/100
Generates free cash flow
Mixed Growth (revenue 5y +9.9 %/yr in USD)
Thin margins · 2.1% net margin (TTM)
Insiders bought $768,750 (6M) · sold $3.6M
Some data
Profit last quarter 78% below a year ago.
High debt
Trails peers (5/13)
Narrow moat 39/100
Quality growth
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Price vs Fair Value

$39.85 $5.24 Fair Value $6.34 Aug 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 9, 2026.

How to read this chart

60‑month range $5.24 – $39.85 · fair‑value band $4.77 – $7.92 · the $5.24 price screens below the $6.34 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 9, 2026.

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Company profile

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.

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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 legal forms.

In addition, the company offers subscriptions services, including registered agent, compliance, small business attorney advice through our legal plans, compliance concierge, compliance and legal concierge, reinstatement concierge and compliance concierge, business concierge, business and legal concierge, consumer attorney advice through legal plans, business licenses, virtual mail and check deposit services, estate planning bundle, bookkeeping, e-signature, and trademark monitoring.

The company was incorporated in 1999 and is headquartered in Mountain View, California.

Stock analysis

LegalZoom.com Inc (LZ) currently trades at $5.24, while our model-based Fair Value estimate is $6.34, implying the stock looks roughly 17% undervalued today.

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Valuation

Bull case: the Growth DCF group reads highest at a median of $6.85 per share, and 6 of the 22 models we run sit above the $5.24 price.

Bear case: the Economic Profit group reads lowest at $0.8400, and 16 of the 22 models stay below the price. Data coverage for this calculation is medium.

Scenario range: $4.77 (bear) to $7.92 (bull), the price of $5.24 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 64/100 (solid quality), in the Industrials sector.

Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.

LegalZoom.com Inc reported revenue of $756M in FY2025 versus $575M in FY2021, a compound +7.1%/yr. Reported net income was $15.4M in FY2025.

Key figures

Market cap $1.2B Small · P/E ratio 58.2 · P/S ratio 1.49 · EPS (TTM) $0.0900 · Net margin 2.1% · Return on equity 10.5% · Return on assets (EBIT) −2.6% (5-year average) · Operating margin 5.4%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 39 out of 100 (medium confidence).

What moves the price

The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.

The share trades about 52% below its 52-week high and at its 52-week low, currently below its 200-day average.

For context, the median of 10 Industrials peers we cover trades at −12% fair-value upside, at 21%, LZ screens cheaper than that median.

Fair Value models

Bear $4.77 Fair Value $6.34 Bull $7.92
Price $5.24 · Upside +21.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.0772 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF $6.56 $11.18 $17.74 79
Growth DCF $6.48 $10.64 $16.21 77
5Y EBITDA Exit $3.41 $5.81 $8.60 74
All 22 models by family
DCF Models
FCF DCF $6.56 $11.18 $17.74 79
Owner Earnings $0.5900 $1.91 $3.78 71
5Y Revenue Exit $1.94 $2.90 $3.94 73
5Y EBITDA Exit $3.41 $5.81 $8.60 74
5Y P/E Exit $2.27 $3.55 $4.84 71
10Y Revenue Exit $3.73 $5.13 $6.81 67
10Y EBITDA Exit $4.60 $7.00 $10.17 68
10Y P/E Exit $3.94 $5.55 $7.46 64
Earnings-Based
Graham-Dodd $0.6100 $2.49 $3.39 64
Lynch FV $0.6200 $0.8900 $1.16 61
PEG = 1.0 $0.6200 $0.8900 $1.16 57
Multiples
P/E Multiple $1.42 $1.89 $2.36 63
P/S Multiple $1.15 $1.53 $1.91 58
P/B Multiple $0.2600 $0.3400 $0.4300 55
EV/EBIT $2.11 $2.47 $2.83 66
EV/EBITDA $4.56 $5.73 $6.90 67
EV/Revenue $1.81 $2.13 $2.46 54
Asset-Based
NCAV (Graham) $0.0400 $0.0500 $0.0800 53
Growth DCF
Growth DCF $6.48 $10.64 $16.21 77
Rev-Margin DCF $1.94 $3.05 $4.47 72
Economic Profit
Residual Income $0.8000 $0.8400 $0.9400 71
Growth Earnings
Growth-Adj P/E $1.08 $1.55 $2.01 67

The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.

Open the full fair value analysis →

Quality Score breakdown

Overall quality 64/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 59
How much profit the company makes from its sales and capital
Quality Growth 31
Are margins and returns getting better?
Cashflow 86
Do the profits arrive as real cash?
Financial strength 48
Debt, balance sheet and risk of trouble
Investment 70
Does it invest with discipline instead of growing at any price?
Low Volatility 26
How calm the share price moves, does not count
Price momentum 20
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 0
Distance to the 52-week high, does not count
New shares 100
Buys back shares or issues new ones?

Open the full quality analysis →

Insider trades

In the last 6 months, one officer or director bought shares worth $768,750, on May 11, 2026. Over the same period, 2 people sold shares worth $3.6M.

  • SaleNoel Bertram WatsonChief Operating Officer & CFO4× since Nov 18, 2025: 545,000 shares, avg. $6.04$3.3MAug 21, 2026
  • SaleNicole MillerCHIEF LEGAL OFFICER4× since Nov 18, 2025: 143,505 shares, avg. $6.51$934,224Aug 18, 202610b5-1 plan
  • BuyJeffrey M StibelChief Executive Officer, Director125,000 shares at $6.15$768,750May 11, 2026

Plus 14 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.

Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.

Source: SEC Form 4, as of Nov 6, 2026. All filings at the SEC ↗

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 73/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+10.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.9%
Start year 2020 (pandemic)
Revenue growth 16 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.2%
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
−0.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year−0.9%
Dividend (yield on the price)0.0%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.10% → 2%

Growth Forecast

Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−3.0%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −5.3% a year for the price and +2.0% for the forecasts.
Forecast 2026 (sales)+5.8%
Forecast 2027 (sales)+4.6%
Projected 2028 (sales)+4.2%
Projected 2029 (sales)+3.9%
Projected 2030 (sales)+3.6%

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Business Services · 229 stocks

Beats the industry median on 5/13 measures
Overall it trails its industry peers.
Valuation
Quality Score 64 · Above median
Fair Value upside +21.1% · Above median
Profitability
Return on equity (12 months) 10.5% · Above median
Return on assets 2.9% · Below median
Net margin (12 months) 2.1% · Below median
Operating margin (12 months) 5.4% · Below median
Growth and dividend
Revenue growth (quarter YoY) 6.6% · Above median
Balance sheet
Debt / equity 2.98× · Highest 25%

Valuation Multiplesvs Specialty Business Services median · lower = cheaper

P/E (12 months) 58.2× · Priciest 25%
P/B 6.88× · Priciest 25%
P/S (12 months) 1.49× · Pricier than median
Price / free cash flow (fiscal year) 8.0× · Cheaper than median
EV/EBITDA 33.5× · Priciest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)61 · sector 45
FUTURE (revenue growth)33 · sector 33
PAST (return on equity)42 · sector 38
HEALTH (low debt)0 · sector 94
DIVIDEND (yield)0 · sector 57

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value Compare
Copart, Inc CPRT $31.95 $35.15 +10% vs LZ
RB Global, Inc RBA C$131.85 C$145.04 +10% vs LZ
Wolters Kluwer N.V WKL €90.08 €98.05 +9% vs LZ
Global Payments Inc GPN $97.40 $87.83 −10% vs LZ
Brambles Limited BXB A$21.79 A$19.10 −12% vs LZ
Cintas Corporation CTAS $222.36 $188.90 −15% vs LZ
Rentokil Initial plc RTO $23.61 $19.63 −17% vs LZ
Thomson Reuters Corporation TRI $112.57 $70.75 −37% vs LZ
Aramark ARMK $52.54 $23.04 −56% vs LZ
UL Solutions Inc ULS $78.65 $33.46 −57% vs LZ

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LegalZoom.com Inc: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "LegalZoom.com Inc Fair Value". https://www.fairvalue-calculator.com/stock/LZ

Frequently asked questions

Is LegalZoom.com Inc (LZ) overvalued or undervalued?
As of Nov 9, 2026, our model estimates a fair value of $6.34 versus a price of $5.24, about +21% upside (undervalued).
What is the fair value of LZ?
Our model-based fair value for LegalZoom.com Inc is $6.34 (as of Nov 9, 2026), built from audited fundamentals. The current price: $5.24.
What is the quality score of LZ?
LegalZoom.com Inc has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for LegalZoom.com Inc (LZ)?
Our model-based price target is the fair value of $6.34 (as of Nov 9, 2026) from 22 valuation models. Cautious scenario $4.77, optimistic scenario $7.92. It is a calculation from audited fundamentals, not an analyst target.
What is the LegalZoom.com Inc stock forecast for 2026?
Our models put fair value at $6.34, about +21% upside versus a price of $5.24 (undervalued). Cautious scenario $4.77, optimistic scenario $7.92. The calculation is refreshed regularly with new filings.
What is the revenue of LegalZoom.com Inc (LZ)?
LegalZoom.com Inc reported trailing-twelve-month revenue of about $792M (latest available figure, as of Nov 9, 2026).
What growth is priced into LegalZoom.com Inc (LZ)?
For today's price to be fair in a discounted-cash-flow model, LegalZoom.com Inc would have to grow free cash flow by -3.0 % per year for five years (discount rate 11.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +9.9 % per year. As of Nov 9, 2026.
What discount rate (WACC) does the fair value of LZ use?
Our models discount LegalZoom.com Inc at 11.6 %: a base by market capitalisation (small), damped by beta 1.11, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For LegalZoom.com Inc that is -3.0 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.6 %) and the same formula as our fair value.
How much growth has LegalZoom.com Inc (LZ) delivered so far?
Over the past 5 years revenue at LegalZoom.com Inc grew +9.9 % a year. The price currently implies free-cash-flow growth of -3.0 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of LegalZoom.com Inc (LZ) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into LegalZoom.com Inc (-3.0 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of LegalZoom.com Inc (LZ)?
The free-cash-flow yield on the price is 16.46 %: that much free cash flow LegalZoom.com Inc produces per unit of market value. When it exceeds the discount rate of our models (11.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of LegalZoom.com Inc (LZ)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For LegalZoom.com Inc it is $6.34 per share (as of Nov 9, 2026), against a price of $5.24. It is the blended result of 22 valuation models in 7 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is LegalZoom.com Inc stock overvalued or undervalued in 2026?
As of Nov 9, 2026, LZ trades below its calculated fair value: price $5.24, fair value $6.34, a gap of about +21% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of LZ?
No. The price is what the market pays today ($5.24); the fair value is what the company's own numbers justify ($6.34). For LegalZoom.com Inc the two are $1.11 per share apart. That gap is exactly why we show both numbers side by side.
How much is LegalZoom.com Inc worth?
The market values LegalZoom.com Inc at about $1.2B (market capitalisation, as of Nov 9, 2026). Per share that is $5.24; our models calculate a fair value of $6.34 per share.
What do the bullish and bearish scenarios say about LZ?
Our models span a range for LegalZoom.com Inc: cautious scenario $4.77, base $6.34, optimistic $7.92 per share (as of Nov 9, 2026, price $5.24). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LZ?
LegalZoom.com Inc trades at a price-to-earnings ratio of 58.2 (as of Nov 9, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $6.34 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 43.6 (reported for FY2025: 65.4). Other multiples: P/B 6.9, P/S 1.5, EV/EBITDA 33.5.
How solid is the balance sheet of LegalZoom.com Inc (LZ)?
Balance-sheet figures for LegalZoom.com Inc (as of Nov 9, 2026): return on equity 10.5%, debt of 2.98 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is LZ from its 52-week high?
LegalZoom.com Inc trades at $5.24, about 52% below its 52-week high of $10.93 and at the low of $5.24 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $6.34 is for.
Which stocks are comparable to LegalZoom.com Inc?
From the same area (Industrials) we also value Cintas Corporation, Thomson Reuters Corporation, Copart, Inc, Global Payments Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is LegalZoom.com Inc stock attractive at the current price?
The data as of Nov 9, 2026: price $5.24, calculated fair value $6.34 (+21%), Quality Score 64/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of LZ calculated?
We run LegalZoom.com Inc through 22 models from 7 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $6.34 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. LegalZoom.com Inc currently trades 17% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of LegalZoom.com Inc (LZ)?
The closing price on Nov 6, 2026 was $5.24. Our model-based fair value is $6.34, about +21% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with LegalZoom.com Inc right now?
Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality. The price sits in the lower half of our model range, the side with the larger margin of safety. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Key figures of LegalZoom.com Inc

How large is the market capitalisation of LegalZoom.com Inc (LZ)?
The market capitalisation of LegalZoom.com Inc is $1.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of LegalZoom.com Inc (LZ)?
The price-to-sales ratio of LegalZoom.com Inc is 1.49 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of LegalZoom.com Inc (LZ)?
Earnings per share at LegalZoom.com Inc are $0.0900 (price ÷ EPS = P/E 58.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of LegalZoom.com Inc (LZ)?
The net margin of LegalZoom.com Inc is 2.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of LegalZoom.com Inc (LZ)?
The return on equity (ROE) of LegalZoom.com Inc is 10.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of LegalZoom.com Inc (LZ)?
On an EBIT basis the return on assets of LegalZoom.com Inc is −2.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of LegalZoom.com Inc (LZ)?
The operating margin of LegalZoom.com Inc is 5.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at LegalZoom.com Inc (LZ)?
Revenue at LegalZoom.com Inc is growing +6.6% versus a year earlier (3y avg +6.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at LegalZoom.com Inc (LZ)?
Earnings per share at LegalZoom.com Inc are growing −78.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does LegalZoom.com Inc (LZ) hold?
LegalZoom.com Inc holds more cash than debt, $179M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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