LegalZoom.com Inc

LegalZoom.com Inc (LZ) Stock Analysis

$6.150

+0.101 (+1.65%)At close

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High
6.270
Open
6.050
VWAP
6.16
Vol
1.53M
Mkt Cap
1.58B
Low
6.050
Amount
9.40M
EV/EBITDA, TTM
9.47

LegalZoom.com, Inc. provides an online platform for legal services, transforming how individuals and small businesses navigate the legal system. The Company offers the tools and guidance people need to confidently manage everything from business formation and compliance to estate planning and ongoing legal support. Its services include virtual mail, legal forms, bookkeeping and estate planning services, among others. The Company operates across 50 states and in over 3,000 counties in the United States. Its products and services are designed to support the legal, compliance, and business management needs of small businesses and consumers. Its consumer offerings range from estate planning to legal advice in small business and consumer offerings. Its product transaction offerings include Business Formation Services, Consumer Estate Planning and Others. Its Subscription services include Compliance Subscription Services, Business Management and Other Subscription Services.

AI analysis of LegalZoom.com Inc (LZ)

hold

LegalZoom.com Inc is currently priced at $6.15, which is above the recent analyst price targets of $6 and $7, indicating potential downside risk. The company has shown a gross margin of 68.16% in Q2 2026, which is strong; however, the forward P/E ratio is high at 6.22, suggesting the stock may be overvalued given its recent earnings miss and lowered revenue guidance. The main risk is the 30% drop in stock price following the Q2 earnings report, reflecting investor concerns about profitability and market competition.

Valuation Metrics

The current forward P/E ratio for LegalZoom.com Inc (LZ) is 6.22, compared to its 5-year average forward P/E of 43.29.

Forward P/E

Fair
5Y Average P/E
43.29
Current P/E
6.22
Overvalued
102.01
Undervalued
-15.43

Forward EV/EBITDA

Fair
5Y Average EV/EBITDA
21.88
Current EV/EBITDA
9.47
Overvalued
46.29
Undervalued
-2.53

Forward P/S

Undervalued
5Y Average P/S
2.94
Current P/S
1.24
Overvalued
4.52
Undervalued
1.35

Alphio AI Price Scenarios for LZ

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%LZ

$11.93

Scenario price

B

Base

Base · 50%LZ

$11.39

Scenario price

B

Bear

Bear · 25%LZ

$11.23

Scenario price

Whales holding LZ

I

Invenomic Capital Management LP

+ HoldingLZ

+14.54%

3M Return

P

Punch & Associates Investment Management, Inc.

+ HoldingLZ

+1.32%

3M Return

Events Timeline

2026-08-05 (ET)

16:30:00

FY26 Adjusted EBITDA Outlook Narrowed to $190M-$195M

16:30:00

LegalZoom Q2 Revenue at $205.29M, Below Consensus

16:30:00

Company Adjusts Q3 EBITDA Expectations to $49M-$51M

2026-08-04 (ET)

08:30:00

LegalZoom Launches Agent Integrated with Microsoft 365 Copilot

2026-05-07 (ET)

08:20:00

LegalZoom Reinvents Virtual Mail Service for Businesses

News

LZ FAQ — answered by Alphio AI

LegalZoom.com, Inc. provides an online platform for legal services, transforming how individuals and small businesses navigate the legal system. The Company offers the tools and guidance people need to confidently manage everything from business formation and compliance to estate planning and ongoing legal support. Its services include virtual mail, legal forms, bookkeeping and estate planning services, among others. The Company operates across 50 states and in over 3,000 counties in the United States. Its products and services are designed to support the legal, compliance, and business management needs of small businesses and consumers. Its consumer offerings range from estate planning to legal advice in small business and consumer offerings. Its product transaction offerings include Business Formation Services, Consumer Estate Planning and Others. Its Subscription services include Compliance Subscription Services, Business Management and Other Subscription Services. It operates in the Technology sector (SERVICES-COMPUTER PROCESSING & DATA PREPARATION industry).

LegalZoom.com Inc is currently priced at $6.15, which is above the recent analyst price targets of $6 and $7, indicating potential downside risk. The company has shown a gross margin of 68.16% in Q2 2026, which is strong; however, the forward P/E ratio is high at 6.22, suggesting the stock may be overvalued given its recent earnings miss and lowered revenue guidance. The main risk is the 30% drop in stock price following the Q2 earnings report, reflecting investor concerns about profitability and market competition.

This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.

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