The revenue beat and raised guidance support a positive near-term outlook, but declining GAAP profitability warrants monitoring. Expect continued focus on subscription growth and margin expansion in the back half of 2026.
Price Chart
Executive Summary
LegalZoom reported Q1 2026 revenue of $206.8M, up 13% YoY and above consensus of $202.1M, driven by subscription revenue growth of 12%. Non-GAAP EPS matched expectations at $0.13, while GAAP EPS fell to $0.01 from $0.03 YoY. Full-year revenue guidance was raised to $810M–$830M, signaling continued momentum.
Key Financial Metrics
Key Facts
- Q1 revenue $206.8M beat consensus $202.1M by 2.3%
- Subscription revenue grew 12% YoY to $130.2M, representing 63% of total revenue
- Full-year revenue guidance raised to $810M–$830M (prior $805M–$825M)
- GAAP net income declined to $1.1M from $5.1M YoY; GAAP EPS $0.01 vs $0.03
- Non-GAAP EPS flat at $0.13, in line with consensus
- Adjusted EBITDA $36.5M (18% margin) vs $37.0M (20% margin) YoY
- Completed $43.5M in share repurchases during the quarter
Financial Impact
Revenue beat by $4.7M; guidance midpoint raised by $5M
Risk Factors
- GAAP net income down 78% YoY, pressured by higher sales and marketing costs
- Subscription units flat sequentially at 1,920, indicating limited customer base expansion
- Restructuring costs and elevated stock-based compensation ($21.3M) weigh on reported earnings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3289288 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | Press Release | $6.60 | awaiting T+60 | — | $6.70 (+1.59%) |
Aug 21, 2026 9w ago | Insider Cluster | $6.00 | awaiting T+60 | — | $6.70 (+11.75%) |
Jul 15, 2026 14w ago | Press Release | $7.80 $5.93 | ▼ −24.04% | ▼ −26.57% | $6.70 (−14.04%) |
May 19, 2026 22w ago | Insider Cluster | $6.43 $5.62 | ▼ −12.60% | ▼ −17.60% | $6.70 (+4.28%) |
May 19, 2026 23w ago | 144 | $6.37 $5.80 | ▼ −8.95% | ▼ −15.24% | $6.70 (+5.26%) |
May 6, 2026 24w ago | Press Release | $6.07 $8.25 | ▲ +35.91% | ▲ +32.08% | $6.70 (+10.46%) |
Apr 22, 2026 26w ago | DEFA14A | $6.25 $7.70 | ▲ +23.20% | ▲ +18.18% | $6.70 (+7.28%) |
US Market Status
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