LegalZoom.com, Inc. (LZ)
NASDAQIndustrialsSoftware - ApplicationSnapshot 2026-09-04
$6.13-4.22%
Close 2026-09-04 · 1-day change
NASDAQIndustrialsSoftware - ApplicationSnapshot 2026-09-04
QuarterlyIQ Insights · LZ
What must go right, what could break, what the price assumes, and what evidence comes next.
The current health of the standing investment case.
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
One-year growth currently built into the price, compared with our model's estimate.
| Measure | Marker shape | Value |
|---|---|---|
| Growth built into the price | circle | -50.6% |
| Our one-year growth estimate | diamond | 4.2% |
For each item: what to watch, what would become a concern, and what would make it less concerning.
A reporting-risk estimate, not a forecast of the stock-price response.
Historical relationships that met the evidence threshold. They do not prove cause or forecast a move.
Usually moved in the same direction.
Price observations: 365 days
Most sensitive to the broad stock market.
Based on historical daily prices through 2026-09-04.
Past price behavior in dollars on a $10,000 position. This does not measure permanent business risk.
How much price usually moves either way.
Use the underlying financial and sector pages to investigate the cause.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Growth built into the price is above our model estimate.
The price assumes 54.8 percentage points less one-year growth.
The one-year revenue growth assumption on Valuation.
Model as of 2026-09-04 · Compared with 120 industry peers · Company calendar date is not available
LZ — earnings in line
Dated 2026-08-05
of this report, including Exhibit 99.1 , shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless LegalZoom specifically states that the information is to be considered “filed” under the Exchange Act or incorporates it by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act.
Why it matters: A lower margin may mean higher costs or problems in operations.
Worry ifEBITDA margin is below 22%.
Less concerning ifAdjusted EBITDA margin stays at or above 22%.
Why it matters: If the industrial sector grows again, it could help LegalZoom. This may improve performance.
Watch forSector revenue growth speeds up to over 10% year over year.
Also watch forSector revenue growth remains below 5% year over year.
Why it matters: A drop in cash flow shows problems with efficiency and may hurt future growth.
Worry ifCash from operations is under $45 million.
Less concerning ifCash from operations stays at or above $45 million.
Why it matters: A higher margin means good cost control. It shows the company is efficient.
Supportive ifAdjusted EBITDA margin was over 26% for Q3.
Worry ifAdjusted EBITDA margin was under 26% for Q3.
We watch for confirming and disproving signals on each item. Resolutions are found automatically where possible and checked by hand for unclear cases. Last 90 days shown.
A larger daily loss that occurred about once in every 20 trading days.
Deepest peak-to-trough drop in the last year.
| Measure | Value | Meaning |
|---|---|---|
| Typical day | ±$202 on $10,000 · ±2.0% | How much price usually moves either way. |
| Bad day | $536 loss on $10,000 · 5.4% | A larger daily loss that occurred about once in every 20 trading days. |
| Largest peak-to-trough drop in the past year | $5,108 loss on $10,000 · 51.1% | Deepest peak-to-trough drop in the last year. |
Past year. 1.00 means similar movement; 1.20 means about 20% more.
Past year. 1.00 means similar movement to the sector. This is secondary context.
Latest 30 trading days, shown as an annual percentage.
Latest 252 trading days, shown as an annual percentage.
20-trading-day average in US dollars.
Trading days used by the source risk snapshot.
Past results, not a forecast. Not investment advice.
Why it matters: A drop in subscription growth shows problems with getting and keeping customers.
Worry ifQ3 subscription revenue growth is below 10% from last year.
Less concerning ifQ3 subscription revenue growth of 10% or more year-over-year.
Why it matters: Share buybacks can show management's confidence. They can also increase shareholder value.
Supportive ifLegalZoom completes share repurchases of at least $40 million in the next quarter.
Worry ifNo share repurchases occur in the next quarter.
Why it matters: News on share repurchases shows management's trust in the company's value and future.
Supportive ifManagement shares updates on share repurchases. This shows strong cash flow and trust.
Worry ifNo updates or delays in share repurchases. This may indicate cash flow worries.
Why it matters: More share repurchases show management wants to give value back to shareholders.
Supportive ifShare repurchases exceed $45 million in Q3.
Worry ifShare repurchases fall below $30 million in Q3.
Why it matters: This shows growth is slowing down. It may hurt investor confidence.
Worry ifQ3 revenue growth reported at less than 2% year-over-year.
Less concerning ifQ3 revenue growth exceeds 2% year-over-year.
Why it matters: Lower revenue guidance shows problems with growth and market conditions.
Worry if2026 revenue guidance is revised down to below $795 million.
Less concerning if2026 revenue guidance is kept or raised above $805 million.