LEGALZOOM.COM, INC. (LZ) Form 10-Q — Aug 5, 2026

$LZForm 10-QFiled Aug 5, 2026, 5:00 PM ET0001286139-26-000031Original filing

LegalZoom returned to profitability in Q2 2026, posting revenue of $205.3 million, up 7% year over year, and net income of $5.2 million versus a $0.3 million net loss in the year-ago quarter. First-half revenue rose 10% to $412.1 million. Subscription revenue drove the quarter, growing 11% to $133.4 million and reaching 65% of total revenue, while Adjusted EBITDA rose to $45.9 million at a 22% margin. First-half free cash flow was $74.7 million, up from $72.9 million a year ago.

Key figures

Eps: $0.03 diluted (Q2 2026); $0.04 diluted (H1 2026)
Revenue: $205.3 million (Q2 2026); $412.1 million (H1 2026)
Net Income: $5.2 million (Q2 2026) vs. $(0.3) million loss (Q2 2025); $6.3 million (H1 2026)
Total Debt: 0 — no borrowings outstanding under the $100.0 million Amended Revolving Facility (JPMorgan Chase Bank, N.A., matures July 14, 2030)
Revenue Yoy: 7% (Q2 2026 YoY); 10% (H1 2026 YoY)
Total Assets: $466.4 million (June 30, 2026)
Cash Position: $167.2 million (June 30, 2026), down $35.9 million from December 31, 2025
Shares Outstanding: 171264812
Arpu LTM June30 2026: $270, up 5% YoY
Free Cash Flow H1 2026: $74.7 million
Transactions Q2 2026: 281 thousand, up 1% YoY
Adjusted EBITDA H1 2026: $82.4 million (20% margin)
Adjusted EBITDA Q2 2026: $45.9 million (22% margin vs. 20% year-ago)
Effective Tax Rate Q2 2026: 57% vs. 51% year-ago
Share Repurchases H1 2026: $89.0 million (12.6 million shares at $7.05 average; Q2: $45.5 million at $6.24 average)
Average Order Value Q2 2026: $256, down 2% YoY
Operating Cash Flow H1 2026: $86.8 million
Business Formations Q2 2026: 125 thousand, down 5% YoY
Formation Nation Acquisition: $83.2 million total consideration (acquired February 10, 2025)
Deferred Revenue June30 2026: $221.4 million
Buyback Authorization Remaining: $80.4 million of $415.0 million aggregate authorization
Restructuring Charges expected: approximately $6.0 million for ~13% workforce reduction, substantially all in Q3 2026
Subscription Units June30 2026: 1,892 thousand, down 3% YoY
Annual Small Business Retention Rate: approximately 57%

Price after filing

1 day: 0.0%7 days: -35.4%30 days: -23.8%

Close on the filing date to close N calendar days later (from $8.40). Historical, not a forecast.

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