LegalZoom Q3 revenue slightly beats estimates on subscription growth

Overview

• US legal services platform's Q3 revenue rose 3% yr/yr, slightly beating analyst expectations

• Q3 adjusted net income missed analyst expectations

• Q3 adjusted EBITDA slightly beat analyst expectations

Outlook

• LegalZoom expects Q4 revenue between $190 mln and $196 mln

• Company sees Q4 adjusted EBITDA of $48 mln to $53 mln, margin of 26%

• LegalZoom narrows 2026 revenue outlook to $797 mln–$803 mln, maintains midpoint

Result Drivers

• SUBSCRIPTION GROWTH - Co said double-digit subscription revenue growth offset pressure in customer acquisition

• HUMAN-IN-THE-LOOP SERVICES - Co said growth in human-in-the-loop subscription services contributed to revenue, per CEO Jeff Stibel

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for LegalZoom.com, Inc. is $8.00, about 19.6% above its November 3 closing price of $6.69

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)