LegalZoom.com, Inc. has announced its financial results for the third quarter of 2026, revealing a 3% increase in revenue compared to the same period last year. This performance is significant as it highlights the company's ongoing growth in a competitive market.
LegalZoom, which operates under the SIC code 7374, specializes in computer processing and data preparation services. The company is listed on the Nasdaq under the ticker symbol LZ. In its recent filings, LegalZoom has consistently reported on its financial performance, including its earnings and operational updates.
According to the latest filing dated November 4, 2026, LegalZoom reported revenue of $195.1 million for the third quarter, surpassing the midpoint of its guidance range. The company also noted that subscription revenue reached $139.7 million, marking an 11% increase year-over-year, and indicating the sixth consecutive quarter of double-digit growth in this area.
LegalZoom's net income for the quarter was reported at $8.1 million, with a net income margin of 4%. This represents an increase of approximately 180 basis points compared to the previous year. The company also reported an adjusted EBITDA of $50 million, with an adjusted EBITDA margin of 26%, reflecting a strong operational performance.
The filing also highlighted that LegalZoom completed $14.6 million in share repurchases during the quarter, with approximately $65.8 million remaining under its existing authorization. As of September 30, 2026, the company ended the quarter with cash and cash equivalents totaling $181.7 million, alongside delivering $39.9 million in cash from operating activities and $34.1 million in free cash flow, all while maintaining a debt-free status.
This financial update is likely to impact various stakeholders, including investors and customers, as it underscores LegalZoom's robust financial health and growth trajectory. The company is reiterating its full-year 2026 revenue outlook of approximately $800 million, reflecting a 6% year-over-year growth, while also updating its adjusted EBITDA outlook to a range of $180 million to $185 million.
Looking ahead, LegalZoom's management has signaled that they will continue to focus on investments in customer acquisition to sustain growth, particularly in a challenging market environment. The filing does not specify what further actions may be taken in response to these results.
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