LegalZoom.com (LZ) Releases Q4 2025 Earnings: Revenue and Gross Profit Rise but EPS Miss

LegalZoom.com, Inc. (LZ) reported fourth-quarter 2025 revenue of $190.3 million, up 17.7% year-over-year. Gross profit increased to $128.5 million (+18.7%), while operating profit declined to $12.6 million (-3.8% YoY).

Net income attributable to common shareholders: $6.1 million (down 52.9% YoY).

Diluted earnings per share: $0.03 (down 57.1% YoY), missing the estimate of $0.18 by about $0.15.

Revenue was essentially in line with the consensus estimate of $190.3 million.

Balance sheet and cash-flow highlights:

Cash and cash equivalents: $203.1 million, up 43.0% YoY.

Cash from operating activities: $34.1 million (down 19.9% YoY).

Capital spending on property and equipment: $6.1 million (down 8.6% YoY).

Total liabilities: $339.6 million (up 21.0% YoY).

In short, LegalZoom (LZ) delivered solid revenue growth and stronger gross profit but saw a meaningful drop in net income and EPS, leaving the quarter short of earnings expectations despite a healthy cash position.

Note: This financials data is sourced from a third-party provider and has not been independently verified by Quiver.

LegalZoom.com Inc. Insider Trading Activity

LegalZoom.com Inc. insiders have traded $LZ stock on the open market 4 times in the past 6 months. Of those trades, 0 have been purchases and 4 have been sales.

Here’s a breakdown of recent trading of $LZ stock by insiders over the last 6 months:

NOEL BERTRAM WATSON (Chief Operating Officer & CFO) has made 0 purchases and 3 sales selling 60,455 shares for an estimated $646,059.
NICOLE MILLER (CHIEF LEGAL OFFICER) sold 23,506 shares for an estimated $226,362

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

LegalZoom.com Inc. Hedge Fund Activity

We have seen 134 institutional investors add shares of LegalZoom.com Inc. stock to their portfolio, and 129 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

JANE STREET GROUP, LLC removed 2,535,144 shares (-93.0%) from their portfolio in Q4 2025, for an estimated $25,173,979
GOLDMAN SACHS GROUP INC added 2,324,481 shares (+165.3%) to their portfolio in Q4 2025, for an estimated $23,082,096
VANGUARD GROUP INC removed 1,726,342 shares (-8.6%) from their portfolio in Q4 2025, for an estimated $17,142,576
BOSTON PARTNERS added 1,621,125 shares (+81.0%) to their portfolio in Q4 2025, for an estimated $16,097,771
WALLEYE CAPITAL LLC removed 972,337 shares (-90.0%) from their portfolio in Q4 2025, for an estimated $9,655,306
NORGES BANK added 946,943 shares (+837.6%) to their portfolio in Q4 2025, for an estimated $9,403,143
JPMORGAN CHASE & CO removed 874,791 shares (-40.3%) from their portfolio in Q4 2025, for an estimated $8,686,674

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

LegalZoom.com Inc. Analyst Ratings

Wall Street analysts have issued reports on $LZ in the last several months. We have seen 2 firms issue buy ratings on the stock, and 1 firms issue sell ratings.

Here are some recent analyst ratings:

Morgan Stanley issued a "Underweight" rating on 11/13/2025
William Blair issued a "Outperform" rating on 11/06/2025
JP Morgan issued a "Overweight" rating on 09/08/2025

To track analyst ratings and price targets for LegalZoom.com Inc., check out Quiver Quantitative's $LZ forecast page.

LegalZoom.com Inc. Price Targets

Multiple analysts have issued price targets for $LZ recently. We have seen 4 analysts offer price targets for $LZ in the last 6 months, with a median target of $10.75.

Here are some recent targets:

Ella Smith from JP Morgan set a target price of $11.0 on 02/18/2026
Ronald Josey from Citigroup set a target price of $10.5 on 11/21/2025
Elizabeth Porter from Morgan Stanley set a target price of $9.0 on 11/13/2025
Mario Lu from Barclays set a target price of $12.0 on 11/06/2025