Earnings Releases·Nov 4, 2026, 4:03 PM ET

LegalZoom — Third Quarter 2026 Earnings Summary

Total revenue reached $195.1 million (up 3% YoY) and net income rose to $8.1 million (4% margin), while Adjusted EBITDA came in at $50.0 million (26% margin), meeting guidance.
Full-year 2026 revenue guidance remains unchanged at a midpoint of $800.0 million, but Adjusted EBITDA guidance was lowered to $180.0–$185.0 million due to higher acquisition costs and strategic investments.
Subscription revenue grew 11% YoY to $139.7 million, driven by a 17% increase in human-in-the-loop services, which now accounts for 49% of total revenue, offsetting a 14% decline in transaction revenue.
The company executed $14.6 million in share repurchases, leaving $65.8 million in remaining authorization, and incurred $5.8 million in restructuring costs related to headcount reductions.
Management maintains a neutral-to-positive outlook on long-term strategy, citing strong cash reserves of $181.7 million with no debt to fund channel diversification and AI integration despite near-term margin pressure.