LegalZoom Q2 revenue slightly misses estimates; to cut 13% workforce
LZ•Outlook and revenue drivers
LegalZoom sees 2026 revenue at $795 million-$805 million, down from $810 million-$830 million previously. The company expects 2026 adjusted EBITDA of $190 million-$195 million, down from $190 million-$200 million previously. For the third quarter, LegalZoom sees revenue at $192 million-$196 million and adjusted EBITDA at $49 million-$51 million.
The company said 11% year-over-year growth in subscription revenue was driven by strength in human-in-the-loop offerings and pricing initiatives. It also cited an industry-wide move away from traditional search and said it is building new acquisition channels, including partnerships with AI companies. LegalZoom said margin improvement reflects disciplined cost management and the 13% workforce reduction.
Quarterly results and cost actions
LegalZoom said its second-quarter revenue rose 7% year over year, slightly missing analyst expectations. Adjusted net income for the quarter also slightly missed consensus, while adjusted EBITDA beat analyst expectations.
The company said it completed $45.5 million in share repurchases and announced a 13% workforce reduction.
