LegalZoom Q3 revenue slightly beats estimates on subscription growth
LZ•LegalZoom's third-quarter revenue rose 3% year over year to $195.1 million, slightly above estimates, while adjusted net income of $31.4 million missed expectations. The company expects fourth-quarter revenue of $190 million to $196 million and narrowed its 2026 revenue outlook to $797 million–$803 million.
1. Quarterly results
LegalZoom said third-quarter revenue increased 3% year over year to $195.1 million, slightly beating the $193.84 million analyst consensus. Adjusted net income was $31.4 million, below the $36.13 million consensus, while adjusted EBITDA of $50 million slightly exceeded the $49.90 million estimate; free cash flow was $34.1 million.
2. Outlook and drivers
The company expects fourth-quarter revenue of $190 million to $196 million and adjusted EBITDA of $48 million to $53 million, with a 26% margin. It narrowed its 2026 revenue outlook to $797 million–$803 million while maintaining the midpoint. LegalZoom said double-digit subscription revenue growth, including growth in human-in-the-loop subscription services, offset pressure in customer acquisition.
