LegalZoom posts modest revenue growth, lowers FY2026 adjusted EBITDA outlook
LegalZoom reported third‑quarter 2026 revenue of $195.1 million, a 3% year‑over‑year increase, driven by subscription services that grew 11% while transaction revenue fell 14%. Net income was $8.1 million and adjusted EBITDA reached $50.0 million, but the company cut its full‑year adjusted EBITDA guidance to $180 million‑$185 million. Management said the lower outlook reflects a tougher customer‑acquisition environment and continued investment in AI‑driven and partner channels.
Why it matters
The reduced FY2026 adjusted EBITDA range signals lower profitability expectations for investors, while the strong subscription growth may offset the decline in transaction revenue over time. The guidance change could affect valuation models that rely on EBITDA multiples.
Key facts
- 1Q3 2026 revenue was $195.1 million, up 3% year‑over‑year. stocktitan.net
- 2Subscription revenue was $139.7 million, up 11% year‑over‑year. stocktitan.net
- 3Transaction revenue was $55.5 million, down 14% year‑over‑year. stocktitan.net
- 4Net income for the quarter was $8.1 million, a 79% increase year‑over‑year. stocktitan.net
- 5Adjusted EBITDA was $50.0 million, a 8% increase year‑over‑year, representing a 26% margin. stocktitan.net
- 6Full‑year 2026 adjusted EBITDA outlook was lowered to $180 million‑$185 million, or about a 23% margin. finance.yahoo.com
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.