AI Analysis | Feedback

Here are 1-3 brief analogies for LegalZoom.com (LZ):

• TurboTax for legal documents: LegalZoom simplifies and automates the creation of common legal documents (like wills, trusts, and business formation) much like TurboTax streamlines tax preparation for individuals.
• Amazon for everyday legal needs: It serves as an online platform offering a wide array of legal products and services, making access convenient and often more affordable for consumers and small businesses.

AI Analysis | Feedback

• Business Formation Services: Assists entrepreneurs in forming legal entities such as LLCs, corporations, and non-profits by preparing and filing required documents.
• Intellectual Property Services: Provides assistance with securing trademarks and copyrights to protect intellectual property.
• Registered Agent Services: Offers a designated registered agent to receive official legal and tax correspondence for businesses.
• Estate Planning Services: Facilitates the creation of personal legal documents like wills, trusts, and powers of attorney.
• Legal Plans & Advice: Offers subscription-based access to independent attorneys for consultations, legal advice, and document review.

AI Analysis | Feedback

LegalZoom.com (LZ) primarily sells its services directly to individuals and small businesses, rather than to other large companies as its major customers. Therefore, the company's customers can be categorized as follows:

• Small Business Owners & Entrepreneurs: This is a significant customer segment for LegalZoom. They provide services for individuals looking to start, run, and grow a business, including business formation (LLC, Corporation, Non-profit), intellectual property protection (trademark registration, copyright), business compliance, and contracts. These customers are typically solo entrepreneurs, startups, or small existing businesses.
• Individuals & Families: LegalZoom serves individuals and families seeking assistance with personal legal matters. This includes services related to estate planning (wills, trusts, power of attorney), family law (divorce documents, prenuptial agreements), and real estate matters (residential lease agreements).
• Individuals & Small Businesses Seeking Legal Advice & Attorney Access: Beyond document preparation, LegalZoom offers subscription plans and one-time consultations that connect customers with licensed attorneys. This category includes both individuals and small business owners who need legal advice, document review, or ongoing legal support from an attorney through LegalZoom's network.

AI Analysis | Feedback

• Amazon.com, Inc. (AMZN) - provides Amazon Web Services (AWS)

AI Analysis | Feedback

Jeff Stibel, Chief Executive Officer

Jeffrey Stibel has served as Chief Executive Officer of LegalZoom.com since July 2024, and as a member of its board of directors since October 2014, becoming Chairman in October 2018. He has been a partner of Bryant Stibel & Company, an investment and strategic advisory platform, since January 2013. Mr. Stibel previously served as President, Chief Executive Officer, and Chairman of Dun & Bradstreet Credibility Corporation from July 2010 to July 2015, and as Vice Chairman of Dun & Bradstreet Corporation from July 2015 to March 2018, following the acquisition of Dun & Bradstreet Credibility Corporation. Prior to that, he was President and Chief Executive Officer of Web.com, Inc.

Noel Watson, Chief Operating Officer & Chief Financial Officer

Noel Watson has served as Chief Operating Officer of LegalZoom.com since August 2024 and Chief Financial Officer since November 2020. From June 2019 to November 2020, Mr. Watson was Chief Financial Officer at TrueCar, Inc., and before that, he held various roles at TripAdvisor, Inc., including Vice President Finance and Chief Accounting Officer, from April 2006 to June 2019. He began his career as a CPA at Arthur Andersen LLP and held management positions at ArrAy Inc. and Way Systems. Mr. Watson currently serves on the Board of Directors of Affirm and previously served on the Board of Directors and as Chair of the Audit Committee of Zynga Inc. He was instrumental in transforming LegalZoom into a subscription-driven business and oversaw the acquisition and integration of Formation Nation in early 2025.

Nicole Miller, Chief Legal Officer

Nicole Miller has served as Chief Legal Officer of LegalZoom.com since March 2024 and as Secretary since August 2020. She previously held the role of Executive Vice President and General Counsel since June 2020 and served as interim Chief People Officer from August 2020 to April 2021. Before joining LegalZoom, Ms. Miller held various positions at The Honest Company, including General Counsel, from July 2014 to June 2020. She also practiced corporate law at Cooley LLP and Gibson Dunn & Crutcher LLP.

Sheily Chhabria Panchal, Chief People Officer

Sheily Chhabria Panchal has served as Chief People Officer of LegalZoom.com since April 2021. Prior to LegalZoom, she was Vice President of Global Human Resources at Activision Blizzard from October 2019 to April 2021. From January 2017 to May 2019, Ms. Panchal served as Executive Vice President of People Operations for ServiceTitan, Inc. She also held various leadership positions at Google, Inc., most recently as Director of Global Trust and Safety Operations, from August 2006 to February 2016.

Aaron Stibel, Chief Business & Customer Officer

Aaron Stibel has served as Chief Business & Customer Officer of LegalZoom.com since September 2025, and he previously held the position of Chief Revenue Officer from August 2024 to September 2025. Mr. Stibel has been a Partner of Bryant Stibel & Company, an investment and strategic advisory platform, since January 2013. In his previous operating role at Bryant Stibel & Company, he specialized in recurring revenue models, advising portfolio CEOs and their teams and leading diligence efforts. Mr. Stibel has also served on the boards of directors of various private companies.

AI Analysis | Feedback

LegalZoom.com (LZ) faces several significant risks that could impact its business, primarily stemming from its core operational model, intense market competition, and evolving regulatory landscape.

The most significant risk to LegalZoom.com is its substantial reliance on new business formations and its ability to convert these transactional customers into long-term subscribers and retain them. The volume of new business formations is unpredictable and can decline due to factors such as economic downturns and regulatory changes. The company's growth strategy heavily depends on customers expanding their use of the platform and renewing their subscriptions, which has historically been challenging due to fluctuating renewal rates and customer satisfaction issues.

Secondly, LegalZoom operates in a highly competitive legal solutions market that is constantly evolving with new entrants and technologies, including generative artificial intelligence (AI). The company's success hinges on its ability to innovate and offer competitive services. Furthermore, the incorporation of generative AI into its offerings, such as Doc Assist, introduces additional compliance and reputational risks, including potential inaccuracies and biases in AI-generated content.

Finally, LegalZoom is exposed to significant regulatory and compliance risks, including concerns related to the unauthorized practice of law. The legal services sector is subject to complex and continually changing regulations across various jurisdictions. LegalZoom's reliance on strategic partnerships and third-party providers also means it could face regulatory scrutiny if these partners fail to adhere to applicable laws and regulations. Historically, LegalZoom has faced lawsuits alleging the unauthorized practice of law, an ongoing challenge given the varying state-by-state rules.

AI Analysis | Feedback

The rapid advancement and adoption of artificial intelligence (AI), particularly large language models (LLMs), which can automate legal document drafting, contract review, and provide basic legal information. This technology directly threatens LegalZoom's core services by potentially offering faster, lower-cost, or even free alternatives for many of its template-based legal documents and advisory services. As AI tools become more sophisticated and accessible, individuals and small businesses may increasingly leverage them directly for their legal needs, disintermediating platforms like LegalZoom and putting downward pressure on their pricing model.

AI Analysis | Feedback

LegalZoom.com (LZ) operates within a substantial addressable market for its online legal technology and services, primarily in the United States. The company's main offerings span business formation, intellectual property protection, and estate planning, alongside a broader range of online legal services.

Overall Addressable Market

LegalZoom estimates its serviceable addressable market (SAM) to be approximately $51 billion, primarily within the U.S.. The broader U.S. legal services market is valued at $369.93 billion in 2025 and is forecast to reach $423.87 billion by 2030.

Market Sizes by Main Products/Services:

• Online Legal Services:
  • In the U.S., the online legal services market was valued at $13.8 billion in 2024 and is projected to reach $15.2 billion in 2025.
  • Globally, the online legal services market was approximately $22.05 billion in 2024 and is expected to grow to $25.24 billion in 2025. Other estimates place the global market at $20.6 billion in 2024, projected to reach $53.5 billion by 2033.
• Business Formation Services (U.S. and Global):
  • Millions of businesses are formed in the U.S. each year, with over 5 million formed in 2023.
  • The global business entity formation market is projected to reach approximately $15 billion by 2033, growing at a CAGR of 6.5% from 2025 to 2033.
  • The global company registration service market was valued at $10.52 billion in 2023 and is projected to reach $18.5 billion by 2031.
• Intellectual Property (IP) Services (U.S. and Global):
  • The U.S. market for intellectual property licensing was valued at $69.9 billion in 2025.
  • The global intellectual property (IP) services market was valued at $2.8 billion in 2024 and is projected to reach $6.38 billion by 2030.
  • The global intellectual property (IP) market size is estimated at $13.54 billion in 2024, with projections to grow to $19.12 billion by 2033.
• Estate Planning Services (U.S. and Global):
  • The U.S. estate planning services market is valued at $1.26 billion in 2025 and is projected to reach $2.43 billion by 2034.
  • The global estate planning services market size is valued at $109.2 billion in 2025, with North America commanding approximately 60% of this market. It is expected to reach $171.17 billion by 2035.
  • The global estate administration services market is predicted to expand from $14.18 billion in 2024 to $15.77 billion in 2025, reaching $23.79 billion in 2029.
• Registered Agent Services (Global, with U.S. focus):
  • The LLC Registered Agent Service Market size was estimated at $1.74 billion in 2024 and is expected to reach $1.87 billion in 2025, projected to grow to $3.17 billion by 2032.

AI Analysis | Feedback

1. Growth in Subscription Revenue: LegalZoom is strategically focused on expanding its subscription business. The company reported a 5% year-over-year increase in subscription revenue in the third quarter of 2024 and anticipates a double-digit increase in subscription revenue by the end of 2025. This growth is being driven by reorienting commercialization and sales efforts toward subscription offerings, particularly in compliance-related services.
2. Strategic Focus on Core Legal and Compliance Competencies with Quality Customer Acquisition: LegalZoom is prioritizing its core legal and compliance offerings for small businesses and consumers. The aim is to attract high-value customers who are likely to continue growing with the company, supported by strong execution in customer acquisition.
3. Optimizing Pricing for Value: The company is actively updating its pricing structures to better reflect the value provided by its services. This initiative is geared towards enhancing overall revenue, although the mix of offerings can impact average revenue per user (ARPU) in the short term.
4. Expansion of Products and Services, including AI Integration: LegalZoom is investing in innovation, including the strategic integration of Artificial Intelligence (AI) to enhance human expertise and provide customized solutions. A notable recent example is the August 2025 launch of a streamlined provisional patent filing product, expanding its intellectual property services. The "compliance concierge" product has also shown early success.
5. Growth through Strategic Partnerships: LegalZoom is fostering revenue growth through its partner channel by modernizing its affiliate platform and establishing new strategic collaborations. The acquisition of Formation Nation also contributes to this growth strategy.

AI Analysis | Feedback

Share Repurchases

• LegalZoom increased its stock repurchase program by $100 million on May 7, 2025, bringing the total authorization to $315 million, with $150 million remaining available for future repurchases.
• In the third quarter of 2025, the company repurchased approximately 1.8 million shares for $17.6 million.
• In the second quarter of 2025, LegalZoom repurchased 2.2 million shares of common stock for a total cost of $20.4 million.

Share Issuance

• LegalZoom completed its Initial Public Offering (IPO) on June 30, 2021, pricing 19,121,000 shares of common stock at $28.00 per share, which aimed to raise approximately $535 million.
• Concurrently with the IPO, 3,214,285 additional shares were sold to entities affiliated with TCV, an existing stockholder, at the IPO price. The gross proceeds from the offering and private placement were expected to be approximately $625.4 million.
• Proceeds from the issuance of stock under employee stock plans amounted to $44.657 million in the second quarter of 2025.

Outbound Investments

• On February 10, 2025, LegalZoom announced the acquisition of Formation Nation, Inc., a company specializing in small business services.
• This acquisition significantly contributed to revenue, adding approximately $14.7 million in Q3 2025, with $9.1 million from transaction revenue and $5.6 million from subscription revenue.
• The acquisition expanded LegalZoom's sales and service capabilities, creating cross-sell and upsell opportunities, particularly for higher-value compliance and Do-It-For-Me (DIFM) products.

Capital Expenditures

• Free cash flow improvement in Q3 2025 was partly attributed to lower capital expenditures.
• The company has focused on foundational investments in data and infrastructure, and investing in its platform to enable growth and expand its ecosystem of subscription services.
• Strategic investments are being made in product innovation and artificial intelligence (AI) to enhance service delivery and operational efficiency.