LegalZoom... Show more
LegalZoom.com, Inc. is a leading online platform that provides legal and regulatory services to individuals, families, and small businesses across the United States. Founded in 2001 and headquartered in Mountain View, California, the company operates a digital-first model that combines technology with access to experienced attorneys, enabling customers to handle business formation, compliance, intellectual property protection, estate planning, and ongoing legal support at a fraction of the cost of traditional law firms.
LegalZoom generates revenue through subscription services, transaction-based document preparation and filing fees, and professional legal services. With trailing twelve-month revenue of approximately $780 million, a market capitalization of roughly $1.2 billion, and over two decades of brand recognition, the company occupies a unique position in the legal technology space. Its competitive advantage stems from scale, brand trust, and a growing emphasis on AI-enabled, human-in-the-loop service offerings that combine automation with professional accountability.
Over the past 30 days, LegalZoom shares have rallied approximately 24%, climbing from a closing price of $5.86 on June 24, 2026, to $7.28 as of July 24, 2026. The move marks a notable recovery from the 52-week low of $5.22 reached on June 22, when broad concerns about artificial intelligence disrupting the company's core business weighed heavily on the stock.
Over the last quarter, LZ has gained roughly 15%, with the stock trading around $6.31 in late April. That quarterly period encompassed significant volatility: a sharp post-earnings decline in early May following the Q1 2026 report, a grinding sell-off through early June as AI fears intensified, and then a decisive rebound that began in late June and accelerated through July. The stock remains well below its 52-week high of $12.40, underscoring the magnitude of the earlier drawdown and the room for further recovery if operational momentum continues.
Several factors converged to drive the sharp 30-day recovery in LegalZoom shares. The stock's decline to $5.22 in late June appeared to reflect an overreaction to fears that generative AI would commoditize basic legal services. As those fears were reassessed, bargain hunting and value-oriented buying emerged.
Fundamental catalysts reinforced the rebound. The company's Q1 2026 results, reported on May 6, showed revenue of $206.8 million — up 13% year-over-year and ahead of the $202.1 million consensus estimate. Management raised its full-year revenue guidance to a range of $810 million to $830 million, reflecting confidence in subscription growth, partner channel expansion, and new product adoption. The company also highlighted significant AI-driven efficiency gains, including a 55% reduction in trademark classification search time and a 30% acceleration in patent drafting.
On the analyst front, JPMorgan Chase & Co. reiterated an "overweight" rating with an $8.00 price target on June 24, and Wall Street Zen upgraded LZ from "hold" to "buy" on July 12. Institutional activity was also supportive: filings revealed new stakes from SEB Asset Management AB and Bastion Asset Management Inc., while existing holders including Goldman Sachs, Boston Partners, and Arrowstreet Capital significantly increased their positions during recent quarters. Insider sales during the period were tax-related transactions under pre-arranged Rule 10b5-1 plans rather than discretionary disposals.
Additionally, the announcement on July 15 that LegalZoom would report second-quarter results on August 5, 2026, may have generated anticipation around the next catalyst, as investors look for continued progress on the company's subscription-led, AI-enabled strategy.
The broader quarterly trend reflects a two-phase narrative. The first phase, spanning late April through mid-June, was dominated by negative sentiment. The May 6 Q1 earnings release — while delivering a revenue beat — showed EPS of $0.12 that narrowly missed the $0.13 consensus, triggering a sharp sell-off. The stock fell from $6.71 on May 5 to $6.28 on May 6, and continued grinding lower over the following weeks. A Barclays downgrade and persistent headlines about AI replacing traditional legal services compounded the pressure, pushing LZ to its 52-week low.
The second phase, beginning in late June, saw sentiment pivot. Investors began to recognize that LegalZoom's strategy of embedding AI within a human-in-the-loop framework — as opposed to being displaced by it — represented a defensible and differentiated approach. The company's expanding partnership portfolio, including strategic relationships with GoDaddy, LinkedIn, and Chase, along with the strong early performance of its Concierge Suite (now generating over three times the average revenue per subscription unit), provided tangible evidence of execution. Active share repurchases, totaling $43.5 million in the first quarter alone, further signaled management's conviction in the stock's undervaluation.
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The most immediate catalyst for LegalZoom is its second-quarter 2026 earnings report scheduled for August 5. Investors will be watching for subscription revenue trends, particularly the mix shift toward higher-value human-in-the-loop offerings, ARPU expansion, and any updated full-year guidance. The performance of the Concierge Suite, partnership-driven customer acquisition metrics, and the pace of AI-driven margin improvement will be closely scrutinized.
Broader themes to monitor include the trajectory of small business formation in the U.S. economy, interest rate policy and its effect on entrepreneurship, and the competitive landscape as AI-native legal tech startups continue to emerge. Analyst consensus currently stands at "Hold" with a price target of $8.25, suggesting room for upward revisions if execution remains strong. On the risk side, any signs of slowing subscription growth, intensifying price competition, or AI commoditization of core services could pressure the stock. The company's ability to sustain margin expansion while investing in growth — and to navigate the balance between automation and professional services — will remain central to the investment narrative through year-end.
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Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where LZ declined for three days, in of 288 cases, the price declined further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for LZ moved out of overbought territory on July 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 21 similar instances where the indicator moved out of overbought territory. In of the 21 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
LZ broke above its upper Bollinger Band on July 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on July 31, 2026. You may want to consider a long position or call options on LZ as a result. In of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LZ just turned positive on July 29, 2026. Looking at past instances where LZ's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
LZ moved above its 50-day moving average on July 01, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for LZ crossed bullishly above the 50-day moving average on July 07, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where LZ advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 126 cases where LZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LZ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.191) is normal, around the industry mean (7.477). P/E Ratio (131.167) is within average values for comparable stocks, (73.658). LZ's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.519). LZ has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.020). P/S Ratio (1.855) is also within normal values, averaging (8.742).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LZ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Industry OfficeEquipmentSupplies