• Reported GAAP EPS of $0.03 down -57.14% YoY • Reported revenue of $190.27M up 17.66% YoY • LegalZoom expects Q1 2026 revenue of $200M to $203M, representing 10% year-over-year growth at the midpoint. Adjusted EBITDA is projected at $34M to $36M, a 5% year-over-year decrease at the midpoint.
Bullish
LegalZoom delivered strong Q4 revenue growth of 18%, driven by a 20% increase in subscription revenue. The company achieved record full-year operating and free cash flow and increased its share repurchase authorization.
Bearish
LegalZoom experienced a Q4 net income decline to $6.1M and reduced operating and free cash flow. Additionally, Q4 Adjusted EBITDA margin contracted to 26%, with Q1 2026 guidance projecting a further decrease.