LegalZoom Reports Q3 2026 Revenue Growth Driven by Subscriptions Amid Transaction Declines
LegalZoom (LZ) reported third-quarter revenue of $195.1 million, a 3% year-over-year increase. The growth was primarily fueled by an 11% rise in subscription revenue to $139.7 million, marking the sixth consecutive quarter of double-digit subscription growth. This strength helped offset a significant 14% decline in transaction revenue, which fell to $55.5 million due to increased pressure from search engine environments affecting business formation volumes. The company is successfully pivoting toward expert-led 'Human-in-the-Loop' services, which now account for 49% of total revenue. While gross margins expanded to 71% thanks to AI-driven efficiencies, LegalZoom lowered its full-year adjusted EBITDA guidance to $180 million–$185 million to account for rising customer acquisition costs and investments in service capacity.
Tickers: $LZ
Topics: EBITDA guidance revenue growth subscription revenue transaction decline