New York, June 3, 2026, 05:05 EDT
- LegalZoom shares last changed hands at $6.53, down 2.2% from the previous close, putting the company’s market cap around $1.16 billion.
- Shareholders will hold a virtual meeting at 9:00 a.m. Pacific time on Wednesday.
- The next thing to watch for the stock is if higher revenue guidance is enough to offset slimmer margins and tougher AI rivals.
LegalZoom.com (LZ) traded lower in premarket Wednesday, with the stock near $6.53 as investors prepared for the company’s annual meeting. Shares have had trouble translating stronger sales into better numbers on the bottom line. The latest price was off 14.5 cents from Tuesday’s close, giving LegalZoom a market cap near $1.16 billion.
The timing sets the scene. U.S. markets are open as usual, and Nasdaq’s 2026 holiday list shows the next full day off is Juneteenth, June 19. LegalZoom’s shareholder meeting is scheduled for later in the day, not on a weekend or holiday.
Small internet stocks are struggling without help from the broad market. Reuters said U.S. stock-index futures held close to record peaks Wednesday as oil prices climbed. Investors are waiting on ADP jobs and ISM services data ahead of Friday’s jobs number.
LegalZoom told investors in its proxy they’ll vote for a Class II director spot, say yes or no on PricewaterhouseCoopers as auditor, and weigh in with a non-binding say-on-pay vote. The virtual meeting kicks off at 9:00 a.m. Pacific.
Mixed numbers from the company’s latest quarter. Revenue edged up 13% to $206.8 million, thanks mostly to a 12% bump in subscription revenue. But net income fell hard, down to $1.1 million from last year’s $5.1 million. Adjusted EBITDA slid to $36.5 million, with the margin slipping to 18% from 20%.
LegalZoom CEO Jeff Stibel said the results back up the claim that “our strategy is working,” pitching the company’s AI focus as helping customers “to the finish line.” CFO and COO Noel Watson said revenue was up 13%, topping forecasts, helped by pricier subscriptions and more annual report filings. LegalZoom.com, Inc.
LegalZoom lifted its full-year revenue forecast to $810 million to $830 million, up from the earlier $805 million to $825 million range. The company stuck with its adjusted EBITDA target of $190 million to $200 million. Second-quarter revenue is projected at $203 million to $207 million. Free cash flow after capital spending came in at $41.0 million for the first quarter.
Wall Street isn’t taking big swings. Citigroup stuck with its neutral rating for the stock, setting the price target at $7.50, according to Benzinga’s analyst-ratings page. The call came in on May 22 and amounts to a hold.
Competition has moved past online forms and attorney directories. In February, Barron’s said investors worried about Anthropic’s Claude legal tool sent shares of LegalZoom and other legal-services names like Thomson Reuters lower. “Software isn’t dead,” Stibel told Barron’s. Thomson Reuters product chief David Wong said AI would “fundamentally transform” professional work, in a piece for the publication. Barron’s
But the downside scenario is clear. LegalZoom said in its 10-Q that its business leans hard on business formations, getting customers onto subscriptions, and renewing those subscriptions. The company also pointed to tough competition in legal solutions, plus compliance and reputation risks from generative AI. If business formations drop off, renewals drop, or AI competition drives down prices for basic legal work, a higher revenue target may not be enough to push the stock much.
