Q2 FY2026 EarningsQ2 FY2026 revenue of $205.3M slightly missed the consensus of $205.8M, representing 7% YoY growth driven by a pivot to subscription services (+11% YoY). While GAAP EPS of $0.03 marginally trailed the $0.0317 expectation, Adjusted EBITDA of $45.9M showed expansion, and gross margins of 68.16% slightly beat the 68.06% consensus. Strategic headwinds in customer acquisition led to a 5% YoY decline in business formations, prompting management to announce a 13% workforce reduction in August 2026 to transition toward an AI-native operating model.
Financial report interval: 2026.03.30 - 2026.06.30
Overview: Legalzoom.com(LZ) the Revenue is 205.29 M (+6.64%), Miss estimate;the EBIT is 34.62 M (+25.33%), Beat estimate;the EPS is 0.03 (--%), Miss estimate.
Actual
YoY
Estimate
YoY
Vs estimate
YoY
RevenueMiss expectations
0.21B6.64%
0.21B6.93%
-0.00B0.29%
EBITExceed expectations
0.03B25.33%
0.03B7.08%
+0.01B18.25%
EPSMiss expectations
0.03--
0.0317--
-0.0017--%
Revenue
ActualEstimateUnit: USD
qf
EBIT
ActualEstimateUnit: USD
qf
Net income
ActualEstimateUnit: USD
qf
EPS
ActualEstimateUnit: USD
qf