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LegalZoom (LZ) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

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LegalZoom (LZ - Free Report) reported $206.78 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 12.9%. EPS of $0.12 for the same period compares to $0.13 a year ago.

The reported revenue represents a surprise of +2.17% over the Zacks Consensus Estimate of $202.39 million. With the consensus EPS estimate being $0.13, the EPS surprise was -10.45%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how LegalZoom performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Average revenue per subscription unit (ARPU) at period end: $0.26 million versus the three-analyst average estimate of $0.26 million.
  • Subscription units at period end: 1,920 versus the three-analyst average estimate of 1,952.
  • Average order value (AOV): $205.00 compared to the $206.59 average estimate based on three analysts.
  • Transaction units: 375 compared to the 336 average estimate based on three analysts.
  • Business formations: 142 versus 146 estimated by two analysts on average.
  • Revenue- Subscription: $130.16 million versus the three-analyst average estimate of $130.15 million. The reported number represents a year-over-year change of +12%.
  • Revenue- Transaction: $76.62 million versus the three-analyst average estimate of $72.03 million. The reported number represents a year-over-year change of +14.6%.

View all Key Company Metrics for LegalZoom here>>>

Shares of LegalZoom have returned +12% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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