Back to top

Image: Bigstock

Compared to Estimates, LegalZoom (LZ) Q3 Earnings: A Look at Key Metrics

Read MoreHide Full Article

LegalZoom (LZ - Free Report) reported $195.15 million in revenue for the quarter ended September 2026, representing a year-over-year increase of 2.6%. EPS of $0.19 for the same period compares to $0.17 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $193.14 million, representing a surprise of +1.04%. The company delivered an EPS surprise of -9.52%, with the consensus EPS estimate being $0.21.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

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: $0.28 million versus $0.28 million estimated by two analysts on average.
  • Average order value (AOV): $222.00 compared to the $240.74 average estimate based on two analysts.
  • Transaction units: 249 versus the two-analyst average estimate of 239.
  • Subscription units at period end: 1,854 versus 1,974 estimated by two analysts on average.
  • Revenue- Subscription: $139.67 million versus $135.73 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.4% change.
  • Revenue- Transaction: $55.47 million compared to the $57.29 million average estimate based on two analysts. The reported number represents a change of -14.4% year over year.

View all Key Company Metrics for LegalZoom here>>>

Shares of LegalZoom have returned +15.9% over the past month versus the Zacks S&P 500 composite's -2% 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.

Published in