Filing Flows › Legalzoom.com (LZ) › Q1 2026
Legalzoom.com (LZ) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 6, 2026
Legalzoom.com (LZ) reported revenue of $207M for the first quarter 2026 (Q1 2026), +13% from a year earlier and +9% from the quarter before. Operating margin was 1.3%, net earnings $1.1M (0.5% of revenue).
Legalzoom.com, Q1 2026: revenue $207M (+13% year over year), operating margin 1.3%, net earnings $1.1M, operating cash flow $47.3M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $207M | +9% | +13% |
| Gross profit | $132M | +3% | +13% |
| Operating profit | $2.8M | -78% | -69% |
| Net earnings | $1.1M | -82% | -78% |
| Operating cash flow | $47.3M | +39% | -7% |
| Free cash flow | $41.0M | — | -0.8% |
What changed
Revenue was $206.8M in Q1 2026, up 13% year over year and up 9% from the previous quarter.
Gross margin was 64.0%, up 0.3 points from Q1 2025. Operating profit was $2.8M, a 1.3% margin (down 3.6 points year over year). Operating profit fell $6.2M even though revenue rose $23.7M versus Q1 2025, so costs grew faster than sales. Operating expenses grew 20% against revenue growth of 13%. The fastest-growing cost line was Sales & marketing (+28%). Net earnings were $1.1M, down 78% year over year. The effective tax rate was 71.1%. Non-operating items added $1.1M, 28% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $47.3M (down 7% year over year), 4283% of net earnings. Non-cash charges added back $21.3M of share-based compensation. Working capital and other items added $24.9M. After purchase of property and equipment ($6.3M), free cash flow as the company reports it was $41.0M.
Questions
What was Legalzoom.com's revenue in the first quarter 2026?
Legalzoom.com (LZ) reported revenue of $207M for the first quarter 2026 (Q1 2026), +13% from a year earlier and +9% from the quarter before.
Was Legalzoom.com profitable in the first quarter 2026?
Operating profit was $2.8M (1.3% of revenue) and net earnings $1.1M.
Source: Legalzoom.com 10-Q on SEC EDGAR.