Added to YB: 2025-08-07
Pitch date: 2025-06-17
LZ [bearish]
LegalZoom.com, Inc.
-17.66%
current return
Author Info
No bio for this author
Company Info
LegalZoom.com, Inc. together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States.
Market Cap
$2.0B
Pitch Price
$8.55
Price Target
N/A
Dividend
N/A
EV/EBITDA
40.04
P/E
67.77
EV/Sales
2.52
Sector
Professional Services
Category
turnaround
LegalZoom: Margins Compressing, Moat Disappearing
LZ short: Declining business prospects with 37% churn in high-margin Registered Agent segment amid increasing competition. Active subs +20% YoY but declining ARPU, business formation units down 5 consecutive quarters. Margin contracted in Q1. AI likely lowers barriers to entry. Competitors: Stripe Atlas, Intuit, state websites.
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