Core Insights - LegalZoom.com, Inc. has been included in the S&P SmallCap 600® Index, effective February 2, 2026, marking a significant milestone for the company [1][2] Company Overview - LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system by combining technology with access to experienced attorneys [3] - The company has over two decades of experience and has served millions of customers, helping them manage legal needs confidently [4] Strategic Goals - The CEO of LegalZoom emphasized the company's commitment to building a durable business model, achieving strong growth and profitability, and enhancing shareholder value while capitalizing on the large market for online legal services [2]

Core Viewpoint - LegalZoom.com, Inc. is set to report its financial results for Q4 and the full year of 2025 on February 19, 2026, after market close [1] Group 1: Financial Reporting - The financial results will be discussed in a conference call and webcast hosted by CEO Jeff Stibel and COO/CFO Noel Watson at 4:30 p.m. ET on the same day [2] - A replay of the webcast will be available on the LegalZoom Investor Relations website following the live event [3] Group 2: Company Overview - LegalZoom is a leading online platform for legal services, providing tools and guidance for individuals and small businesses to navigate the legal system [4] - The company combines technology with access to experienced attorneys, offering services from business formations to estate planning [4] - With over two decades of experience, LegalZoom has served millions of customers [5]

Index Changes - S&P Dow Jones Indices will implement changes to the S&P MidCap 400 and S&P SmallCap 600 indices effective January 30 and February 2, 2026 [1][3] - TTM Technologies (TTMI) will be added to the S&P MidCap 400, replacing Civitas Resources (CIVI), which is being acquired by SM Energy [1][3] - Amneal Pharmaceuticals (AMRX) will be added to the S&P SmallCap 600, replacing TTM Technologies [1][3] - Dutch Bros (BROS), Advanced Energy Industries (AEIS), and American Healthcare REIT (AHR) will be added to the S&P MidCap 400 on February 2, 2026, with Comerica (CMA), Cadence Bank (CADE), and PotlatchDeltic (PCH) being removed [1][3] - Apellis Pharmaceuticals (APLS) and LegalZoom.com (LZ) will be added to the S&P SmallCap 600, replacing Advanced Energy Industries and Elme Communities (ELME), respectively [1][3] Acquisition Details - SM Energy is acquiring Civitas Resources, and the deal is expected to close soon, with SM Energy remaining in the S&P SmallCap 600 post-merger [3] - Rayonier is acquiring PotlatchDeltic, and will remain in the S&P MidCap 400 after the merger [3] - Fifth Third Bancorp is acquiring Comerica, which will also remain in the S&P MidCap 400 post-acquisition [3] - Huntington Bancshares is acquiring Cadence Bank, with Cadence being removed from the S&P MidCap 400 [3] - Elme Communities is undergoing liquidation activities, making it no longer suitable for the S&P SmallCap 600 [3]

Group 1 - The article does not provide any specific content related to a company or industry [1]

LegalZoom Conference Call Summary Company Overview - **Company**: LegalZoom.com (NasdaqGS:LZ) - **Date of Call**: December 11, 2025 Key Points Business Strategy and Performance - LegalZoom has successfully stabilized its business after a challenging period, with a focus on re-accelerating subscription growth and driving top-line growth through both organic means and M&A [2][6] - The company has integrated an acquisition that has proven to be accretive, contributing positively to its growth trajectory [6] Macroeconomic Factors - LegalZoom has experienced some macroeconomic pressures, including tariff uncertainties and government shutdowns, but has managed to decouple its performance from these external factors [8][34] - The small business economy remains robust, serving as a counterindicator to job growth, which benefits LegalZoom's business model [44][46] Customer Focus and Market Positioning - LegalZoom is shifting its focus towards higher-value customers and premium positioning, moving away from free formations to enhance revenue and customer quality [67][78] - The company is diversifying its service offerings, including "Do It For Me" products, which provide a higher-touch service to customers [48][190] Customer Funnel Evolution - The customer acquisition strategy has evolved significantly, with less reliance on Google search marketing and a broader approach that includes partnerships and AI [108][112] - LegalZoom is seeing an acceleration in subscription growth, which is expected to drive future revenue [112][318] Financial Metrics and Growth Expectations - The company aims to achieve accelerated top-line growth while maintaining or growing margins, with a focus on subscription acceleration as a key driver of EBITDA growth [312][318] - LegalZoom is targeting a stock price of $30 as a KPI for success by the end of 2025 [310] Integration of Acquisitions - The integration of Formation Nation has been successful, allowing LegalZoom to reposition itself as a premium brand while leveraging the strengths of the acquired company [160][162] - Future plans include cross-selling and upselling opportunities from the Formation Nation acquisition, particularly in compliance and credit-building products [168][180] Partnerships and Customer Acquisition - LegalZoom is refocusing on partnerships to drive customer acquisition, moving away from monetizing existing customers to acquiring new ones [245][251] - The partnership with 1-800Accountant is highlighted as a successful model for customer acquisition and revenue growth [259] Technology and R&D Investments - LegalZoom is restructuring its technology and product teams to better integrate AI and drive efficiencies [266][270] - The company is balancing R&D spending with traditional sales and marketing efforts, focusing on leveraging AI for operational efficiencies [276][278] Future Outlook - LegalZoom is optimistic about its growth trajectory, with plans to explore further M&A opportunities while maintaining a strong cash position [303][306] - The company is confident in its ability to achieve double-digit top-line growth and expand margins over the medium term [294][298] Additional Insights - LegalZoom's approach to compliance services is seen as a significant growth opportunity, targeting the over 30 million existing businesses in the U.S. that may be out of compliance [212][220] - The company is committed to a balanced approach in its capital allocation strategy, ensuring flexibility for both share repurchases and potential acquisitions [303][306]

Core Insights - LegalZoom.com achieved record revenue in the third quarter, with sales of $190.2 million, reflecting a 13% year-over-year growth [9] - The company raised its full-year 2025 revenue outlook to between $748 million and $752 million, indicating growth from 2024's $682 million [9] - Chief Legal Officer Nicole Miller sold 23,506 shares on November 18, 2025, which represented approximately 2.63% of her direct ownership [6] Company Overview - LegalZoom.com operates an online platform that simplifies legal and compliance processes for small businesses and individuals [5] - The company reported a total revenue of $727.48 million and a net income of $22.22 million for the trailing twelve months (TTM) [4] - The stock price increased by 16.22% over the past year, with a closing price of $9.41 on November 18, 2025 [4][6] Insider Transactions - Nicole Miller's sale of shares is consistent with her historical trading patterns, as it aligns with the median size of her previous open-market sales [6] - The sale followed a significant withholding of 203,571 shares on November 15, which was related to tax obligations from the vesting of restricted stock units [6][8] - Post-transaction, Miller retains 868,627 shares valued at approximately $8.2 million, maintaining a 0.49% stake in the company [6] Market Performance - LegalZoom's stock reached a 52-week high of $12.40 on November 6, 2025, contributing to the perception of the recent share sale as profit-taking [8] - Despite the positive performance, the current price-to-earnings ratio of 76 suggests that shares may be considered expensive at this time [10]

Core Insights - LegalZoom (LZ) has been previously rated as a hold due to concerns regarding weak Average Revenue Per User (ARPU) trends, transaction units, and soft retention metrics [1] Group 1: Company Performance - LegalZoom continues to execute well on its business strategies despite previous concerns [1] Group 2: Investment Perspective - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies to enhance the investment process [1]

Core Insights - The Q3 earnings season of 2025 is negatively impacting the stock market, with investors requiring substantial justification for high valuations [1] Group 1: Market Performance - The current earnings season is seen as a negative catalyst for the stock market [1] - Investors are demanding significant support for elevated stock valuations [1] Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies and has worked in Silicon Valley, providing insights into industry trends [1] - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications [1]

Core Insights - LegalZoom's shares increased by 6.8% following the release of strong third-quarter financial results that exceeded revenue expectations and provided a positive outlook for the next quarter [1][2] Financial Performance - LegalZoom reported revenue of $190.2 million for the third quarter, marking a 12.8% increase year-over-year, surpassing Wall Street forecasts [2] - The company's revenue guidance for the fourth quarter is set at $184 million at the midpoint, approximately 4% above analyst expectations [2] - GAAP earnings per share were $0.02, aligning with expectations, although subscription units fell short of estimates [2] Market Reaction - LegalZoom's stock has shown volatility, with 14 movements greater than 5% in the past year, indicating that the market views the recent news as significant but not fundamentally altering its perception of the company [4] - The stock has risen 42.9% since the beginning of the year, currently trading at $10.81 per share, close to its 52-week high of $11.18 reached in August 2025 [6]

Core Insights - LegalZoom reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.20 per share, representing an earnings surprise of -15.00% [1] - The company posted revenues of $190.16 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 3.55% and showing a year-over-year increase from $168.6 million [2] - LegalZoom's stock has increased by approximately 32.1% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $176.54 million, and for the current fiscal year, it is $0.71 on revenues of $735.91 million [7] - The estimate revisions trend for LegalZoom was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Industrial Services industry, to which LegalZoom belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]