LegalZoom.com, Inc.
LZ · Technology · $1.4B mkt cap · FY2025 filings · Wide moat ·
On the watchlist
The five investor questions
2019–2025: revenue 408380000.00 to 756043000.00, increasing; diluted EPS 0.04 to 0.08, increasing.
Median gross margin 66.0% over 7y, very stable.
Not enough years of ROIC data to score returns on capital.
Net debt/EBITDA n/ax, interest coverage 19x.
Owner earnings +19.3%/yr, share count growing (dilution).
The returnsOnCapital component abstained: Not enough years of ROIC data to score returns on capital. The other four 20% weights were renormalized over the scored 80%.
Price vs. owner-earnings value range
- Owner earnings (normalized)
- $14.0M
- Value range / share
- $0.87–$1.41
- Conservative high estimate / share
- $1.41
- Recent price
- $7.70
- Price vs. high estimate
- 445% above high estimate
Conservative range under moat-index@2.0.0: low end 11.1×, high end capped at 18×; 9% discount rate; high-end growth 4% (capped at 4%) using min(5y revenue CAGR, 5y diluted-EPS CAGR), clamped to 0%–4%; maintenance capex uses min(capex, D&A); abstain when D&A is unavailable. This is a disclosed model range, not intrinsic value as fact.
8 years of fundamentals
The business, in plain English
LegalZoom.com, Inc. booked $756.0M of revenue in FY2025 in the Technology sector and kept 65.9% of it as gross profit — a high-margin business by that measure. After every other cost, 2.0% of each revenue dollar reached the bottom line.
Across the filed record, revenue grew from $408.4M (FY2019) to $756.0M (FY2025) — about 10.8% a year compounded over 6 years.
The balance sheet carried $0 of total debt in FY2021. Balance-Sheet Safety scores it 71/100.
The share count rose 42.1% between FY2020 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 60/100.
This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.
Not disclosed in LZ’s filings for these years — we don’t estimate it.
Gaps in a line mean that item isn’t in LZ’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.
Moat Score history
Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars
- Methodology upgraded moat-index@1.2.0tomoat-index@2.0.0 — readings across versions aren’t comparedJul 20, 2026
Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.
Track record
How LegalZoom.com, Inc.’s moat rated in each of the years we can reconstruct from its filings — scored only on what was knowable at the time — and what its price and returns did afterward. The score never saw a price; the two are joined only in hindsight, for education, not as a signal.
How to read this: each dot is what the engine would have scored LZ on that December 31; the line below is its total-return price path (dividends reinvested) in the years since.
Two tracks, one timeline: the score has its own 0–100 scale (top), the price its own 100-based scale (bottom) — never a shared axis. The price path is a total-return (dividends reinvested) index built from the same data the forward returns use; gaps in the score line are years with no reconstructed rating (see the table for why). The Table view carries every value.
What followed, in the years it rated Wide
In the 2 years LZ rated Wide-moat (2024 and 2025), the median forward total return that followed — measured only after each year’s filings were public — was:
- 1 year 27% vs the S&P 500’s 17% (price basis) · median over 1 year
- 3 years None of the 2 years it rated Wide has a fully elapsed 3-year window with a benchmark to compare against yet.
- 5 years None of the 2 years it rated Wide has a fully elapsed 5-year window with a benchmark to compare against yet.
These are medians computed from the data, not a claim about any one year. The company figures are total returns (dividends reinvested); the S&P 500 is the price-only ^GSPC index, which excludes dividends and so understates the index — the gap flatters the company. A quality rating is not a return forecast, and past returns don’t predict future ones. Educational only, not investment advice.
Technology context
#50 of 745 scored Technology companies, ranked by Moat Score.
Nearest peers by Moat Score
- #48URI United Rentals, Inc.81.4 out of 100, Wide moatWide moat
- #49AVPT AvePoint, Inc.81.4 out of 100, Wide moatWide moat
- #51NSSC NAPCO SECURITY TECHNOLOGIES, INC80.8 out of 100, Wide moatWide moat
- #52TRAK ReposiTrak, Inc.80.5 out of 100, Wide moatWide moat
Compare LZ with its nearest peers →All Technology companies on the Index →
Common questions about LZ
- Does LegalZoom.com, Inc. have an economic moat?
- Based on its FY2025 SEC filings, the Moat Index scores LegalZoom.com, Inc. (LZ) 81.0 out of 100 — a Wide moat. The five questions behind that score begin at 20% each; if exactly one genuinely lacks data, the other four weights are renormalized and disclosed. revenue and EPS trend 93, pricing power 100, returns on capital not measurable from the filings, balance-sheet safety 71, capital discipline 60.
- Is LZ trading below the conservative owner-earnings estimate?
- The owner-earnings value range is $0.87–$1.41 per share. It capitalizes normalized owner earnings at a 9% rate; the low end assumes 0% growth and the high end uses 4% growth, capped at 4% and 18×. Versus a recent price of $7.70, that is 445% above high estimate relative to the high estimate. This is a conservative educational estimate from primary SEC filings, not intrinsic value as a fact or investment advice.
- How has LZ's Moat Score changed over time?
- The record logs 9 readings since Jul 17, 2026; the latest reads 81.0 out of 100 (wide moat). No tier changes on record yet. (A methodology upgrade on Jul 20, 2026 re-based the score; readings across engine versions aren't compared.) The history is append-only — readings are only ever added, never rewritten.