Update shared on 24 Nov 2025
Fair value Increased 1.17%Analysts have raised their price target for LegalZoom.com from $12.21 to $12.36 per share, citing increased revenue growth projections and improved profit margins. This comes despite a slightly higher discount rate and expectations for a lower future price-to-earnings ratio.
What's in the News
- LegalZoom.com repurchased 1,772,474 shares between July and September 2025, completing its previously announced buyback program. The company retired a total of 23,188,532 shares, representing 12.54% of shares, for $203.01 million (Key Developments).
- The company raised its full-year 2025 revenue guidance to $748 million to $752 million, projecting 10% year-over-year growth at the midpoint (Key Developments).
- Earnings guidance for the fourth quarter of 2025 was provided, with expected revenue of $182 million to $186 million. This represents an anticipated 14% year-over-year growth at the midpoint (Key Developments).
- LegalZoom announced a partnership with Design.com to offer AI-powered logo creation tools and seamless access to trademark registration within its platform, providing integrated services for small business branding and legal protection (Key Developments).
- The company launched an embedded legal services flow, allowing partners such as Wix and BusinessLoans.com to integrate LegalZoom services directly into their platforms. This resulted in a reported 30% improvement in conversion rates compared to prior models (Key Developments).
Valuation Changes
- Consensus Analyst Price Target increased modestly from $12.21 to $12.36 per share.
- The Discount Rate rose slightly from 7.15% to 7.17%.
- Revenue Growth expectations improved from 7.18% to 7.71%.
- Net Profit Margin edged higher, moving from 11.97% to 12.13%.
- The future P/E ratio declined significantly from 28.17x to 24.82x.
Disclaimer
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