LZLEGALZOOM.COM, INC.

Services-Computer Processing & Data Preparation

Revenue: $756M; 11% YoY
Operating margin: 3.3%; 37% YoY
EBITDA: $61M; 6.3% YoY
Market cap: $1.1B
Employees: 1,196; $632K revenue each
Net debt / EBITDA: 5.6×; $345M net debt
AI in 10-K: 7.2; mentions per 10K words

Takeover score 4 of 13

Fixable underperformance 3 of 7

TSR below peersYes
5 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
12× net income
Cash flow under 80% of net income
Dilutive SBCYes
15% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
45% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
30% of assets
Over 40% of assets
Shareholder dissentYes
80% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$632K · 65th pct
Bottom quartile of its SIC industry
Quiet on AINo
7.2 per 10K words · 88th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
5.6× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedYes
$1.1B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$3M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$575M	$620M	$661M	$682M	$756M	11%
Operating income	−$85M	−$42M	$21M	$36M	$25M	30%
Net income	−$109M	−$49M	$14M	$30M	$15M	49%
Operating cash flow	$54M	$74M	$124M	$136M	$178M	31%
Capex	$12M	$22M	$32M	$36M	$30M	15%
Stock-based comp	$113M	$80M	$66M	$72M	$114M	59%
Buybacks	$0	$95M	$55M	$165M	$81M	51%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $769K · 1
Open-market sells, 12 mo: $4M · 10
Net: −$3M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	26	108
FY2024	—	—	20	93
FY2023	—	—	30	71
FY2022	—	—	20	44
FY2021	—	—	42	84