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The report showcases stronger profitability (margin expansion), robust free cash flow, and no debt, plus continued buyback flexibility and an AI-oriented growth arc, which could support a higher multiple and positive near-term price action despite a modest topline guidance revision.
What happened, with direct paths to the underlying reporting
LegalZoom reported Q2 2026 revenue of $205.3M, up 7% with subscription revenue rising 11% to $133.4M as the company doubles down on AI-enabled, human-in-the-loop subscriptions. It updated 2026 guidance to $795-805M in revenue and $190-195M in Adjusted EBITDA, aided by disciplined cost control including a 13% workforce reduction. The balance sheet remains solid with $167.2M cash, no debt, and $80.4M remaining under buyback authorization.
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