LZLegalZoom.com, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (6.8×) and margins widening.
Operating profit is fully backed by cash.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LZ?
LegalZoom.com, Inc. keeps 4.1% of every revenue dollar as operating profit, against 6.8% for the median Specialty Business Services name.
Operating margin · Specialty Business Services median 6.8% · 12 months to Q2 2026
- Cash conversion
- 6.82×
Cash conversion · 6.77× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.1%
Share count, year on year · bought back, each share owns more of the company
- Gross margin
- 67%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 10% |
| FY2021 | −15% |
| FY2022 | −6.7% |
| FY2023 | 3.2% |
| FY2024 | 5.2% |
| FY2025 | 3.3% |
Details›
- Gross margin12 months to Q2 2026
- 67%
- Operating margin12 months to Q2 2026
- 4.1%
- Net margin12 months to Q2 2026
- 2.1%
- Free cash flow margin
- 19%
- Revenue, trailing twelve months
- $792M
- Free cash flow, trailing twelve months
- $150M
- Net income, trailing twelve months
- $17M
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Business Services
Ranks #20 of 22 by RyuScore