0001286139-25-000059 | 10-Q | XBRL Viewer

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Acquisition - Narrative (Details) - Formation Nation $ in Thousands		3 Months Ended
	Feb. 10, 2025 USD ($) installment shares	Mar. 31, 2025 USD ($)
Business Acquisition [Line Items]
Total consideration	$ 83,182
Equity consideration (in shares) \| shares	2,205,445
Consideration deferred to satisfy necessary adjustments	$ 12,900
Additional consideration payable	$ 200
Number of installments consideration is payable \| installment	2
Acquisition costs related to transaction	$ 1,500
Revenues attributable to acquiree since acquisition		$ 8,600
Net loss attributable to acquiree since acquisition		$ 800

Fair Value Measurements

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair value is defined as the price that would be received from selling an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based

upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

Level 1 — Quoted prices in active markets for identical assets and liabilities.

Level 2 — Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

At March 31, 2025 and December 31, 2024, our financial assets recorded at fair value on a recurring basis consist of cash equivalents and available-for-sale debt security. The cash equivalents consist of money market funds valued using quoted prices in active markets, which represents Level 1 inputs in the fair value hierarchy. As of March 31, 2025, the fair value of our available-for-sale debt security was valued based on the expected proceeds from a pending sale transaction scheduled to close during the second quarter 2025. Given the observable nature of the transaction terms, the investment is classified as a Level 2 input in the fair value hierarchy.

The carrying amounts of accounts receivable, accounts payable and accrued expenses and other current liabilities approximate fair values because of the short-term nature of these items.

The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands):


	As of March 31, 2025
	Level 1		Level 2		Level 3
Available-for-sale debt security	$	—	$	1,588	$	—
Money market funds	148,916		—		—
Total assets	$	148,916	$	1,588	$	—


	As of December 31, 2024
	Level 1		Level 2		Level 3
Available-for-sale debt security	$	—	$	—	$	1,377
Money market funds	114,690		—		—
Total assets	$	114,690	$	—	$	1,377

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2025
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Stock Repurchase Program In October 2023, our board of directors approved a stock repurchase program authorizing repurchases of up to $100.0 million of our common stock, with no fixed expiration. In May 2024, our board of directors approved a $75.0 million increase in the stock repurchase program, bringing the aggregate amount authorized to $175.0 million. In November 2024, our board of directors approved an additional $40.0 million increase in the stock repurchase program, bringing the aggregate amount authorized to $215.0 million. Under this program, we are authorized to repurchase our common stock through any manner, including open market transactions, accelerated stock repurchase agreements, or privately negotiated transactions with third parties, and in such amounts as management deems appropriate. Open market repurchases may be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our shares of common stock under this authorization. This program does not obligate us to repurchase any particular amount of common stock and may be modified, suspended or terminated at any time at the discretion of our board of directors. Shares repurchased under our stock repurchase program are purchased for immediate retirement. There were no repurchases of the Company’s common stock during the three months ended March 31, 2025. Approximately $50.0 million remained available for future repurchases of the Company’s common stock under the stock repurchase program as of March 31, 2025. Refer to Note 14. Subsequent Events to our condensed consolidated financial statements for additional information. The Inflation Reduction Act of 2022, enacted in August 2022, imposed a 1% non-deductible excise tax on net repurchases of shares by domestic corporations whose stock is traded on an established securities market. Consequently, this excise tax is applicable to shares of stock repurchased pursuant to our stock repurchase program beginning in 2023 and represents a cost of the repurchases of our common stock. We have not recognized an excise tax liability as of March 31, 2025, as there were no stock repurchases for the three months ended March 31, 2025.

- Definition

The entire disclosure for equity.

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+ Details

Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Information

Our Chief Executive Officer, as the Chief Operating Decision Maker, or CODM, organizes our company, manages resource allocations, and measures performance on the basis of one operating segment on a consolidated basis. The accounting policies of our operating segment are the same as those described in Note 2, Summary of Significant Accounting Policies. The CODM assesses performance for the segment and decides how to allocate resources based on net income (loss) that also is reported on the accompanying condensed consolidated statements of operations as consolidated net income (loss). The measure of segment assets is reported on the accompanying condensed consolidated balance sheets as total assets.

The CODM uses net income (loss) to evaluate income generated from segment assets in making key operating and segment resource allocation decisions, such as investments in new product development. Net income (loss) is also used to monitor budget versus actual results.

The Company has one reportable segment which provides an online platform for business formation in the United States, or U.S., and, as described in Note 2, Summary of Significant Accounting Policies, generates revenue from customized legal document services and subscriptions offered to our customers. Revenue outside of the U.S., based on the location of the customer, represented less than 1% of our unaudited consolidated revenue for the three months ended March 31, 2025 and 2024. Our property and equipment and ROU assets located outside of the U.S. were immaterial as of March 31, 2025 and 2024.

The following table summarizes financial information by reportable segment regularly provided to the CODM (in thousands):


	Three Months Ended March 31,
	2025		2024
Transaction revenue	$	66,853	$	66,317
Subscription revenue	116,257		107,897
Total revenue	183,110		174,214
Less:
Filings fees	25,219		24,813
Other cost of revenue, excluding depreciation, amortization and stock-based compensation	34,966		37,511
Customer acquisition marketing	44,215		40,563
Other sales and marketing, excluding depreciation, amortization and stock-based compensation	11,681		10,812
Technology and development, excluding depreciation, amortization and stock-based compensation	15,078		16,777
General and administrative, excluding depreciation, amortization, stock-based compensation, and restructuring	16,482		15,836
Stock-based compensation	29,756		14,856
Depreciation and amortization	10,406		7,670
Interest income	(1,483)		(2,887)
Interest expense	182		61
Restructuring(1)	678		321
Other segment items(2)	(347)		(93)
Provision for income taxes	5,487		3,230


Gain on sale of assets held for sale	(14,337)		—
Segment net income	5,127		4,744

Reconciliation of profit or loss
Adjustments and reconciling items	$	—	$	—
Consolidated net income	$	5,127	$	4,744

(1) For 2025 and 2024, restructuring costs related to the reduction of our U.S. headcount.

(2) Other segment items included in segment net income primarily consist of foreign currency gains or losses related to our intercompany loans which were denominated in British Pound Sterling, or GBP, and included in other income, net on the consolidated statements of operations.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt security	$ 0	$ 0
Total assets	148,916	114,690
Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	148,916	114,690
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt security	1,588	0
Total assets	1,588	0
Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt security	0	1,377
Total assets	0	1,377
Level 3 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 0	$ 0

Summary of Significant Accounting Policies - Schedule of Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Disaggregation of Revenue [Line Items]
Total revenue	$ 183,110	$ 174,214
Transaction
Disaggregation of Revenue [Line Items]
Total revenue	66,853	66,317
Subscription
Disaggregation of Revenue [Line Items]
Total revenue	$ 116,257	$ 107,897

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

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+ Details

Acquisition - Schedule of Preliminary Fair Value of Consideration Transferred (Details) - USD ($) $ in Thousands		3 Months Ended
	Feb. 10, 2025	Mar. 31, 2025	Mar. 31, 2024
Business Acquisition [Line Items]
Deferred cash consideration		$ 13,058	$ 0
Formation Nation
Business Acquisition [Line Items]
Cash paid at close	$ 50,076
Equity consideration	20,048
Deferred cash consideration	13,058
Total consideration transferred	$ 83,182

Other Financial Statement Information (Tables)

3 Months Ended

Mar. 31, 2025

Other Financial Information [Abstract]

Schedule of Changes in the Allowance

Changes in the allowances consisted of the following (in thousands):


	Three Months Ended March 31,
		2025		2024
Beginning balance		$	2,121	$	4,906
Add: amounts recognized as a reduction of revenue		1,236		1,545
Add (less): allowance for credit losses recognized in general and administrative expense		40		(154)
Less: write-offs, net of recoveries		(773)		(2,864)
Ending balance		$	2,624	$	3,433

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	March 31, 2025		December 31, 2024
Prepaid expenses	$	11,135	$	9,129
Deferred cost of revenue	3,789		1,670
Capitalized cloud computing development costs	1,557		1,599
Income tax receivable	1,542		3,701
Other current assets	2,414		1,827
Total prepaid expenses and other current assets	$	20,437	$	17,926

Schedule of Carrying Amount of Goodwill

The following table presents the changes in the carrying amount of goodwill (in thousands):


	Amount
Balance as of December 31, 2024	$	63,318
Acquisition(1)	77,813

Balance as of March 31, 2025	$	141,131

(1) Amounts relate to the acquisition of Formation Nation, Inc., or Formation Nation. Refer to Note 5. Acquisition to our condensed consolidated financial statements.

Schedule of Accrued Expenses and and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	March 31, 2025		December 31, 2024
Accrued payroll and related expenses	$	19,652	$	27,518
Accrued vendor payables	22,719		15,895
Accrued advertising	692		1,636
Sales allowances	3,079		3,086
Accrued sales, use and business taxes	9,107		6,984
Deferred consideration relating to business acquired	12,957		—
Other	4,241		2,809
Total accrued expenses and other current liabilities	$	72,447	$	57,928

Schedule of Depreciation and Amortization Expense

Depreciation and amortization expense of our property and equipment, including capitalized internal-use software, and intangible assets consisted of the following (in thousands):


	Three Months Ended March 31,
		2025		2024
Cost of revenue		$	5,115	$	4,467
Sales and marketing		1,715		799
Technology and development		2,220		1,477
General and administrative		1,356		927
Total depreciation and amortization expense		$	10,406	$	7,670

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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+ Details

Sale of Assets Held for Sale	3 Months Ended
Sale of Assets Held for Sale	Mar. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]
Sale of Assets Held for Sale	Sale of Assets Held for Sale In September 2022, following an evaluation of our office space and business requirements, we determined that our operational headquarters property at 9900 Spectrum Drive in Austin, Texas was no longer aligned with operational needs due to an increased shift to remote work. As a result, we initiated plans to sell the property consisting of land, a building and building improvements, and classified these assets as held for sale. On September 24, 2024, we entered into a binding purchase and sale agreement for this property with Round Rock Independent School District. The sale was completed on March 31, 2025, and we received net cash proceeds of approximately $37.1 million after deducting selling costs such as brokerage commissions, title fees, and asset disposal costs. Prior to completion of the sale, the property had a carrying value of $22.7 million. As a result of the sale, we recognized a gain of $14.3 million. This gain is recorded in income from operations on the condensed consolidated statement of operations. As of March 31, 2025, the property is fully derecognized from the balance sheet, and no amounts remain to be classified as held for sale.

Acquisition - Schedule of Purchase Consideration of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Feb. 10, 2025	Dec. 31, 2024
Business Acquisition [Line Items]
Goodwill	$ 141,131		$ 63,318
Formation Nation
Business Acquisition [Line Items]
Cash and cash equivalents		$ 1,953
Accounts receivable		276
Prepaid expenses and other current assets		257
Operating lease right-of-use assets		3,884
Other assets		80
Intangible assets		17,300
Goodwill		77,813
Total assets acquired		101,563
Accounts payable		535
Accrued expenses and other current liabilities		4,744
Operating lease liabilities, current and non-current		3,504
Deferred revenue		9,582
Other liabilities		16
Net assets acquired		$ 83,182

Other Financial Statement Information - Schedule of Changes in the Allowance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 2,121	$ 4,906
Less: write-offs, net of recoveries	(773)	(2,864)
Ending balance	2,624	3,433
Revenue
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Add (less): amounts recognized	1,236	1,545
General and Administrative Expenses
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Add (less): amounts recognized	$ 40	$ (154)

Segment Information (Tables)

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table summarizes financial information by reportable segment regularly provided to the CODM (in thousands):


	Three Months Ended March 31,
	2025		2024
Transaction revenue	$	66,853	$	66,317
Subscription revenue	116,257		107,897
Total revenue	183,110		174,214
Less:
Filings fees	25,219		24,813
Other cost of revenue, excluding depreciation, amortization and stock-based compensation	34,966		37,511
Customer acquisition marketing	44,215		40,563
Other sales and marketing, excluding depreciation, amortization and stock-based compensation	11,681		10,812
Technology and development, excluding depreciation, amortization and stock-based compensation	15,078		16,777
General and administrative, excluding depreciation, amortization, stock-based compensation, and restructuring	16,482		15,836
Stock-based compensation	29,756		14,856
Depreciation and amortization	10,406		7,670
Interest income	(1,483)		(2,887)
Interest expense	182		61
Restructuring(1)	678		321
Other segment items(2)	(347)		(93)
Provision for income taxes	5,487		3,230


Gain on sale of assets held for sale	(14,337)		—
Segment net income	5,127		4,744

Reconciliation of profit or loss
Adjustments and reconciling items	$	—	$	—
Consolidated net income	$	5,127	$	4,744

(1) For 2025 and 2024, restructuring costs related to the reduction of our U.S. headcount.

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2025	May 01, 2025
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2025
Document Transition Report	false
Entity File Number	001-35618
Entity Registrant Name	LegalZoom.com, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4752856
Entity Address, Address Line One	954 Villa Street
Entity Address, City or Town	Mountain View
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94041
City Area Code	323
Local Phone Number	962-8600
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	LZ
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		181,184,393
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001286139

Other Financial Statement Information - Schedule of Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 63,318
Acquisition	77,813
Ending balance	$ 141,131

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

A summary of the significant accounting policies we follow in the preparation of the accompanying unaudited condensed consolidated financial statements is set forth below.

Basis of Presentation and Consolidation

The accompanying unaudited condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the related notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2024. The December 31, 2024 unaudited condensed consolidated balance sheet was derived from our audited consolidated financial statements as of that date. Our unaudited condensed consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the unaudited condensed consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. There have been no significant changes in accounting policies during the three months ended March 31, 2025 from those disclosed in the audited consolidated financial statements for the year ended December 31, 2024 and the related notes, except as noted below under Recently Adopted Accounting Pronouncements.

The operating results for the three months ended March 31, 2025 are not necessarily indicative of the results expected for the full year ending December 31, 2025.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, however not limited to, revenue recognition, sales allowances and expected credit loss allowances, available-for-sale debt securities, other equity securities, recoverability of long-lived assets and goodwill, income taxes, commitments and contingencies, valuation of assets and liabilities acquired in business combinations, valuation of assets in asset acquisitions, and fair value of stock-based compensation. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate the estimates compared to historical experience and other factors including the current economic and regulatory environment, which form the basis for our judgments about the carrying value of assets and liabilities.

Significant Accounting Policies

Significant accounting policies are detailed in Note 2. Summary of Significant Accounting Policies of our Annual Report on Form 10-K for the year ended December 31, 2024.

Segment and Geographic Information

Our Chief Executive Officer, as the Chief Operating Decision Maker, organizes our company, manages resource allocations, and measures performance on the basis of one operating segment. Refer to Note 13 to our unaudited condensed consolidated financial statements.

Revenue outside of the U.S., based on the location of the customer, represented less than 1% of our unaudited consolidated revenue for the three months ended March 31, 2025 and 2024. Our property and equipment and right-of-use, or ROU, assets located outside of the U.S. were immaterial as of March 31, 2025 and December 31, 2024.

Concentrations of Credit Risk

We maintain accounts in U.S. banks with funds insured by the Federal Deposit Insurance Corporation, or FDIC. Our bank accounts may, at times, exceed the FDIC insured limits. Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents. Management believes that we are not exposed to any significant credit risk related to our cash or cash equivalents and have not experienced any losses in such accounts.

Due to a large and diverse customer base, no individual customer represented more than 10% of our total revenue for the three months ended March 31, 2025 and 2024. At March 31, 2025, there were two partners with an outstanding balance of 10% or more of our total accounts receivable balance. At December 31, 2024, there were no customers with an outstanding balance of 10% or more of our total accounts receivable balance.

Accounts Receivable and Allowance for Credit Losses

Our accounts receivable balances, which are not collateralized and do not bear interest, primarily consist of amounts receivable from our credit and debit card merchant processors, customer receivables, and fees due from third parties for services purchased by our customers from such third parties. We reduce our accounts receivable for sales allowances and a reserve for potentially uncollectible receivables. We determine the amount of the allowances based on various factors, including historical collection experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. Account balances are charged off against the allowance when we determine that it is not probable we will collect the receivable. At March 31, 2025 and December 31, 2024 the allowance for credit losses was not material.

Investments in Other Equity Securities

We hold an equity investment in LawPath, Pty Ltd, or LawPath, an Australian proprietary limited company that provides an online legal platform to individuals and small and medium sized businesses. The carrying amount of our investment in LawPath was $4.7 million and $4.4 million at March 31, 2025 and December 31, 2024, respectively. The change in the carrying amount was due to an observable price change in an orderly transaction.

Revenue Recognition

We derive our revenue from the following sources:

Transaction revenue—Transaction revenue is primarily generated from our customized legal document services upon fulfillment of these services. Transaction revenue includes filing fees and is net of cancellations, promotional discounts, sales allowances and credit reserves. We also earn fees from third-party providers in connection with lead generation activities, where referred customers purchased services that are transactional in nature.

Subscription revenue—Subscription revenue is generated primarily from subscriptions to our registered agent, compliance packages, attorney advice, legal forms, tax and accounting, virtual mail and e-signature services, and software-as-a-service, or SaaS, subscriptions. We generally recognize revenue from our subscriptions ratably over the subscription term. Subscription terms generally range from thirty days to one year. Subscription revenue also includes amounts earned from third-party providers in connection with lead generation activities, where referred customers purchased services that are subscription in nature. Subscription revenue includes the transaction price allocated to bundled free trials for our subscription services and is net of promotional discounts, cancellations, sales allowances and credit reserves and payments to third party service providers.

For transaction and subscription revenue, we generally collect payments and fees at the time orders are placed and prior to services being rendered. We record amounts collected for services that have not been performed as deferred revenue on our consolidated balance sheet. The transaction price that we record is generally based on the contractual amounts and is reduced for estimated sales allowances for price concessions, charge-backs, sales credits and refunds, which are accounted for as variable consideration when estimating the amount of revenue to recognize.

Our transaction and subscription revenue is as follows (in thousands):


	Three Months Ended March 31,
		2025		2024
Transaction		$	66,853	$	66,317
Subscription		116,257		107,897
Total revenue		$	183,110	$	174,214

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 in 2024. Refer to Note 13 to our unaudited condensed consolidated financial statements.

In March 2024, the FASB issued ASU 2024-01, which clarifies how an entity determines whether a profits interest or similar award is a share-based payment arrangement that is within the scope of ASC 718, Compensation - Stock Compensation. This accounting standard is effective for fiscal years beginning after December 15, 2024, including interim periods within those years, and early adoption is permitted. ASU 2024-01 can be applied retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date at which the entity first applies this accounting standard. We early adopted ASU 2024-01 effective January 1, 2024 and will apply the amendments prospectively to profits interest and similar awards granted or modified on or after January 1, 2024. The adoption of this accounting standard did not have a material impact on our consolidated financial statements.

In March 2024, the FASB issued ASU 2024-02, Codification Improvements to amend a variety of topics in the accounting codification by removing references to various FASB concepts statements. This accounting standard is effective for fiscal years beginning after December 15, 2024, and early adoption is permitted. ASU 2024-02 can be applied retrospectively to the beginning of the earliest comparative period presented in which the amendments were first applied or prospectively to all new transactions recognized on or after the date that the entity first applies the amendments. We early adopted ASU 2024-02 effective January 1, 2024 and will apply the amendments prospectively to all new transactions recognized on or after January 1, 2024. The adoption of this accounting standard did not have a material impact on our consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to disclose more detailed information in the reconciliation of their statutory tax rate to their effective tax rate as well as disclosures of income taxes paid disaggregated by jurisdiction. This accounting standard is effective for the fiscal year ending December 31, 2025, and will be applied prospectively with an option for retroactive application to each period in the financial statements. We are currently evaluating the impact of the adoption on our consolidated financial statements.

In November 2024, FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public business entities to disaggregate certain expense captions into specific categories in disclosures within the notes to the financial statements. As further clarified by ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), issued by FASB in January 2025, this accounting standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The amendments in ASU 2024-03 should be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements, and early adoption is permitted. We are currently evaluating the impact of the adoption on our consolidated financial statements.

In November 2024, FASB issued ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. ASU 2024-04 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of a reporting period if the entity has also adopted ASU 2020-06 for that period. Entities may apply the new guidance prospectively to settlements of convertible debt instruments that take place during annual reporting

periods (and interim reporting periods within those annual reporting periods) beginning after the effective date of ASU 2024-04. Retrospective application may be elected as of the beginning of the first comparative reporting period in which the entity has also applied ASU 2020-06. We are currently evaluating the impact of the adoption on our consolidated financial statements.

Acquisition - Schedule of Preliminary Valuation of Acquired Intangible Assets and Estimated Useful Lives (Details) - Formation Nation $ in Thousands	Feb. 10, 2025 USD ($)
Business Acquisition [Line Items]
Fair Value	$ 17,300
Customer relationships
Business Acquisition [Line Items]
Fair Value	$ 11,200
Estimated remaining useful life	5 years
Developed technology
Business Acquisition [Line Items]
Fair Value	$ 3,400
Estimated remaining useful life	4 years
Trade names
Business Acquisition [Line Items]
Fair Value	$ 2,500
Estimated remaining useful life	5 years
In-process research & development
Business Acquisition [Line Items]
Fair Value	$ 200

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table shows the computation of basic and diluted net income per share (in thousands, except per share amounts):


	Three Months Ended March 31,
	2025		2024
Numerator:
Net income	$	5,127	$	4,744
Denominator:
Weighted-average common stock used in computing net income per share — basic	176,829		188,618
Effect of potentially dilutive securities
Options to purchase common stock	60		2,055
RSUs	3,713		2,718
Employee stock purchase plan	14		6
Weighted-average common stock used in computing net income per share — diluted	180,616		193,397
Net income per share — basic	$	0.03	$	0.03
Net income per share — diluted	$	0.03	$	0.02

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table presents the number of stock options, RSUs, and PSUs excluded from the calculation of diluted net income per share because they are anti-dilutive (in thousands):


	Three Months Ended March 31,
		2025	2024
Options to purchase common stock		10,298	6,910
RSUs(1)		22,495	5,223
Employee stock purchase plan		12	30
Total		32,805	12,163

(1) For the three months ended March 31, 2025, anti-dilutive RSUs include RSU awards with a market vesting condition granted in July 2024 and reflected at 200% of target, and RSU awards with market vesting condition granted in November 2024 and reflected at 325% of target.

Other Financial Statement Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Other Financial Information [Abstract]
Prepaid expenses	$ 11,135	$ 9,129
Deferred cost of revenue	3,789	1,670
Capitalized cloud computing development costs	1,557	1,599
Income tax receivable	1,542	3,701
Other current assets	2,414	1,827
Total prepaid expenses and other current assets	$ 20,437	$ 17,926

Other Financial Statement Information - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Other Financial Information [Abstract]
Deferred revenue	$ 211.4		$ 175.0
Deferred revenue recognized	$ 85.4	$ 84.1

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands):


	As of March 31, 2025
	Level 1		Level 2		Level 3
Available-for-sale debt security	$	—	$	1,588	$	—
Money market funds	148,916		—		—
Total assets	$	148,916	$	1,588	$	—


	As of December 31, 2024
	Level 1		Level 2		Level 3
Available-for-sale debt security	$	—	$	—	$	1,377
Money market funds	114,690		—		—
Total assets	$	114,690	$	—	$	1,377

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Statement of Financial Position [Abstract]
Allowances of accounts receivable	$ 2,624	$ 2,121
Preferred stock par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock shares authorized (in shares)	100,000	100,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized (in shares)	1,000,000	1,000,000
Common stock shares issued (in shares)	181,177	173,619
Common stock shares outstanding (in shares)	181,177	173,619

Segment Information - Additional Information (Details) - segment	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Segment Reporting Information [Line Items]
Number of operating segments	1
Number of reportable segments	1
Revenue Benchmark \| Geographic Concentration Risk \| Outside United States
Segment Reporting Information [Line Items]
Concentration risk percentage	1.00%	1.00%

Acquisition

3 Months Ended

Mar. 31, 2025

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Acquisition

Formation Nation, Inc.

On February 10, 2025, we acquired all of the outstanding equity interests of Formation Nation, Inc. in exchange for a total consideration of $83.2 million consisting of cash and equity consideration comprising

2,205,445 restricted shares of our common stock. The shares are subject to a lock-up and voting agreement, and a portion of the cash consideration is subject to a one-year holdback and customary adjustments. Upon closing of the transaction, Formation Nation and its subsidiaries – including Inc Authority, LLC and Nevada Corporate Headquarters, Inc. – became wholly owned subsidiaries of LegalZoom.

Formation Nation is a Nevada-based small business services company with a range of legal and business solutions, from highly personalized offerings, to lower-cost value options. The acquisition of Formation Nation, along with its subsidiaries, was completed in order to accelerate our strategy of attracting higher value customers by leveraging Formation Nation’s best-in-class customer service teams, expand our portfolio of offerings, and enable us to reach a broader customer base.

The acquisition meets the criteria to be accounted for as a business combination which requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date and that the difference between the fair value of the consideration paid for the acquired entity and the fair value of net assets acquired be recorded as goodwill, which is not amortized but is tested at least annually for impairment.

The acquisition-date preliminary fair value of consideration transferred is as follows (in thousands):


Cash paid at close	$	50,076
Equity consideration	20,048
Deferred cash consideration	13,058
Total consideration transferred	$	83,182

The fair value of equity issued to the selling shareholder was determined based on the closing price of the Company’s common stock immediately prior to acquisition.

Approximately $12.9 million of the consideration was deferred to satisfy any necessary adjustments, including without limitation, indemnification claims related to general representations and warranties, any net working capital adjustments and deferred change in control bonuses. This deferred consideration is expected to be settled in cash after a 12-month holdback period, net of any amounts necessary to satisfy all unsatisfied or disputed claims for indemnification and net working capital adjustments. An additional $0.2 million in consideration is payable in two installments on the one- and two-year anniversary of the acquisition date. The current portion of deferred consideration was recognized within accrued expenses and other current liabilities and the non-current portion was recognized within other liabilities on our condensed consolidated balance sheet based on their respective due dates.

The identifiable assets acquired and liabilities assumed were recorded at their preliminary fair values as of the acquisition date and consolidated with those of the Company based on management's estimates and assumptions. Assigning fair market values to the assets acquired and liabilities assumed at the date of an acquisition requires the use of significant judgments regarding estimates and assumptions that may change during the measurement period, which will not exceed one year from the acquisition date. The estimated fair values of the customer relationships were calculated using income and cost approaches, including the multi-period excess earnings method. The estimated fair values of developed technology and in-process research & development were calculated using cost approaches, and the estimated fair value of trade names was calculated using the relief from royalty method.

Goodwill represents the excess of the purchase price over the identifiable net assets acquired arising from the business combination. The goodwill related to the acquisition was attributable largely to the assembled workforce and synergies expected from combining our operations, and is not deductible for tax purposes.

The following table summarizes the preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed (in thousands):


Cash and cash equivalents	$	1,953
Accounts receivable	276
Prepaid expenses and other current assets	257
Operating lease right-of-use assets	3,884
Other assets	80
Intangible assets	17,300
Goodwill	77,813
Total assets acquired	$	101,563

Accounts payable	$	535
Accrued expenses and other current liabilities	4,744
Operating lease liabilities, current and non-current	3,504
Deferred revenue	9,582
Other liabilities	16
Net assets acquired	$	83,182

The following table summarizes the preliminary valuation of acquired intangible assets and estimated useful lives as of the acquisition date (in thousands, except years):


	Fair Value		Estimated remaining useful life
Customer relationships	$	11,200	5
Developed technology	3,400		4
Trade names	2,500		5
In-process research & development	200		N/A
Total identifiable intangible assets	$	17,300

Acquisition costs related to this transaction of approximately $1.5 million were expensed as incurred and are included in general and administrative expenses on the unaudited condensed consolidated statements of operations.

Results of Formation Nation, inclusive of any synergy effects, cross-selling, or cross-marketing benefits, have been included within the unaudited condensed consolidated financial statements since February 10, 2025, the date of the acquisition. Revenue and net loss attributable to Formation Nation included within the unaudited condensed consolidated statements of operations since the acquisition date were approximately $8.6 million and $0.8 million, respectively, for the three months ended March 31, 2025.

Pro forma revenues and results of operations for this acquisition have not been presented as the impact on our consolidated financial statements would be immaterial.

Long-term Debt (Details)			3 Months Ended
Long-term Debt (Details)	May 05, 2023	Jul. 02, 2021 USD ($)	Mar. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)	Dec. 31, 2021
Revolving Credit Facility
Debt Instrument [Line Items]
Letters of credit outstanding			$ 0	$ 0
2021 Revolving Facility \| Federal Funds Effective Rate
Debt Instrument [Line Items]
Effective interest rate					0.50%
2021 Revolving Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity		$ 150,000,000
Maturity period		5 years
Debt issuance costs		$ 800,000
SOFR floor rate		1.00%
Rate added to Adjusted Term SOFR		1.00%
Basis spread on variable rate, initial reduction		0.25%
Basis spread on variable rate, further reduction		0.25%
Total net first lien leverage ratio, first reduction requirement		3.50
Total net first lien leverage ratio, second reduction requirement		2.50
Commitment fee		0.35%
Commitment fee reduction		0.10%
Total net first lien leverage ratio, maximum		3.50	4.50
Percent of total commitments not reimbursed			35.00%
Line of credit outstanding			$ 0	$ 0
2021 Revolving Facility \| Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread	0.10%
2021 Revolving Facility \| Letter of Credit
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity		$ 20,000,000
2021 Revolving Facility \| Swingline Loan
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity		$ 10,000,000

Net Income Per Share - Antidilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	32,805,000	12,163,000
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	10,298,000	6,910,000
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	22,495,000	5,223,000
July 2024 RSUs with Market Vesting Condition
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Percentage of target awards	200.00%
November 2024 RSUs with Market Vesting Condition
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Percentage of target awards	325.00%
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	12,000	30,000

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Pay vs Performance Disclosure
Net income	$ 5,127	$ 4,744

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Statement of Comprehensive Income [Abstract]
Net income	$ 5,127	$ 4,744
Other comprehensive income, net of tax:
Change in foreign currency translation adjustments	(73)	296
Change in available-for-sale debt security due to unrealized gains	153	0
Total other comprehensive income	80	296
Total comprehensive income	$ 5,207	$ 5,040

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Sale of Assets Held for Sale (Details) - USD ($) $ in Thousands		3 Months Ended
	Mar. 31, 2025	Mar. 31, 2025	Mar. 31, 2024	Mar. 30, 2025	Dec. 31, 2024
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash proceeds received from sale		$ 37,051	$ 0
Carrying value	$ 0	0			$ 22,722
Pre-tax gain on sale		$ 14,337	$ 0
Discontinued Operations, Disposed of by Sale \| Austin, Texas Operational Headquarters
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash proceeds received from sale	37,100
Pre-tax gain on sale	$ 14,300
Disposal Group, Held-for-sale, Not Discontinued Operations \| Austin, Texas Operational Headquarters
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Carrying value				$ 22,700

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2025
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the related notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2024. The December 31, 2024 unaudited condensed consolidated balance sheet was derived from our audited consolidated financial statements as of that date. Our unaudited condensed consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the unaudited condensed consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. There have been no significant changes in accounting policies during the three months ended March 31, 2025 from those disclosed in the audited consolidated financial statements for the year ended December 31, 2024 and the related notes, except as noted below under Recently Adopted Accounting Pronouncements. The operating results for the three months ended March 31, 2025 are not necessarily indicative of the results expected for the full year ending December 31, 2025.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, however not limited to, revenue recognition, sales allowances and expected credit loss allowances, available-for-sale debt securities, other equity securities, recoverability of long-lived assets and goodwill, income taxes, commitments and contingencies, valuation of assets and liabilities acquired in business combinations, valuation of assets in asset acquisitions, and fair value of stock-based compensation. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate the estimates compared to historical experience and other factors including the current economic and regulatory environment, which form the basis for our judgments about the carrying value of assets and liabilities.
Segment and Geographic Information	Segment and Geographic Information Our Chief Executive Officer, as the Chief Operating Decision Maker, organizes our company, manages resource allocations, and measures performance on the basis of one operating segment.
Concentrations of Credit Risk	Concentrations of Credit Risk We maintain accounts in U.S. banks with funds insured by the Federal Deposit Insurance Corporation, or FDIC. Our bank accounts may, at times, exceed the FDIC insured limits. Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents. Management believes that we are not exposed to any significant credit risk related to our cash or cash equivalents and have not experienced any losses in such accounts.
Accounts Receivable and Allowance for Credit Losses	Accounts Receivable and Allowance for Credit Losses Our accounts receivable balances, which are not collateralized and do not bear interest, primarily consist of amounts receivable from our credit and debit card merchant processors, customer receivables, and fees due from third parties for services purchased by our customers from such third parties. We reduce our accounts receivable for sales allowances and a reserve for potentially uncollectible receivables. We determine the amount of the allowances based on various factors, including historical collection experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. Account balances are charged off against the allowance when we determine that it is not probable we will collect the receivable.
Investments in Other Equity Securities	Investments in Other Equity Securities We hold an equity investment in LawPath, Pty Ltd, or LawPath, an Australian proprietary limited company that provides an online legal platform to individuals and small and medium sized businesses.
Revenue Recognition	Revenue Recognition We derive our revenue from the following sources: Transaction revenue—Transaction revenue is primarily generated from our customized legal document services upon fulfillment of these services. Transaction revenue includes filing fees and is net of cancellations, promotional discounts, sales allowances and credit reserves. We also earn fees from third-party providers in connection with lead generation activities, where referred customers purchased services that are transactional in nature. Subscription revenue—Subscription revenue is generated primarily from subscriptions to our registered agent, compliance packages, attorney advice, legal forms, tax and accounting, virtual mail and e-signature services, and software-as-a-service, or SaaS, subscriptions. We generally recognize revenue from our subscriptions ratably over the subscription term. Subscription terms generally range from thirty days to one year. Subscription revenue also includes amounts earned from third-party providers in connection with lead generation activities, where referred customers purchased services that are subscription in nature. Subscription revenue includes the transaction price allocated to bundled free trials for our subscription services and is net of promotional discounts, cancellations, sales allowances and credit reserves and payments to third party service providers. For transaction and subscription revenue, we generally collect payments and fees at the time orders are placed and prior to services being rendered. We record amounts collected for services that have not been performed as deferred revenue on our consolidated balance sheet. The transaction price that we record is generally based on the contractual amounts and is reduced for estimated sales allowances for price concessions, charge-backs, sales credits and refunds, which are accounted for as variable consideration when estimating the amount of revenue to recognize.
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 in 2024. Refer to Note 13 to our unaudited condensed consolidated financial statements. In March 2024, the FASB issued ASU 2024-01, which clarifies how an entity determines whether a profits interest or similar award is a share-based payment arrangement that is within the scope of ASC 718, Compensation - Stock Compensation. This accounting standard is effective for fiscal years beginning after December 15, 2024, including interim periods within those years, and early adoption is permitted. ASU 2024-01 can be applied retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date at which the entity first applies this accounting standard. We early adopted ASU 2024-01 effective January 1, 2024 and will apply the amendments prospectively to profits interest and similar awards granted or modified on or after January 1, 2024. The adoption of this accounting standard did not have a material impact on our consolidated financial statements. In March 2024, the FASB issued ASU 2024-02, Codification Improvements to amend a variety of topics in the accounting codification by removing references to various FASB concepts statements. This accounting standard is effective for fiscal years beginning after December 15, 2024, and early adoption is permitted. ASU 2024-02 can be applied retrospectively to the beginning of the earliest comparative period presented in which the amendments were first applied or prospectively to all new transactions recognized on or after the date that the entity first applies the amendments. We early adopted ASU 2024-02 effective January 1, 2024 and will apply the amendments prospectively to all new transactions recognized on or after January 1, 2024. The adoption of this accounting standard did not have a material impact on our consolidated financial statements. Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to disclose more detailed information in the reconciliation of their statutory tax rate to their effective tax rate as well as disclosures of income taxes paid disaggregated by jurisdiction. This accounting standard is effective for the fiscal year ending December 31, 2025, and will be applied prospectively with an option for retroactive application to each period in the financial statements. We are currently evaluating the impact of the adoption on our consolidated financial statements. In November 2024, FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public business entities to disaggregate certain expense captions into specific categories in disclosures within the notes to the financial statements. As further clarified by ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), issued by FASB in January 2025, this accounting standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The amendments in ASU 2024-03 should be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements, and early adoption is permitted. We are currently evaluating the impact of the adoption on our consolidated financial statements. In November 2024, FASB issued ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. ASU 2024-04 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of a reporting period if the entity has also adopted ASU 2020-06 for that period. Entities may apply the new guidance prospectively to settlements of convertible debt instruments that take place during annual reporting periods (and interim reporting periods within those annual reporting periods) beginning after the effective date of ASU 2024-04. Retrospective application may be elected as of the beginning of the first comparative reporting period in which the entity has also applied ASU 2020-06. We are currently evaluating the impact of the adoption on our consolidated financial statements.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

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- Definition

Disclosure of accounting policy for segment reporting.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Segment Information - Schedule of Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Segment Reporting Information [Line Items]
Revenue	$ 183,110	$ 174,214
Stock-based compensation	29,756	14,856
Depreciation and amortization	10,406	7,670
Interest income	(1,483)	(2,887)
Interest expense	182	61
Provision for income taxes	5,487	3,230
Gain on sale of assets held for sale	(14,337)	0
Net income	5,127	4,744
Transaction
Segment Reporting Information [Line Items]
Revenue	66,853	66,317
Subscription
Segment Reporting Information [Line Items]
Revenue	116,257	107,897
Operating Segments \| Reportable Segment
Segment Reporting Information [Line Items]
Revenue	183,110	174,214
Filings fees	25,219	24,813
Other cost of revenue, excluding depreciation, amortization and stock-based compensation	34,966	37,511
Customer acquisition marketing	44,215	40,563
Other sales and marketing, excluding depreciation, amortization and stock-based compensation	11,681	10,812
Technology and development, excluding depreciation, amortization and stock-based compensation	15,078	16,777
General and administrative, excluding depreciation, amortization, stock-based compensation, and restructuring	16,482	15,836
Stock-based compensation	29,756	14,856
Depreciation and amortization	10,406	7,670
Interest income	(1,483)	(2,887)
Interest expense	182	61
Restructuring	678	321
Other segment items	(347)	(93)
Provision for income taxes	5,487	3,230
Gain on sale of assets held for sale	(14,337)	0
Net income	5,127	4,744
Operating Segments \| Reportable Segment \| Transaction
Segment Reporting Information [Line Items]
Revenue	66,853	66,317
Operating Segments \| Reportable Segment \| Subscription
Segment Reporting Information [Line Items]
Revenue	116,257	107,897
Adjustments and reconciling items
Segment Reporting Information [Line Items]
Net income	$ 0	$ 0

Other Financial Statement Information

3 Months Ended

Mar. 31, 2025

Other Financial Information [Abstract]

Other Financial Statement Information

Accounts Receivable

Changes in the allowances consisted of the following (in thousands):


	Three Months Ended March 31,
		2025		2024
Beginning balance		$	2,121	$	4,906
Add: amounts recognized as a reduction of revenue		1,236		1,545
Add (less): allowance for credit losses recognized in general and administrative expense		40		(154)
Less: write-offs, net of recoveries		(773)		(2,864)
Ending balance		$	2,624	$	3,433

The allowance recognized as a reduction of revenue primarily relates to our installment plan receivables for which we expect we will not be entitled to a portion of the transaction price based on our historical experience with similar transactions. The allowance recognized against general and administrative expense represents an allowance relating to receivables from partners that are no longer considered collectible.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	March 31, 2025		December 31, 2024
Prepaid expenses	$	11,135	$	9,129
Deferred cost of revenue	3,789		1,670
Capitalized cloud computing development costs	1,557		1,599
Income tax receivable	1,542		3,701
Other current assets	2,414		1,827
Total prepaid expenses and other current assets	$	20,437	$	17,926

Goodwill

The following table presents the changes in the carrying amount of goodwill (in thousands):


	Amount
Balance as of December 31, 2024	$	63,318
Acquisition(1)	77,813

Balance as of March 31, 2025	$	141,131

(1) Amounts relate to the acquisition of Formation Nation, Inc., or Formation Nation. Refer to Note 5. Acquisition to our condensed consolidated financial statements.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	March 31, 2025		December 31, 2024
Accrued payroll and related expenses	$	19,652	$	27,518
Accrued vendor payables	22,719		15,895
Accrued advertising	692		1,636
Sales allowances	3,079		3,086
Accrued sales, use and business taxes	9,107		6,984
Deferred consideration relating to business acquired	12,957		—
Other	4,241		2,809
Total accrued expenses and other current liabilities	$	72,447	$	57,928

Deferred revenue

Deferred revenue as of March 31, 2025 and December 31, 2024 was $211.4 million and $175.0 million, respectively. Revenue recognized in the three months ended March 31, 2025 and 2024 that was included in deferred revenue as of December 31, 2024 and 2023 was $85.4 million and $84.1 million, respectively.

We have omitted disclosure on the transaction price allocated to remaining performance obligations and the estimated timing of revenue recognition, as our contracts with customers that have a duration of more than one year are immaterial.

Depreciation and Amortization

Depreciation and amortization expense of our property and equipment, including capitalized internal-use software, and intangible assets consisted of the following (in thousands):


	Three Months Ended March 31,
		2025		2024
Cost of revenue		$	5,115	$	4,467
Sales and marketing		1,715		799
Technology and development		2,220		1,477
General and administrative		1,356		927
Total depreciation and amortization expense		$	10,406	$	7,670

Acquisition (Tables)

3 Months Ended

Mar. 31, 2025

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Preliminary Fair Value of Consideration Transferred

The acquisition-date preliminary fair value of consideration transferred is as follows (in thousands):


Cash paid at close	$	50,076
Equity consideration	20,048
Deferred cash consideration	13,058
Total consideration transferred	$	83,182

Schedule of Purchase Consideration of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed (in thousands):


Cash and cash equivalents	$	1,953
Accounts receivable	276
Prepaid expenses and other current assets	257
Operating lease right-of-use assets	3,884
Other assets	80
Intangible assets	17,300
Goodwill	77,813
Total assets acquired	$	101,563

Accounts payable	$	535
Accrued expenses and other current liabilities	4,744
Operating lease liabilities, current and non-current	3,504
Deferred revenue	9,582
Other liabilities	16
Net assets acquired	$	83,182

Schedule of Preliminary Valuation of Acquired Intangible Assets and Estimated Useful Lives

The following table summarizes the preliminary valuation of acquired intangible assets and estimated useful lives as of the acquisition date (in thousands, except years):


	Fair Value		Estimated remaining useful life
Customer relationships	$	11,200	5
Developed technology	3,400		4
Trade names	2,500		5
In-process research & development	200		N/A
Total identifiable intangible assets	$	17,300

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Schedule of Revenue Recognition

Our transaction and subscription revenue is as follows (in thousands):


	Three Months Ended March 31,
		2025		2024
Transaction		$	66,853	$	66,317
Subscription		116,257		107,897
Total revenue		$	183,110	$	174,214

Long-term Debt	3 Months Ended
Long-term Debt	Mar. 31, 2025
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt On July 2, 2021, we entered into an amended and restated credit and guaranty agreement, or 2021 Revolving Facility, providing for revolving borrowings of up to $150.0 million with an availability period of five years. Under the 2021 Revolving Facility, we can use up to $20.0 million in letters of credit and up to $10.0 million in borrowings on same-day notice, referred to as swingline loans. Additional debt issuance costs of $0.8 million were allocated to the 2021 Revolving Facility. On May 5, 2023, we entered into an amendment to the 2021 Revolving Facility to replace the LIBOR interest rate benchmark with the Secured Overnight Financing Rate, or SOFR, benchmark, with a 0.10% credit spread adjustment to the SOFR benchmark, or Adjusted Term SOFR, for all available interest periods, provided that if the Adjusted Term SOFR is less than zero, the Adjusted Term SOFR shall be deemed to be zero. Other than the foregoing, the remaining terms of the 2021 Revolving Facility remained unchanged. The interest rate applicable to the 2021 Revolving Facility is subject to a 1.0% floor and is a rate equal to the greatest of (i) the administrative agent’s prime rate (ii) the federal funds effective rate plus 1/2 of 1.0% or (iii) Adjusted Term SOFR plus 1.0%. The interest rate margins under the 2021 Revolving Facility are subject to a reduction of 0.25% and a further reduction of 0.25% upon achieving total net first lien leverage ratios of 3.50 to 1.00 and 2.50 to 1.00, respectively. We are required to pay a commitment fee in respect of unutilized commitments under the 2021 Revolving Facility. The commitment fee is, initially, 0.35% per annum. The commitment fee is subject to a reduction of 0.10% if the total net first lien leverage ratio does not exceed 3.50 to 1.00. We are also required to pay customary letter of credit fees and agency fees. We have the option to voluntarily repay outstanding loans under the 2021 Revolving Facility at any time without premium or penalty, other than customary “breakage” costs with respect to SOFR loans. There is no scheduled amortization under the 2021 Revolving Facility. Any principal amount outstanding is due and payable in full at maturity, five years from the closing date of the 2021 Revolving Facility. Obligations under the 2021 Revolving Facility are guaranteed by our existing and future direct and indirect material wholly-owned domestic subsidiaries, subject to certain exceptions. The 2021 Revolving Facility is secured by a first-priority security interest in substantially all of our assets, subject to certain exceptions. The 2021 Revolving Facility contains a number of covenants that, among other things, subject to certain exceptions, restrict our ability and the ability of our restricted subsidiaries to incur additional indebtedness and guarantee indebtedness; create or incur liens; pay dividends and distributions or repurchase capital stock; merge, liquidate and make asset sales; change lines of business; change our fiscal year; incur restrictions on our subsidiaries’ ability to make distributions and create liens; modify our organizational documents; make investments, loans and advances; and enter into certain transactions with affiliates. The 2021 Revolving Facility requires compliance with a total net first lien leverage ratio not to exceed 4.50 to 1.00, or the Financial Covenant. The Financial Covenant will be tested at quarter-end only if the total principal amount of all revolving loans, swingline loans and drawn letters of credit that have not been reimbursed exceeds 35% of the total commitments under the 2021 Revolving Facility on the last day of such fiscal quarter. At March 31, 2025 and December 31, 2024, we had no amounts outstanding under our 2021 Revolving Facility or any outstanding letters of credit and we were in compliance with all financial covenants.

Other Financial Statement Information - Schedule of Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Disclosure Details Of Depreciation And Amortization [Line Items]
Total depreciation and amortization expense	$ 10,406	$ 7,670
Cost of revenue
Disclosure Details Of Depreciation And Amortization [Line Items]
Total depreciation and amortization expense	5,115	4,467
Sales and marketing
Disclosure Details Of Depreciation And Amortization [Line Items]
Total depreciation and amortization expense	1,715	799
Technology and development
Disclosure Details Of Depreciation And Amortization [Line Items]
Total depreciation and amortization expense	2,220	1,477
General and administrative
Disclosure Details Of Depreciation And Amortization [Line Items]
Total depreciation and amortization expense	$ 1,356	$ 927

Net Income Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Numerator:
Net income	$ 5,127	$ 4,744
Denominator:
Weighted-average common stock used in computing net income per share - basic (in shares)	176,829	188,618
Weighted-average common stock used in computing net income per share - diluted (in shares)	180,616	193,397
Net income per share - basic (in dollars per share)	$ 0.03	$ 0.03
Net income per share - diluted (in dollars per share)	$ 0.03	$ 0.02
Options to purchase common stock
Denominator:
Effect of potential dilutive securities (in shares)	60	2,055
Restricted Stock Units (RSUs)
Denominator:
Effect of potential dilutive securities (in shares)	3,713	2,718
Employee stock purchase plan
Denominator:
Effect of potential dilutive securities (in shares)	14	6

Unaudited Condensed Consolidated Statements of Stockholders’ Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Beginning Balance (in shares) at Dec. 31, 2023		188,538
Beginning balance at Dec. 31, 2023	$ 168,834	$ 189	$ 1,101,474	$ (933,061)	$ 232
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		161
Issuance of common stock upon exercise of stock options	82		82
Issuance of common stock upon vesting of restricted stock unit awards (in shares)		2,236
Issuance of common stock upon vesting of restricted stock unit awards	0	$ 2	(2)
Shares surrendered for settlement of minimum statutory tax withholdings (in shares)		(888)
Shares surrendered for settlement of minimum statutory tax withholdings	(9,564)		(9,564)
Stock-based compensation	16,273		16,273
Repurchase and retirement of common stock (in shares)		(1,172)
Repurchase and retirement of common stock	(12,759)	$ (1)		(12,758)
Other comprehensive income	296				296
Net income	4,744			4,744
Ending Balance (in shares) at Mar. 31, 2024		188,875
Ending balance at Mar. 31, 2024	$ 167,906	$ 190	1,108,263	(941,075)	528
Beginning Balance (in shares) at Dec. 31, 2024	173,619	173,619
Beginning balance at Dec. 31, 2024	$ 93,257	$ 175	1,161,538	(1,069,317)	861
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		4,473
Issuance of common stock upon exercise of stock options	43,547	$ 4	43,543
Issuance of common stock upon vesting of restricted stock unit awards (in shares)		1,525
Issuance of common stock upon vesting of restricted stock unit awards	0	$ 2	(2)
Shares surrendered for settlement of minimum statutory tax withholdings (in shares)		(645)
Shares surrendered for settlement of minimum statutory tax withholdings	(5,942)	$ (1)	(5,941)
Stock-based compensation	31,096		31,096
Other comprehensive income	80				80
Net income	5,127			5,127
Issuance of common stock for acquisition (in shares)		2,205
Issuance of common stock for acquisition	$ 20,047	$ 2	20,045
Ending Balance (in shares) at Mar. 31, 2025	181,177	181,177
Ending balance at Mar. 31, 2025	$ 187,212	$ 182	$ 1,250,279	$ (1,064,190)	$ 941

Net Income Per Share

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

Net Income Per Share

The following table shows the computation of basic and diluted net income per share (in thousands, except per share amounts):


	Three Months Ended March 31,
	2025		2024
Numerator:
Net income	$	5,127	$	4,744
Denominator:
Weighted-average common stock used in computing net income per share — basic	176,829		188,618
Effect of potentially dilutive securities
Options to purchase common stock	60		2,055
RSUs	3,713		2,718
Employee stock purchase plan	14		6
Weighted-average common stock used in computing net income per share — diluted	180,616		193,397
Net income per share — basic	$	0.03	$	0.03
Net income per share — diluted	$	0.03	$	0.02

The following table presents the number of stock options, RSUs, and PSUs excluded from the calculation of diluted net income per share because they are anti-dilutive (in thousands):


	Three Months Ended March 31,
		2025	2024
Options to purchase common stock		10,298	6,910
RSUs(1)		22,495	5,223
Employee stock purchase plan		12	30
Total		32,805	12,163

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Current assets:
Cash and cash equivalents	$ 209,973	$ 142,064
Accounts receivable, net of allowances of $2,624 and $2,121, respectively	17,935	8,511
Prepaid expenses and other current assets	20,437	17,926
Current assets held for sale	0	22,722
Total current assets	248,345	191,223
Property and equipment, net	60,167	59,788
Goodwill	141,131	63,318
Intangible assets, net	24,306	8,653
Operating lease right-of-use assets	14,220	7,189
Deferred income taxes	35,341	34,696
Available-for-sale debt security	1,588	1,377
Other assets	7,568	7,639
Total assets	532,666	373,883
Current liabilities:
Accounts payable	35,489	31,150
Accrued expenses and other current liabilities	72,447	57,928
Deferred revenue	211,094	174,643
Operating lease liabilities	3,465	1,861
Total current liabilities	322,495	265,582
Operating lease liabilities, non-current	11,147	6,018
Deferred revenue	352	381
Other liabilities	11,460	8,645
Total liabilities	345,454	280,626
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, $0.001 par value; 100,000 shares authorized at March 31, 2025 and December 31, 2024, none issued or outstanding at March 31, 2025 and December 31, 2024	0	0
Common stock, $0.001 par value; 1,000,000 shares authorized; 181,177 shares and 173,619 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively	182	175
Additional paid-in capital	1,250,279	1,161,538
Accumulated deficit	(1,064,190)	(1,069,317)
Accumulated other comprehensive income	941	861
Total stockholders’ equity	187,212	93,257
Total liabilities and stockholders’ equity	$ 532,666	$ 373,883

Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2025 USD ($) segment partner	Mar. 31, 2024	Dec. 31, 2024 USD ($)
Accounting Policies [Line Items]
Number of operating segments \| segment	1
Number of major partners \| partner	2
LawPath
Accounting Policies [Line Items]
Carrying amount of investment \| $	$ 4.7		$ 4.4
Revenue Benchmark \| Geographic Concentration Risk \| Outside United States
Accounting Policies [Line Items]
Concentration risk percentage	1.00%	1.00%
Accounts Receivable \| Customer Concentration Risk \| Two Partners \| Minimum
Accounting Policies [Line Items]
Concentration risk percentage	10.00%

Stock-based Compensation - Schedule of Stock Based Compensation Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 29,756	$ 14,856
Amount capitalized to internal-use software	1,340	1,417
Total stock-based compensation	31,096	16,273
Cost of revenue
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,260	1,593
Sales and marketing
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	3,767	1,579
Technology and development
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	4,024	5,703
General and administrative
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 20,705	$ 5,981

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Cash flows from operating activities
Net income	$ 5,127	$ 4,744
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,406	7,670
Amortization of right-of-use assets	618	687
Amortization of debt issuance costs	56	57
Stock-based compensation	29,756	14,856
Deferred income taxes	1,996	1,263
Change in fair value of other equity security	(302)	0
Unrealized foreign exchange loss	76	346
Gain on sale of assets held for sale	(14,337)	0
Loss on disposal of property and equipment	99	0
Changes in operating assets and liabilities:
Accounts receivable	(9,148)	(3,989)
Prepaid expenses and other current assets	(2,238)	(2,758)
Other assets	204	44
Accounts payable	5,329	1,428
Accrued expenses and other liabilities	(3,247)	(9,086)
Operating lease liabilities	(536)	(606)
Income tax payable	6	(55)
Deferred revenue	26,838	19,593
Net cash provided by operating activities	50,703	34,194
Cash flows from investing activities
Acquisition, net of cash acquired	(48,123)	0
Proceeds from disposal of assets held for sale	37,051	0
Purchase of property and equipment	(9,378)	(9,477)
Net cash used in investing activities	(20,450)	(9,477)
Cash flows from financing activities
Repayment of capital lease obligations	(2)	(6)
Repurchase of common stock	0	(12,783)
Shares surrendered for settlement of minimum statutory tax withholding	(5,942)	(9,564)
Proceeds from issuance of stock under employee stock plans	43,548	82
Net cash provided by (used in) financing activities	37,604	(22,271)
Effect of exchange rate changes on cash and cash equivalents	52	(36)
Net increase in cash and cash equivalents	67,909	2,410
Cash and cash equivalents, at beginning of the period	142,064	225,719
Cash and cash equivalents, at end of the period	209,973	228,129
Non-cash operating, investing, and financing activities:
Acquisition-related deferred consideration	13,058	0
Issuance of common stock for business acquired	20,048	0
Purchase of property and equipment included in accounts payable and accrued expenses and other current liabilities	855	3,004
Capitalized stock-based compensation	1,340	1,417
Right-of-use assets obtained in exchange of operating lease liabilities (excluding right-of-use assets acquired as part of business acquisition)	$ 3,764	$ 0

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 5,487	$ 3,230
Effective tax rate	52.00%	41.00%
Gross unrecognized tax benefits	$ 14,800		$ 13,400
Unrecognized tax benefits that would impact effective tax rate	$ 14,100

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Other Financial Statement Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Other Financial Information [Abstract]
Accrued payroll and related expenses	$ 19,652	$ 27,518
Accrued vendor payables	22,719	15,895
Accrued advertising	692	1,636
Sales allowances	3,079	3,086
Accrued sales, use and business taxes	9,107	6,984
Deferred consideration relating to business acquired	12,957	0
Other	4,241	2,809
Total accrued expenses and other current liabilities	$ 72,447	$ 57,928

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Based Compensation Cost

We recorded stock-based compensation expense in the following categories in the accompanying unaudited condensed consolidated statements of operations and balance sheets (in thousands):


	Three Months Ended March 31,
		2025		2024
Cost of revenue		$	1,260	$	1,593
Sales and marketing		3,767		1,579
Technology and development		4,024		5,703
General and administrative		$	20,705	$	5,981
Total stock-based compensation expense		29,756		14,856
Amount capitalized to internal-use software		1,340		1,417
Total stock-based compensation		$	31,096	$	16,273

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2025
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We recorded a provision for income taxes of $5.5 million and $3.2 million for the three months ended March 31, 2025 and 2024, respectively. The effective tax rate for the three months ended March 31, 2025 and 2024 was 52% and 41%, respectively. The difference from the federal statutory rate of 21% is primarily due to the recognition of significant non-deductible stock-based compensation and other discrete adjustments. Gross unrecognized tax benefits were $14.8 million and $13.4 million as of March 31, 2025 and December 31, 2024, respectively. The gross unrecognized tax benefits, if recognized by us, will result in a reduction of approximately $14.1 million, excluding interest and penalties, to the provision for income taxes, thereby favorably impacting our effective tax rate. Our policy is to recognize interest and penalties related to income tax matters in income tax expense. For the periods presented, interest and penalties related to income tax positions were not material to our unaudited condensed consolidated financial statements. We are subject to taxation and file income tax returns in the U.S. federal, state, and foreign jurisdictions. The federal income tax returns for the years 2021 and forward and state income tax returns for the tax years 2008 and forward remain open to examination. We are under examination in two states which are not expected to have an impact on our results of operations, cash flows and financial condition.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

Stock-based Compensation

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based Compensation Expense

We recorded stock-based compensation expense in the following categories in the accompanying unaudited condensed consolidated statements of operations and balance sheets (in thousands):


	Three Months Ended March 31,
		2025		2024
Cost of revenue		$	1,260	$	1,593
Sales and marketing		3,767		1,579
Technology and development		4,024		5,703
General and administrative		$	20,705	$	5,981
Total stock-based compensation expense		29,756		14,856
Amount capitalized to internal-use software		1,340		1,417
Total stock-based compensation		$	31,096	$	16,273

Restricted Stock Units

During the three months ended March 31, 2025, we granted 5.3 million restricted stock units, or RSUs, with a total grant date fair value of $52.3 million to various employees. RSUs are measured based on the fair market value of the underlying stock on the date of grant and recognized as expense over the requisite service period.

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Income Statement [Abstract]
Revenue	$ 183,110	$ 174,214
Cost of revenue	66,560	68,384
Gross profit	116,550	105,830
Operating expenses:
Sales and marketing	61,378	53,753
Technology and development	21,322	23,957
General and administrative	39,221	23,065
Gain on sale of assets held for sale	(14,337)	0
Total operating expenses	107,584	100,775
Income from operations	8,966	5,055
Interest expense	(182)	(61)
Interest income	1,483	2,887
Other income, net	347	93
Income before income taxes	10,614	7,974
Provision for income taxes	5,487	3,230
Net income	$ 5,127	$ 4,744
Net income per share - basic (in dollars per share)	$ 0.03	$ 0.03
Net income per share - diluted (in dollars per share)	$ 0.03	$ 0.02
Weighted-average shares used to compute net income per share - basic (in shares)	176,829	188,618
Weighted-average shares used to compute net income per share - diluted (in shares)	180,616	193,397

Stockholders' Equity (Details) - USD ($) $ in Millions	1 Months Ended		3 Months Ended
Stockholders' Equity (Details) - USD ($) $ in Millions	Nov. 30, 2024	May 31, 2024	Mar. 31, 2025	Oct. 31, 2023
Equity [Abstract]
Stock repurchase program, amount authorized for repurchase	$ 215.0	$ 175.0		$ 100.0
Stock repurchase program, increase in amount authorized for repurchase	$ 40.0	$ 75.0
Shares repurchased (in shares)			0
Stock repurchase program, remaining amount available for future repurchase			$ 50.0
Excise tax liability			$ 0.0

- Definition

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

Subsequent Events (Details) - USD ($) $ in Millions		1 Months Ended
Subsequent Events (Details) - USD ($) $ in Millions	May 07, 2025	Nov. 30, 2024	May 31, 2024	Mar. 31, 2025	Oct. 31, 2023
Subsequent Event [Line Items]
Stock repurchase program, increase in amount authorized for repurchase		$ 40.0	$ 75.0
Stock repurchase program, amount authorized for repurchase		$ 215.0	$ 175.0		$ 100.0
Stock repurchase program, remaining amount available for future repurchase				$ 50.0
Subsequent Event
Subsequent Event [Line Items]
Stock repurchase program, increase in amount authorized for repurchase	$ 100.0
Stock repurchase program, amount authorized for repurchase	315.0
Stock repurchase program, remaining amount available for future repurchase	$ 150.0

Description of the Business	3 Months Ended
Description of the Business	Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business	Description of the Business LegalZoom.com, Inc., was initially formed as a California corporation in 1999 and reincorporated as a Delaware corporation in 2007. LegalZoom.com, Inc., and its wholly owned subsidiaries, are referred to herein as the “Company”, “we,” “us,” or “our”. LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys—whether through our vast independent attorney network or our owned LegalZoom Legal Services (LZLS) law firm—we offer the tools and guidance people need to confidently manage everything from business formation and compliance to estate planning and ongoing legal support. With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2025
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings From time to time, we may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. We are not currently a party to any material legal proceedings, nor are we aware of any pending or threatened litigation that could have a material adverse effect on our results of operations, cash flows, and financial condition, should such litigation be resolved unfavorably. Indemnifications Indemnification provisions in our third party service provider agreements provide that we will indemnify, hold harmless, and reimburse the indemnified parties on a case-by-case basis for losses suffered or incurred by the indemnified parties in connection with any claim by any third party as a result of our website, advertising, marketing, payment processing, collection or customer service activities. The maximum potential amount of future payments we could be required to make under these indemnification provisions is indeterminable. No amounts have been accrued or have been paid during any period presented as we believe the fair value of these indemnification obligations is immaterial.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2025
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Subsequent to March 31, 2025, in May 2025, our Board of Directors approved a $100.0 million increase in our stock repurchase program, bringing the aggregate amount authorized to $315.0 million. As of the date of this filing, approximately $150.0 million remained available for future repurchases of our common stock under the stock repurchase program. For additional information regarding our stock repurchase program, refer to Note 8 to our unaudited condensed consolidated financial statements.

Stock-Based Compensation - Additional Information (Details) - Restricted Stock Units (RSUs) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2025 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares) \| shares	5.3
Units granted, fair value \| $	$ 52.3

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details