February 2026 Investor Presentation Forward-looking statements disclaimer This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. In some cases, you can identify ...

Core Insights - LegalZoom's shares increased by 6.8% following the release of strong third-quarter financial results that exceeded revenue expectations and provided a positive outlook for the next quarter [1][2] Financial Performance - LegalZoom reported revenue of $190.2 million for the third quarter, marking a 12.8% increase year-over-year, surpassing Wall Street forecasts [2] - The company's revenue guidance for the fourth quarter is set at $184 million at the midpoint, approximately 4% above analyst expectations [2] - GAAP earnings per share were $0.02, aligning with expectations, although subscription units fell short of estimates [2] Market Reaction - LegalZoom's stock has shown volatility, with 14 movements greater than 5% in the past year, indicating that the market views the recent news as significant but not fundamentally altering its perception of the company [4] - The stock has risen 42.9% since the beginning of the year, currently trading at $10.81 per share, close to its 52-week high of $11.18 reached in August 2025 [6]

Financial Data and Key Metrics Changes - The company achieved record third-quarter revenue of $190 million, reflecting a 13% year-over-year increase, exceeding expectations [5][23] - Subscription revenue also grew by 13%, marking the third consecutive quarter of sequential growth [6][22] - Adjusted EBITDA margin remained strong at 24%, despite increased investments in product and AI [6][26] - Free cash flow for the quarter was $47 million, up 114% compared to the same period in 2024 [26][27] - The company raised its full-year revenue growth outlook to 10%, effectively doubling its initial guidance [6][28] Business Line Data and Key Metrics Changes - Subscription units increased to approximately 1.96 million, a 14% increase year-over-year, driven by bundling solutions [23] - Transaction revenue increased by 12% to $65 million, largely due to the acquisition of Formation Nation [24] - Average order value rose to $251, up 11% year-over-year, driven by higher-priced concierge services [25] Market Data and Key Metrics Changes - The company noted a 25% year-over-year increase in its partner channel for the third quarter [15] - The partnership with 1-800 ACCOUNTANT continues to exceed expectations, with plans to bundle tax advice with legal advice [12][19] Company Strategy and Development Direction - The company is focusing on expanding its subscription business and enhancing value for customers, particularly existing small businesses [8][9] - There is a strategic shift towards integrating AI with human expertise to improve service offerings [16][18] - The company aims to diversify its service offerings beyond business formation to include compliance and tax services [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties by diversifying its revenue streams [63][65] - The company is optimistic about the long-term potential of its business, particularly in serving both new and established small businesses [29] Other Important Information - The company has made organizational changes to better integrate AI into its product offerings, including appointing a new Senior Vice President for Product [19][20] - The company repurchased approximately 1.8 million shares during the quarter, reflecting a strong cash position [27] Q&A Session Summary Question: How is pricing and bundling contributing to subscription growth? - Management indicated that pricing and bundling are important levers for growth, with competitors also raising prices in response [30] Question: Can you elaborate on the White Glove concierge offering? - The offering combines expertise from attorneys and accountants to address customer needs effectively, focusing on compliance and other services [32][34] Question: What is the contribution of Formation Nation to revenues? - Formation Nation contributed approximately $9 million to transaction revenue and over $5.5 million to subscription revenue during the quarter [47] Question: How is the partnership with 1-800 ACCOUNTANT structured? - The partnership is designed to ensure a minimum revenue threshold with a revenue share on top, focusing on highly accretive products [50] Question: What insights can you share about the future of AI in legal services? - Management believes that while AI will play a significant role, human expertise will remain essential for providing legal advice and services [56][59] Question: How much of the recent performance is macro-driven versus internal initiatives? - Management emphasized that while macro factors are considered, the focus is on diversifying and insulating the business from such influences [62][65]

Financial Performance - LegalZoom's Q3 2025 revenue reached $190 million, a 13% increase year-over-year[17] - The company's Q3 2025 Non-GAAP Net Income was $31 million, up 4% year-over-year[17,77] - Adjusted EBITDA for Q3 2025 was $46 million, representing a 24% margin[17] - Subscription revenue in Q3 2025 grew by 12% year-over-year to $125 million[17,49] - Transaction revenue for Q3 2025 was $65 million, a 12% increase year-over-year[17,55] Market Opportunity and Strategy - LegalZoom operates in a large $51 billion market for life & business planning, business management, and expert assistance[19,21] - The company aims to optimize its subscription business, reorient its go-to-market strategy, and leverage AI to deliver expertise[29] - LegalZoom has 2 million active legal & compliance subscriptions[21] Financial Guidance - LegalZoom projects Q4 2025 total revenue to be between $182 million and $186 million and adjusted EBITDA between $46 million and $48 million[68] - For the full year 2025, LegalZoom anticipates total revenue of $748 million to $752 million and adjusted EBITDA of $168 million to $170 million, with an adjusted EBITDA margin of approximately 23%[68]

Core Viewpoint - LegalZoom.com, Inc. is set to present at the Citi 2025 Global TMT Conference, highlighting its position as a leading online platform for legal services [1]. Company Overview - LegalZoom is transforming how individuals and small businesses navigate the legal system by combining technology with access to experienced attorneys [3]. - The company has over two decades of experience and has served millions of customers, providing confidence in managing legal needs [4]. Event Details - The management's fireside chat will take place on September 3, 2025, at 4:10 p.m. ET, with a live audio webcast available on the LegalZoom Investor Relations website [2].

Financial Performance - LegalZoom's GAAP revenue for Q2 2025 was $193 million, a 9% increase year-over-year[17] - Adjusted EBITDA for Q2 2025 was $39 million, representing a 20% margin, a 400 bps increase[17] - Subscription revenue for Q2 2025 reached $120 million, a 10% increase year-over-year[17] - Non-GAAP net income for Q2 2025 was $28 million, a 51% increase year-over-year[17] - Adjusted gross profit for Q2 2025 was $132 million, a 6% increase year-over-year, with a margin of 69%[17,47] - The company projects revenue growth of approximately 8% year-over-year for FY25 and anticipates an Adjusted EBITDA margin of approximately 23%[68] Market Opportunity and Strategy - LegalZoom operates in a large market with a total addressable market (SAM) of $51 billion[22] - The company estimates the Life & Business Planning SAM to be $13 billion and the Business Management SAM to be $15 billion[18,19] - LegalZoom estimates it holds approximately 9% market share in the digital formations market[18] - Three key focus areas are optimizing the subscription business, reorienting the go-to-market strategy, and leveraging AI to deliver expertise[29]

LegalZoom Conference Call Summary Company Overview - **Company**: LegalZoom.com (LZ) - **Industry**: Online legal services for small businesses - **Market Position**: Market leader in the online legal services space, offering a comprehensive suite of services and products for individuals and businesses across the United States [2][4] Core Business Model and Services - **Service Offerings**: LegalZoom started with estate planning and has expanded to include small business formation, compliance support, legal service plans, and partnerships with service providers like Bank of America and Wix [4][6][7] - **Market Opportunity**: Only 4% of legal services are delivered online in the U.S., indicating significant growth potential due to underinvestment in technology within traditional legal firms [8][9] Competitive Landscape - **Competition**: LegalZoom faces competition from: - Secretary of state sites offering free formation services [11] - Online DIY legal services without attorney support [12] - Traditional offline attorneys, which still account for the largest portion of legal spending [13] Strategic Shifts - **Transition to Subscription Model**: LegalZoom is shifting from a transactional model to a subscription-based model, with nearly two-thirds of the business now subscription-based. This change aims to provide predictability in revenue and improve operational efficiency [14][17] - **Partnership Strategy**: The company has narrowed its focus on core competencies and has engaged in partnerships to enhance service offerings, such as moving its tax service to a partner, which improved margins [21][24][25] Financial Performance and Guidance - **Revenue Growth**: LegalZoom is guiding for a 5% top-line growth this year, with subscription revenue growth at 8% in Q1, indicating a reacceleration after previous slowdowns [31][32] - **Business Formations**: Business formations are currently 50% higher than pre-pandemic levels, although they saw a 5% decline in Q1. The company aims to focus on quality customer acquisition rather than sheer volume [46][47][48] Technology and Innovation - **AI Integration**: LegalZoom is focusing on leveraging AI to enhance customer service and operational efficiency, with a new CTO prioritizing AI initiatives [53][55] - **Search Engine Partnership**: The company has partnered with an AI-driven search engine to improve its visibility and service offerings in the legal space [57][58] Capital Allocation and Future Plans - **Cash Flow and Share Repurchases**: LegalZoom has over $200 million on its balance sheet and has been active in share repurchases, with $165 million repurchased last year. The company plans to maintain flexibility for potential M&A opportunities [60][61][62] - **M&A Interests**: The company is interested in acquiring services or products that align with customer needs, particularly smaller formation players with existing subscriber bases [63] Additional Insights - **Customer Experience Improvements**: LegalZoom has made significant investments in infrastructure to enhance customer experience and operational efficiency [19][20] - **Pricing Strategy**: The company has reverted pricing on certain products and is testing price increases, indicating a focus on aligning pricing with value [38][39][41]

Financial Data and Key Metrics Changes - First quarter revenue was $183 million, reflecting a 5% year-over-year increase [6][26] - Adjusted EBITDA for the first quarter was $37 million, representing a 33% year-over-year increase, with an adjusted EBITDA margin of 20% [8][33] - Free cash flow increased to $41 million, up 67% compared to $25 million for the same period in 2024 [34][35] Business Line Data and Key Metrics Changes - Subscription revenue grew by 8% year-over-year to $116 million, driven by compliance pricing initiatives and increased virtual mail subscriptions [28] - Transaction revenue increased by 1% to $67 million, aided by the acquisition of Formation Nation [26] - The number of subscription units rose by 20% to approximately 1.9 million, primarily due to bundling of lower-priced products [29] Market Data and Key Metrics Changes - Business formations decreased by 6% year-over-year, attributed to a softer macroeconomic environment and a 5% decline in Census EIN applications [7][27] - Average order value was $196, down 1% compared to the previous year [27] - Deferred revenue increased by $36 million from Q4, reflecting the benefits of subscription pricing initiatives [30] Company Strategy and Development Direction - The company is focused on driving subscription adoption and optimizing its go-to-market strategy, including a new brand campaign to position itself as a premier provider of online legal services [18][19] - The strategy includes decoupling from business formations and emphasizing higher-value subscriptions, with over 60% of revenue now subscription-based [11][24] - The integration of Formation Nation is aimed at shifting lower-end customers to a separate brand while focusing on higher-value offerings [51][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unpredictable macroeconomic environment but expressed confidence in achieving a full-year revenue growth of 5% and an adjusted EBITDA margin of 23% [9][39] - The company is prepared for potential challenges and is focused on areas it can control, emphasizing long-term value for shareholders [13][41] - Management expects double-digit subscription revenue growth by the fourth quarter, supported by recent strategic initiatives [10][38] Other Important Information - The company has a strong cash position of $210 million and remains debt-free, allowing for flexibility in capital allocation [34][35] - The marketing budget has been reallocated to increase Formation Nation's marketing spend by over 30% [21] Q&A Session Summary Question: What contributed to the strong subscription unit growth? - Management highlighted a shift towards quality share, reorienting products and pricing to attract better customers, and bundling lower-priced subscriptions to drive engagement [43][44][47] Question: Can you discuss the integration of Formation Nation? - The integration aims to decouple free products from high-value offerings, allowing for better customer engagement and upselling opportunities [51][54] Question: Should we expect elevated overall marketing spend? - Management clarified that there will be a shift in marketing spend rather than an increase, focusing on efficiency and brand authority [60][64] Question: What is the expected contribution from Formation Nation going forward? - Management indicated that the contribution from Formation Nation will be integrated into overall business performance, with a focus on efficiency and profitability [67][70] Question: How is the company managing macroeconomic pressures? - Management is running various scenarios to adapt to changing conditions and has adjusted expectations for business formations accordingly [80][82] Question: What are the key inputs for achieving double-digit subscription growth? - Management emphasized the importance of attracting quality customers and improving the overall subscription experience to ensure sustainable growth [100][102]

Financial Data and Key Metrics Changes - First quarter revenue was $183 million, reflecting a 5% year-over-year increase [6][26] - Adjusted EBITDA for the first quarter was $37 million, representing a 33% year-over-year increase, with an adjusted EBITDA margin of 20% [8][32] - Free cash flow increased by 67% to $41 million compared to $25 million for the same period in 2024 [33][34] Business Line Data and Key Metrics Changes - Subscription revenue grew by 8% year-over-year to $116 million, driven by compliance pricing initiatives and increased virtual mail subscriptions [28][29] - Transaction revenue increased by 1% to $67 million, attributed to the acquisition of Formation Nation and higher revenue from Beneficial Ownership Information Report filings [26][27] - The number of subscription units rose by 20% to approximately 1.9 million, primarily due to bundling of lower-priced products [29][30] Market Data and Key Metrics Changes - Business formations decreased by 6% year-over-year, with 131,000 formations recorded in the first quarter [27] - Census EIN applications fell by 5% year-over-year, impacting overall business formation trends [7][8] - The average order value was $196, down 1% compared to the previous year [27] Company Strategy and Development Direction - The company is focused on driving subscription adoption and optimizing its go-to-market strategy, including a new brand campaign to enhance its market position [15][18] - LegalZoom aims to decouple from the business formations macro by emphasizing legal and compliance services and increasing subscription offerings [12][24] - The integration of Formation Nation is expected to enhance customer acquisition and improve service offerings, particularly in the lower-end market [55][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a full-year revenue growth of approximately 5% and an adjusted EBITDA margin of 23% despite macroeconomic uncertainties [37][39] - The company anticipates double-digit subscription revenue growth by the fourth quarter, supported by strategic pricing and product bundling initiatives [9][38] - Management acknowledged the challenges posed by a rapidly evolving macroeconomic environment but emphasized the company's resilience and adaptability [14][41] Other Important Information - The company ended the quarter with $210 million in cash and cash equivalents, remaining debt-free [33][34] - A $100 million increase to the share repurchase program was approved by the Board of Directors, with $150 million remaining under authorization [35][36] Q&A Session Summary Question: What contributed to the strong subscription unit growth? - Management highlighted a shift towards quality share, reorienting products and pricing to attract better customers, and implementing a bundling strategy for lower-priced subscriptions [43][45][46] Question: Can you discuss the integration process of Formation Nation? - The integration aims to decouple from free offerings and push lower-end customers to Formation Nation, which focuses on value pricing and higher engagement [52][54][56] Question: Will overall marketing spend be elevated going forward? - Management clarified that there will be a shift in marketing spend rather than an increase, focusing on efficiency and leveraging brand authority [61][62][65] Question: What is the expected contribution from Formation Nation moving forward? - Management indicated that while the initial contribution was approximately $8.6 million, the focus will be on integrated growth rather than segmenting revenues [68][70][72] Question: How is the company addressing macroeconomic pressures on business formations? - Management is modeling various scenarios to navigate uncertainties and has adjusted expectations for business formations to decline mid to high single digits [80][81] Question: What are the key inputs for achieving double-digit subscription growth? - Management emphasized the importance of attracting quality customers and shifting focus from unprofitable formations to higher-value subscriptions [102][104][106]

Company Vision and Mission - LegalZoom's vision is to be the guardian of people's aspirations, lives, and legacies[10] - The company's mission is transforming how people navigate the legal system[10] Market Opportunity and Leadership - The online legal and compliance market represents a significant $51 billion to $61 billion Serviceable Addressable Market (SAM)[13] - LegalZoom has formed 47 million businesses since inception[13] - LegalZoom has delivered 43 million estate planning solutions since inception[13] - LegalZoom has 19 million active legal & compliance subscriptions[13] - LegalZoom has over 1,000 independent attorney network servicing all 50 states[13] Financial Performance (Q1 2025) - GAAP Revenue for Q1 2025 was $123 million, a 5% year-over-year increase[50] - Adjusted Gross Profit for Q1 2025 was $183 million, representing 67% of revenue, a 10% year-over-year increase[50] - Adjusted EBITDA for Q1 2025 was $37 million, representing 20% of revenue, a 33% year-over-year increase[50] - Subscription revenue for Q1 2025 was $116 million, an 8% year-over-year increase[52] Strategic Initiatives - LegalZoom acquired Formation Nation, Inc on February 10, 2025, which is expected to positively contribute to Adjusted EBITDA and be accretive to Non-GAAP earnings per share[7, 27]