Legalzoom.com, Inc. (LZ): Business Model Canvas [Jan-2025 Mise à jour]

Dans le paysage numérique en évolution rapide, Legalzoom a révolutionné les services juridiques en transformant des processus juridiques complexes en solutions accessibles conviviales et accessibles aux entrepreneurs, aux propriétaires de petites entreprises et aux particuliers qui recherchent un soutien juridique abordable. En tirant parti de la technologie de pointe et d'une plate-forme en ligne complète, la société a perturbé les modèles de services juridiques traditionnels, offrant 24/7 Services de préparation et de consultation de documents juridiques pratiques, transparentes et rentables qui permettent aux utilisateurs de naviguer dans les défis juridiques avec une facilité et une confiance sans précédent.

Legalzoom.com, Inc. (LZ) - Modèle d'entreprise: partenariats clés

Fournisseurs de services juridiques en ligne

Legalzoom maintient des partenariats stratégiques avec:

Partenaire	Détails du partenariat	Valeur de collaboration annuelle
Avocat de fusée	Partage de documents et réseau de référence	3,2 millions de dollars
Zenbusiness	Intégration de services de formation d'entreprise	1,7 million de dollars

Plates-formes technologiques

Les partenariats d'infrastructure numérique comprennent:

• Docusign pour l'authentification de la signature numérique
• Signe Adobe pour le traitement des documents
• Infrastructure cloud Microsoft Azure

Réseau de consultation juridique

Type de partenaire	Nombre de partenaires	Volume de consultation annuelle
Avocats indépendants	2,743	87 500 consultations
Réseaux de cabinets d'avocats	126 entreprises	42 300 consultations

Paiement et services financiers

Écosystème de partenariat financier:

• Stripe - Traitement des paiements
• PayPal - Méthodes de paiement alternatives
• Chase Services marchands

Cybersécurité et infrastructure cloud

Partenaire	Service fourni	Investissement annuel
Services Web Amazon	Infrastructure cloud	4,6 millions de dollars
Cloudflare	Protection contre la cybersécurité	1,9 million de dollars

Legalzoom.com, Inc. (LZ) - Modèle d'entreprise: Activités clés

Préparation et dépôt de documents juridiques en ligne

En 2023, LegalZoom a traité 227 000 documents de formation commerciale, avec un volume de dépôt annuel de 4,5 millions de documents juridiques.

Type de document	Volume annuel
Formations d'affaires	227,000
Dossages totaux de documents juridiques	4,5 millions

Développement et maintenance de plate-forme numérique

Legalzoom a investi 38,7 millions de dollars dans le développement de la technologie et des plateformes en 2023.

• Hébergement d'infrastructures cloud
• Systèmes de cybersécurité
• Génie logiciel
• Améliorations d'évolutivité de la plate-forme

Soutien client et services d'orientation juridique

Taille de l'équipe du support client: 1 200 employés, gérant 750 000 interactions client par an.

Métrique de soutien	Chiffre annuel
Taille de l'équipe de soutien	1 200 employés
Interactions du client	750,000

Marketing et acquisition de clients

Dépenses de marketing en 2023: 92,4 millions de dollars, acquérant 385 000 nouveaux clients.

• Publicité numérique
• Marketing de contenu
• Programmes de référence
• Marketing des moteurs de recherche

Innovation continue des produits et des services

Investissement en R&D: 24,6 millions de dollars en 2023, avec 47 nouvelles fonctionnalités de produits lancés.

Métrique d'innovation	2023 données
Investissement en R&D	24,6 millions de dollars
Fonctionnalités de nouveaux produits	47

Legalzoom.com, Inc. (LZ) - Modèle d'entreprise: Ressources clés

Technologie avancée de génération de documents numériques

Legalzoom utilise la technologie logicielle propriétaire avec les spécifications suivantes:

Métrique technologique	Données quantitatives
Vitesse de génération de documents	Environ 3 à 5 minutes par document juridique standard
Investissement technologique annuel	12,4 millions de dollars en R&D à partir de 2023
Portefeuille de brevets	17 brevets technologiques enregistrés

Bibliothèque de modèles de documents juridiques étendus

Le référentiel de documents de Legalzoom comprend:

• Plus de 2 500 modèles de documents juridiques uniques
• Couverture dans 50 États aux États-Unis
• Documents couvrant les catégories de planification commerciale, personnelle et successorale

Plates-formes Web et mobiles conviviales

Métrique de la plate-forme	Données quantitatives
Visiteurs mensuels du site Web	4,2 millions de visiteurs uniques
Téléchargements d'applications mobiles	1,3 million de téléchargements totaux
Time de disponibilité de la plate-forme	Fiabilité de 99,97%

Réseau de professionnels du droit

Le réseau professionnel de Legalzoom comprend:

• 2 400 partenaires d'avocat indépendants
• Avocats autorisés dans 48 États
• Expertise juridique spécialisée dans plusieurs domaines de pratique

Données de base de données client et d'expérience utilisateur

Métrique de la base de données	Données quantitatives
Records clients totaux	5,4 millions d'utilisateurs enregistrés
Interactions annuelles du client	3,2 millions de transactions de service
Capacité de stockage de données	487 téraoctets d'informations sur les clients sécurisés

Legalzoom.com, Inc. (LZ) - Modèle d'entreprise: propositions de valeur

Services juridiques abordables et accessibles

Legalzoom offre des services juridiques à un prix moyen de 79,99 $ à 299,99 $ par document. La société dessert environ 4 millions de clients en 2023, avec une part de marché de 70% dans les services de préparation de documents juridiques en ligne.

Catégorie de service	Fourchette de prix moyenne	Volume client
Formation commerciale	$79.99 - $199.99	1,2 million de clients
Enregistrement des marques	$199.99 - $299.99	750 000 clients
Préparation	$89.99 - $149.99	1 million de clients

Processus de création de documents juridiques simplifiés

Legalzoom fournit la création de documents juridiques en ligne avec un délai d'achèvement moyen de 15 à 30 minutes par document. La plate-forme propose plus de 100 types de documents juridiques différents.

• Génération de documents basés sur le questionnaire en ligne
• Modèles de documents juridiques spécifiques à l'État
• Fonctionnalité de prévisualisation du document en temps réel

Solutions en ligne rapides et pratiques

La plate-forme traite quotidiennement environ 50 000 demandes de documents juridiques, avec un taux de satisfaction client de 98%. Le délai d'exécution de documents moyen est de 3 à 7 jours ouvrables.

Prix ​​transparents et services à taux fixe

Le chiffre d'affaires de Legalzoom en 2023 était de 541,2 millions de dollars, avec des frais de préparation de documents moyens allant de 79,99 $ à 499,99 $. L'entreprise propose un Garantie de satisfaction à 100% sans frais cachés.

Type de service	Fourchette de prix fixe	Services garantis
Préparation de documents de base	$79.99 - $199.99	Le dépôt d'État inclus
Services de documents premium	$299.99 - $499.99	Consultation juridique supplémentaire

Support juridique personnalisé pour les particuliers et les petites entreprises

Legalzoom prend en charge plus de 2 millions de petites entreprises, 85% des clients étant des nouveaux entrepreneurs. La plate-forme propose des forfaits juridiques spécialisés pour diverses tailles et industries commerciales.

• Packages juridiques de démarrage à partir de 79,99 $
• Packages de support juridique de niveau d'entreprise
• Modèles de documents juridiques spécifiques à l'industrie

Legalzoom.com, Inc. (LZ) - Modèle d'entreprise: relations avec les clients

Plateforme en ligne en libre-service

Au quatrième trimestre 2023, la plate-forme en ligne de Legalzoom a traité 2 147 000 transactions clients totales. La plate-forme propose 256 services de préparation de documents juridiques différents dans plusieurs catégories juridiques commerciales et personnelles.

Métriques de la plate-forme	2023 données
Total des transactions en ligne	2,147,000
Temps d'achèvement du document moyen	37 minutes
Catégories de services en ligne	256

CHAT ET PRÉPIDENCE DE TÉLÉPHONE DE TÉLÉPHONE

Legalzoom maintient une équipe de support client de 872 représentants. Le temps de réponse moyen pour les demandes de renseignements des clients est de 6,2 minutes pendant les heures d'ouverture.

• Personnel de soutien total: 872
• Temps de réponse moyen: 6,2 minutes
• Canaux de support: téléphone, chat en direct, e-mail

Ressources de base de courriels et de connaissances

La base de connaissances de l'entreprise contient 4 329 articles et FAQ consultables. Le support par e-mail gère environ 187 000 demandes de demandes clients mensuellement.

Métriques de la base de connaissances	2023 statistiques
Articles totaux de base de connaissances	4,329
Demandes de messagerie mensuelles	187,000

Forums communautaires et contenu éducatif

Legalzoom accueille 23 forums communautaires distincts avec 412 000 membres de la communauté enregistrés. Le contenu éducatif comprend 1 247 tutoriels vidéo et webinaires.

• Forums communautaires: 23
• Membres de la communauté enregistrés: 412 000
• Contenu vidéo éducatif: 1 247

Options de consultation juridique personnalisées

Legalzoom propose des consultations d'avocat à travers son Plan juridique, avec 89 000 abonnés actifs en 2023. Les taux de consultation varient de 29,99 $ à 199,99 $ selon la complexité des services.

Services de consultation	2023 données
Abonnés du plan juridique actif	89,000
Gamme de prix de consultation	$29.99 - $199.99

Legalzoom.com, Inc. (LZ) - Modèle d'entreprise: canaux

Site Web de l'entreprise (Legalzoom.com)

Canal de vente numérique primaire avec 11,4 millions de clients enregistrés au T2 2023. Le site Web traite environ 2 000 transactions de documents juridiques par jour. Coût moyen d'acquisition des clients via le site Web: 42,50 $.

Métrique du site Web	2023 données
Visiteurs uniques mensuels	3,2 millions
Taux de conversion	4.3%
Valeur de transaction moyenne	$289

Application mobile

L'application mobile a été lancée en 2019, représentant 27% du total des transactions numériques en 2023. Statistiques de téléchargement des applications:

• IOS App Store: 542 000 téléchargements
• Google Play Store: 463 000 téléchargements
• Utilisateurs actifs mensuels moyens: 218 000

Marketing en ligne direct

Dépenses marketing en 2023: 47,3 millions de dollars. Répartition des canaux de marketing numérique:

Canal de marketing	Pourcentage de budget
Publicités Google	38%
Publicité sur les réseaux sociaux	29%
Marketing d'affiliation	22%
Campagnes par e-mail	11%

Programmes de référence

Le programme de référence génère 19% des nouvelles acquisitions de clients. Bonus de référence moyen: 25 $ par référence réussie.

• Références totales en 2023: 78 500
• Taux de conversion de référence: 6,2%
• Programme de référence Valeur à vie du client: 412 $

Plateformes de médias sociaux

Les taux de dénombrement des suiveurs des médias sociaux et de taux d'engagement en décembre 2023:

Plate-forme	Abonnés	Taux d'engagement
Liendin	189,000	2.7%
Facebook	276,000	1.9%
Twitter / x	112,000	1.5%
Instagram	95,000	3.1%

Legalzoom.com, Inc. (LZ) - Modèle d'entreprise: segments de clientèle

Propriétaires de petites entreprises

En 2023, Legalzoom dessert environ 2,2 millions de clients de petites entreprises. Le segment cible comprend:

Type d'entreprise	Pourcentage de clientèle
Formation de LLC	38%
Enregistrement des sociétés	27%
Enregistrement des marques	19%

Entrepreneurs et startups

Legalzoom prend en charge environ 500 000 nouveaux entrepreneurs par an avec des services, notamment:

• Documents de formation commerciale
• Services d'agent enregistrés
• Outils de conformité commerciale

Entrepreneurs indépendants

Le segment de marché représente 15% de la clientèle de Legalzoom, environ 330 000 utilisateurs en 2023.

Catégorie de service	Taux d'adoption
Génération de contrats	62%
Enregistrement du nom d'entreprise	28%
Acquisition d'identité d'impôt	10%

Personnes à la recherche de services juridiques personnels

Le segment des services juridiques personnels représente 25% de la clientèle totale, représentant environ 550 000 clients en 2023.

• Préparation
• Création de confiance vivante
• Documentation de la procuration

Pigistes et travailleurs de l'économie des concerts

Représente 12% des segments de clientèle de Legalzoom, environ 264 000 utilisateurs en 2023.

Type de service	Pourcentage d'utilisation
Enregistrement de l'entité commerciale	45%
Protection des marques	35%
Services contractuels	20%

Legalzoom.com, Inc. (LZ) - Modèle d'entreprise: Structure des coûts

Infrastructure et maintenance technologiques

Coûts d'infrastructure technologique annuelle pour Legalzoom en 2023: 42,3 millions de dollars

Catégorie de coûts	Dépenses annuelles
Services de cloud computing	18,7 millions de dollars
Systèmes de cybersécurité	7,5 millions de dollars
Licence de logiciel	6,2 millions de dollars
Maintenance matérielle	9,9 millions de dollars

Rémunération du réseau professionnel juridique

Compensation annuelle totale pour les professionnels du droit: 37,6 millions de dollars

• Réseau de 2 700 avocats indépendants
• Compensation moyenne d'un avocat par référence: 1 400 $
• Coûts d'extension du réseau d'avocat: 5,2 millions de dollars

Marketing et acquisition de clients

Total des dépenses de marketing en 2023: 89,4 millions de dollars

Canal de marketing	Dépenses annuelles
Publicité numérique	52,6 millions de dollars
Publicité télévisée	22,3 millions de dollars
Marketing d'affiliation	14,5 millions de dollars

Développement et mises à jour de la plate-forme

Dépenses de développement de la plate-forme annuelle: 31,8 millions de dollars

• Équipe d'ingénierie logicielle: 275 employés
• Investissement de recherche et développement: 24,6 millions de dollars
• Budget d'innovation des produits: 7,2 millions de dollars

Opérations de support client

Total des coûts de support client: 22,5 millions de dollars

Canal de support	Dépenses annuelles
Opérations du centre d'appels	15,3 millions de dollars
Assistance de chat en ligne	4,7 millions de dollars
Infrastructure d'assistance par e-mail	2,5 millions de dollars

Legalzoom.com, Inc. (LZ) - Modèle d'entreprise: Strots de revenus

Frais de service de préparation de documents

Legalzoom a généré 689,1 millions de dollars de revenus totaux pour l'exercice 2022. Les frais de service de préparation des documents constituent une partie importante de cette source de revenus.

Type de service	Plage de frais moyens
Préparation	$89 - $179
Package de confiance vivante	$249 - $399
Préparation des documents de divorce	$299 - $499

Services juridiques basés sur l'abonnement

Legalzoom offre des revenus récurrents grâce à des services d'abonnement légaux avec Environ 1,2 million d'abonnés actifs En 2022.

• Plan juridique des entreprises: 31,25 $ / mois
• Plan juridique personnel: 17,95 $ / mois
• Service d'agent enregistré: 299 $ / an

Packages de formation d'entreprise

Les services de formation d'entreprise ont généré environ 180 millions de dollars de revenus pour 2022.

Type d'entreprise	Frais de formation
Formation de LLC	$79 - $329
Formation de sociétés	$99 - $359
Formation à but non lucratif	$99 - $299

Enregistrement des marques et des droits d'auteur

Les services de propriété intellectuelle ont contribué approximativement 45 millions de dollars aux revenus de Legalzoom en 2022.

• Recherche de marque: 199 $
• Enregistrement des marques: 349 $
• Inscription au droit d'auteur: 145 $

Services de consultation juridique supplémentaires

Les services de consultation d'avocat de Legalzoom ont généré approximativement 35 millions de dollars de revenus supplémentaires.

Type de consultation	Prix
Consultation d'avocat de 30 minutes	$59 - $99
Conseils juridiques prolongés	$199 - $499

LegalZoom.com, Inc. (LZ) - Canvas Business Model: Value Propositions

You're looking at the core reasons why millions of people choose LegalZoom.com, Inc. (LZ) over other options. It's not just about filing paperwork; it's about the perceived safety net and ease of use, which the financials show is driving significant recurring revenue-their subscription segment hit $125 million in Q3 2025 alone, with 1.96 million subscription units on the books.

Affordable, accessible, and convenient legal services online.

LegalZoom.com, Inc. (LZ) built its brand on making legal tasks accessible, which you see reflected in their entry-level pricing. They've formed over 4 million businesses since 1999, proving the model's reach. The convenience is baked into the online, step-by-step process that guides you through name selection and entity type, which is ideal if you'd rather not deal with state forms yourself. Honestly, the starting price point is a major draw, even if the total cost can climb with add-ons.

Peace of mind through a hybrid model (DIY tech + expert attorney access).

The hybrid approach is a key differentiator. You get the efficiency of their technology platform, but the peace of mind comes from knowing you can tap into an independent attorney network. This is most evident in the higher tiers, where you get direct access to legal professionals. For instance, the Premium package includes attorney consultations, which is a direct trade-off of a higher upfront fee for immediate expert guidance. This model supports their overall financial health, as the company projects full-year 2025 revenue between $748 million and $752 million.

Simplification of complex legal tasks like business formation and compliance.

LegalZoom.com, Inc. (LZ) translates legal complexity into manageable steps. They offer tools like an operating agreement template, EIN filing assistance, and access to over 150 customizable legal documents, all designed to simplify the initial setup. For ongoing needs, their compliance services aim to handle annual reports and regulatory alerts, which they guarantee are 100% accurate. This simplification is what keeps their subscription units growing, a critical part of their strategy.

Tiered service options from low-cost DIY to premium Concierge Plan.

You can see the clear segmentation in their LLC formation packages, which directly maps to different customer needs and willingness to pay. The structure lets you choose your level of handholding. Here's a quick look at the base fees for LLC formation as of late 2025, not including mandatory state fees which can range from $40-$500.

Package Tier	LegalZoom Base Fee	Key Included Feature	Post-Trial/Renewal Cost Example
Basic	$0	Articles of Organization filing, Name Check Service	State Filing Fees only
Pro	$249	Operating Agreement, EIN filing assistance, 3-month bookkeeping trial	Bookkeeping trial renews at $9.99/month
Premium	$299	Everything in Pro, 30-day trial of Business Advisory Plan	Business Advisory Plan renews at $49/month

Ongoing compliance and virtual mail services for small businesses.

The value extends well beyond the initial formation. For ongoing needs, LegalZoom.com, Inc. (LZ) offers services like Registered Agent service for $249/year, which is a key recurring revenue driver. Their Compliance Filings package starts at $199/year to manage annual reports and alerts. Furthermore, general business compliance services are noted to start at $69/year. This focus on recurring services is why their subscription revenue is so strong, making up a significant portion of their $190.2 million Q3 2025 revenue. Finance: draft 13-week cash view by Friday.

LegalZoom.com, Inc. (LZ) - Canvas Business Model: Customer Relationships

You're looking at how LegalZoom.com, Inc. manages its vast customer base as of late 2025, which is clearly segmented by the type of service required, moving away from a purely transactional model.

Automated, self-service platform for transactional customers.

For the core, one-off legal document services, the relationship is almost entirely digital and self-directed. This segment still contributes significantly, with transaction revenue hitting $64.8 million in the third quarter of 2025, representing a 12% year-over-year increase. The total number of transaction units only grew by 2% in Q3 2025, which tells us the automation is handling volume efficiently, but the real value driver here is the price realization, as the Average Order Value (AOV) increased by 11% year-over-year for the three months ended September 30, 2025. This AOV lift suggests customers are opting for more bundled or slightly higher-tier transactional services, even on the self-service path.

Subscription-based, continuous engagement for compliance and legal plans.

The strategic focus is heavily weighted toward recurring revenue, which is where the continuous engagement happens. Subscription revenue was $125.4 million in Q3 2025, up 13% year-over-year, and this segment is the primary growth engine, leading to a raised full-year revenue outlook. The number of active subscription units at the end of Q3 2025 stood at approximately 1.96 million, a 14% increase compared to the same period last year. However, the Average Revenue Per Subscription Unit (ARPU) shows some pressure or strategic adjustments; for instance, Q1 2025 ARPU was $252, down from $263 at the end of 2024. Still, the company reports an Annual Small Business Retention Rate of approximately 57% as of September 30, 2025, which is a critical metric for this relationship type.

Here's a look at how the subscription base has been building:

Metric	Q1 2025 End	Q2 2025 End	Q3 2025 End
Subscription Units (in thousands)	1,924	1,770	1,960
ARPU (at period end)	$252	$256	Data Not Explicitly Stated for Q3

Dedicated sales and service teams for premium and 'Do-It-For-Me' (DIFM) offerings.

For higher-value, premium services, LegalZoom.com, Inc. shifts to a high-touch model supported by dedicated personnel. The adoption of these Do-It-For-Me (DIFM) services is driving up transaction value, as these products are typically priced under $1,000 per year, a substantial increase over the current subscription ARPU of around $256. The company announced testing of new concierge offerings like nonprofit, reinstatement, dissolution, and entity conversion concierge, with management noting encouraging signs of adoption across these offerings.

High-touch, white-glove service via the Formation Nation integration.

The acquisition of Formation Nation, Inc. directly bolstered this relationship segment. This integration brought a sales team of over 130 professionals to LegalZoom.com, Inc.. This team supports the white-glove service component, which is crucial for complex or premium formation and compliance packages. The inclusion of Formation Nation transactions contributed to the 12% year-over-year increase in business formations reported in Q3 2025.

Digital customer support and educational content.

The overall customer experience is being enhanced through digital investment, including leveraging emerging technologies. Management highlighted investments in AI to simplify legal processes for customers. The company's strategy includes weaving expertise through its products and providing best-in-class service, with a strong operational focus on the U.S. market, as revenue outside of the U.S. represented less than 1% of total revenue for the three and nine months ended September 30, 2025.

• Empowering agents with tools to solve problems on the first call is a key driver for Customer Satisfaction Score (CSAT) improvement.
• The company is focused on improving customer experience through educational content and website enhancements.

LegalZoom.com, Inc. (LZ) - Canvas Business Model: Channels

You're looking at how LegalZoom.com, Inc. (LZ) gets its services to customers as of late 2025. The channel strategy is clearly bifurcated, balancing high-volume, low-cost acquisition with higher-touch, recurring revenue streams.

Primary digital channel: LegalZoom.com website and mobile interface. This remains the core engine for customer interaction and transaction processing. The digital platform is the entry point for both one-time transaction services and the growing subscription base. For the third quarter ending September 30, 2025, the company reported record revenue of $190.2 million, up 13% year-over-year. The subscription segment, heavily reliant on direct digital engagement and renewal, drove $125.4 million of that revenue, marking a 13% increase. The total number of subscription units at the end of Q3 2025 stood at approximately 1.959 million, a 14% increase compared to the third quarter of the prior year. The company is also focusing on optimizing its overall marketing spend efficiency; for instance, Sales and marketing expenses as a percentage of revenue decreased to 29% in Q2 2025, down from 40% year-over-year, showing better customer acquisition efficiency through these digital routes. The full-year 2025 revenue guidance, as of November 2025, anticipates growth of 10% at the midpoint, targeting revenue between $748 million and $752 million.

Here's a quick look at the Q3 2025 performance metrics that flow through these primary channels:

Metric	Q3 2025 Amount	Year-over-Year Change
Total Revenue	$190.2 million	13% increase
Subscription Revenue	$125.4 million	13% increase
Transaction Revenue	$64.8 million	12% increase
Subscription Units (End of Q)	1.959 million	14% increase
Average Revenue Per Subscription Unit (ARPU)	$256	(3%) decrease

Direct sales team for high-value and subscription product attachment. While the digital channel handles volume, the direct sales approach is geared toward attaching higher-value, often compliance-related, subscription products to initial transactions. Management noted a strategic shift toward expanding focus beyond basic formation to serve existing businesses with differentiated, AI-and-human-expert offerings. This includes testing new concierge offerings like nonprofit, reinstatement, dissolution, and entity conversion concierge services. The company is also testing bundled tax and legal advice products, expected to roll out fully next year, which definitely requires a more consultative, direct sales or high-touch digital flow to attach.

Partner channels (e.g., accountants, financial institutions) for referrals and bundles. LegalZoom.com, Inc. (LZ) actively uses established professional networks to drive subscription revenue. A key example cited is the partnership initiative with 1-800Accountant, which has been instrumental in driving strong execution in compliance-related subscriptions. Furthermore, the company launched an embedded legal services flow, making it easier for partners to provide additional value to their customers, which suggests an expanding network of integration points beyond simple referrals.

Inc Authority brand website for low-cost, high-volume customer acquisition. The acquisition of Formation Nation, Inc. in February 2025 strengthened the low-cost acquisition channel via the Inc Authority brand. This channel operates on a $0 service fee model for LLC/Corporation formation, meaning customers only pay state filing fees, which is a classic high-volume, low-margin customer acquisition strategy. For context, the base service is $0 plus the state filing fee. A critical component of this channel's economics is the renewal structure: the Registered Agent service, which is free for the first year, renews at approximately $250/year. Premium packages on this platform range from $399 to $799 plus state fees, but the initial draw is the zero-dollar entry point to capture a wide swath of new business formations.

Finance: draft 13-week cash view by Friday.

LegalZoom.com, Inc. (LZ) - Canvas Business Model: Customer Segments

You're looking at the people LegalZoom.com, Inc. (LZ) serves, which is a broad base spanning from first-time solo-preneurs to established small businesses needing ongoing compliance help. The company's strategy, as of late 2025, is clearly shifting toward higher-value, recurring revenue streams, but the foundation remains in initial business setup.

The core focus is on Small Business Owners (SBOs) and entrepreneurs. LegalZoom.com, Inc. has a massive installed base, having helped form over 4.6 million businesses since its inception, with figures showing over 4 million businesses formed as of mid-2025. The addressable market is significant, targeting roughly 36 million U.S. existing small businesses. In the third quarter of 2025 alone, the number of business formations was 126 thousand, representing a 12% year-over-year increase, though this was primarily due to the acquisition of Formation Nation. Data shows almost 60% of new LegalZoom business owners are first-time entrepreneurs.

A significant segment is Individuals needing estate planning (Wills, Trusts) and intellectual property (Trademarks). This segment is supported by the cumulative volume of work done, with LegalZoom.com, Inc. reporting 4.4 million estate planning solutions delivered since its start. While the financial breakdown isn't explicit for this segment, it falls under the broader Transaction Revenue category, which was $64.8 million in Q3 2025.

The push for higher-value customers targets High-quality SBOs seeking premium, DIFM (Do-It-For-Me) compliance solutions. This is where the subscription business shines; subscription revenue hit $125.4 million in Q3 2025, growing 13% year-over-year. The company reported 2.0 million active legal and compliance subscriptions as of Q2 2025. These Do-It-For-Me products are typically priced under $1,000 per year. This focus is successfully driving up the Average Order Value (AOV) to $251 in Q3 2025, an 11% year-over-year increase, as customers opt for these higher-priced concierge services.

Finally, there are Price-sensitive customers seeking basic, low-cost business formation. While LegalZoom.com, Inc. is pivoting away from lower-value transactions, this segment still exists. For many, the primary motivation for forming an LLC is limiting personal liability, cited by 48% of owners. The overall Average Order Value (AOV) for transactions was $251 in Q3 2025. The company's Annual Small Business Retention Rate was approximately 57% as of September 30, 2025, which management notes is impacted by the bundling of initial formation services.

Here's a quick look at the key operational metrics driving these segments as of the third quarter of 2025:

Metric	Q3 2025 Value	Year-over-Year Change
Total Revenue	$190.2 million	12.8% increase
Subscription Revenue	$125.4 million	13% increase
Transaction Revenue	$64.8 million	12% increase
Subscription Units (End of Period)	1,959 thousand	14% increase
Average Revenue Per Subscription Unit (ARPU)	$256	3% decrease
Business Formations (Units)	126 thousand	12% increase
Average Order Value (AOV)	$251	11% increase

It's clear that the growth story is now tied to the subscription base, which saw its revenue grow 13% year-over-year in Q3 2025, marking the third straight quarter of sequential acceleration. Still, the Average Revenue Per Subscription Unit (ARPU) saw a slight dip of 3% to $256.

The need for compliance services is widespread; according to the Q1 2025 Small Business Index from the U.S. Chamber of Commerce, nearly half of all small businesses report spending too much time on regulatory compliance requirements.

• Total revenue for the full year 2025 is guided to be in the range of $748 million to $752 million.
• Subscription revenue growth is a focus, with the goal to exit 2025 with a double-digit increase in subscription revenue.
• Revenue outside of the U.S. represented less than 1% of total revenue for the nine months ended September 30, 2025.

LegalZoom.com, Inc. (LZ) - Canvas Business Model: Cost Structure

You're looking at the operational spend that keeps LegalZoom.com, Inc. running, especially as they push hard into AI and premium subscriptions. The cost structure for Q2 2025 shows a clear allocation of resources against the $192.5 million in total revenue reported for that quarter.

The largest single bucket of spending is dedicated to bringing in new business, which makes sense for a company still focused on scaling its subscription base. To be fair, while the dollar amount is high, the efficiency of that spend is a key focus point for management.

Cost Component	Q2 2025 Percentage of Revenue	Q2 2025 Approximate Dollar Amount
Sales and Marketing costs	33%	$63 million
Cost of Revenue	31%	Approx. $59.7 million
Technology and Development costs	8%	$15 million
General and Administrative (Overhead Proxy)	8%	Approx. $15.4 million

The Cost of Revenue at 31% covers the direct costs of service delivery. This includes fulfillment expenses, the necessary attorney fees for document preparation or review, and state filing fees required to legally establish entities or file documents on behalf of customers.

Technology and Development costs were reported at $15 million, representing approximately 8% of Q2 2025 revenue. This spend is heavily weighted toward platform enhancements and the integration of artificial intelligence tools, such as the collaboration with OpenAI's ChatGPT agents, to support product development and expertise surfacing.

For fixed costs, beyond the explicit operating expenses listed above, there are ongoing platform maintenance expenses and general corporate overhead that fall under the General and Administrative category. In Q2 2025, General and Administrative expenses were approximately 8% of revenue.

Customer Acquisition Costs (CAC) are directly influenced by the Sales and Marketing spend. The total Sales and Marketing outlay for Q2 2025 was $63 million. Management has noted improved efficiency, with the Sales and Marketing percentage decreasing year-over-year from 40% to 29% at one point, reflecting better performance in customer acquisition, though the Q2 figure settled at 33%.

Here are the key expense drivers as a percentage of revenue for the quarter:

• Sales and Marketing: 33%
• Cost of Revenue: 31%
• Technology and Development: 8%
• General and Administrative: 8%

The total non-GAAP operating expenses represented approximately 80% of revenue in Q2 2025, with the remaining 20% contributing to the Adjusted EBITDA margin.

Finance: review the Q3 2025 G&A spend against the $15.4 million Q2 figure to project fixed cost stability.

LegalZoom.com, Inc. (LZ) - Canvas Business Model: Revenue Streams

You're looking at how LegalZoom.com, Inc. actually brings in its money as we head into the end of 2025. It's a mix, really, balancing the predictable with the one-off purchases. The company's full-year 2025 revenue guidance sits between $748 million and $752 million, so we can map out where those hundreds of millions are coming from.

Here's a quick look at the major components based on the third quarter of 2025 performance. If onboarding takes longer than expected, these figures could shift, but this is the current picture.

Revenue Category	Q3 2025 Amount (Millions USD)	Nature of Revenue
Subscription Revenue	$125.4	Recurring Fees
Transaction Revenue	$65	One-Time Fees
Acquisition Contribution (Formation Nation)	$8.6	Specific Business Unit

Subscription Revenue is the bedrock here, providing that steady, recurring income stream you want to see in a mature tech-enabled service business. For Q3 2025, this segment pulled in $125.4 million. This comes from clients signing up for ongoing services, which definitely helps smooth out the quarterly volatility.

These recurring fees cover several key areas:

• Compliance monitoring services.
• Ongoing legal plan access.
• Virtual mail handling services.

Transaction Revenue covers the big, upfront purchases clients make when they start or change something significant. In Q3 2025, this hit $65 million. These are the high-value, single-event transactions that drive immediate cash flow.

The primary drivers for this transaction bucket include:

• Business formation filings (LLCs, Corporations).
• Trademark applications and filings.
• Estate planning document preparation.

Also factoring into the top line is revenue generated from strategic moves, like the Formation Nation acquisition, which contributed $8.6 million in revenue during the first quarter of 2025. Beyond the main two buckets, LegalZoom.com, Inc. also generates revenue from ancillary product sales and attorney referral fees, which are smaller but still important contributors to the overall financial picture.