LegalZoom Cuts Full-Year 2026 Adjusted EBITDA Outlook to $180 Million-$185 Million

LegalZoom cut its full-year 2026 adjusted EBITDA outlook to $180 million-$185 million as search-driven customer acquisition pressure and spending on new channels and services weighed on its forecast. Third-quarter revenue rose 3% year over year to $195 million. Adjusted EBITDA was $50 million, equal to a 26% margin. Subscription revenue increased 11%. Human-in-the-loop subscription services accounted for 49% of revenue and grew 17% year over year. Business Manager subscriptions grew about 25% quarter over quarter in the third quarter. LegalZoom is expanding marketing through partnerships, affiliates, paid artificial intelligence placements and other channels to reduce its reliance on search.

Source: TokenPost