LegalZoom cut its full-year 2026 revenue guidance to a range of $795 million to $805 million, down from a prior range of $810 million to $830 million, after abrupt changes to Google's search algorithm hurt its online traffic. The company also trimmed the top end of its adjusted EBITDA guidance to $195 million from a previous ceiling of $200 million. The announcement came just two days after LegalZoom launched a new agent integrated into Microsoft 365 Copilot, allowing small business owners to access business formation, compliance filings, and attorney consultations directly within the productivity tool. Second-quarter subscription revenue rose 11%, marking five consecutive quarters of double-digit growth, while total revenue came in at $205.3 million, up 7% year over year. Adjusted net income fell 3% to $27.4 million, or $0.16 per share, and the stock dropped 30% following the earnings release.
LegalZoom.com IncGoogle algorithm change hurt online traffic, cutting revenue guidance.
Microsoft Corporation