LEGALZOOM.COM, INC.LZ

LEGALZOOM.COM, INC. Segments Disclosure

10-KFiled Feb 23, 20263 min read
Segment Information
Our Chief Executive Officer, as the 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 that also is reported on the accompanying consolidated statements of operations as consolidated net income. The measure of segment assets is reported on the accompanying consolidated balance sheets as total assets.
The CODM uses net income 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 is also used to monitor budget versus actual results.
Our one reportable segment 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 revenue for the years ended December 31, 2025, 2024 and 2023. Our property and equipment located outside of the U.S. were immaterial as of December 31, 2025 and 2024.
The following table summarizes financial information by reportable segment regularly provided to the CODM (in thousands):

Year Ended December 31,
202520242023
Transaction Revenue$263,582 $245,692 $247,780 
Subscription Revenue$492,461 $436,189 $412,947 
Total revenue$756,043 $681,881 $660,727 
Less:
Filings fees$98,292 $83,269 $88,103 
Other cost of revenue, excluding depreciation, amortization and stock-based compensation$133,443 $132,089 $134,070 
Customer acquisition marketing$175,614 $157,578 $145,338 
Other sales and marketing, excluding depreciation, amortization and stock-based compensation$60,060 $38,293 $54,152 
Technology and development, excluding depreciation, amortization and stock-based compensation$58,328 $62,323 $60,098 
Year Ended December 31,
202520242023
General and administrative, excluding depreciation, amortization, stock-based compensation, and restructuring$60,982 $60,215 $61,843 
Stock-based compensation$113,708 $71,510 $66,015 
Depreciation and amortization$44,123 $34,927 $25,383 
Interest income$(7,569)$(7,850)$(9,307)
Interest expense$1,294 $446 $493 
Restructuring(1)
$854 $6,096 $4,666 
Other segment items(2)
$(1,187)$(98)$(1,621)
Provision for income taxes$17,011 $13,120 $17,541 
Gain on sale of assets held for sale$(14,337)$— $— 
Segment net income$15,427 $29,963 $13,953 
Reconciliation of profit or loss
Adjustments and reconciling items$— $— $— 
Consolidated net income$15,427 $29,963 $13,953 
(1)     For 2025, 2024 and 2023 restructuring costs related to the reduction of our global workforce. Restructuring expenses include salary and benefits for the impacted employees and are included in general and administrative expenses in the consolidated statements of operations.
(2)    In 2024 and 2023, 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 were written down in 2024. Other segment items included in segment net income for 2025 primarily consist of gain on sale of available-for-sale debt security and change in fair value of other equity security partially offset by the loss on debt extinguishment related to our Amended Revolving Facility and are included in other income, net on the consolidated statements of operations.

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 26, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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