LZ
LZ
Dec 31, 2025
Quarter ended Dec 31, 2025 · FY2025 Q4

LegalZoom.com, Inc. stock research

LegalZoom.com (LZ) Free Cash Flow — Quarter Ended Dec 31, 2025

Revenue was stable compared to the prior quarter and higher than the same quarter last year. However, operating cash flow and free cash flow were lower than both periods, resulting in a weakened free cash flow margin.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue was stable compared to the prior quarter and higher than the same quarter last year. However, operating cash flow and free cash flow were lower than both periods, resulting in a weakened free cash flow margin.

  • Operating cash flow as a percentage of revenue decreased compared to both the prior quarter and the year-ago quarter, leading to a lower free cash flow margin despite capital expenditure being slightly lower.
  • Compared to the immediately preceding quarter, free cash flow and margin declined. Versus the same quarter one year earlier, free cash flow and margin also decreased, even though revenue was higher.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$147.9M

Trailing twelve-month free cash flow.

Quarter free cash flow

$28.0M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$34.1M

Cash generated by operations before capital spending.

CapEx

$6.1M

Capital spending and related asset purchases.

FCF margin

14.7%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2025-03-31$183.1M$50.7M$9.4M$41.3M22.6%
2025-06-30$192.5M$39.1M$7.5M$31.6M16.4%
2025-09-30$190.2M$54.2M$7.2M$47.0M24.7%
2025-12-31$190.3M$34.1M$6.1M$28.0M14.7%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income462.2%Shows whether accounting earnings convert into cash.
CapEx / revenue3.2%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Watch

Operating Cash Flow Conversion

Operating cash flow decreased from the prior quarter and the year-ago quarter, while revenue remained relatively stable. This drove a lower free cash flow margin.

If operating cash flow does not recover, free cash flow may remain under pressure.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Operating cash flow as a percentage of revenue decreased compared to both the prior quarter and the year-ago quarter, leading to a lower free cash flow margin despite capital expenditure being slightly lower.

Compared to the immediately preceding quarter, free cash flow and margin declined. Versus the same quarter one year earlier, free cash flow and margin also decreased, even though revenue was higher.

Monitor the trend in operating cash flow relative to revenue, as it declined notably from both comparison periods.