LZ LegalZoom.com, Inc.
Platform & Compounding FCF
F 30.0 / 100 pillar composite

AlphaQuality composite grade, weighted for platform & compounding fcf businesses.

⚠ 2 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a platform & compounding fcf business.

Grade overrides the 30.0 pillar composite — hard gates always win.

Profitability

Weight: 25%
D 34
  • 5yr Avg ROIC -1.8%
  • Operating Margin Trend +4.53 pp/yr

Capital Efficiency

Weight: 15%
D- 30
  • 5yr Avg ROE -11.4%
  • 5yr Share-Count CAGR -1.7%

Growth Quality

Weight: 25%
B 72
  • 5yr Revenue CAGR 7.1%
  • 5yr EPS CAGR 5.6%
  • Revenue-Growth Years (5) 5/5

Cash Generation

Weight: 20%
B 71
  • 5yr FCF Margin 12.8%
  • 5yr FCF/NI Conversion 6.52x

Balance Sheet

Weight: 10%
B+ 75
  • Net Debt / EBITDA -2.20x
  • Interest Coverage (EBIT/Int) 26.07x
  • Altman Z-Score 0.10

Stability

Weight: 5%
C+ 58
  • EPS Volatility (σ/μ) 0.50
  • Piotroski F-Score 6
  • Negative-Revenue Years (5) 0/5

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Holding

3 of 3 gurus held; 1 new buy; 1 added; 1 trimmed; 1 full exit.

Holders
3
Avg Δ position
-2.1%
New buys
1
Full exits
1
As of Q1 2026