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 37
  • 5yr Avg ROIC 0.1%
  • Operating Margin Trend +4.53 pp/yr

Capital Efficiency

Weight: 15%
D- 29
  • 5yr Avg ROE -8.0%
  • 5yr Share-Count CAGR -1.2%

Growth Quality

Weight: 25%
A 88
  • 5yr Revenue CAGR 9.9%
  • 5yr EPS CAGR 16.7%
  • 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+ 76
  • Net Debt / EBITDA -2.20x
  • Interest Coverage (EBIT/Int) 26.07x
  • Altman Z-Score 0.14

Stability

Weight: 5%
C 55
  • EPS Volatility (σ/μ) 0.50
  • Negative-Revenue Years (5) 0/5
  • Piotroski F-Score 5

Guru Flow

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

2 of 3 gurus held; 1 added; 1 trimmed; 2 full exits.

Holders
2 -1
Avg Δ position
+0.5%
New buys
0
Full exits
2
As of Q2 2026