LegalZoom.com, Inc. — Earnings Quality Grade C
LZ · Industrials
Some red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 10 days, change +5 days YoY
AR growth 141.9% exceeds revenue growth 10.9%
Revenue 10.9%, CFFO 31.4%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -15.2% vs revenue 10.9%. Normal
SG&A/Gross Profit = 78.4%, exceeds 70%
Gross margin 65.9%, change +1.1pp. Stable
Cash Flow Quality
CFFO far exceeds NI (ratio 11.6x). Non-cash charges depressing profits
FCF $0.1B, FCF/NI = 9.59
Accruals ratio = -31.8%. Low accruals
Cash $0.2B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 92% of equity. Over 50%
Debt/EBITDA = 0.2x. Healthy
Other assets -3.1% vs revenue 10.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 121% YoY
Manipulation Score
M-Score = -2.69 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25