C

LegalZoom.com, Inc. — Earnings Quality Grade C

LZ · Industrials

Some red flags

Revenue
$756M
2025
Net Income
$15M
2025
Gross Margin
65.9%
Free Cash Flow
$148M
01

Screening Summary

12
Passed
4
Watch
1
Failed
-2.69
M-Score

管理层信号

最近 SEC 8-K 文件中未发现 CEO、CFO、董事会或审计负责人变动信号。
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 10 days, change +5 days YoY

!
A2AR vs Revenue Growth

AR growth 141.9% exceeds revenue growth 10.9%

A3Revenue vs CFFO

Revenue 10.9%, CFFO 31.4%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth -15.2% vs revenue 10.9%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 78.4%, exceeds 70%

B4Gross Margin

Gross margin 65.9%, change +1.1pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO far exceeds NI (ratio 11.6x). Non-cash charges depressing profits

C2Free Cash Flow

FCF $0.1B, FCF/NI = 9.59

C3Accruals Ratio

Accruals ratio = -31.8%. Low accruals

C4Cash vs Debt

Cash $0.2B covers debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.2B = 92% of equity. Over 50%

D2Leverage

Debt/EBITDA = 0.2x. Healthy

D3Soft Asset Growth

Other assets -3.1% vs revenue 10.9%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

!
E2Goodwill Surge

Goodwill+Intangibles surged 121% YoY

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.69 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.69
-4.0 Clean-2.22 Grey-1.78 Danger0
2.182
DSRI
AR growing faster than revenue?
0.983
GMI
Gross margin declining?
1.252
AQI
Asset quality deteriorating?
1.109
SGI
Revenue growth rate
0.893
DEPI
Depreciation slowing?
1.143
SGAI
SG&A ratio changing?
-0.3182
TATA
Accruals level
0.877
LVGI
Leverage increasing?
05

Altman Z-Score

-7.24
Distress Zone
0 Distress1.102.605.0+ Safe
-0.1497
Liquidity
-2.2177
Cumulative profit
0.0659
Operating efficiency
0.5061
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25