LEGALZOOM.COM (LZ) Q2 FY26 earnings call

LegalZoom delivered solid Q2 results, exceeding EBITDA expectations, driven by strong growth in human-in-the-loop subscription services and successful channel diversification. However, the company faces significant headwinds from Google's recent AI-powered search changes, impacting traditional customer acquisition and leading to a more cautious outlook for transaction revenue. Management is accelerating investments in partnerships, brand, and emerging AI channels to offset these structural shifts, while leveraging AI internally to enhance efficiency and profitability.