LegalZoom.com Inc. (LZ) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, LZ scores 59 out of 100, a C- grade labeled "Roarable Hold — Cautious Neutral." The Fundamental Cash Engine pillar scores 15 of 20, anchored by an ROIC of 34.7% and an FCF yield of 13.01%; this is the rating's strongest pillar and points to cash generation that is high relative to the reported capital base. The Whale 13F Flow pillar scores 10 of 20, reflecting institutional accumulation and options positioning that the rating characterizes as moderate rather than decisive. The Insider Conviction pillar scores 13 of 20, based on SEC Form 4 and Congressional PTR cluster flow. The Macro Regime Fit pillar scores 11 of 20, consistent with a beta of 1.0 and sector sensitivity. The Forensic Balance Sheet pillar scores 10 of 20, reflecting an Altman Z-Score of 0.36, a Piotroski F-Score of 6 out of 9, and a Debt/Equity ratio of 0.5.

For a prospective investor, the upside case rests on the cash-generation pillar: a 13.01% FCF yield and 34.7% ROIC are strong figures if they persist. The valuation tradeoff is significant, since the P/E (TTM) of 73.7 and forward P/E of 68.5 imply that earnings, not cash flow, are presently thin relative to the price. The Altman Z-Score of 0.36 is a forensic flag the rating explicitly penalizes and should be weighed heavily against the cash-yield argument. The overall verdict is a neutral posture, not a directional call, and this brief does not constitute personalized financial advice.

LegalZoom.com Inc. is a NASDAQ-listed issuer classified under the Technology sector and EDP Services industry, per the profile. The provided source data does not describe its products, customer base, or specific revenue model beyond sector and industry classification. Gross margin is reported at 65.9%, operating margin at 3.3%, and net margin at 2%, per the market data section.

Per the SEC financials, revenue rose from $660.7M (FY 2023) to $756.0M (FY 2025), while net income moved from $14.0M to $15.4M after peaking at $30.0M in FY 2024. Per the market data, operating margin is 3.3% and net margin is 2%, and ROIC is 34.7%. Per the Roarable RQD rating, the Altman Z-Score is 0.36 and the Piotroski F-Score is 6 of 9. The Debt/Equity ratio of 0.5 is cited in the rating; the balance sheet debt figure itself is not available in source data.

The news feed contains six items, all tagged to LZ, from sources including Yahoo Finance UK, Yahoo Finance Singapore, Seeking Alpha, TradingView, MarketBeat, and Yahoo Finance. Two items are flagged CATALYST or GREEN: a Seeking Alpha piece titled "LegalZoom Is Too Cheap To Ignore (Upgrade)" carries the sharpest positive signal in the feed. The remaining four items are YELLOW market-wire entries, including a Yahoo Finance headline stating the stock "Looks Fully Priced On Current Earnings," which represents a counterpoint to the upgrade. A MarketBeat item references a consensus price target of $7.30. The butterfly supply-chain graph reports no supply-chain links and no proprietary signals. Risk watch items drawn from the feed center on the gap between the valuation debate and current earnings.

Per the Butterfly Supply-Chain Graph, supply_chain is "NONE," butterfly_links is empty, and proprietary_signals is empty. Upstream and downstream dependencies, sector correlations, and second-order bottlenecks are therefore not available in source data. A prospective investor should note that no quantified sector ripple can be attributed to LZ from the supplied materials; the only sector information is the Technology / EDP Services classification.

Analyst data is not available in source data. The consensus price target of $7.30 appears only as a headline reference in the MarketBeat news item and is not corroborated by a structured analyst dataset. Holder data, including 13F, Form 4, and Congressional trades, is not available in source data; the RQD pillar scores reference these flows but the underlying transactions are not itemized.

• What is the debt balance and the reported EPS for each fiscal period, given that both fields are N/A in the financials?
• What drives the gap between the 34.7% ROIC and 2% net margin, and is the FCF yield sustainable?
• What is the cash balance for FY 2023, which is N/A in the financials?
• What are the specific analyst ratings and the basis for the $7.30 consensus price target?
• Who are the institutional and insider holders behind the Whale and Insider pillar scores, and what are the transaction sizes?