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    Does LegalZoom’s Expanded Defy Partnership Deepen Its Second-Chance Brand Moat For Investors In LZ?

    Simply Wall St·12/04/2025 14:25:16
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    • LegalZoom.com, Inc. recently renewed and expanded its partnership with Defy Ventures, funding the nationwide growth of mental well-being and post-release entrepreneurship programs that have already supported about 8,000 formerly incarcerated individuals.
    • The partnership also deepens LegalZoom’s in-kind product support and employee volunteering for Defy graduates starting businesses, strengthening the company’s connection to entrepreneurship and second-chance economic opportunity.
    • We’ll now explore how this expanded support for Defy’s national entrepreneurship and well-being programs could influence LegalZoom’s long-term investment narrative.

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    LegalZoom.com Investment Narrative Recap

    To own LegalZoom, you have to believe it can stay central to small business formation while defending pricing power in a world of cheaper, often AI-driven legal options. The Defy Ventures expansion mainly reinforces brand equity and mission alignment, but it does not materially change the near term focus on improving subscription retention and managing cost pressures from more hands-on “do-it-for-me” services.

    The most relevant recent announcement here is LegalZoom’s integration into OpenAI’s ChatGPT agent, which directly addresses the risk that generative AI could undercut its core document services. By embedding its products inside a leading AI platform, LegalZoom is trying to keep its offerings visible and convenient at the moment users are considering low cost, DIY legal tools, which ties closely to its growth and retention catalysts.

    Yet even as partnerships broaden LegalZoom’s reach, investors should still be aware of the risk that rapidly advancing AI could...

    Read the full narrative on LegalZoom.com (it's free!)

    LegalZoom.com's narrative projects $876.4 million revenue and $72.3 million earnings by 2028.

    Uncover how LegalZoom.com's forecasts yield a $12.36 fair value, a 30% upside to its current price.

    Exploring Other Perspectives

    LZ Community Fair Values as at Dec 2025
    LZ Community Fair Values as at Dec 2025

    Four members of the Simply Wall St Community currently value LegalZoom between US$8.75 and about US$28.97 per share, showing very different expectations. As you weigh those views, it is worth setting them against the risk that AI driven commoditization of legal services could pressure LegalZoom’s core business over time and reshape how its growth story plays out.

    Explore 4 other fair value estimates on LegalZoom.com - why the stock might be worth over 3x more than the current price!

    Build Your Own LegalZoom.com Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.