Slides
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Investor Presentation February 2026
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Forward-looking statements disclaimer This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this presentation include, but are not limited to, statements regarding our annual and quarterly guidance. The forward-looking statements in this presentation are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the following: our dependence on business formations; our dependence on customers expanding the use of our platform, including our transactional customers converting to subscribers and our subscribers renewing their subscriptions with us; the impact of macroeconomic challenges or uncertainty on our business; our ability to remain profitable in the future; our ability to provide high-quality products and services, customer care and customer experience; our ability to continue to innovate and provide a platform that is useful to our customers and that meets our customers’ expectations; the competitive legal solutions market; our dependence on our brand andreputation; our ability to maintain and expand strategic relationships with third parties; our ability to hire and retain top talent and motivate our employees; our ability to effectively integrate Formation Nation, Inc. into our existing operations; risks and costs associated with complex and evolving laws and regulations; our ability to maintain effective internal control over financial reporting; and other factors discussed in the section titled “Risk Factors” included in our most recently filed Annual Report on Form 10-K or Quarterly Report on Form 10-Q as well as any factors in our subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based upon information available to us as of the date of this presentation, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. You should read this presentation with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this presentation, whether as a result of any new information, future events or otherwise. 2
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About non-GAAP financial measures This presentation includes certain non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income (loss), non-GAAP net income (loss) margin, non-GAAP gross profit, non-GAAP gross profit margin, certain non-GAAP expenses (including non-GAAP cost of revenue, non-GAAP sales and marketing, non-GAAP technology and development, and non-GAAP general and administrative), non-GAAP organic revenue, free cash flow and free cash flow margin. We use these non-GAAP financial measures to better understand and evaluate our core operating performance. We believe that these non-GAAP financial measures provide investors with useful information about our financial performance and liquidity, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important measures used by our management for financial and operational decision-making. We also believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. These non-GAAP measures should not be considered in isolation of, or as a substitute or an alternative to, measures prepared and presented in accordance with GAAP. The tables in the Appendix contain more details on the GAAP financial measures that are most directly comparable to non- GAAP financial measures and the related reconciliations between these financial measures. In addition, please see our earnings release and our filings with the Securities and Exchange Commission for the definitions of certain of these non-GAAP financial measures and limitations on the use of such non-GAAP financial measures. Third party information This presentation includes market data and certain other statistical information and estimates that are based on reports and other publications from independent third-party sources, as well as management's own good faith estimates and analyses. We believe these third-party reports to be reputable, but have not independently verified the underlying data sources, methodologies, or assumptions. The reports and other publications referenced are generally available to the public and were not commissioned by LegalZoom. Information that is based on estimates, forecasts, projections, market research, or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances reflected in this information. On February 10, 2025, we acquired 100% of the equity interests of Formation Nation, Inc. The results of Formation Nation, Inc. are included in our results of operations since the date of acquisition. Prior periods have not been recast. Acquisition of Formation Nation 3
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About LegalZoom
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To be the guardian of people’s aspirations, lives, and legacies Our vision Transforming how people navigate the legal system Our mission 5
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LegalZoom investment highlights 6 Category Leader in a Large, Fragmented Market Leading online legal services provider with 25 years of trusted execution at scale Efficient Growth Engine with Significant White Space Data-driven customer acquisition model with meaningful greenfield opportunity Sticky, High-Value Subscription Model Premium, expert-based subscription offerings deliver predictable recurring revenue Hard-to-Replicate Legal Platform and Service Footprint Differentiated ecosystem combining AI, experts, and scaled service operations across all 50 states Disciplined Financial Profile Strong balance sheet with ample cash reserves, zero debt, and attractive free cash flow conversion Experienced and Execution-Focused Leadership Proven management team with a track record of driving innovation, operational excellence, and shareholder value
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2025 at a glance (Comparisons YoY) 7 Revenue $756M +11% $15M -49% Net Income $492M +13% Subscription Revenue $114M +15% Non-GAAP Net Income(1) $264M +7% Transaction Revenue $172M 23% margin +105 bps Adjusted EBITDA(1) (1) This is a non-GAAP financial measure. Refer to the Appendix for a reconciliation of this measure to the most directly comparable GAAP measure.
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The largest digital formations player leveraging our capabilities for estate planning services Large SAM(1), significant opportunity During and post-business formation, we offer a set of important services to operate a business We offer access to experts to help handle the most complex business matters and life events Life & Business Planning $13B Business Management $15B Expert Assistance $23B ● Entity Creation ● Estate Planning ● Entity Compliance ● Bookkeeping ● Business Licenses ● Business Address – Virtual Mail ● Credit Monitoring(2) ● Forms / eSignature(2) ● Insurance / Banking / Websites(3) ● Intellectual Property ● Contracts and Legal Forms ● Business Tax Returns(3) ● Other Legal Matters (1) Total SAM as of February 2024. U.S. Census Bureau; U.S. Small Business Administration; internal company estimates. (2) Not included in business management SAM. (3) Reflects partnership ecosystem. 8
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$51B -61 ~4% 11% SAM(1) Offline Attorney NPS(2) legal services delivered online in the U.S.(3) U.S. online legal services CAGR (4) Leading digital player in a large, fragmented market 5.0M Businesses formed since inception 4.4M Estate planning solutions delivered since inception Advantaged NPS(7)Brand Advantage(6)Efficient Payback(5) Unless otherwise noted, all information is as of December 31, 2025. (1) Total SAM as of February 2024. U.S. Census Bureau; U.S. Small Business Administration; internal company estimates. (2) Net promoter score (NPS) in 2024, according to Clio Legal Trends Report. (3) In 2022, according to IBISWorld. (4) 2019 – 2024 U.S. online legal services market size CAGR according to IBISWorld. (5) Estimated one-year gross profit to customer acquisition marketing expense ratio. (6) Source: Dynata (LegalZoom vs. category competitors) as of December 31, 2025. (7) Source: Internal customer data reflecting owned law firm NPS as of December 31, 2025. Our market +74 LegalZoom Attorney NPS >2.0x Unaided Brand Awareness <1 yr Gross profit positive Our scale & competitive advantage Little product innovation Low tech adoption Large growth opportunity 1.9M Active legal, compliance & other subscriptions 1,000+ Independent attorney network servicing all 50 states 9 We believe LegalZoom is uniquely positioned to lead the digital transformation of the online legal services industry for small businesses
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We solve important problems for our customers… Entity creation is difficult to navigate Business compliance is complicated and time-consuming Expert help feels expensive and inaccessible (1) LegalZoom customer study as of December 2025. (2) LegalZoom small business study as of December 2025. (3) U.S. Chamber ofCommerce Small Business Index (Q3 2025). (4) 2024 California Justice Gap Study. 44% Of SMBs view compliance as a barrier to growth(3) 42% Of SMBs feel overburdened by compliance tasks(3) 48% Of potential entrepreneurs are unsure where to start(1) 78% Of potential entrepreneurs would consider expert-led formation support(2) 67% Of SMBs cite cost as the primary barrier to legal help(4) 85% Of SMBs with unmet legal needs report financial consequences(4) 10
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11 Small business services Business formation Business compliance Legal advice Business management(1) Tax prep, banking, insurance & websites(2) Trademark & IP Consumer services Estate planning Legal advice Real estate …through our innovative legal technology platform (1) Services include virtual mail, legal forms, eSignature and bookkeeping. (2) Represents partner ecosystem.
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12 Our human-in-the-loop advantage Attorneys IP specialists Customer care 1,000+ independent attorney network serving all 50 states Trademark and IP support through our owned-law firm White-glove business & compliance services Live human support for every customer 12 Registered agent Physical compliance notice handling in all 50 states Virtual mail Physical mail handling and digital processing Concierge managers
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1 Optimize our subscription business 3 Leverage AI to deliver expertise 13 Reorient go-to- market strategy 2 Three key focus areas
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Optimize our subscription business Create scalable solutions that deliver impactful outcomes Focus on premium solutions that cater to high-quality new and existing small businesses Expanding suite of expert-led Do-It-For- Me customizable offerings Deepen customer engagement and drive higher lifetime value 14
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15 Position LegalZoom as the trusted legal brand for small businesses to drive awareness and consideration Further leverage partner channel to acquire high-quality small businesses Reorient go-to-market strategy Investments in brand marketing, balancing new customer acquisition with ROAS efficiency Marketing spend is guardrail-driven, automatically fluctuating with demand, and no upfront commitments
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1616 August 2025: Collaboration integrates LegalZoom’s attorney-backed legal guidance into ChatGPT’s agent capabilities to deliver personalized legal insights and analysis June 2025: Launched a tailored legal support program for Perplexity Pro users October 2025: LegalZoom’s partners can integrate our legal services directly into their own platforms October 2025: LegalZoom customers can access Design.com’s AI-powered logo generator directly in LegalZoom’s platform Reorient go-to-market strategy Driving visibility through strategic partnerships
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17 Customer-Centric Augmentation - Access to both AI and our experts provides customers affordable empowerment at scale, with the expertise pure tech platforms can’t match Augmented Legal Expertise - AI empowers our experts to do more, delivering legal services to our customers that are faster and smarter Operational Efficiency & Cost Discipline - AI is unlocking operating efficiencies while simultaneously expanding customer-facing “expert capacity” Platform Evolution & Small Business (SMB) Expansion - Focused on creating AI-first legal products with conversational interfaces and customer-facing legal assistants as the trusted guardian for SMBs navigating complexity Augmented AI to deliver expertise
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Jeff Stibel Chief Executive Officer Noel Watson Chief Financial & Operating Officer Nicole Miller Chief Legal Officer Sheily Chhabria Panchal Chief People Officer Kathy Tsitovich Chief Corporate Development & Partnerships Officer Aaron Stibel Chief Business & Customer Officer Daniel Lysaught Chief Marketing Officer 18 Experienced management team
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Financial update
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20 Revenue Non-GAAP Gross Profit(1) Adjusted EBITDA(1) (1) This is a non-GAAP financial measure. Refer to the Appendix for a reconciliation of this measure to the most directly comparable GAAP measure. $148 $172 FY'24 FY'25 $682 $756 FY'24 FY'25 $467 $524 FY'24 FY'25 % of Revenue(1) 68% 69% % of Revenue(1) 22% 23% +12% YoY +11% YoY +16% YoY FY 2025 snapshot
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$162M $190M Q4'24 Q4'25 $115M $135M Q4'24 Q4'25 $44M $50M Q4'24 Q4'25 21 Revenue Non-GAAP Gross Profit(1) Adjusted EBITDA(1) % of Revenue(1) 71% 71% % of Revenue(1) 27% 26% +18% YoY +13% YoY +18% YoY (1) This is a non-GAAP financial measure. Refer to the Appendix for a reconciliation of this measure to the most directly comparable GAAP measure. Q4 2025 snapshot
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$109M $116M $120M $125M $131M Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 $413M $436M $492M 2023 2024 2025 22 Subscription KPIs Subscription Units(1) 1,766K 1,924K 1,955K 1,959K 1,939K ARPU(2) $263 $252 $256 $256 $266 Subscription KPIs 1,545K 1,766K 1,939K $277 $263 $266 (1) We define the number of subscription units in a given period as the paid subscriptions that remain active at the end of s uch period, including those that are not yet 60 days past their subscription order dates, excluding subscriptions from our employ er group legal plan. Refunds, or partial refunds, may be issued under certain circumstances pursuant to the terms of our customer satisfaction guarantee. (2) We define average revenue per subscription unit, or ARPU, as of a given date as subscription revenue for the 12- month period ended on such date, or LTM, divided by the average number of subscription units at the beginning and end of the LTM period. +20% YoY +13% YoYSubscription revenue is primarily comprised of registered agent and compliance packages, attorney advice, virtual mail, bookkeeping, legal forms, and e- signature services. Subscription revenue
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$52M $53M $59M Q4'23 Q4'24 Q4'25 $248M $246M $264M 2023 2024 2025 23(1) We define the number of business formations in a given period as the number of LLC, incorporation, not -for-profit and DBA orders placed through our platform in such period. (2) We define the number of transaction units in a given period as gross transaction order volume, prior to refunds, on our platform during such period. Transactions may include one or more services purchased at the same time. Refunds, or partial refunds, may be issued under certain circumstances, pursuant to the terms of our customer satisfaction guarantee. (3) We define average order value for a given period as total transaction revenue divided by total number of transactions in such period. Transaction KPIs Business Formations(1) 113K 96K 112K Total Transaction Units(2) 215K 241K 239K AOV(3) $242 $220 $248 Transaction KPIs 581K 482K 500K 1,043K 1,123K 1,117K $238 $219 $236 +12% YoY +7% YoY Transaction revenue is primarily generated from business formations services as well as other small business and consumer transactions including annual reports, trademark filings, and estate planning solutions. Transaction revenue
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145M 158M 176M 54M 38M 60M$199M $196M $236M 2023 2024 2025 33M 36M 40M 10M 8M 16M$43M $44M $56M Q4'23 Q4'24 Q4'25 % of Revenue Total Sales & Marketing 27% 27% 30% CAM 21% 22% 21% Other Sales & Marketing 6% 5% 8% % of Revenue 30% 29% 31% 22% 23% 23% 8% 6% 8% 24(1) These are non-GAAP financial measures. Refer to the Appendix for a reconciliation of these measures to the most directly comparable GAAP measures. Customer Acquisition Media “CAM” Other Sales & Marketing Sales & marketing(1)
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51M 47M 55M 43M 44M 56M16M 13M 14M 15M 13M 15M$125M $118M $140M Q4'23 Q4'24 Q4'25 222M 215M 232M 199M 196M 236M 60M 62M 58M60M 60M 58M$542M $534M $584M 2023 2024 2025 25(1) These are non-GAAP financial measures. Refer to the Appendix for a reconciliation of these measures to the most directly comparable GAAP measures. % of Revenue Total Non-GAAP Expense 79% 73% 74% Cost of Revenue 32% 29% 29% Sales & Marketing 27% 27% 30% Tech. & Dev. 10% 8% 7% G&A 10% 8% 8% % of Revenue 82% 78% 77% 34% 32% 31% 30% 29% 31% 9% 9% 8% 9% 9% 8% Cost of Revenue Sales & Marketing Technology & Development General & Administrative Non-GAAP expenses(1)
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Revenue growth of approximately 8% YoY - Acceleration vs. organic growth of 3% YoY in FY 2025 - Driven by quality customer acquisition and higher-value offerings Adj. EBITDA growth of approximately 13% YoY - Improved gross margins and disciplined cost management, partially offset by higher product and marketing investments - Continued investments in brand and partner channel initiatives, concentrated in Q1 2025, resulting in full-year customer acquisition marketing spend increasing slightly faster than revenue Q1 and FY 2026 guidance(1) $200M - $203M Total Revenue $34M - $36M Adjusted EBITDA(1) Q1 2026 $805M - $825M Total Revenue $190M - $200M Adjusted EBITDA(1) FY 2026 FY 2026 Guidance Commentary (1) This is a non-GAAP financial measure. The Company has not reconciled this forward-looking non-GAAP measure to the most comparable GAAP measure because it is unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. 26
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Appendix
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Reconciliation of GAAP expenses to non-GAAP expenses FYE Dec 31, $K 2023 2024 2025 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Cost of revenue $239,263 $240,093 $257,960 $55,907 $68,384 $63,609 $54,715 $53,385 $66,560 $67,398 $62,271 $61,731 Stock-based compensation 4,318 5,833 5,538 1,224 1,593 1,747 1,165 1,328 1,260 1,478 1,421 1,379 Depreciation and amortization 12,772 18,902 20,687 3,832 4,467 4,618 4,828 4,989 5,115 5,313 5,343 4,916 Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP cost of revenue 222,173 215,358 231,735 50,851 62,324 57,244 48,722 47,068 60,185 60,607 55,507 55,436 Sales and marketing 210,872 207,684 261,745 46,126 53,753 60,130 46,287 47,514 61,378 69,580 67,835 62,952 Stock-based compensation 6,096 8,077 16,810 1,494 1,579 1,906 1,864 2,728 3,767 4,473 4,445 4,125 Depreciation and amortization 5,286 3,736 9,261 1,275 799 889 960 1,088 1,715 2,454 2,513 2,579 Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP sales and marketing 199,490 195,871 235,674 43,357 51,375 57,335 43,463 43,698 55,896 62,653 60,877 56,248 Customer Acquisition Marketing(2) 145,338 157,578 175,614 33,131 40,563 47,119 33,975 35,921 44,215 46,713 44,227 40,458 Technology and development 83,181 89,584 81,941 22,107 23,957 25,798 23,179 16,650 21,322 21,635 19,485 19,499 Stock-based compensation 18,899 19,573 15,097 4,998 5,703 6,525 6,179 1,166 4,024 4,658 2,893 3,522 Depreciation and amortization 4,184 7,688 8,516 1,317 1,477 1,841 2,150 2,220 2,220 2,158 2,081 2,057 Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP technology and development 60,098 62,323 58,328 15,792 16,777 17,432 14,850 13,264 15,078 14,819 14,511 13,920 General and administrative 106,352 108,939 143,758 27,669 23,065 26,679 28,149 31,046 39,221 36,996 34,074 33,467 Stock-based compensation 36,702 38,027 76,263 7,294 5,981 8,737 6,507 16,802 20,705 20,029 19,610 15,919 Depreciation and amortization 3,141 4,601 5,659 898 927 1,078 1,257 1,339 1,356 1,414 1,436 1,453 Certain non-recurring items(1) 6,234 6,096 3,723 4,252 321 425 5,917 (567) 2,221 88 88 1,326 Non-GAAP general and administrative 60,275 60,215 58,113 15,225 15,836 16,439 14,468 13,472 14,939 15,465 12,940 14,769 28 (1) Includes acquisition-related expenses, restructuring expenses, legal reserves and settlements, and IPO-related costs and other transaction related expenses, as detailed in Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss) elsewhere in the appendix. (2) Customer Acquisition Marketing is a component of both GAAP and Non-GAAP sales and marketing expense.
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Reconciliation of GAAP expenses to non-GAAP expenses on a % of revenue basis (1) Includes acquisition-related expenses, restructuring expenses, legal reserves and settlements, and IPO-related costs and other transaction related expenses, as detailed in Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss) elsewhere in the appendix. (2) Customer Acquisition Marketing is a component of both GAAP and Non-GAAP sales and marketing expense. FYE Dec 31, $K 2023 2024 2025 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Cost of revenue 36% 35% 34% 35% 39% 36% 32% 33% 36% 35% 33% 32% Stock-based compensation 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Depreciation and amortization 2% 3% 3% 2% 3% 3% 3% 3% 3% 3% 3% 3% Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP cost of revenue 34% 32% 31% 32% 36% 32% 29% 29% 33% 31% 29% 29% Sales and marketing 32% 30% 35% 29% 31% 34% 27% 29% 34% 36% 36% 33% Stock-based compensation 1% 1% 2% 1% 1% 1% 1% 2% 2% 2% 2% 2% Depreciation and amortization 1% 1% 1% 1% 0% 1% 1% 1% 1% 1% 1% 1% Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP sales and marketing 30% 29% 31% 27% 29% 32% 26% 27% 31% 33% 32% 30% Customer Acquisition Marketing(2) 22% 23% 23% 21% 23% 27% 20% 22% 24% 24% 23% 21% Technology and development 13% 13% 11% 14% 14% 15% 14% 10% 12% 11% 10% 10% Stock-based compensation 3% 3% 2% 3% 3% 4% 4% 1% 2% 2% 2% 2% Depreciation and amortization 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP technology and development 9% 9% 8% 10% 10% 10% 9% 8% 8% 8% 8% 7% General and administrative 16% 16% 19% 17% 13% 15% 17% 19% 21% 19% 18% 18% Stock-based compensation 6% 6% 10% 5% 3% 5% 4% 10% 11% 10% 10% 8% Depreciation and amortization 0% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Certain non-recurring items(1) 1% 1% — 3% 0% 0% 4% (0%) 1% 0% 0% 1% Non-GAAP general and administrative 9% 9% 8% 10% 9% 9% 9% 8% 8% 8% 7% 8% 29
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Reconciliation of GAAP expenses to non-GAAP expenses on a year-over-year % basis (1) Includes acquisition-related expenses, restructuring expenses, legal reserves and settlements, and IPO-related costs and other transaction related expenses, as detailed in Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss) elsewhere in the appendix. (2) Customer Acquisition Marketing is a component of both GAAP and Non-GAAP sales and marketing expense. FYE Dec 31, $K 2023 2024 2025 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Cost of revenue 13% 0% 7% 18% 13% (0%) (8%) (5%) (3%) 6% 14% 16% Stock-based compensation 47% 35% (5%) 69% 82% 58% 4% 8% (21%) (15%) 22% 4% Depreciation and amortization 49% 48% 9% 62% 70% 53% 46% 30% 15% 15% 11% (1%) Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP cost of revenue 11% (3%) 8% 15% 10% (4%) (11%) (7%) (3%) 6% 14% 18% Sales and marketing (20%) (2%) 26% (4%) (11%) 12% (9%) 3% 14% 16% 47% 32% Stock-based compensation (40%) 32% 108% 192% 3% 32% 15% 83% 139% 135% 138% 51% Depreciation and amortization (25%) (29%) 148% (15%) (36%) (34%) (31%) (15%) 115% 176% 162% 137% Certain non-recurring items(1) (100%) — — — — — — — — — — — Non-GAAP sales and marketing (19%) (2%) 20% (6%) (10%) 13% (10%) 1% 9% 9% 40% 29% Customer Acquisition Marketing(2) (17%) 8% 11% 4% (0%) 31% (4%) 8% 9% (1%) 30% 13% Technology and development 18% 8% (9%) 17% 22% 30% 8% (25%) (11%) (16%) (16%) 17% Stock-based compensation 14% 4% (23%) 17% 32% 34% 31% (77%) (29%) (29%) (53%) 202% Depreciation and amortization 48% 84% 11% 82% 72% 119% 84% 69% 50% 17% (3%) (7%) Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP technology and development 18% 4% (6%) 14% 16% 23% (5%) (16%) (10%) (15%) (2%) 5% General and administrative (8%) 2% 32% 1% (13%) (1%) 12% 12% 70% 39% 21% 8% Stock-based compensation (28%) 4% 101% (30%) (39%) (24%) (20%) 130% 246% 129% 201% (5%) Depreciation and amortization (5%) 46% 23% (7%) 11% 71% 61% 49% 46% 31% 14% 9% Certain non-recurring items(1) 140% (2%) (39%) — (49%) 297% 374% (113%) 592% (79%) (99%) (334%) Non-GAAP general and administrative 2% (0%) (3%) (5%) 3% 12% (4%) (12%) (6%) (6%) (11%) 10% 30
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Reconciliation of GAAP gross profit to non-GAAP gross profit (1) We define non-GAAP gross profit as gross profit adjusted to exclude amortization of acquired intangible assets from our business combinations, non-cash stock-based compensation expense, losses from impairments of goodwill, long-lived and other assets, and other non-recurring expenses associated with our cost of revenue. Our non-GAAP gross profit financial measure differs from GAAP in that it excludes certain items of income and expense. We define gross profit margin as gross profit as a percentage of revenue. We define non-GAAP gross profit margin as non-GAAP gross profit as a percentage of revenue. FYE Dec 31, $K 2023 2024 2025 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Gross profit $421,464 $441,788 $498,083 $102,756 $105,830 $113,753 $113,884 $108,321 $116,550 $125,111 $127,887 $128,535 Cost of revenue stock-based compensation 4,318 5,833 5,538 1,224 1,593 1,747 1,165 1,328 1,260 1,478 1,421 1,379 Cost of revenue depreciation & amortization 12,772 18,902 20,687 3,832 4,467 4,618 4,828 4,989 5,115 5,313 5,343 4,916 Non-GAAP gross profit(1) $438,554 $466,523 $524,308 $107,812 $111,890 $120,118 $119,877 $114,638 $122,925 $131,902 $134,651 $134,830 Gross profit margin 64% 65% 66% 65% 61% 64% 68% 67% 64% 65% 67% 68% Non-GAAP gross profit margin(1) 66% 68% 69% 68% 64% 68% 71% 71% 67% 69% 71% 71% 31
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Reconciliation of GAAP net income (loss) to Adjusted EBITDA (1) Restructuring costs relate to certain one-time severance events for different components of our business. For 2023, restructuring expenses related to the reduction of our U.K. headcount, which was substantially complete by December 31, 2023. For 2024 and 2025, restructuring expenses related to the reduction of our U.S. headcount. FYE Dec 31, $K 2023 2024 2025 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Net income (loss) $13,953 $29,963 $15,427 $7,382 $4,744 $1,314 $11,051 $12,854 $5,127 ($266) $4,509 $6,058 Interest (income) expense, net (8,814) (7,404) (6,275) (2,457) (2,826) (2,203) (1,273) (1,102) (1,301) (1,904) (1,987) (1,083) Provision for (benefit from) income taxes 17,541 13,120 17,011 3,114 3,230 2,046 8,232 (388) 5,487 (278) 3,869 7,933 Depreciation and amortization 25,383 34,927 44,123 7,322 7,670 8,426 9,195 9,636 10,406 11,339 11,373 11,005 Other (income) expense, net (1,621) (98) (1,187) (1,185) (93) (11) (1,741) 1,747 (347) (652) 102 (290) Stock-based compensation 66,015 71,510 113,708 15,010 14,856 18,915 15,715 22,024 29,756 30,638 28,369 24,945 Acquisition and related expenses — — 2,869 — — — — — 1,543 — — 1,326 Gain on sale of assets held for sale — — (14,337) — — — — — (14,337) — — — Restructuring costs(1) 4,666 6,096 854 3,863 321 425 5,917 (567) 678 88 88 — Certain non-recurring expenses 1,568 — — 389 — — — — — — — — Adjusted EBITDA $118,691 $148,114 $172,193 $33,438 $27,902 $28,912 $47,096 $44,204 $37,012 $38,965 $46,323 $49,894 Revenue 660,727 681,881 756,043 158,663 174,214 177,362 168,599 161,706 183,110 192,509 190,158 190,266 Adjusted EBITDA margin 18% 22% 23% 21% 16% 16% 28% 27% 20% 20% 24% 26% 32
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Reconciliation of GAAP net income (loss) to non-GAAP net income (loss) (1) Restructuring costs relate to certain one-time severance events for different components of our business. For 2023, restructuring expenses related to the reduction of our U.K. headcount, which was substantially complete by December 31, 2023. For 2024 and 2025, restructuring expenses related to the reduction of our U.S. headcount. FYE Dec 31, $K 2023 2024 2025 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Net income (loss) $13,953 $29,963 $15,427 $7,382 $4,744 $1,314 $11,051 $12,854 $5,127 ($266) $4,509 $6,058 Amortization of acquired intangible assets 5,165 5,082 7,801 1,291 1,270 1,271 1,275 1,266 1,647 2,381 2,163 1,610 Stock-based compensation 66,015 71,510 113,708 15,010 14,856 18,915 15,715 22,024 29,756 30,638 28,369 24,945 Acquisition and related expenses — — 2,869 — — — — — 1,543 — — 1,326 Restructuring costs(1) 4,666 6,096 854 3,863 321 425 5,917 (567) 678 88 88 — Certain non-recurring expenses 1,568 — (14,337) 389 — — — — (14,337) — — — Income tax effects (10,892) (13,200) (12,073) (3,801) (2,847) (3,115) (4,259) (2,979) (592) (4,512) (4,133) (2,837) Non-GAAP net income $80,475 $99,451 $114,249 $24,134 $18,344 $18,810 $29,699 $32,598 $23,822 $28,329 $30,966 $31,102 Net income (loss) margin 2% 4% 2% 5% 3% 1% 7% 8% 3% (0%) 2% 3% Non-GAAP net income margin 12% 15% 15% 15% 11% 11% 18% 20% 13% 15% 16% 16% 33
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Reconciliation of net cash provided by operating activities to free cash flow (1) We define free cash flow as cash generated by operations after purchases of property and equipment including capitalized internal-use software. (2) We define operating cash flow margin as net cash provided by operating activities as a percentage of revenue. We define free cash flow margin as free cash flow as a percentage of revenue. We define unlevered free cash flow margin as unlevered free cash flow as a percentage of revenue. FYE Dec 31, $K 2023 2024 2025 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Net cash provided by operating activities $124,308 $135,639 $178,197 $22,495 $34,194 $27,245 $31,613 $42,586 $50,703 $39,139 $54,226 $34,129 Purchase of property and equipment (31,593) (35,696) (30,277) (8,374) (9,477) (9,873) (9,638) (6,707) (9,378) (7,530) (7,236) (6,134) Free cash flow(1) 92,715 99,943 147,920 14,121 24,717 17,372 21,975 35,879 41,325 31,609 46,990 27,995 Operating cash flow margin(2) 19% 20% 24% 14% 20% 15% 19% 26% 28% 20% 29% 18% Free cash flow margin(2) 14% 15% 20% 9% 14% 10% 13% 22% 23% 16% 25% 15% 34
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Reconciliation of total revenue to non-GAAP organic revenue FYE Dec 31, $K 2024 2025 Total Revenue $681,881 $756,043 Formation Nation Revenue — 51,401 Non-GAAP Organic Revenue(1) 681,881 704,642 YoY % of GAAP Revenue — 11% YoY % of Non-GAAP Organic Revenue(1) — 3% 35(1) We define non-GAAP organic revenue as total revenue less revenue from Formation Nation Inc., which we acquired in February 2025.