Slides
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November 2026 Investor Presentation Josephine’s Empanadas Active LegalZoom Customer
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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. Allstatements 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 and reputation; our ability to maintain and expand strategic relationships with third parties; our ability to hire and retain top talent and motivate our employees; 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. Forward-looking statements disclaimer 2
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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. About non-GAAP financial measures 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. Third party information 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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Category Leader in a Large, Fragmented Market America’s #1 online legal services company 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 LegalZoom investment highlights 6
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(Comparisons YoY) Q3 2026 at a glance $55M TRANSACTION REVENUE $140M SUBSCRIPTION REVENUE $50M ADJUSTED EBITDA(1) $34M FREE CASH FLOW(1) $8M NET INCOME REVENUE $195M (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. +3% +11% 4% margin -14% 7 17% margin26% margin
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Our market and opportunity
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SMBs are a large and growing market Digital economy Growth of creator, freelance and platform-based business models Digital enablement tools Businesses can be launched quickly with minimal upfront investment AI driving accelerated growth in new businesses AI lowering startup costs and complexity in research, marketing and coding 69% YoY increase in U.S. professionals adopting the title “founder” in 2025 (3) 36M U.S. small businesses in operation(1) No. of small businesses formed (in thousands) 4% U.S. small business formation CAGR(2) Small business count by size (in millions) (1) Source: U.S. Small Business Administration 2025 Small Business Profile as of June 30, 2025. (2) Source: U.S. Census Bureau Business Formation Statistics. (3) Source: LinkedIn as of January 14, 2026. 9 1-19 employees 5.7M 20-499 employees 0.7M Without employees 29.8M
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Significant $51B SAM(1) opportunity Business management Disjointed set of providers with no unified solution for SMBs Business compliance Mandatory recurring requirements, including registered agent services, licensing, and annual filings Expert assistance As businesses scale, complexity increases, driving demand for DIFM (Do-It-For-Me) services and legal, tax, employment, and other expertise LegalZoom unifies SMB needs in a fragmented market (1) Total SAM as of February 2024. Business formation includes entity creation. Business management includes registered agent, entity compliance, bookkeeping, business licenses and virtual mail. Expert assistance includes intellectual property, contracts and legal forms, estate planning and other legal matters. LegalZoom’s estate planning services range from DIY to expert assisted offerings. BUSINESS FORMATION(1) Customer acquisition BUSINESS MANAGEMENT & COMPLIANCE(1) Immediate and recurring SMB needs HUMAN-IN-THE-LOOP: EXPERT ASSISTANCE(1) Our fastest growing services and largest opportunity $3B $14B $34B 10 10
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A scaled platform combining software, services and experts to capture recurring SMB legal and compliance spend Why LegalZoom wins 4.6 Trustpilot score 5M+ Businesses formed since inception 25+ Business, legal, compliance & management subscriptions 1,000+ Attorneys via owned law firm & independent attorney network(3) +74 NPS (vs. -61 offline attorney NPS(2)) Years in operation 25+ TRUSTED BRAND SMALL BUSINESS EXPERTISE LEADING CUSTOMER EXPERIENCE DIVERSE PRODUCT SUITE BEST-IN-CLASS LEGAL EXPERTS(1) HUMAN-IN-THE-LOOP AT SCALE Unless noted, all information is as of September 30, 2026. (1) Source: Internal customer data reflecting owned law firm NPS as of December 31, 2025. (2) Net promoter score (NPS) in 2024, according to Clio Legal Trends Report. (3) As of December 31, 2025. 11
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SMBs face real compliance burdens To create a legal business entity, SMBs must: To maintain a business entity, SMBs must: Establish a business name & address Form with Secretary of State Appoint a Registered Agent Create Bylaws / Operating Agreement Obtain an EIN through the IRS Get business licenses and permits 12 Renew business licenses and permits Keep Bylaws / Operating Agreement up to date Update insurance (e.g., for hiring employees) Separate business finances File annual reports File and pay taxes
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All-in-one platform serves new and existing SMBs Our products and subscription services Form your business Run your business Stay compliant Access advice Estate Planning AI TECHNOLOGY + HUMAN EXPERTISE Credit Establishment *Partner offering Federal Tax Identification (EIN) Operating Agreement LLC / Corporation / Nonprofit / DBA Legal Forms / e-Signature Virtual Mail Bookkeeping Banking* Website* Registered Agent Compliance Monitoring Business Licenses Business Attorney Plan Tax Advice* Personal Attorney Plan Reinstatement IP-Related Services Business & Attorney Manager 13 Business Manager
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Our human-in-the-loop advantage Attorneys 1,000+ independent attorney network serving all 50 states IP Professionals Trademark and IP-related support through our owned law firm Business Managers White-glove business & compliance services Customer Care Live human support for every customer Registered Agent Physical compliance notice handling in all 50 states Virtual Mail Physical mail handling and digital processing Deborah B. Arroyo Law Group, LLP 37 years of experience Jason M. McGrath & Spielberger PLLC 29 years of experience 14
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Packaging and premium offerings are driving higher-value customers Focused on higher-value customers Basic (free formation) $0 Pro Formation Package $249 Premium Formation Package $299 Essentials Package $599/yr Business & Attorney Manager Package $1,399/yr Articles of organization Name check service Tax consultation Operating agreement Federal tax ID number (EIN) Unlimited 30-minute attorney consults* Attorney review of legal documents* 150+ customizable legal documents Unlimited e-signatures One copyright registration Bookkeeping software** Customizable proposals and invoices** Expedited processing Registered agent services Compliance alerts Required state filings Customized business license report Dedicated business manager ONLINE BUSINESS FORMATION OFFERINGS SALES BUSINESS FORMATIONS OFFERINGS *30-day subscription included for Pro and Premium packages, 1-year subscription included for Business & Attorney Manager package. ** 6 months included for Premium package; 1 year of service included for Essentials and Business & Attorney Manager packages. Jenny & Jane K. J Flowers LLC Formed with LegalZoom in 2021 15
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Our strategy
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Our vision Expert-led services are fastest growing offerings Strong recurring base of subscriptions Business formation is primary acquisition channel Partnership ecosystem broadening our solution set Expansion into higher-value established SMBs AI collaborations + channel partnerships expand top-of-funnel Greater mix of expert-led subscriptions AI driving expert efficiency and UX improvement LegalZoom today Growth drivers 17
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Optimize our subscription business Reorient go-to- market strategy Leverage AI to deliver expertise Three key focus areas 1 2 3 18
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Create scalable solutions that deliver impactful outcomes Optimize our subscription business Focus on premium legal and compliance solutions that cater to high-quality new and existing small businesses Leverage technology & AI to add value to existing offerings Deepen customer engagement and drive higher lifetime value 19
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Expanding our suite of Do-It-For-Me offerings Business Manager suite Launched Business Manager suite in February 2025, catering to high-value new and established small business customers. Products include: Services include: • Dedicated Business Manager • Regular check-ins • Hands-on management • Fully managed business services including entity management, compliance oversight, and proactive issue resolution Business & Attorney Manager $1,399/yr LLC Business Manager $1,199/yr Reinstatement + Business Manager $1,299/yr* OPTIMIZE OUR SUBSCRIPTION BUSINESS 20 Business Dissolution Manager $799 Business Manager $999/yr Foreign Qualification + Business Manager $1,499/yr* *Foreign Qualification + Business Manager renews at $1,399/year. Reinstatement + Business Manager renews at $999/year.
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Business Manager in action Customer spotlight: Sphinx Productions Sphinx Productions crew on location in Europe Before, I was using the LegalZoom platform as a tool. With my Business Manager, it became a partnership.” Ahmed Radwan Founder, Sphinx Productions · Customer since 2018 Sphinx Productions develops feature films across continents. Founder Ahmed Radwan relies on Business Manager to keep his California LLC compliant while he focuses on production. LegalZoom products used: Business Manager Compliance, annual reports, licenses & renewals Registered Agent Legal notices received virtually, anywhere LLC Formation California LLC formed in 2018 What Business Manager delivered: • Dedicated Business Manager • End-to-end state filings management • Confidence Sphinx Productions LLC was properly formed and in good standing when meeting with investors, co-producers and distribution partners 21 OPTIMIZE OUR SUBSCRIPTION BUSINESS
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New LegalZoom experience drives deeper engagement(1) Focused on engagement and retention Personalized Action Plan for compliance, tax, IP, licensing and more, fulfilled by LegalZoom and its partners OPTIMIZE OUR SUBSCRIPTION BUSINESS 22 1 2 3 1 2 3 AI Assistant uses customer business data to answer questions and refer to experts Single view of business status, documents and services, with direct access to experts +26% AI assistant engagement(2) +28% Documents accessed(3) (1) Customer data as of September 22, 2026 for LLC customers 90+ days post formation. (2) Customers who interacted with the AI Assistant as compared to customers who did not. (3) Customers who opened or downloaded their business documents in the newly redesigned account as compared to those in the original account.
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Diversifying our customer acquisition channels by strengthening our brand, expanding partnerships and investing in AI- driven distribution Reorient go-to-market strategy Investments in brand marketing, positioning LegalZoom as the trusted legal brand for small businesses Accelerate acquisition mix beyond traditional search Further leverage partner channel to acquire high-intent small businesses 23
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Diversified acquisition channel investments REORIENT GO-TO-MARKET STRATEGY 24 Accelerating acquisition mix beyond traditional search Social Video, Audio & Streaming Search & AI Answer Engines Programmatic & Publisher Direct
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Strategic partnerships expanding top-of-funnel Leveraging strategic partnerships to acquire high-intent small businesses Chase Offers + LegalZoom new customer channel REORIENT GO-TO-MARKET STRATEGY 25 Launched and Scaling Strategy Signed and Launched(1) Growth driven by continued expansion of partner portfolio, deeper embedded integrations, and investing in the expansion of partner go-to-market programs. (1) American Express represents signed partner. All other logos represent recent launches.
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REORIENT GO-TO-MARKET STRATEGY Our AI Strategy Meeting our customers where they are at every stage of their legal journey 26(1) LegalZoom versus direct competitors for the third quarter ended September 30, 2026, according to AirOps. 1. Discoverability Ensuring customers find us through AI 2. Collaborations Active collaborations with AI platforms #1 brand visibility across leading AI platforms(1) #1 cited website across leading AI platforms(1) Participating in ChatGPT and Google ads Making our services available to agents via MCPs and dedicated pages 3. Experiences Using AI to grow relationships LegalZoom AI Assistant Airo integration Claude + LegalZoom attorney integration Copilot + LegalZoom legal services integration Counsel + LegalZoom legal services partnership ChatGPT + LegalZoom formation guidance Astra for Law + LegalZoom legal guidance
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Leverage AI to deliver expertise Customer-Centric Augmentation Access to both AI and our experts gives customers affordable support at scale, a combination technology-only platforms can’t replicate Augmented Legal Expertise AI empowers our attorneys to do more, delivering legal services to our customers that are faster and smarter Operational Efficiency & Cost Discipline AI is unlocking operating efficiencies while expanding the attorney capacity available to customers Platform Evolution & SMB Expansion Focused on creating customer-facing AI assistants with conversational interfaces and that act as a trusted partner for SMBs navigating complexity 27
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28 AI improving our customer experience & driving efficiencies LegalZoom Legal Services: AI-powered trademark intake AI driving 20% reduction in trademark purchase to filing time in Q3 vs. Q1 — resulting in more efficient use of attorney capacity and higher product gross margins Customer Care: AI-powered resolution Agentic AI handling thousands of customer care chat interactions, fully resolving almost 50% of inquiries end-to-end Rolling out agentic AI customer call interactions, with approximately 25% resolution rate Customer Care: AI-powered coaching AI-powered coaching has reduced missed sales opportunities by ~1/3, enabling our teams to offer more solutions and cross-sell our products LEVERAGE AI TO DELIVER EXPERTISE 28Source: internal company data as of September 30, 2026.
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Experienced management team Jeff Stibel Chief Executive Officer Noel Watson Chief Financial & Operating Officer Nicole Miller Chief Legal Officer Aaron Stibel Chief Business & Customer Officer Kathy Tsitovich Chief Corporate Development & Partnerships Officer Sheily Chhabria Panchal Chief People Officer Daniel Lysaught Chief Marketing Officer 29
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Financial update
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$46M $50M Q3'25 Q3'26 $190M $195M Q3'25 Q3'26 $135M $143M Q3'25 Q3'26 Revenue Non-GAAP Gross Profit(1) Adjusted EBITDA(1) % of Revenue(1) 71% 73% % of Revenue(1) 24% 26% +6% YoY+3% 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. Q3 2026 snapshot 31 +8% YoY
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$125M $131M $130M $133M $140M Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Subscription revenue is primarily comprised of registered agent and compliance packages, attorney advice, virtual mail, bookkeeping, legal forms, and e- signature services. Subscription KPIs Subscription Units(1) 1,959K 1,939K 1,920K 1,892K 1,854K ARPU(2) $256 $266 $263 $270 $280 Subscription KPIs 1,545K 1,766K 1,939K $277 $263 $266 +11% YoY +13% YoY (1) We define the number of subscription units in a given period as the paid subscriptions that remain active at the end of such period, including those that are not yet 60 days past their subscription order dates. 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. Subscription revenue $413M $436M $492M 2023 2024 2025 32
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$248M $246M $264M 2023 2024 2025 $58M $65M $55M Q3'24 Q3'25 Q3'26 Transaction KPIs Business Formations(1) 113K 126K 110K Total Transaction Units(2) 255K 259K 249K AOV(3) $227 $251 $222 Transaction KPIs 581K 482K 500K 1,043K 1,123K 1,117K $238 $219 $236 -14% YoY +7% YoY (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 transactions 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 revenue Transaction revenue is primarily generated from business formations services as well as other small business and consumer transactions including annual reports and filing fees, trademark filings, and estate planning solutions. 33
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34M 44M 51M 9M 17M 19M$43M $61M $70M Q3'24 Q3'25 Q3'26 % of Revenue Total Sales & Marketing 26% 32% 36% CAM 20% 23% 26% Other Sales & Marketing 6% 9% 10% % of Revenue 30% 29% 31% 22% 23% 23% 8% 6% 8% Customer Acquisition Marketing “CAM” Other Sales & Marketing (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. Sales & marketing(1) 145M 158M 176M 54M 38M 60M$199M $196M $236M 2023 2024 2025 34
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49M 56M 52M 43M 61M 70M15M 15M 11M 14M 13M 12M$122M $144M $145M Q3'24 Q3'25 Q3'26 222M 215M 232M 199M 196M 236M 60M 62M 58M60M 60M 58M$542M $534M $584M 2023 2024 2025 % of Revenue Total Non-GAAP Expense 72% 76% 74% Cost of Revenue 29% 29% 27% Sales & Marketing 26% 32% 36% Tech. & Dev. 9% 8% 5% G&A 9% 7% 6% % 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 (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. Non-GAAP expenses(1) 35
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Revenue growth of approximately 6% YoY • Reiterating midpoint of FY 2026 revenue guidance • Scaling of higher-value growth initiatives and continued momentum in partner channel • Partially offset by continued pressure in customer acquisition for the remainder of the year Adj. EBITDA growth of approximately 6% YoY • Ongoing gross margin improvement through disciplined cost management and AI driven efficiencies • Outlook includes continued investment in channel diversification, higher costs in paid customer acquisition channels, investment in higher-value expert services, as well as seasonal investment in sales capabilities ahead of the first quarter peak in business formations. $190M - $196M Total Revenue $48M - $53M Adjusted EBITDA(1) Q4 2026 $797M - $803M Total Revenue $180M - $185M 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. Q4 and FY 2026 guidance 36
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Appendix
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Reconciliation of GAAP expenses to non-GAAP expenses FYE Dec 31, $K 2023 2024 2025 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Cost of revenue $239,263 $240,093 $257,960 $54,715 $53,385 $66,560 $67,398 $62,271 $61,731 $74,528 $65,359 $57,083 Stock-based compensation 4,318 5,833 5,538 1,165 1,328 1,260 1,478 1,421 1,379 1,251 1,443 1,005 Depreciation and amortization 12,772 18,902 20,687 4,828 4,989 5,115 5,313 5,343 4,916 4,324 4,353 4,040 Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP cost of revenue 222,173 215,358 231,735 48,722 47,068 60,185 60,607 55,507 55,436 68,953 59,563 52,038 Sales and marketing 210,872 207,684 261,745 46,287 47,514 61,378 69,580 67,835 62,952 78,668 78,849 76,909 Stock-based compensation 6,096 8,077 16,810 1,864 2,728 3,767 4,473 4,445 4,125 3,548 3,879 3,325 Depreciation and amortization 5,286 3,736 9,261 960 1,088 1,715 2,454 2,513 2,579 3,183 3,246 3,578 Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP sales and marketing 199,490 195,871 235,674 43,463 43,698 55,896 62,653 60,877 56,248 71,937 71,724 70,006 Customer Acquisition Marketing(2) 145,338 157,578 175,614 33,975 35,921 44,215 46,713 44,227 40,458 55,054 52,639 51,078 Technology and development 83,181 89,584 81,941 23,179 16,650 21,322 21,635 19,485 19,499 19,605 20,047 14,297 Stock-based compensation 18,899 19,573 15,097 6,179 1,166 4,024 4,658 2,893 3,522 3,347 3,662 1,938 Depreciation and amortization 4,184 7,688 8,516 2,150 2,220 2,220 2,158 2,081 2,057 2,092 2,142 1,790 Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP technology and development 60,098 62,323 58,328 14,850 13,264 15,078 14,819 14,511 13,920 14,166 14,243 10,569 General and administrative 106,352 108,939 143,758 28,149 31,046 39,221 36,996 34,074 33,467 31,216 30,384 33,313 Stock-based compensation 36,702 38,027 76,263 6,507 16,802 20,705 20,029 19,610 15,919 13,168 14,612 12,731 Depreciation and amortization 3,141 4,601 5,659 1,257 1,339 1,356 1,414 1,436 1,453 1,538 1,533 1,464 Certain non-recurring items(1) 6,234 6,096 3,723 5,917 (567) 2,221 88 88 1,326 1,247 378 6,630 Non-GAAP general and administrative 60,275 60,215 58,113 14,468 13,472 14,939 15,465 12,940 14,769 15,263 13,861 12,488 38 (1) Includes acquisition-related expenses, restructuring expenses, legal reserves and settlements, and other transaction relatedexpenses, 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 other transaction relatedexpenses, 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 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Cost of revenue 36% 35% 34% 32% 33% 36% 35% 33% 32% 36% 32% 29% Stock-based compensation 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Depreciation and amortization 2% 3% 3% 3% 3% 3% 3% 3% 3% 2% 2% 2% Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP cost of revenue 34% 32% 31% 29% 29% 33% 31% 29% 29% 33% 29% 27% Sales and marketing 32% 30% 35% 27% 29% 34% 36% 36% 33% 38% 38% 39% Stock-based compensation 1% 1% 2% 1% 2% 2% 2% 2% 2% 2% 2% 2% Depreciation and amortization 1% 1% 1% 1% 1% 1% 1% 1% 1% 2% 2% 2% Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP sales and marketing 30% 29% 31% 26% 27% 31% 33% 32% 30% 35% 35% 36% Customer Acquisition Marketing(2) 22% 23% 23% 20% 22% 24% 24% 23% 21% 27% 26% 26% Technology and development 13% 13% 11% 14% 10% 12% 11% 10% 10% 9% 10% 7% Stock-based compensation 3% 3% 2% 4% 1% 2% 2% 2% 2% 2% 2% 1% 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% 9% 8% 8% 8% 8% 7% 7% 7% 5% General and administrative 16% 16% 19% 17% 19% 21% 19% 18% 18% 15% 15% 17% Stock-based compensation 6% 6% 10% 4% 10% 11% 10% 10% 8% 6% 7% 7% Depreciation and amortization 0% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Certain non-recurring items(1) 1% 1% — 4% (0%) 1% 0% 0% 1% 1% 0% 3% Non-GAAP general and administrative 9% 9% 8% 9% 8% 8% 8% 7% 8% 7% 7% 6% 39
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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 other transaction relatedexpenses, 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 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Cost of revenue 13% 0% 7% (8%) (5%) (3%) 6% 14% 16% 12% (3%) (8%) Stock-based compensation 47% 35% (5%) 4% 8% (21%) (15%) 22% 4% (1%) (2%) (29%) Depreciation and amortization 49% 48% 9% 46% 30% 15% 15% 11% (1%) (15%) (18%) (24%) Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP cost of revenue 11% (3%) 8% (11%) (7%) (3%) 6% 14% 18% 15% (2%) (6%) Sales and marketing (20%) (2%) 26% (9%) 3% 14% 16% 47% 32% 28% 13% 13% Stock-based compensation (40%) 32% 108% 15% 83% 139% 135% 138% 51% (6%) (13%) (25%) Depreciation and amortization (25%) (29%) 148% (31%) (15%) 115% 176% 162% 137% 86% 32% 42% Certain non-recurring items(1) (100%) — — — — — — — — — — — Non-GAAP sales and marketing (19%) (2%) 20% (10%) 1% 9% 9% 40% 29% 29% 14% 15% Customer Acquisition Marketing(2) (17%) 8% 11% (4%) 8% 9% (1%) 30% 13% 25% 13% 15% Technology and development 18% 8% (9%) 8% (25%) (11%) (16%) (16%) 17% (8%) (7%) (27%) Stock-based compensation 14% 4% (23%) 31% (77%) (29%) (29%) (53%) 202% (17%) (21%) (33%) Depreciation and amortization 48% 84% 11% 84% 69% 50% 17% (3%) (7%) (6%) (1%) (14%) Certain non-recurring items(1) — — — — — — — — — — — — Non-GAAP technology and development 18% 4% (6%) (5%) (16%) (10%) (15%) (2%) 5% (6%) (4%) (27%) General and administrative (8%) 2% 32% 12% 12% 70% 39% 21% 8% (20%) (18%) (2%) Stock-based compensation (28%) 4% 101% (20%) 130% 246% 129% 201% (5%) (36%) (27%) (35%) Depreciation and amortization (5%) 46% 23% 61% 49% 46% 31% 14% 9% 13% 8% 2% Certain non-recurring items(1) 140% (2%) (39%) 374% (113%) 592% (79%) (99%) (334%) (44%) 330% 7434% Non-GAAP general and administrative 2% (0%) (3%) (4%) (12%) (6%) (6%) (11%) 10% 2% (10%) (3%) 40
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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, 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 definegross 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 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Gross profit $421,464 $441,788 $498,083 $113,884 $108,321 $116,550 $125,111 $127,887 $128,535 $132,253 $139,930 $138,063 Cost of revenue stock-based compensation 4,318 5,833 5,538 1,165 1,328 1,260 1,478 1,421 1,379 1,251 1,443 1,005 Cost of revenue depreciation & amortization 12,772 18,902 20,687 4,828 4,989 5,115 5,313 5,343 4,916 4,324 4,353 4,040 Non-GAAP gross profit(1) $438,554 $466,523 $524,308 $119,877 $114,638 $122,925 $131,902 $134,651 $134,830 $137,828 $145,726 $143,108 Gross profit margin 64% 65% 66% 68% 67% 64% 65% 67% 68% 64% 68% 71% Non - GAAP gross profit margin (1) 66% 68% 69% 71% 71% 67% 69% 71% 71% 67% 71% 73% 41
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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, 2025 and 2026, restructuring expenses related to the reduction of our global headcount. FYE Dec 31, $K 2023 2024 2025 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Net income (loss) $13,953 $29,963 $15,427 $11,051 $12,854 $5,127 ($266) $4,509 $6,058 $1,104 $5,183 $8,061 Interest (income) expense, net (8,814) (7,404) (6,275) (1,273) (1,102) (1,301) (1,904) (1,987) (1,083) (972) (1,501) (1,350) Provision for (benefit from) income taxes 17,541 13,120 17,011 8,232 (388) 5,487 (278) 3,869 7,933 2,713 6,965 6,802 Depreciation and amortization 25,383 34,927 44,123 9,195 9,636 10,406 11,339 11,373 11,005 11,137 11,274 10,872 Other (income) expense, net (1,621) (98) (1,187) (1,741) 1,747 (347) (652) 102 (290) (81) 3 31 Stock-based compensation 66,015 71,510 113,708 15,715 22,024 29,756 30,638 28,369 24,945 21,314 23,596 18,999 Acquisition and related expenses — — 2,869 — — 1,543 — — 1,326 604 — 863 Gain on sale of assets held for sale — — (14,337) — — (14,337) — — — — — — Restructuring costs(1) 4,666 6,096 854 5,917 (567) 678 88 88 — 643 378 5,767 Certain non-recurring expenses 1,568 — — — — — — — — — — — Adjusted EBITDA $118,691 $148,114 $172,193 $47,096 $44,204 $37,012 $38,965 $46,323 $49,894 $36,462 $45,898 $50,045 Revenue 660,727 681,881 756,043 168,599 161,706 183,110 192,509 190,158 190,266 206,781 205,289 195,146 Adjusted EBITDA margin 18% 22% 23% 28% 27% 20% 20% 24% 26% 18% 22% 26% 42
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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, 2025, and 2026, restructuring expenses related to the reduction of our global headcount. FYE Dec 31, $K 2023 2024 2025 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Net income (loss) $13,953 $29,963 $15,427 $11,051 $12,854 $5,127 ($266) $4,509 $6,058 $1,104 $5,183 $8,061 Amortization of acquired intangible assets 5,165 5,082 7,801 1,275 1,266 1,647 2,381 2,163 1,610 1,610 1,610 1,610 Stock-based compensation 66,015 71,510 113,708 15,715 22,024 29,756 30,638 28,369 24,945 21,314 23,596 18,999 Acquisition and related expenses — — 2,869 — — 1,543 — — 1,326 604 — 863 Restructuring costs(1) 4,666 6,096 854 5,917 (567) 678 88 88 — 643 378 5,767 Certain non-recurring expenses 1,568 — (14,337) — — (14,337) — — — — — — Income tax effects (10,892) (13,200) (12,073) (4,259) (2,979) (592) (4,512) (4,133) (2,837) (3,205) (3,323) (3,857) Non-GAAP net income $80,475 $99,451 $114,249 $29,699 $32,598 $23,822 $28,329 $30,996 $31,102 $22,070 $27,444 $31,443 Net income (loss) margin 2% 4% 2% 7% 8% 3% (0%) 2% 3% 1% 3% 4% Non - GAAP net income margin 12% 15% 15% 18% 20% 13% 15% 16% 16% 11% 13% 16% 43
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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. FYE Dec 31, $K 2023 2024 2025 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Net cash provided by operating activities $124,308 $135,639 $178,197 $31,613 $42,586 $50,703 $39,139 $54,226 $34,129 $47,282 $39,547 $39,873 Purchase of property and equipment (31,593) (35,696) (30,277) (9,638) (6,707) (9,378) (7,530) (7,236) (6,134) (6,308) (5,857) (5,754) Free cash flow(1) 92,715 99,943 147,920 21,975 35,879 41,325 31,609 46,990 27,995 40,974 33,690 34,119 Operating cash flow margin (2) 19% 20% 24% 19% 26% 28% 20% 29% 18% 23% 19% 20% Free cash flow margin (2) 14% 15% 20% 13% 22% 23% 16% 25% 15% 20% 16% 17% 44
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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% 45(1) We define non-GAAP organic revenue as total revenue less revenue from Formation Nation Inc., which we acquired in February 2025.