Is LEGALZOOM.COM, INC. (LZ) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 1.2% / 30% | 17.2% / 30% | 2.0% / 30% | 1.0% / 5% | ✓ HALAL |
| DJIM | 1.2% / 33% | 17.2% / 33% | 2.0% / 33% | 1.0% / 5% | ✓ HALAL |
| MSCI | 2.8% / 33% | 39.7% / 33% | 4.7% / 33% | 1.0% / 5% | ✗ NOT HALAL |
| S&P | 1.2% / 33% | 17.2% / 33% | 2.0% / 33% | 1.0% / 5% | ✓ HALAL |
| FTSE | 2.8% / 33% | 39.7% / 33% | 4.7% / 50% | 1.0% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 65.9% | |
| Operating Margin | 6.6% | |
| Net Margin | 2.0% | |
| Return on Equity (ROE) | 11.6% | |
| Return on Assets (ROA) | 1.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $178M |
| Free Cash Flow | $148M |
| Total Debt | $14M |
| Debt-to-Equity | 8.4 |
| Current Ratio | 0.8 |
| Total Assets | $512M |
Price & Trading
| Last Close | $5.79 |
| 50-Day MA | $7.21 |
| 200-Day MA | $9.19 |
| Avg Volume | 3.3M |
| Beta | 1.3 |
|
52-Week Range
$5.44
| |
About LEGALZOOM.COM, INC. (LZ)
LegalZoom.com, Inc. together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company's platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; and intellectual property products consisting of trademark and patent applications, and copyright registrations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and legal forms. In addition, the company offers subscriptions services, including registered agent, compliance, small business attorney advice through our legal plans, compliance concierge, compliance and legal concierge, reinstatement concierge and compliance concierge, business concierge, business and legal concierge, consumer attorney advice through legal plans, business licenses, virtual mail and check deposit services, estate planning bundle, bookkeeping, e-signature, and trademark monitoring. The company was incorporated in 1999 and is headquartered in Mountain View, California.
Purification Calculator
As a halal stock with 1.00% impermissible income, you need to purify your dividends.
Related Halal Stocks in Industrials
Frequently Asked Questions
Is LEGALZOOM.COM, INC. (LZ) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), LEGALZOOM.COM, INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is LEGALZOOM.COM, INC.'s debt ratio?
LEGALZOOM.COM, INC.'s debt ratio is 1.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.8%.
Does LEGALZOOM.COM, INC. require dividend purification?
Yes, LEGALZOOM.COM, INC. has an impermissible income ratio of 1.00%, which means 1.00% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are LEGALZOOM.COM, INC.'s key financial metrics?
LEGALZOOM.COM, INC. has a market capitalization of $971M, trailing P/E ratio of 68.5, and revenue of $756M. The company maintains a gross margin of 65.9% and a net margin of 2.0%. Return on equity stands at 11.6%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.