v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Our Chief Executive Officer, as the CODM, organizes our company, manages resource allocations, and measures performance on the basis of one operating segment on a consolidated basis. The accounting policies of our operating segment are the same as those described in Note 2, Summary of Significant Accounting Policies. The CODM assesses performance for the segment and decides how to allocate resources based on net income that also is reported on the accompanying unaudited condensed consolidated statements of operations as consolidated net income. The measure of segment assets is reported on the unaudited condensed consolidated balance sheets as total assets.
The CODM uses net income to evaluate income generated from segment assets in making key operating and segment resource allocation decisions, such as investments in new product development. Net income is also used to monitor budget versus actual results.
Our one reportable segment provides an online platform for business formation in the U.S. and, as described in Note 2, Summary of Significant Accounting Policies, generates revenue from customized legal document services and subscriptions offered to our customers. Revenue outside of the U.S., based on the location of the customer, represented less than 1% of our revenue for the three months ended March 31, 2026 and 2025. Our property and equipment located outside of the U.S. were immaterial as of March 31, 2026 and 2025.
The following table summarizes financial information by reportable segment regularly provided to the CODM (in thousands):

Three Months Ended March 31,
20262025
Transaction revenue$76,623 $66,853 
Subscription revenue130,158 116,257 
Total revenue206,781 183,110 
Less:
Filings fees33,903 25,219 
Other cost of revenue, excluding depreciation, amortization and stock-based compensation35,050 34,966 
Customer acquisition marketing55,054 44,215 
Three Months Ended March 31,
20262025
Other sales and marketing, excluding depreciation, amortization and stock-based compensation16,883 11,681 
Technology and development, excluding depreciation, amortization and stock-based compensation14,166 15,078 
General and administrative, excluding depreciation, amortization, stock-based compensation, and restructuring15,867 16,482 
Stock-based compensation21,314 29,756 
Depreciation and amortization11,137 10,406 
Interest income(1,648)(1,483)
Interest expense676 182 
Restructuring(1)
643 678 
Other segment items(2)
(81)(347)
Provision for income taxes2,713 5,487 
Gain on sale of assets held for sale— (14,337)
Segment net income1,104 5,127 
Reconciliation of profit or loss
Adjustments and reconciling items$— $— 
Consolidated net income$1,104 $5,127 
(1) For 2026 and 2025, restructuring costs related to the reduction of our U.S. headcount.
(2) Other segment items included in segment net income primarily consist of foreign currency gains or losses related to our intercompany loans which were denominated in British Pound Sterling and included in other income, net on the unaudited condensed consolidated statements of operations.