v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2026 and 2025. Long-lived tangible assets located outside the U.S. represented approximately 11.4% of total long-lived tangible assets as of September 30, 2026. Long-lived tangible assets located outside the U.S. were immaterial as of December 31, 2025.
The following table summarizes financial information by reportable segment regularly provided to the CODM (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Transaction revenue$55,473 $64,799 $203,986 $204,263 
Subscription revenue139,673 125,359 403,230 361,514 
Total revenue195,146 190,158 607,216 565,777 
Less:
Filings fees21,725 24,214 82,133 76,752 
Other cost of revenue, excluding depreciation, amortization and stock-based compensation30,313 31,293 98,421 99,547 
Customer acquisition marketing51,078 44,227 158,771 135,156 
Other sales and marketing, excluding depreciation, amortization and stock-based compensation18,928 16,650 54,896 44,270 
Technology and development, excluding depreciation, amortization and stock-based compensation10,569 14,511 38,978 44,408 
General and administrative, excluding depreciation, amortization, stock-based compensation, and restructuring13,351 12,940 43,079 44,887 
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Stock-based compensation18,999 28,369 63,909 88,763 
Depreciation and amortization10,872 11,373 33,283 33,118 
Interest income(1,427)(2,139)(4,702)(5,691)
Interest expense77 152 879 499 
Restructuring(1)
5,767 88 6,788 854 
Other segment items(2)
31 102 (47)(897)
Provision for income taxes6,802 3,869 16,480 9,078 
Gain on sale of assets held for sale— — — (14,337)
Segment net income8,061 4,509 14,348 9,370 
Reconciliation of profit or loss
Adjustments and reconciling items$— $— $— $— 
Consolidated net income$8,061 $4,509 $14,348 $9,370 
(1) For 2026 and 2025, restructuring costs related to the reduction of our global 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 (expense) income, net on the unaudited condensed consolidated statements of operations.