XML 30 R20.htm IDEA: XBRL DOCUMENT v3.25.3
Segment Information
 9 Months Ended
Sep. 30, 2025
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 nine months ended September 30, 2025 and 2024. Our property and equipment located outside of the U.S. were immaterial as of September 30, 2025 and 2024.
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,
2025202420252024
Transaction revenue$64,799 $57,879 $204,263 $192,733 
Subscription revenue125,359 110,720 361,514 327,442 
Total revenue190,158 168,599 565,777 520,175 
Less:
Filings fees24,214 18,493 76,752 65,243 
Other cost of revenue, excluding depreciation, amortization and stock-based compensation31,293 30,229 99,547 103,047 
Customer acquisition marketing44,227 33,975 135,156 121,657 
Other sales and marketing, excluding depreciation, amortization and stock-based compensation16,650 9,488 44,270 30,516 
Technology and development, excluding depreciation, amortization and stock-based compensation14,511 14,850 44,408 49,059 
General and administrative, excluding depreciation, amortization, stock-based compensation, and restructuring12,940 14,468 44,887 46,743 
Stock-based compensation28,369 15,715 88,763 49,486 
Depreciation and amortization11,373 9,195 33,118 25,291 
Interest income(2,139)(1,345)(5,691)(6,547)
Interest expense152 72 499 245 
Restructuring(1)
88 5,917 854 6,663 
Other segment items(2)
102 (1,741)(897)(1,845)
Provision for income taxes3,869 8,232 9,078 13,508 
Gain on sale of assets held for sale— — (14,337)— 
Segment net income4,509 11,051 9,370 17,109 
Reconciliation of profit or loss
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Adjustments and reconciling items$— $— $— $— 
Consolidated net income$4,509 $11,051 $9,370 $17,109 
(1) For 2025 and 2024, 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.