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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, |  |
| 2026 |  | 2025 |  |  |  |
Transaction revenue | $ | 76,623 |  |  | $ | 66,853 |  |  |  |  |
Subscription revenue | 130,158 |  |  | 116,257 |  |  |  |  |
Total revenue | 206,781 |  |  | 183,110 |  |  |  |  |
Less: |  |  |  |  |  |  |
Filings fees | 33,903 |  |  | 25,219 |  |  |  |  |
Other cost of revenue, excluding depreciation, amortization and stock-based compensation | 35,050 |  |  | 34,966 |  |  |  |  |
Customer acquisition marketing | 55,054 |  |  | 44,215 |  |  |  |  |
| Three Months Ended March 31, |  |
| 2026 |  | 2025 |  |  |  |
Other sales and marketing, excluding depreciation, amortization and stock-based compensation | 16,883 |  |  | 11,681 |  |  |  |  |
Technology and development, excluding depreciation, amortization and stock-based compensation | 14,166 |  |  | 15,078 |  |  |  |  |
General and administrative, excluding depreciation, amortization, stock-based compensation, and restructuring | 15,867 |  |  | 16,482 |  |  |  |  |
Stock-based compensation | 21,314 |  |  | 29,756 |  |  |  |  |
Depreciation and amortization | 11,137 |  |  | 10,406 |  |  |  |  |
Interest income | (1,648) |  |  | (1,483) |  |  |  |  |
Interest expense | 676 |  |  | 182 |  |  |  |  |
Restructuring(1) | 643 |  |  | 678 |  |  |  |  |
Other segment items(2) | (81) |  |  | (347) |  |  |  |  |
Provision for income taxes | 2,713 |  |  | 5,487 |  |  |  |  |
Gain on sale of assets held for sale | — |  |  | (14,337) |  |  |  |  |
Segment net income | 1,104 |  |  | 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.

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- Definition The entire disclosure for reporting segments including data and tables. 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