CS Disco Earnings Call Transcripts
Fiscal Year 2026
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The company is accelerating growth by focusing on large law firms and high-stakes litigation, embedding AI deeply into its platform, and simplifying pricing to drive adoption. Recent innovations like Cecilia Advanced Research and integration of primary law set it apart from general legal AI tools, supporting a path to 20%+ revenue growth and EBITDA positivity.
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Q1 2026 saw 14% revenue growth, strong AI-driven product adoption, and improved profitability metrics. The DISCO Platform launch exceeded expectations, driving larger deals and multi-year agreements, with guidance raised for FY2026.
Fiscal Year 2025
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Q4 and FY25 saw double-digit revenue growth, margin improvement, and rapid AI adoption. New pricing and packaging are expected to drive further growth and profitability, with management targeting 20%+ growth and adjusted EBITDA breakeven by Q4 2026.
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Q3 2025 delivered 13% revenue growth and a significant improvement in adjusted EBITDA, driven by strong software sales, large matter growth, and increased AI adoption. Guidance for Q4 and FY2025 remains strong, with a continued focus on innovation and operational execution.
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Q2 2025 saw 12% software revenue growth and improved margins, driven by large, complex matters and strong AI product adoption. Guidance for revenue and adjusted EBITDA was raised, with a focus on enterprise customers and operational efficiency.
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Q1 2025 revenue grew 3% year-over-year to $36.7M, with strong growth in large customer accounts and AI product adoption. Full-year guidance was raised for revenue and adjusted EBITDA, reflecting confidence in strategic initiatives and resilient demand despite macro uncertainty.
Fiscal Year 2024
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Revenue grew 5% in 2024 to $144.8M, driven by large customer expansion and increased software adoption. Adjusted EBITDA improved, and the company targets breakeven by Q4 2026, with a focus on enterprise sales and AI innovation.
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Q3 2024 revenue grew 4% year-over-year to $36.3M, with software revenue up 6% and a net loss of $3.9M. Strategic focus shifted to larger customers, new leadership was added, and multi-year enterprise deals were signed. Cash position remains strong at $126.8M.
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Gen AI is revolutionizing legal document review by automating high-volume tasks, improving accuracy, and providing transparent, defensible results. Adoption is accelerating, with robust security and best practices ensuring effective implementation and measurable ROI.
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Q2 2024 revenue grew 5% year-over-year to $36M, with software revenue up 8% and services down 7%. Adjusted EBITDA and net loss both improved, and the company launched new AI-driven products while focusing on large law firm customers and operational enhancements.