CS Disco Earnings Call Transcripts
Fiscal Year 2026
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Q3 revenue grew 15% YoY excluding a prior-year contingent matter, and adjusted EBITDA turned positive ahead of plan. Large matters, customer expansion, and AI adoption supported growth; FY26 revenue guidance was raised.
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Accelerating growth is driven by a refined customer focus, new executive leadership, and innovative AI-powered products like Auto Review. The unified litigation solution and unique access to primary law data position the company to expand wallet share and outpace competitors in the litigation technology space.
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Q2 revenue grew 13% year-over-year to $43.1 million, driven by strong adoption of AI-powered solutions and larger, more complex matters. The company launched its Unified Litigation Solution, raised FY2026 guidance, and remains on track for Adjusted EBITDA positivity in Q4.
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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 FY 2024 to $144.8M, with software up 7% and improved margins. Strategic focus on large customers and AI-driven products led to higher retention and attach rates. Guidance for FY 2025 projects continued growth and a path to breakeven Adjusted EBITDA by Q4 2026.
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Q3 2024 revenue grew 4% year-over-year to $36.3 million, with software revenue up 6% and improved gross margin. Strategic focus shifted to larger, high-value customers, supported by leadership changes and workforce realignment. Cash position remains strong at $126.8 million.
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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.