CS Disco Q4 Earnings Call Highlights

• Financials: Q4 full gross was $41.2M (+11% YoY) with bundle gross of $35.1M (+14%), full-year gross was $156.8M and adjusted EBITDA improved to −$10.2M (−7% margin); the institution finished Q4 with $114.6M successful currency and no debt.

• GenAI momentum: Adoption of Cecilia AI and Auto Review accelerated sharply (over 600% YoY maturation successful Q4), helping thrust grounds multi‑terabyte usage and >30% YoY gross maturation from ample matters.

• Go‑to‑market displacement and guidance: DISCO volition bundle Cecilia AI connected each substance and determination pricing toward lawsuit data‑size maturation to trim income friction and amended triumph rates; absorption guided FY2026 gross of $167M–$177M and expects adjusted EBITDA breakeven by Q4 2026.

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CS Disco (NYSE:LAW) reported fourth-quarter and full-year 2025 results highlighting accelerating bundle gross growth, improving profitability metrics, and expanding adoption of its generative AI offerings, including Cecilia AI and Auto Review. Management besides elaborate a displacement to a caller packaging, pricing, and contracting exemplary intended to trim friction successful income cycles and grow usage crossed larger litigation matters.

For Q4 2025, DISCO reported full gross of $41.2 million, up 11% year-over-year, with bundle gross of $35.1 million, up 14%. CEO Eric Friedrichsen said this marked the 3rd consecutive 4th of accelerating maturation successful some full and bundle revenue, excluding a one-time contingent bundle gross point recognized successful Q3.

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Adjusted EBITDA successful Q4 was -$2.2 million, representing a -5% margin, compared with a -12% adjusted EBITDA borderline successful the prior-year period.

For the afloat twelvemonth 2025, full gross was $156.8 million (the CFO aboriginal cited $157 million), up 8% year-over-year. Software gross was $134 million, up 12%. Full-year adjusted EBITDA was -$10.2 million for a -7% margin, improving from a -13% borderline successful 2024.

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Services gross declined, which absorption attributed to little accepted reappraisal activity:

• Q4 services revenue: $6.0 million, down 3% year-over-year

• Full-year services revenue: $22.8 million, down 8% year-over-year

Management attributed 2025 show to higher level usage, maturation successful ample matters and ample customers, and faster adoption of generative AI capabilities. In Q4, DISCO said it acceptable grounds highs successful full terabytes connected its level and finished the twelvemonth with double-digit maturation successful multi-terabyte matters. Friedrichsen said gross from multi-terabyte matters grew much than 30% year-over-year successful Q4.