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Sep 30, 2025
CS Disco Q3 2025 Earnings Report
CS Disco reported financial results for its third quarter ended September 30, 2025.
Key Takeaways
CS Disco demonstrated meaningful acceleration in both software and total revenue in the third quarter of 2025, with total revenue increasing by 13% year-over-year to $40.9 million. The company also significantly improved its Adjusted EBITDA and non-GAAP operating margin compared to the previous year.
Total revenue for Q3 2025 reached $40.9 million, marking a 13% increase year-over-year.
Net loss attributable to common stockholders was $13.665 million, or $0.22 per share.
Non-GAAP net loss attributable to common stockholders significantly improved to $0.552 million, or $0.01 per share, compared to $3.868 million, or $0.06 per share, in Q3 2024.
Adjusted EBITDA improved to a loss of $0.297 million, up from a loss of $4.503 million in the same period last year.
Forward Guidance
For the fourth quarter of 2025, DISCO expects total revenue between $40.0 million and $42.0 million, and Adjusted EBITDA between a loss of $3.0 million and a loss of $1.0 million. For the full fiscal year 2025, total revenue is projected to be between $155.7 million and $157.7 million, with Adjusted EBITDA between a loss of $11.1 million and a loss of $9.1 million.
Positive Outlook
- Q4 2025 total revenue guidance of $40.0 million to $42.0 million, indicating continued growth.
- Q4 2025 Adjusted EBITDA guidance shows a potential improvement from previous periods, with a narrower loss range.
- Full year 2025 total revenue guidance of $155.7 million to $157.7 million, reflecting overall annual growth.
- Full year 2025 Adjusted EBITDA guidance also indicates a path towards reduced losses.
- The company's strategy to attract large clients and matters is gaining traction, which could support future revenue growth.
Challenges Ahead
- The company continues to project Adjusted EBITDA losses for both Q4 and the full fiscal year 2025.
- Forward-looking statements are subject to various risks and uncertainties, including operating losses and limited operating history.
Historical Earnings Impact
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