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Dec 31, 2025
CS Disco Q4 2025 Earnings Report
CS Disco reported its fourth quarter and fiscal year 2025 financial results, highlighting 11% year-over-year revenue growth and significant expansion in AI-driven revenue.
Key Takeaways
CS Disco achieved Q4 2025 revenue of $41.2 million, driven by a 14% increase in software revenue and a massive 600% surge in Cecilia AI and Auto Review revenue. While the company remains in a net loss position, it significantly narrowed its GAAP net loss from $25.2 million to $8.5 million year-over-year and improved its Adjusted EBITDA margin.
Total revenue for Q4 2025 grew 11% year-over-year to $41.2 million.
Cecilia AI platform and Auto Review revenue increased over 600% compared to Q4 2024.
GAAP net loss improved substantially to $8.5 million from $25.2 million in the prior year's quarter.
The company announced the industry's first scaled agentic AI tool for fact investigation and eDiscovery.
Revenue by Segment
Forward Guidance
For fiscal year 2026, DISCO expects total revenue between $167.0 million and $177.0 million, with continued investment in agentic AI and a new commercial pricing model.
Positive Outlook
- Full year 2026 revenue projected to grow to a midpoint of $172 million.
- Software revenue for FY 2026 expected to reach up to $152.5 million.
- Launch of the industry's first scaled agentic AI solution for eDiscovery.
- Introduction of a new AI-inclusive platform combining all Cecilia AI capabilities.
- New commercial model based on industry-standard per-gigabyte pricing to simplify adoption.
Challenges Ahead
- Q1 2026 revenue guidance midpoint ($40.25M) is slightly lower than Q4 2025 actuals.
- Adjusted EBITDA is expected to remain negative for both Q1 and Full Year 2026.
- FY 2026 Adjusted EBITDA loss could be as high as $8.5 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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