CS Disco Q4 revenue beats on Cecilia AI platform strength

CS Disco

25/02/2026 12:40

Overview

Legal technology firm's Q4 revenue rose 11% yr/yr, beating analyst expectations

Adjusted EBITDA loss for Q4 narrowed compared to previous year

Company reports over 600% revenue growth from Cecilia AI platform in Q4

Outlook

DISCO projects Q1 2026 software revenue between $33.75 mln and $35.25 mln

Company expects Q1 2026 total revenue between $39.0 mln and $41.5 mln

DISCO anticipates FY 2026 total revenue between $167.0 mln and $177.0 mln

Result Drivers

AI SOLUTIONS - Revenue from Cecilia AI platform and Auto Review increased over 600% in Q4 2025 compared to Q4 2024

AGENTIC AI LAUNCH - DISCO launched industry's first scaled agentic AI tool for eDiscovery

NEW COMMERCIAL MODEL - Introduction of new pricing model bundling key platforms at per gigabyte rate

Company press release: ID:nBw2qBYNDa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$41.17 mln
$39.98 mln (3 Analysts)
Q4 EPS
-$0.13
Q4 Net Income
-$8.50 mln
Q4 Gross Profit
$30.94 mln
Q4 Operating Expenses
$40.18 mln
Q4 Operating Income
-$9.24 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for CS Disco Inc is $8.50, about 160.7% above its February 24 closing price of $3.26

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)