CS Disco, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 6% year-over-year, reaching $38.1 million compared to $36.0 million in the same period of 2024. For the first half of 2025, the company generated $74.8 million in revenue, a 4% increase from $71.6 million in the prior year. Despite the revenue growth, CS Disco recorded a net loss of $10.8 million for the second quarter, consistent with the loss reported in the same quarter of the previous year. The net loss for the first half of 2025 was $22.2 million, compared to $21.4 million in the first half of 2024.
The company’s cost of revenue increased to $9.7 million in the second quarter of 2025, up from $9.3 million in the prior year, primarily due to higher cloud hosting costs associated with increased usage of its software offerings. Operating expenses also rose, totaling $40.2 million for the second quarter, compared to $39.1 million in the same period last year. Notably, research and development expenses increased by 8% to $14.0 million, reflecting higher personnel costs driven by increased headcount. Conversely, sales and marketing expenses decreased by 2% to $15.2 million.
CS Disco's customer base continues to expand, with new customers contributing $4.4 million to revenue in the second quarter, although this was offset by a $2.3 million decline in revenue from existing customers. The company reported that 90% of its revenue in the second quarter came from usage-based contracts, while subscription revenue accounted for 10%. The company also noted a significant reliance on its software offerings, which saw a 12% increase in revenue, while service offerings experienced a 20% decline.
In terms of operational metrics, CS Disco had $21.7 million in cash and cash equivalents and $92.8 million in short-term investments as of June 30, 2025. The company is focused on expanding its market presence and product offerings, including the recent launch of its ediscovery chatbot, Cecilia. Looking ahead, CS Disco aims to enhance its sales coverage, strengthen channel partnerships, and explore strategic acquisitions to drive growth. The company remains cautious about macroeconomic conditions and their potential impact on customer spending and usage of its products.
About CS Disco, Inc.
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