CS Disco, Inc. reported a revenue of $156.8 million for the fiscal year ending December 31, 2025, marking an 8% increase from $144.8 million in 2024. The company experienced a net loss of $44.4 million, a decrease from a loss of $55.8 million in the previous year. This improvement in profitability is attributed to a combination of increased revenue from new customers and a reduction in the overall net loss, despite fluctuations in customer usage driven by the timing of legal matters.
The company’s customer base grew to 1,549 by the end of 2025, up from 1,478 in 2024, with 330 of these being classified as large customers, defined as those generating over $100,000 in revenue annually. The dollar-based net retention rate remained stable at 98%, indicating strong customer loyalty and continued usage of DISCO's product offerings. However, revenue from existing customers saw a slight decline, primarily due to decreased usage in certain product lines, which was partially offset by contingent revenue recognized from a favorable legal resolution for one customer.
Strategically, DISCO has focused on expanding its product offerings and enhancing its technology, particularly through the integration of artificial intelligence. The company launched several new features, including the Cecilia AI platform, which aims to improve legal document review processes. Additionally, DISCO has plans for international expansion, particularly targeting markets in the United Kingdom and India, where less than 10% of its revenue currently originates.
Operationally, DISCO's total operating expenses decreased slightly to $165.5 million in 2025 from $169.2 million in 2024. Research and development expenses increased by 10% to $56.6 million, reflecting the company's commitment to innovation. General and administrative expenses rose significantly due to legal fees associated with ongoing litigation, including a settlement related to a class action lawsuit. The company ended the year with $19.7 million in cash and cash equivalents, alongside $94.9 million in short-term investments, indicating a solid liquidity position to support future growth initiatives.
Looking ahead, DISCO anticipates continued fluctuations in revenue due to the unpredictable nature of legal matters that drive customer usage of its products. The company is focused on maintaining its growth trajectory by enhancing customer relationships, expanding its market presence, and continuing to innovate its product offerings. However, it acknowledges potential challenges from macroeconomic conditions and increased competition in the legal technology space.
About CS Disco, Inc.
CS Disco, Inc. provides cloud-native, AI-powered legal technology solutions for legal hold, discovery, document review, and case management. Serving enterprises, law firms, and government agencies, it automates manual legal processes to improve efficiency, accuracy, and legal outcomes. Its scalable platform centralizes legal data, leverages AI for faster review, and offers a flexible, usage-based business model to enhance lawyer productivity and reduce legal costs.
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