CS Disco Reports 13% Revenue Growth to $43.1 Million in Q2 2026

CS Disco, Inc. reported its financial results for the second quarter of 2026, revealing a revenue increase of 13% year-over-year, reaching $43.1 million compared to $38.1 million in the same period of 2025. For the first half of 2026, the company generated $85.0 million in revenue, a 14% increase from $74.8 million in the prior year. Despite the revenue growth, CS Disco recorded a net loss of $8.7 million for the second quarter, an improvement from the $10.8 million loss reported in the same quarter of 2025. The net loss for the first half of 2026 was $18.3 million, down from $22.2 million in the previous year.

The company’s cost of revenue also increased, totaling $11.0 million for the second quarter, up 14% from $9.7 million in 2025. This rise was attributed to higher cloud hosting costs due to increased usage of its software offerings, as well as increased personnel costs linked to headcount growth. Operating expenses for the second quarter were $41.3 million, slightly higher than the $40.2 million reported in the same quarter of 2025. Notably, general and administrative expenses decreased by 14% to $9.5 million, primarily due to reduced legal costs associated with ongoing litigation.

CS Disco's customer base continues to expand, with new customers contributing $5.9 million to revenue in the second quarter, although existing customers saw a decrease in usage that offset some of this growth. The company reported that 92% of its revenue for the three and six months ended June 30, 2026, came from usage-based contracts, while subscription revenue accounted for 8%. The company’s software offerings, including DISCO Hold and DISCO Ediscovery, generated $36.8 million in revenue for the second quarter, reflecting a 13% increase from the previous year.

In terms of operational metrics, CS Disco had $10.9 million in cash and cash equivalents and $90.5 million in short-term investments as of June 30, 2026. The company’s total assets decreased to $161.4 million from $173.6 million at the end of 2025, primarily due to a reduction in cash and cash equivalents. The company’s employee headcount has also increased, supporting its growth strategy and operational needs.

Looking ahead, CS Disco aims to continue expanding its customer base and increasing product adoption. The company plans to enhance its sales coverage and strengthen channel partnerships to drive market presence. However, it remains cautious about potential macroeconomic challenges and their impact on customer spending in the legal industry. The company expects to leverage its innovative product offerings and AI capabilities to capture a larger share of the market while navigating the complexities of the legal landscape.