Overview

* CS Disco Q2 2025 revenue grows 6% yr/yr, beating analyst expectations, per LSEG data

* Software revenue for Q2 rises 12% yr/yr, reflecting strong core performance

* GAAP net loss for Q2 remains consistent with prior year

Outlook

* DISCO sees Q3 software revenue $32.75 mln - $33.75 mln

* DISCO sees Q3 total revenue $37.5 mln - $39.5 mln

* DISCO expects FY 2025 software revenue $128 mln - $134 mln

* DISCO expects FY 2025 total revenue $148 mln - $158 mln

Result Drivers

* SOFTWARE REVENUE - Software revenue grew 12% yr/yr, driven by expansion of large matters and traction with major customers

* AI TOOL LAUNCHES - Launch of Auto Review and Searchable AV Transcriptions tools in EU and UK contributed to growth

* CECILIA AI PLATFORM - 150% increase in multi-terabyte matters leveraging Cecilia AI Platform from Dec 2024 to Jun 2025

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $38.11 $37.50

Revenue mln mln (5

Analysts

)

Q2 EPS -$0.18

Q2 Net -$10.81

Income mln

Q2 Gross $28.42

Profit mln

Q2 $40.23

Operatin mln

g

Expenses

Q2 -$11.81

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "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 ( LAW ) is $5.00, about 17.8% above its August 5 closing price of $4.11

Press Release:

(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.)