Overview

* CS Disco Q3 2025 revenue grows 13% yr/yr, beating analyst expectations

* GAAP net loss for Q3 2025 increases to $13.7 mln from $9.2 mln last year

* Adjusted EBITDA improves significantly compared to Q3 2024

Outlook

* Company expects Q4 software revenue between $33.75 mln and $34.75 mln

* Company projects Q4 total revenue between $38.75 mln and $40.75 mln

* DISCO forecasts FY 2025 total revenue between $154.4 mln and $156.4 mln

Result Drivers

* LARGE CLIENTS AND MATTERS - CEO Eric Friedrichsen attributes revenue growth to increased traction with large clients and large matters

* GENAI TOOLS ADOPTION - Growing adoption of advanced GenAI tools cited as a factor in healthy ecosystem

* CECILIA AI PLATFORM - 300% growth in customer databases leveraging Cecilia AI Platform since September 2024

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $40.92 $38.52

Revenue mln mln (5

Analysts

)

Q3 EPS -$0.22

Q3 Net -$13.67

Income mln

Q3 Gross $30.91

Profit mln

Q3 $45.37

Operatin mln

g

Expenses

Q3 -$14.46

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 $4.50, about 33.1% below its November 4 closing price of $5.99

Press Release:

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(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.)