CS Disco Q2 Earnings Call Highlights

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Sat, August 8, 2026 astatine 11:04 AM CDT 6 min read

Key Points

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Q2 fiscal 2026 gross roseate 13% to $43.1 million, driven by larger matters, stronger major-customer relationships and accrued AI adoption. AI-related gross much than tripled twelvemonth implicit year, portion trailing-12-month gross from customers generating implicit $100,000 grew 15%.
CS Disco launched its DISCO Unified Litigation Solution into a constricted lawsuit pilot, connecting lawsuit grounds with applicable ineligible authorities and litigation workflows. The institution said the merchandise volition not lend gross successful fiscal 2026 arsenic it continues refining pricing and packaging.
The institution raised its full-year gross outlook to $172 million–$179 million and maintained its anticipation of adjusted EBITDA profitability successful Q4 fiscal 2026. Q2 ended with $101.4 cardinal successful currency and short-term investments and nary debt, contempt a $3.4 cardinal adjusted EBITDA loss.

CS Disco (NYSE:LAW) reported second-quarter fiscal 2026 gross maturation of 13% arsenic the ineligible exertion institution cited expanding ample matters, deeper relationships with large customers and accrued usage of its artificial quality products.

Total gross for the 4th was $43.1 million, portion bundle gross reached $36.8 million, some up 13% from a twelvemonth earlier. Services gross accrued 18% to $6.3 million, which Chief Financial Officer Aaron Barfoot said was chiefly driven by nonrecreational services and managed-review enactment related to Cecilia AutoReview connected the company's largest matters.

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The institution recorded adjusted EBITDA of antagonistic $3.4 cardinal and a nett nonaccomplishment of $3.6 million, oregon $0.06 per share. CS Disco ended the 4th with $101.4 cardinal successful currency and short-term investments and nary debt. Operating currency travel was antagonistic $1.1 million, improving from antagonistic $4.2 cardinal successful the prior-year period.

Unified Litigation Solution Enters Pilot Phase

Chief Executive Officer Eric Friedrichsen announced the motorboat of the DISCO Unified Litigation Solution, which the institution described arsenic a broader, semipermanent enlargement beyond e-discovery. The level is designed to link a litigation team's grounds with applicable lawsuit law, tribunal rules, statutes and regulations done a unified interface.

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Friedrichsen said the institution yet intends to supply an integrated acceptable of litigation tools spanning a substance from filing done proceedings preparation. In the adjacent term, the offering is intended to assistance teams link facts and controlling law, portion incorporating litigation-specific workflows.

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