Litigation technology firm CS Disco Q3 revenue beats estimates on software growth
LAW•CS Disco’s third-quarter revenue rose 11% year over year to $45.34 million, beating the $44.82 million estimate, and it reached adjusted EBITDA break-even a quarter ahead of schedule. The company forecast fourth-quarter revenue of $45.8 million to $47.8 million and 2026 software revenue of $149.5 million to $150.5 million.
1. Revenue and profitability
Third-quarter revenue rose 11% year over year to $45.34 million, above the $44.82 million analyst estimate. Net loss was $5.03 million, and the company said it reached adjusted EBITDA break-even a quarter ahead of schedule.
2. Growth and outlook
CS Disco said it recorded a sixth consecutive quarter of double-digit software revenue growth. Customers generating more than $100,000 in revenue increased 15% year over year, and the company launched Advanced Research, an AI tool for litigators. It forecast fourth-quarter revenue of $45.8 million to $47.8 million, 2026 software revenue of $149.5 million to $150.5 million, and 2026 adjusted EBITDA of negative $6.8 million to negative $5.3 million.
