CS Disco Q4 Revenue Rises 11% as AI Adoption Surges 600%
CS Disco posted $156.8 million in full-year 2025 revenue, up 8%, and Q4 revenue of $41.2 million, up 11%, with software revenue rising 14% to $35.1 million. Generative AI adoption surged over 600% in Q4, driving more than 30% growth in multi-terabyte matter revenue.
1. Financial Performance
CS Disco reported full-year 2025 revenue of $156.8 million, up 8% year-over-year, including software revenue of $134 million, up 12%. Q4 revenue reached $41.2 million, an 11% increase, with software revenue of $35.1 million, up 14%, and adjusted EBITDA loss improving to $10.2 million (–7% margin).
2. AI Adoption and Usage
Adoption of generative AI features Cecilia AI and Auto Review accelerated sharply in Q4, registering over 600% year-over-year growth. Revenue from multi-terabyte matters grew more than 30%, and the company ended 2025 with 330 customers generating over $100,000 in annual revenue, contributing $119 million (76% of total).
3. Packaging and Pricing Model
A new go-to-market strategy now bundles Cecilia AI on every matter and shifts pricing toward data size growth to reduce sales friction and improve win rates. The updated packaging includes Cecilia Q&A, Auto Timelines, Document Summaries, and Case Builder tools, aiming to drive larger, longer-term matters on the platform.
4. 2026 Guidance and Outlook
For FY2026, the company guided total revenue of $167 million to $177 million and expects adjusted EBITDA breakeven by Q4 2026. CS Disco ended Q4 2025 with $114.6 million in cash, no debt, and improved gross margin to 76%, setting a path toward profitability.