Q4 2025 CS Disco Inc Earnings Call Transcript
Key Points
- CS Disco Inc (LAW) reported a total revenue growth of 11% year over year in Q4 2025, reaching $41.2 million.
- Software revenue grew by 14% year over year to $35.1 million in Q4 2025, marking the third consecutive quarter of accelerating growth.
- The company set record highs in total terabytes on its platform, with significant year-over-year growth in multi-terabyte matters.
- CS Disco Inc (LAW) saw a 600% year-over-year growth in the adoption of its generative AI capabilities, including Cecilia AI and Auto Review.
- The company introduced a new pricing model that includes all AI capabilities in every matter, aiming to reduce barriers to adoption and improve win rates.
- Adjusted EBITDA margin decreased to 5% in Q4 2025 from 12% in the prior year, indicating a decline in profitability.
- Full year 2025 adjusted EBITDA was negative $10.2 million, with a margin of -7%, compared to a margin of 13% in 2024.
- Services revenue declined by 3% year over year in Q4 2025, driven by a reduction in traditional review services.
- The company experienced a decrease in total dollar-based net retention, finishing the year at 98%.
- CS Disco Inc (LAW) anticipates a decrease in Q1 2026 adjusted EBITDA due to increased employee costs and one-time expenses.
Ladies and gentlemen, thank you for standing by and welcome to CS Disco Inc fourth quarter and fiscal year 2025 conference call.
(Operator Instructions)
I would now like to hand the conference call over to your first speaker today, head of investor relations, â¢Aleksey Lakchakov. Please go ahead.
Good morning and thank you for joining us on today's conference call to discuss the financial results for Disco's fourth quarter and fiscal year 2025. With me on today's call are Eric Friedrichsen , Disco's Chief Executive Officer, Aaron Barfoot, Disco's Chief Financial Officer, and Richard Crum, Disco's Chief Product Technology and Strategy Officer.
Today's call will include forwarding statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1,995, including but not limited to statements regarding our financial outlook and future performance, our future capital expenditures, market opportunity, market position, product, and go
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