CS Disco Inc (NYSE:LAW)

Q2 2026 CS Disco Inc Earnings Call Transcript

Aug 5, 2026 / 12:30 PM GMT

Release Date Price: $4.05 (-2.88%)

Transcript 10-Q8-K

Key Points

Positve

Total revenue grew 13% year-over-year to $43.1 million, with software revenue also up 13% to $36.8 million.
The number of customers generating over $100,000 in the last 12 months increased 15% year-over-year, now representing 77% of total revenue.
Revenue from generative AI and agentic AI capabilities more than tripled year-over-year, driven by strong adoption of Cecilia and Auto Review.
The new DISCO platform commercial model exceeded internal expectations, hitting its December 2026 run-rate goal by June, with strong customer adoption.
The company is on track to achieve adjusted EBITDA positivity in Q4 2026, with full-year guidance raised to $172-$179 million in total revenue.
The launch of the unified litigation solution, which integrates evidence and case law, has received positive early feedback from pilot customers, positioning the company as a leader in AI for litigators.

Negative

Adjusted EBITDA remained negative at -$3.4 million in Q2, with a margin of -8%, slightly worse than the prior year's -7%.
Net loss widened to $3.6 million in Q2, compared to $2.8 million in the same period last year.
The company may experience short-term revenue impacts from lower ingest fees as the DISCO platform adoption grows, potentially affecting near-term results.
The unified litigation solution is still in a pilot phase with no firm pricing or monetization plan, and revenue from it is not expected in 2026.
Research and development expenses increased to 31% of revenue, reflecting continued heavy investment in new products, which could pressure profitability in the near term.
The company faces intense competition from general-purpose legal AI tools like Harvey and Legora, which may limit market share gains despite DISCO's deeper focus on litigation.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

LAW.N - CS Disco, Inc.
Q2 2026 CS Disco Inc Earnings Call
Aug 05, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, thank you for standing by and welcome to CSDISCO's second quarter of fiscal year 2026 conference call. At this time, all participants are in a listen-only mode and all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw. Your question, press star 1 again.

I would now like to hand the conference over to your first speaker today, Head of Investor Relations, Alexey Lakshakov. Please go ahead.

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