Overview
CS Disco Q3 2025 revenue grows 13% yr/yr, beating analyst expectations
GAAP net loss for Q3 2025 increases to $13.7 mln from $9.2 mln last year
Adjusted EBITDA improves significantly compared to Q3 2024
Outlook
Company expects Q4 software revenue between $33.75 mln and $34.75 mln
Company projects Q4 total revenue between $38.75 mln and $40.75 mln
DISCO forecasts FY 2025 total revenue between $154.4 mln and $156.4 mln
Result Drivers
LARGE CLIENTS AND MATTERS - CEO Eric Friedrichsen attributes revenue growth to increased traction with large clients and large matters
GENAI TOOLS ADOPTION - Growing adoption of advanced GenAI tools cited as a factor in healthy ecosystem
CECILIA AI PLATFORM - 300% growth in customer databases leveraging Cecilia AI Platform since September 2024
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $40.92 mln | $38.52 mln (5 Analysts) |
Q3 EPS | -$0.22 | ||
Q3 Net Income | -$13.67 mln | ||
Q3 Gross Profit | $30.91 mln | ||
Q3 Operating Expenses | $45.37 mln | ||
Q3 Operating Income | -$14.46 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for CS Disco Inc is $4.50, about 33.1% below its November 4 closing price of $5.99
Press Release: ID:nBw5vF8bva
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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