Overview
Legal technology firm's Q4 revenue rose 11% yr/yr, beating analyst expectations
Adjusted EBITDA loss for Q4 narrowed compared to previous year
Company reports over 600% revenue growth from Cecilia AI platform in Q4
Outlook
DISCO projects Q1 2026 software revenue between $33.75 mln and $35.25 mln
Company expects Q1 2026 total revenue between $39.0 mln and $41.5 mln
DISCO anticipates FY 2026 total revenue between $167.0 mln and $177.0 mln
Result Drivers
AI SOLUTIONS - Revenue from Cecilia AI platform and Auto Review increased over 600% in Q4 2025 compared to Q4 2024
AGENTIC AI LAUNCH - DISCO launched industry's first scaled agentic AI tool for eDiscovery
NEW COMMERCIAL MODEL - Introduction of new pricing model bundling key platforms at per gigabyte rate
Company press release: ID:nBw2qBYNDa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $41.17 mln | $39.98 mln (3 Analysts) |
Q4 EPS | -$0.13 | ||
Q4 Net Income | -$8.50 mln | ||
Q4 Gross Profit | $30.94 mln | ||
Q4 Operating Expenses | $40.18 mln | ||
Q4 Operating Income | -$9.24 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "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 $8.50, about 160.7% above its February 24 closing price of $3.26
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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.)