CS Disco Q4 revenue beats on Cecilia AI platform strength

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

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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