CS Disco Raises Low End of 2026 Revenue Outlook

The Tip Desk · August 5, 2026 · 3 min read

Second-quarter revenue was $43.1 million, up 13% from a year earlier, as the company lifted the low end of its full-year total-revenue range.

CS Disco, Inc. (LAW), the litigation-technology company, reported second-quarter total revenue of $43.1 million, up 13% from a year earlier, after a 14% year-over-year increase in the first quarter.

Software revenue was $36.8 million, up 13% from the second quarter of 2025, after a 12% year-over-year increase in the first quarter. Chief executive Eric Friedrichsen said the company continued to deepen relationships with its largest customers, secure large and complex matters, and extend its lead in AI built for litigators.

GAAP net loss attributable to common stockholders was $8.7 million, or $0.13 a share, compared with $10.8 million, or $0.18 a share, a year earlier. GAAP operating loss narrowed to $9.2 million from $11.8 million, and operating margin improved to (21)% from (31)%. Gross profit was $32.1 million; non-GAAP gross margin held at 76%.

Adjusted EBITDA was a loss of $3.4 million, compared with a loss of $2.7 million a year earlier. Stock-based compensation expense was $5.1 million in the quarter, down from $6.5 million a year earlier. GAAP general and administrative expense fell to $9.5 million from $11.0 million; non-GAAP G&A as a percentage of revenue was 18%, versus 19%.

Customers with more than $100,000 of revenue over the trailing 12 months rose to 354 as of June 30, 2026, a 10% increase versus June 30, 2025, after 347 such customers as of March 31, 2026.

DISCO announced a new unified litigation solution that combines the facts of a matter with relevant U.S. case law in an AI-native application, which the company said will move it beyond traditional e-discovery. The company also welcomed Andre Mintz, a former Meta senior executive, to its board in July 2026.

For the third quarter of 2026, DISCO issued software revenue of $38.1 million to $39.1 million and total revenue of $43.75 million to $45.75 million, above the second-quarter actuals of $36.8 million and $43.1 million. Adjusted EBITDA is expected in a range of $(1.75) million to $(0.25) million.

The fiscal 2026 outlook was raised at the low end. Total revenue is now $172.0 million to $179.0 million, versus the May outlook of $169.25 million to $178.75 million. Software revenue is $147.5 million to $152.5 million, versus $146.0 million to $152.5 million in May. Adjusted EBITDA for the full year is $(8.0) million to $(5.0) million, versus a May range of $(8.0) million to $(4.0) million.

Cash and cash equivalents were $10.9 million at June 30, 2026, down from $19.7 million at year-end 2025. Short-term investments were $90.5 million. Deferred revenue was $4.2 million.

The company said its outlook is based on assumptions subject to change, many of which are outside its control, and that there can be no assurance it will achieve those results.