CS Disco CFO to Step Down, Q2 Revenue Up 6%

CS Disco CFO Michael Lafair will step down by December 31, 2025, or upon successor appointment. He will continue to serve in his current roles until the transition date and provide advisory services until February 17, 2026. The company reported Q2 2025 total revenue of $38.1 million, a 6% YoY increase, and launched new tools. DISCO's outlook for Q3 and FY 2025 anticipates continued growth in software and total revenue.

CS Disco, a leading legal technology company, announced that its Chief Financial Officer (CFO), Michael LaFaire, will step down by December 31, 2025, or upon successor appointment. LaFaire will continue to serve in his current roles until the transition date and provide advisory services until February 17, 2026. The company reported Q2 2025 total revenue of $38.1 million, a 6% year-over-year (YoY) increase, and launched new tools. DISCO's outlook for Q3 and FY 2025 anticipates continued growth in software and total revenue.

The company's second-quarter results showed a 12% increase in software revenue to $32.7 million, and total revenue of $38.1 million, up 6% YoY. Despite a revenue miss compared to expectations, the company reported a narrower-than-expected loss per share of $0.04, beating the forecasted loss of $0.07. Adjusted EBITDA improved to a loss of $2.7 million, a $2 million enhancement from the previous year, and the net loss decreased to $2.8 million, compared to a $4.4 million loss in the same period last year [2].

LaFaire's departure comes as CS Disco aims to achieve EBITDA breakeven by 2026. The company's strategic focus on growth and financial stability has been emphasized by CEO Eric Friedrichsen and CFO LaFaire. Friedrichsen stated, "We believe this business can be a 20% plus grower," while LaFaire noted, "Our goal is to be adjusted EBITDA positive or breakeven in 2026" [2].

CS Disco's stock price experienced a modest increase of 0.49% following the earnings release, closing at $4.13. The company's stock remains within its 52-week range of $3.31 to $6.64, and two analysts recently revised their earnings estimates upward for the upcoming period [2].

Looking ahead, CS Disco projects third-quarter revenue between $37.5 million and $39.5 million, and fiscal year 2025 revenue guidance between $148 million and $158 million. The company remains focused on achieving EBITDA breakeven by 2026, with a target growth trajectory of over 20%. The company's 5-year revenue compound annual growth rate (CAGR) is 24%, supporting management’s growth targets [2].

References:
[1] https://www.marketscreener.com/news/akamai-technologies-inc-provides-financial-guidance-for-the-third-quarter-ending-september-30-202-ce7c5edcd880ff22
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-cs-disco-q2-2025-reveals-narrower-eps-loss-93CH-4175254