CS Disco's Q2 2025: Navigating Contradictions in Growth Strategies and Financial Goals

Customer engagement and growth strategy, expense management and financial goals, breakeven adjusted EBITDA target and strategy, investment priorities and resource allocation, and customer focus and growth strategy are the key contradictions discussed in CS Disco's latest 2025Q2 earnings call.



Revenue and Software Growth:
- CS DISCO, Inc. reported software revenue of $32.7 million for Q2 2025, up 12% year-over-year, and total revenue of $38.1 million, up 6% year-over-year.
- This was driven by increased usage on the platform and expansion of multi-terabyte matters, as well as growth within their AI capabilities like Cecilia and Auto Review.

Operational Efficiency and EBITDA Improvement:
- Adjusted EBITDA for Q2 was negative $2.7 million, a $2 million improvement over Q2 of 2024, and the adjusted EBITDA margin was negative 7%.
- This improvement is attributed to streamlining operations, enhancing the talent pool in sales and marketing, and investing in customer success, leading to more efficient and strategic customer engagements.

AI Product Integration and Customer Engagement:
- The expansion of multi-terabyte matters leveraging Cecilia showed a 150% growth in the first half of 2025 compared to the end of 2024.
- This growth is due to the increased use of DISCO's AI capabilities in complex litigation matters, enhancing customer value and product stickiness.

Focus on Large Customers and Revenue Visibility:
- The number of customers contributing more than $100,000 in total revenue over the last 12 months increased to 323, up 6% year-over-year.
- The focus on larger customers and larger matters has improved revenue visibility and durability, contributing to longer-lasting revenue streams and higher wallet share.