CS Disco, Inc. SEC 10-Q Report

CS Disco, Inc., a leading provider of cloud-based e-discovery solutions, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's financial performance and key business developments, showcasing its continued growth and strategic initiatives in the legal technology industry.

Financial Highlights

Total Revenue: $38.1 million, increased by 6% compared to the same period in 2024, driven by new customer additions.

Gross Profit: $28.4 million, representing a gross margin of 75%, slightly improved from 74% in the prior year period.

Loss from Operations: $(11.8) million, reflecting a decrease in operating loss compared to $(12.4) million in the prior year period.

Net Loss Attributable to Common Stockholders: $(10.8) million, consistent with the net loss in the same period of 2024.

Net Loss Per Share Attributable to Common Stockholders, Basic and Diluted: $(0.18), unchanged from the prior year period.

Business Highlights

Revenue Segments: The company reported that 90% of its revenue for the three and six months ended June 30, 2025, was derived from usage-based contracts, while subscription revenue accounted for 10%. This indicates a strong reliance on usage-based revenue streams.

Geographical Performance: Revenue from the United States accounted for the majority of the company's revenue, with $35.1 million for the three months ended June 30, 2025, compared to $3.0 million from all other countries. This highlights the company's strong market presence in the U.S.

New Product Launches: The company released its ediscovery chatbot, Cecilia, in the fourth quarter of 2023 in the United States and in the third quarter of 2024 in Europe. This product is expected to enhance lawyer productivity by automating certain legal processes.

Operational Strategy: The company is focused on expanding its customer base, particularly targeting enterprises with significant annual ediscovery spend and large practice teams. This strategy is aimed at increasing the adoption of its integrated platform.

Sales and Marketing Focus: The company plans to enhance its sales force headcount in strategic locations across the United States and globally, which is expected to drive significant revenue growth.

Partnerships and Integrations: The company intends to strengthen its channel partnerships with legal services providers and cloud infrastructure providers to drive awareness and adoption of its offerings.

Future Outlook: The company anticipates leveraging its technology to introduce further offerings that increase lawyer productivity across more areas of legal work. This includes potential expansions into international markets, particularly in the United Kingdom and India.

SEC Filing: CS Disco, Inc. [ LAW ] - 10-Q - Aug. 06, 2025