LAW · CS Disco, Inc.

CS Disco, Inc. delivered first quarter 2026 results showing continued revenue acceleration with total revenue reaching $41.9 million, a 14% increase from $36.7 million in Q1 2025, driven by 12% software revenue growth to $34.7 million. Gross profit expanded to $31.1 million from $27.2 million, reflecting improved operational leverage despite elevated operating expenses of $41.2 million, up slightly from $39.8 million year-over-year. The GAAP net loss narrowed to $9.6 million or $0.15 per share from $11.4 million, supported by higher interest income and controlled cost growth in R&D and sales & marketing. Adjusted EBITDA improved 32% to $(3.5) million, highlighting progress toward profitability as emphasized by CEO Eric Friedrichsen, who noted strong execution, customer growth, and enthusiasm for the new all-inclusive DISCO platform and agentic AI capabilities. Customer metrics strengthened with large customers (>$100K ARR) rising 9% to 347. Balance sheet remains solid with $17.6 million in cash and equivalents and $103 million in liquid assets, down modestly from year-end amid ongoing losses. Guidance signals sustained momentum: Q2 total revenue of $41.5-$43.5 million implies ~7% sequential growth at midpoint, while FY2026 total revenue of $169.25-$178.75 million projects 10-13% full-year growth. Adjusted EBITDA outlook of $(8.0)-(4.0) million for the year further underscores margin expansion efforts. Recent board addition of AI SaaS veteran Toby Williams enhances governance for AI-driven innovation. Investors should note forward-looking statements are subject to risks including litigation expenses and macroeconomic pressures on legal activity.