CS Disco 3Q 2026: Revenue $45.34M, EPS ($0.08) — 10-Q Summary

What happened

CS Disco reported third-quarter 2026 revenue of $45.34 million, up 10.8% from a year earlier, and a net loss of $5.03 million, narrower than $13.67 million. Diluted loss per share improved to $0.08 from $0.22. New customers generated $7.1 million in revenue, while existing-customer revenue fell $2.7 million, mainly because of lower usage.

Confirmed

Global impact / market context

Revenue growth came from new customer wins and increased services usage, but lower usage among existing customers offset part of that progress. If existing-customer usage remains weak, it could limit recurring revenue growth; product development and wider adoption would need to compensate for that shortfall.

Analyst inference

The results show improving reported losses alongside higher revenue, while growth excluding prior-year contingent revenue was 15%. Software and services both grew, but the decline from existing customers highlights that new sales alone may not ensure continued expansion unless customers keep using the products.

Analyst inference

What to watch

1. Track whether revenue from existing customers stabilizes or grows, since the article attributes its $2.7 million decline mainly to lower usage, which partly offset new-customer revenue. Analyst inference
2. Watch whether planned legal and AI product development, including the e-discovery chatbot Cecilia, progresses into offerings that expand customer usage and support revenue growth. Proposed
3. Compare future new-customer revenue with usage from current customers; the latest quarter’s $7.1 million from new customers did not fully offset the existing-customer decline. Analyst inference

Evidence

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