Accelerated Revenue Growth
Software revenue in Q3 was $35.2 million, up 17% year-over-year, while total revenue was $40.9 million, up 13% year-over-year. Even without a one-time revenue event, the company exceeded the high end of its guidance range.
Customer Success and Strategic Focus
The company ended Q3 with 326 customers contributing more than $100,000 each in total revenue over the last 12 months, accounting for 76% of the total revenue. A large multinational company selected DISCO for a significant legal matter, demonstrating the effectiveness of the company's strategy and execution.
Adoption of AI Capabilities
The number of customers utilizing Cecilia AI more than tripled year-over-year, with consistent growth in Auto Review adoption throughout 2025, highlighting successful AI integration and customer satisfaction.
Improved Operational Metrics
The adjusted EBITDA margin improved to negative 1% from negative 12% in the prior year, representing a $4.2 million year-over-year improvement.
Positive Industry Recognition
IDC named DISCO a leader in the 2025 IDC MarketScape for worldwide end-to-end eDiscovery software, acknowledging the company's ability to handle large data volumes and support core workflows effectively.