What is the customer concentration profile—how much revenue comes from the top 10 customers, and are there any risks of concentration?

Answer

The press‑release you quoted does not contain the specific figures needed to answer the question about DISCO’s customer‑concentration profile. It only highlights that the company is “seeing continued expansion of large matters on our platform and ongoing traction with our largest customers,” but it does not disclose:

Because the required data are absent, we can’t calculate the exact amount of revenue generated by DISCO’s top‑10 customers or assess the concentration risk from the press‑release alone. Below is a guide on where you can typically find this information and what to look for when you do locate it.

Where to Find the Customer‑Concentration Details

1. SEC Filings (Form 10‑Q / 10‑K)

   • Item 7 – Management’s Discussion and Analysis (MD&A) often contains a “Customer Concentration” subsection that lists the percentage of revenue attributable to the top‑10 customers (or sometimes the top‑5, top‑10, and top‑20).
   • Item 8 – Financial Statements and Supplementary Data may include a note titled “Revenue – By Customer” that breaks out the amounts for the largest customers.
   • Look for language such as “Our top‑10 customers accounted for X% of total revenue in 2025” or “No single customer accounted for more than Y% of revenue.”

2. Investor Presentations / Earnings Call Transcripts

   • Companies sometimes provide a slide on “Customer Concentration” when discussing growth with large accounts. The transcript may include a Q&A where analysts ask about concentration risk.

3 Annual Report (Form 10‑K)
- The “Risk Factors” section may discuss concentration risk if a significant portion of revenue is tied to a few large clients.

1. Company’s Investor Relations Website
   • Look for a “Financial Information” or “SEC Filings” tab where the latest quarterly report (Q2 2025) can be downloaded. The “Management Discussion & Analysis” section is the most likely place for the data.

How to Assess Concentration Risk Once the Data Are Available

Red‑flag scenarios you would watch for in DISCO’s case:

• Top‑10 customers > 50 % of total revenue – loss of one client could materially impact earnings.
• Single largest client > 15 % – a “key‑account” risk.
• Top‑10 share trending upward – suggests the company is becoming more dependent on a few large accounts.
• Short contract terms with those large accounts – higher churn probability.
• Heavy concentration in a single vertical (e.g., only large law firms) – sector‑specific headwinds could affect multiple top customers simultaneously.

What to Do Next

1. Download DISCO’s most recent Form 10‑Q (Q2 2025) from the SEC’s EDGAR database (or the investor‑relations site).
   
2. Locate the “Customer Concentration” note—usually found in the MD&A or footnotes to the consolidated statements.
   
3. Record the percentages for:
   • Top‑10 customers (as a % of total revenue).
     
   • The largest individual customer.
     
4. Compare these figures to prior quarters/years to gauge any trend.
   
5. Review the “Risk Factors” and “Liquidity” sections for any mention of concentration‑related risks (e.g., reliance on a few large law‑firm clients).
   

If the filing does not disclose the data (some companies choose not to break out customer revenue), you may need to rely on analyst estimates from research reports (e.g., Bloomberg, FactSet) or request clarification directly from DISCO’s Investor Relations team.

Bottom Line

• The press release you provided does not include the quantitative customer‑concentration data.
  
• To answer the question, you’ll need to consult DISCO’s SEC filings (Form 10‑Q for Q2 2025) or related investor materials.
  
• Once you have the percentages, you can evaluate concentration risk using the thresholds and considerations outlined above.
  

If you locate the filing and share the specific numbers, I can help you interpret them further and assess the risk profile in more detail.