Clio reaches $500 million in annual recurring revenue as legal AI grows

In short: Companies that sell software and AI tools to law firms are growing quickly, and Clio says it has reached $500 million in annual recurring revenue.

What's going on

Clio, a Canadian company that sells software for law firms, says its annual recurring revenue, or ARR, has reached $500 million. ARR is a common way subscription businesses measure predictable yearly income (like adding up what customers pay each month, then projecting it across a year).

Clio said its growth picked up after it added AI features in 2023. Its tools help firms with basics like time tracking, invoices, and payments. Clio also bought vLex in 2025 for $1 billion, which added legal research data that can be used inside Clio’s AI features.

Clio is not alone. Harvey, an AI company built for law firms, said it reached $190 million in ARR by the end of 2025. A rival called Legora said it hit $100 million in ARR about 18 months after launching.

This growth is happening as bigger AI companies move into the same space. Anthropic recently expanded “Claude for Legal,” a set of law-focused features for its AI assistant. That matters because some legal AI startups, including Harvey and Legora, use Anthropic’s Claude as one of the underlying AI models, which can create tension when a supplier also becomes a competitor.

What to watch

Expect more competition over who becomes the main “workbench” for lawyers using AI, especially for routine tasks like reviewing documents and drafting first versions. Also watch how companies define and report ARR, since TechCrunch notes that the metric has been questioned in parts of the legal tech market.

Source: TechCrunch AI