Clio ARR hits $500 million as Anthropic expands legal AI push

Clio said annual recurring revenue reached $500 million, extending a sharp acceleration since the Canadian legal software company added AI tools in 2023, as Anthropic expands its competing Claude for Legal features. Clio passed $200 million in ARR in mid-2024 and doubled that by late 2025. CEO Jack Newton said large language models are well suited to legal work because law firms hold large text-based datasets, including contracts and agreements. Clio was valued at $5 billion after raising a $500 million Series G in November 2025, and its $1 billion acquisition of vLex in 2025 added AI-powered legal research capabilities. Competition is intensifying. Harvey reported $190 million in ARR by the end of 2025, while Legora said in April 2026 it reached $100 million in ARR 18 months after launch. Anthropic announced new legal-specific features in the week of May 11, 2026, creating tension because Harvey and Legora use Claude as a core model while Anthropic also targets their market.