Harvey’s gross margins reportedly rose from -50% to positive in one quarter
Gabe Pereyra credits product improvements and spending controls, saying Harvey kept serving what he calls the best models while helping customers transition to consumption pricing on a timeline that worked for them.
TLDR
Gabe Pereyra says Harvey improved gross margins from -50% to positive in a single quarter despite usage doubling month over month. He credits product optimization—including model routing and post-training—alongside spending tools such as usage dashboards, per-matter cost tracking, spend caps and ROI reporting. Pereyra says Harvey chose to help customers transition to consumption pricing on a timeline that worked for them rather than force a switch, and continued serving what he calls the best models even when that hurt margins.