CS Disco (NYSE:LAW) Posts Quarterly Earnings Results, Meets Expectations

CS Disco (NYSE:LAW) issued its quarterly earnings data on Wednesday. The company reported ($0.06) EPS for the quarter, hitting analysts’ consensus estimates of ($0.06), FiscalAI reports. The business had revenue of $43.15 million for the quarter, compared to analyst estimates of $42.67 million. CS Disco had a negative net margin of 24.20% and a negative return on equity of 26.20%.

Here are the key takeaways from CS Disco’s conference call:

• Q2 revenue rose 13% year over year to $43.1 million, while services revenue increased 18% to $6.3 million. Management cited strength in large, complex matters and professional services.
• Customer concentration and expansion improved, with customers generating more than $100,000 in trailing-12-month revenue reaching 354 and contributing 77% of total revenue, up 15% year over year.
• Adoption of DISCO Platform and AI products accelerated: generative and agentic AI revenue more than tripled year over year, AutoReview set a revenue record, and DISCO Platform reached its December 2026 run-rate goal by June.
• The company raised fiscal 2026 revenue guidance to $172 million-$179 million and maintained its expectation of positive adjusted EBITDA in Q4, supported by large matters, platform adoption, and AutoReview momentum.
• DISCO unveiled its multi-year Unified Litigation Solution, which combines e-discovery evidence, case law, and litigation-specific AI workflows, but the product remains in a limited pilot with no firm pricing, timing, or 2026 revenue contribution planned.

CS Disco Stock Down 1.6%

Shares of LAW stock traded down $0.07 during trading on Friday, reaching $4.27. The company’s stock had a trading volume of 265,415 shares, compared to its average volume of 349,758. The business has a fifty day moving average price of $3.84 and a 200-day moving average price of $4.09. The company has a market cap of $273.96 million, a price-to-earnings ratio of -6.78 and a beta of 1.90. CS Disco has a one year low of $2.45 and a one year high of $9.11.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on LAW shares. Wall Street Zen cut CS Disco from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Weiss Ratings upgraded CS Disco from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, July 2nd. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, CS Disco has a consensus rating of “Hold” and an average target price of $8.00.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in LAW. Tower Research Capital LLC TRC lifted its position in CS Disco by 87.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 9,968 shares of the company’s stock worth $44,000 after buying an additional 4,639 shares in the last quarter. Algert Global LLC bought a new position in shares of CS Disco in the 3rd quarter valued at about $70,000. Occudo Quantitative Strategies LP bought a new position in shares of CS Disco in the 2nd quarter valued at about $75,000. BNP Paribas Financial Markets increased its position in shares of CS Disco by 242.5% in the third quarter. BNP Paribas Financial Markets now owns 13,450 shares of the company’s stock valued at $87,000 after acquiring an additional 9,523 shares during the last quarter. Finally, Engineers Gate Manager LP acquired a new stake in shares of CS Disco in the second quarter valued at about $96,000. Institutional investors own 58.05% of the company’s stock.

CS Disco Company Profile

CS Disco, Inc is a provider of cloud-native, artificial intelligence-driven legal applications designed to streamline e-discovery, document review and compliance processes for law firms and corporate legal departments. The Austin, Texas–based company offers a unified platform that automates labor-intensive tasks using machine learning and predictive analytics, enabling legal professionals to process, search and review large volumes of data with greater speed and accuracy.

At the core of CS Disco’s product suite is its flagship e-discovery application, which supports early case assessment, data processing, review analytics and production workflows.