CS Disco (NYSE:LAW) Issues Quarterly Earnings Results

CS Disco (NYSE:LAW) announced its quarterly earnings data on Wednesday. The company reported ($0.07) EPS for the quarter, beating the consensus estimate of ($0.09) by $0.02, FiscalAI reports. CS Disco had a negative net margin of 28.29% and a negative return on equity of 26.13%. The business had revenue of $41.88 million during the quarter, compared to the consensus estimate of $40.30 million.

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

• DISCO reported stronger-than-expected Q1 results with total revenue up 14% YoY to $41.9M, software revenue up 12% to $34.7M, adjusted EBITDA improving to -$3.5M (beat guidance), and $103M in cash with no debt.
• The DISCO Platform launch outperformed expectations and drove early adoption, larger matters, multi-year deals, and increased committed revenue driven by bundled AI capabilities like Cecilia and AutoReview.
• Wallet-share gains at large customers accelerated—customers with >$100K in trailing 12‑month revenue rose to 347, contributing $124M (77% of trailing revenue), indicating stronger expansion within core accounts.
• AutoReview and AI offerings are accelerating uptake but currently span both software and services (some manual prompt engineering), creating potential near-term revenue mix variability as customers migrate to the platform.
• Management raised FY2026 revenue guidance to $169.25M–$178.75M, reiterated a path to adjusted EBITDA profitability in Q4, signaling confidence in durable AI-driven growth.

CS Disco Price Performance

Shares of CS Disco stock traded down $0.97 during trading on Wednesday, hitting $3.67. The company’s stock had a trading volume of 639,887 shares, compared to its average volume of 366,142. CS Disco has a 52 week low of $2.45 and a 52 week high of $9.11. The stock has a market cap of $232.10 million, a price-to-earnings ratio of -5.13 and a beta of 1.95. The stock has a 50-day moving average price of $4.01 and a two-hundred day moving average price of $5.71.

Insider Buying and Selling at CS Disco

In other news, EVP Karen Herckis sold 8,171 shares of the stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $3.07, for a total transaction of $25,084.97. Following the transaction, the executive vice president owned 132,259 shares of the company’s stock, valued at $406,035.13. This represents a 5.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Melanie Antoon sold 9,289 shares of the stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $3.07, for a total transaction of $28,517.23. Following the transaction, the executive vice president directly owned 203,421 shares in the company, valued at $624,502.47. This trade represents a 4.37% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have purchased 1,090,200 shares of company stock valued at $3,475,943 and have sold 27,711 shares valued at $85,073. 16.10% of the stock is owned by insiders.

Hedge Funds Weigh In On CS Disco

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

Wall Street Analysts Forecast Growth

LAW has been the subject of several research analyst reports. Needham & Company LLC restated a “buy” rating and set a $10.00 price objective on shares of CS Disco in a research report on Thursday, February 26th. Weiss Ratings upgraded shares of CS Disco from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, April 29th. Wall Street Zen upgraded shares of CS Disco from a “hold” rating to a “buy” rating in a research report on Saturday, April 25th. Finally, Canaccord Genuity Group lowered their price objective on shares of CS Disco from $9.00 to $6.00 and set a “buy” rating for the company in a research report on Thursday, February 26th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, CS Disco presently has an average rating of “Hold” and a consensus target price of $8.00.

About CS Disco

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.