CS Disco (NYSE:LAW) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

CS Disco (NYSE:LAW) posted its quarterly earnings data on Wednesday. The company reported ($0.07) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.02, FiscalAI reports. CS Disco had a negative net margin of 26.28% and a negative return on equity of 26.12%. The business had revenue of $41.88 million during the quarter, compared to analysts’ expectations 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 Trading Up 2.1%

Shares of CS Disco stock traded up $0.08 on Friday, reaching $4.09. 638,047 shares of the company were exchanged, compared to its average volume of 360,147. The stock has a fifty day moving average price of $4.03 and a 200-day moving average price of $5.68. The firm has a market capitalization of $262.50 million, a price-to-earnings ratio of -6.02 and a beta of 1.95. CS Disco has a fifty-two week low of $2.45 and a fifty-two week high of $9.11.

Insider Buying and Selling

In other news, EVP Karen Herckis sold 8,171 shares of the firm’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $3.07, for a total value of $25,084.97. Following the completion of the sale, the executive vice president owned 132,259 shares of the company’s stock, valued at $406,035.13. This trade represents a 5.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Robert P. Goodman acquired 1,026,700 shares of CS Disco stock in a transaction that occurred on Friday, February 27th. The stock was acquired at an average cost of $3.19 per share, with a total value of $3,275,173.00. Following the completion of the purchase, the director owned 1,038,475 shares in the company, valued at approximately $3,312,735.25. This represents a 8,719.32% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders acquired 1,090,200 shares of company stock valued at $3,475,943 and sold 27,711 shares valued at $85,073. Corporate insiders own 16.10% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Tower Research Capital LLC TRC boosted its stake in shares of CS Disco by 87.1% during 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 period. Algert Global LLC acquired a new position in shares of CS Disco in the third quarter worth $70,000. Occudo Quantitative Strategies LP acquired a new position in shares of CS Disco in the second quarter worth $75,000. BNP Paribas Financial Markets raised its holdings in shares of CS Disco by 242.5% during the third quarter. BNP Paribas Financial Markets now owns 13,450 shares of the company’s stock worth $87,000 after acquiring an additional 9,523 shares in the last quarter. Finally, Engineers Gate Manager LP purchased a new stake in shares of CS Disco during the second quarter worth $96,000. Institutional investors and hedge funds own 58.05% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on LAW. Wall Street Zen upgraded CS Disco from a “hold” rating to a “buy” rating in a research report on Saturday, April 25th. Needham & Company LLC reaffirmed a “buy” rating and set a $10.00 target price on shares of CS Disco in a report on Thursday, February 26th. Weiss Ratings raised shares of CS Disco from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, April 29th. Finally, Canaccord Genuity Group reduced 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 investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus 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.