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

CS Disco (NYSE:LAW) released its quarterly earnings results on Wednesday. The company reported ($0.07) EPS for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.02, FiscalAI reports. The firm had revenue of $41.88 million for the quarter, compared to analyst estimates of $40.30 million. CS Disco had a negative net margin of 26.28% and a negative return on equity of 26.12%.

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

Wall Street Analysts Forecast Growth

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

Insiders Place Their Bets

In other CS Disco news, EVP Melanie Antoon sold 9,289 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $3.07, for a total value of $28,517.23. Following the transaction, the executive vice president directly owned 203,421 shares in the company, valued at approximately $624,502.47. This trade represents a 4.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Eric Friedrichsen bought 15,500 shares of the stock in a transaction dated Friday, February 27th. The stock was purchased at an average cost of $2.90 per share, with a total value of $44,950.00. Following the completion of the purchase, the chief executive officer directly owned 1,508,172 shares in the company, valued at approximately $4,373,698.80. This trade represents a 1.04% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have acquired 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 currently owned by company insiders.

Institutional Trading of CS Disco

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Tower Research Capital LLC TRC raised its holdings 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 purchasing an additional 4,639 shares during the last quarter. Algert Global LLC acquired a new stake in shares of CS Disco during the 3rd quarter worth approximately $70,000. Occudo Quantitative Strategies LP acquired a new stake in shares of CS Disco during the 2nd quarter worth approximately $75,000. BNP Paribas Financial Markets raised its stake 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 buying an additional 9,523 shares during the last quarter. Finally, Engineers Gate Manager LP bought a new stake in shares of CS Disco during the second quarter worth approximately $96,000. 58.05% of the stock is currently owned by institutional investors and hedge funds.

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.