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

CS Disco (NYSE:LAW) announced its earnings results on Wednesday. The company reported ($0.06) earnings per share for the quarter, meeting the consensus estimate of ($0.06), FiscalAI reports. CS Disco had a negative return on equity of 26.12% and a negative net margin of 26.28%.The company had revenue of $43.15 million during the quarter, compared to the consensus estimate of $42.67 million.

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 3.2%

Shares of LAW traded down $0.14 during mid-day trading on Wednesday, hitting $4.04. The stock had a trading volume of 306,670 shares, compared to its average volume of 229,976. CS Disco has a fifty-two week low of $2.45 and a fifty-two week high of $9.11. The company has a market cap of $258.76 million, a PE ratio of -5.93 and a beta of 1.90. The company’s fifty day simple moving average is $3.84 and its two-hundred day simple moving average is $4.11.

Insider Activity

In other news, CEO Eric Friedrichsen acquired 9,000 shares of CS Disco stock in a transaction that occurred on Friday, May 8th. The shares were purchased at an average cost of $3.97 per share, for a total transaction of $35,730.00. Following the completion of the purchase, the chief executive officer directly owned 1,517,172 shares of the company’s stock, valued at $6,023,172.84. This trade represents a 0.60% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Corporate insiders own 16.80% of the company’s stock.

Institutional Trading of CS Disco

A number of institutional investors and hedge funds have recently modified their holdings of LAW. Tower Research Capital LLC TRC lifted its position in shares of CS Disco by 87.1% in 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 during the last quarter. Algert Global LLC bought a new stake in shares of CS Disco during the 3rd quarter valued at about $70,000. Mercer Global Advisors Inc. ADV bought a new stake in shares of CS Disco during the 4th quarter valued at about $99,000. CIBC Asset Management Inc acquired a new stake in CS Disco during the fourth quarter worth about $102,000. Finally, BNP Paribas Financial Markets raised its stake in 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 during the period. 58.05% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages recently commented on LAW. Wall Street Zen downgraded 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 investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, CS Disco presently has a consensus rating of “Hold” and an average price target of $8.00.

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.