CS Disco (NYSE:LAW) Announces Quarterly Earnings Results

CS Disco (NYSE:LAW) posted its quarterly earnings data on Wednesday. The company reported ($0.06) EPS for the quarter, meeting analysts’ consensus estimates of ($0.06), FiscalAI reports. CS Disco had a negative net margin of 26.28% and a negative return on equity of 26.12%. The company had revenue of $43.15 million during the quarter, compared to analyst estimates 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 Up 6.7%

LAW traded up $0.27 during trading on Thursday, hitting $4.32. The company’s stock had a trading volume of 361,348 shares, compared to its average volume of 350,615. The stock has a market capitalization of $277.06 million, a price-to-earnings ratio of -6.35 and a beta of 1.90. The firm’s 50 day moving average price is $3.84 and its two-hundred day moving average price is $4.11. CS Disco has a 12 month low of $2.45 and a 12 month high of $9.11.

Wall Street Analysts Forecast Growth

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

Insider Activity at CS Disco

In other CS Disco news, CEO Eric Friedrichsen bought 9,000 shares of the stock in a transaction dated Friday, May 8th. The stock was bought 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 owned 1,517,172 shares in the company, valued at $6,023,172.84. This represents a 0.60% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 16.80% of the company’s stock.

Hedge Funds Weigh In On CS Disco

A number of hedge funds and other institutional investors have recently bought and sold shares of LAW. Cubist Systematic Strategies LLC acquired a new position in shares of CS Disco in the 1st quarter valued at $216,000. Jane Street Group LLC increased its holdings in CS Disco by 51.6% in the first quarter. Jane Street Group LLC now owns 44,628 shares of the company’s stock valued at $183,000 after purchasing an additional 15,187 shares during the last quarter. Acadian Asset Management LLC bought a new stake in CS Disco in the first quarter valued at about $195,000. XTX Topco Ltd acquired a new position in CS Disco in the second quarter valued at about $139,000. Finally, Occudo Quantitative Strategies LP acquired a new position in CS Disco in the second quarter valued at about $75,000. 58.05% of the stock is owned by institutional investors.

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.