CS Disco (NYSE:LAW) Issues Earnings Results

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

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 Trading Down 3.2%

Shares of LAW traded down $0.14 during midday trading on Wednesday, reaching $4.04. 306,670 shares of the company were exchanged, compared to its average volume of 229,976. The stock has a 50-day moving average price of $3.84 and a 200-day moving average price of $4.11. The company has a market cap of $258.76 million, a price-to-earnings ratio of -5.93 and a beta of 1.90. CS Disco has a 1-year low of $2.45 and a 1-year high of $9.11.

Wall Street Analyst Weigh In

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

Insider Buying and Selling at CS Disco

In related news, CEO Eric Friedrichsen bought 9,000 shares of the stock in a transaction dated Friday, May 8th. The stock was acquired at an average price 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 16.80% of the stock is owned by insiders.

Hedge Funds Weigh In On CS Disco

A number of institutional investors and hedge funds have recently bought and sold shares of LAW. Tower Research Capital LLC TRC grew its position in CS Disco by 87.1% in the second quarter. Tower Research Capital LLC TRC now owns 9,968 shares of the company’s stock valued at $44,000 after acquiring an additional 4,639 shares in the last quarter. Algert Global LLC acquired a new position in shares of CS Disco during the third quarter worth $70,000. Occudo Quantitative Strategies LP purchased a new position in shares of CS Disco in the second quarter valued at $75,000. BNP Paribas Financial Markets boosted its stake in shares of CS Disco by 242.5% in the third quarter. BNP Paribas Financial Markets now owns 13,450 shares of the company’s stock valued at $87,000 after purchasing an additional 9,523 shares during the period. Finally, Engineers Gate Manager LP acquired a new stake in CS Disco during the 2nd quarter valued at $96,000. Hedge funds and other institutional investors own 58.05% of the company’s stock.

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.