CS Disco (NYSE:LAW) Announces Quarterly Earnings Results

CS Disco (NYSE:LAW) announced its quarterly earnings data on Wednesday. The company reported ($0.06) earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.06), FiscalAI reports. The firm had revenue of $43.15 million during the quarter, compared to the consensus estimate 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 Stock Up 6.7%

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

Insider Buying and Selling at CS Disco

In other news, CEO Eric Friedrichsen purchased 9,000 shares of the stock in a transaction dated Friday, May 8th. The shares were purchased at an average cost of $3.97 per share, with a total value of $35,730.00. Following the completion of the acquisition, 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 transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 16.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On CS Disco

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Tower Research Capital LLC TRC grew its position in CS Disco by 87.1% during the second 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 in the last quarter. Algert Global LLC bought a new stake in shares of CS Disco during the 3rd quarter worth $70,000. Occudo Quantitative Strategies LP purchased a new position in CS Disco in the second quarter worth $75,000. BNP Paribas Financial Markets grew its position in CS Disco by 242.5% in 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 bought a new position in CS Disco in the second quarter valued at $96,000. Hedge funds and other institutional investors own 58.05% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Wall Street Zen lowered 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 research note 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 stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target 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.