CS Disco (NYSE:LAW) Releases Earnings Results, Beats Expectations By $0.02 EPS

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

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 Stock Up 2.1%

Shares of LAW traded up $0.08 during mid-day trading on Friday, hitting $4.09. 638,047 shares of the company traded hands, compared to its average volume of 360,147. The company has a market capitalization of $262.50 million, a PE ratio of -6.02 and a beta of 1.95. The business has a 50 day moving average of $4.03 and a 200 day moving average of $5.68. CS Disco has a 1-year low of $2.45 and a 1-year high of $9.11.

Analyst Ratings Changes

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

Insider Buying and Selling

In other CS Disco news, EVP Karen Herckis sold 8,171 shares of the firm’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $3.07, for a total value of $25,084.97. Following the completion of the transaction, the executive vice president owned 132,259 shares of the company’s stock, valued at approximately $406,035.13. This trade represents a 5.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Krishna Srinivasan acquired 40,000 shares of the stock in a transaction dated Friday, February 27th. The shares were bought at an average price of $3.25 per share, with a total value of $130,000.00. Following the completion of the purchase, the director directly owned 45,000 shares of the company’s stock, valued at approximately $146,250. This trade represents a 800.00% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders acquired 1,090,200 shares of company stock worth $3,475,943 and sold 27,711 shares worth $85,073. Company insiders own 16.10% of the company’s stock.

Hedge Funds Weigh In On CS Disco

Hedge funds have recently made changes to their positions in the company. Tower Research Capital LLC TRC lifted its position 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 acquiring an additional 4,639 shares during the period. Algert Global LLC acquired a new position in shares of CS Disco in the third quarter valued at about $70,000. Occudo Quantitative Strategies LP acquired a new position in shares of CS Disco in the second quarter valued at about $75,000. BNP Paribas Financial Markets lifted its holdings 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 purchasing an additional 9,523 shares during the period. Finally, Engineers Gate Manager LP acquired a new stake in shares of CS Disco during the second quarter worth about $96,000. 58.05% of the stock is owned by institutional investors and hedge funds.

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.