CS Disco, Inc. (LAW) AI Stock Analysis

CS Disco, Inc. is a legal technology company that develops cloud-native solutions powered by artificial intelligence. The company serves enterprises, law firms, legal services providers, and government agencies with software for ediscovery, legal document review, and case management. Its core platform, DISCO Ediscovery, automates collecting, processing, searching, reviewing, analyzing, producing, and using enterprise data for legal proceedings. In addition, the company offers DISCO Review, which utilizes machine learning algorithms for consistent and precise legal document analysis, as well as DISCO Case Builder, a collaborative tool that enables legal professionals to search, organize, and review witness testimony and legal data for case preparation.

CS Disco increased revenue from $114.3M in FY2021 to $135.2M in FY2022, $138.1M in FY2023, $144.8M in FY2024, and $156.8M in FY2025, delivering a 5-year revenue CAGR of 18.0%. Gross margin has held steady between 72.8% in FY2021 and 74.9% in FY2025. However, profitability remains negative, with an operating margin of -30.7% and net income of -$44.4M in FY2025, following a net loss of -$55.8M in FY2024. Over the trailing twelve months, revenue reached $167.1M, with quarterly revenue growing 13.2% year-over-year in the latest quarter ending June 30, 2026. The trailing twelve months net profit margin was -24.2%, and EPS was -$0.65.

As of June 30, 2026, CS Disco held $101.4M in cash and short-term investments alongside total debt of $5.7M, resulting in net cash of $95.7M. The company maintains solid liquidity with a current ratio of 3.77 and a debt-to-equity ratio of 0.05. In FY2025, operating cash flow was -$14.9M and free cash flow was -$18.0M. During that fiscal year, capital expenditures totaled $3.1M and share buybacks were $105,000, while the 5-year share count increased by 12.3%.

At a market capitalization of $284.8M and enterprise value of $180.8M, CS Disco trades at a price-to-sales multiple of 1.7x and an EV-to-revenue ratio of 1.1x, below the 2.8x price-to-sales median of its US-listed Technology peers. Its forward P/E stands at 172.4x compared to the peer median of 18.8x. Over the past year, the stock declined 26.2%, while the S&P 500 (SPY) gained 16.8%. Over five years, the shares fell 90.8% against an 83.0% gain for the index.

Among covering analysts, 1 rates CS Disco as a Strong Buy, 1 as a Buy, and 1 as a Hold, with 0 Sell or Strong Sell ratings. The mean price target is $6.67, representing a 50.2% premium over the last close of $4.44 on October 16, 2026. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $175.7M and an EPS of -$0.13. CS Disco beat EPS estimates in 3 of the last 4 quarters, and its next earnings report is scheduled for November 4, 2026.

This page is an AI-written research summary of CS Disco, Inc. (LAW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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