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/LAW
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CS Disco Inc

CS Disco Inc

LAW
$4.06USD↓-1.22%-0.05 today

MARKET CAP

263.6M

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$4 – $4

52W RANGE

$2
$9

AI Summary

Stalk
Sell NowHigh

LAW is in a confirmed Stage 4 decline, with a decisive support failure at ~4.10 and downward-sloping EMAs reinforcing bearish momentum. Medium-term tradable side is bearish, invalidated by the broken intermediate structure. Short-term timing is unfavorable for bullish entries, as price is tightly tracking below the 9/21/50 EMAs without clear exhaustion. Execution is Sell Now on any relief rallies into the broken support-turned-resistance zone around the prior 4.10 level.

  • ↑Revenue grew 13% YoY to $43.1M in Q2, driven by software sales
  • ↑Generative and agentic AI revenue tripled YoY, showing strong demand
  • ↓Adjusted EBITDA loss of $3.4M reflects ongoing profitability challenges
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

CS Disco, Inc. (NYSE: LAW) is a leading legal technology company based in Austin, Texas, specializing in AI-powered software solutions for litigation support. Founded in 2012, Disco provides cloud-native services designed for e-discovery, legal hold, document review, and case management, serving law firms, corporations, and governmental clients. The company operates within the legal tech sector, focusing on the rise of AI applications to streamline complex legal processes and enhance collaboration among legal teams.

Bull says

  • ↑Revenue grew 13% YoY to $43.1M in Q2, driven by software sales
  • ↑Generative and agentic AI revenue tripled YoY, showing strong demand
  • ↑Customers spending >$100K rose to 354, accounting for 77% of revenue
  • ↑$101.4M cash on hand with zero debt supports R&D and expansion
  • ↑FY26 revenue guidance raised to $172–179M; EBITDA expected positive by Q4
  • ↑Specialized AI-driven litigation tools differentiate Disco from broad competitors

Bear says

  • ↓Adjusted EBITDA loss of $3.4M reflects ongoing profitability challenges
  • ↓Operating cash flow still negative $1.1M despite improvement from prior year
  • ↓Volatile stock with high short interest signals market skepticism
  • ↓77% of revenue from large clients raises concentration risk
  • ↓Execution of Unified Litigation Solution could face delays and hurdles
  • ↓Competition from broad AI legal firms intensifies pressure

Earnings Call · Q4 2024 · Mgmt. Guidance

Updated 04-29-2026neutral

Transcript signals

Bull points

  • In Q4 2024, total revenue was $37.0 million, up 4% year over year. Software revenue was $30.8 million, up 5% year over year.
  • Full-year 2024 revenue was $144.8 million, up 5% year-over-year. Software revenue was $120.1 million, up 7% from prior year.
  • Our gross margin in Q4 was 75% and gross margin for fiscal year 2024 was 75% in line with fiscal year 2023.

Bear points

  • $6.2 million, down 4% year-over-year, predominantly driven by review usage.
  • Adjusted EBITDA was negative $4.3 million in Q4. representing an adjusted EBITDA margin of negative 12% compared to an adjusted EBITDA margin of negative 3% in Q4 of the prior year.
  • Net loss in Q4 was 4.3 million, or negative 12% of revenue, compared to a net loss of 0.3 million or negative 1% of revenue in Q4 the prior year.
Read full transcript analysis ›