LAW

CS Disco, Inc.

Fundamental data last updated:September 7, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

CS Disco, Inc., a legal technology company, provides cloud-native and artificial intelligence-powered legal solutions for ediscovery, legal document review, and case management for enterprises, law firms, legal services providers, and governments. The company offers DISCO Ediscovery, a solution that automates ediscovery process and saves legal departments from manual tasks associated with collecting, processing, enriching, searching, reviewing, analyzing, producing, and using enterprise data that is at issue in legal matters. It also provides DISCO Review, an AI-powered document review solution, which consistently delivers legal document reviews; and DISCO Case Builder, a solution that allows legal professionals to collaborate with teams to build a compelling case by offering a single place to search, organize, and review witness testimony and other legal data. The company's tools are used in various legal matters comprising litigation, investigation, compliance, and diligence. CS Disco, Inc. was founded in 2012 and is headquartered in Austin, Texas.

 


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VALUATION

P/E

-6.01

Market Cap ($M USD)

$257.82M

Forward P/E

44.67

PEG

0.39

PRICE TO SALES

1.59

PRICE TO BOOK

2.07

EV / EBITDA

-6.47

5-Year Average P/E

Free Cash Flow Yield

-7.51%

DCF Value

$-9.30

Graham Number

N/A

Price to FCF

-13.32

EV to FCF

-12.41

Earnings Yield

-16.64%

FCF Yield

-7.51%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.67

Next Year EPS Growth Estimate

$0.09

Next Year Revenue Growth Estimate

$222.20M

Return on Equity (ROE)

-32.73%

FREE CASH FLOW

Operating Margin

-28.14%

Debt-to-Equity

0.00

Piotroski F-Score

3

Altman Z-Score

1.70

Return on Invested Capital (ROIC)

-35.53%

Current Ratio

4.19

Quick Ratio

4.19

Net Debt to EBITDA

0.48

Interest Coverage

0.00

Gross Profit margin

74.88%

FCF PER SHARE

$-0.30

REVENUE PER SHARE

$2.55

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Gainseekers Quantitative Analysis

Summary

LAW CS Disco, Inc. presents a perplexing valuation scenario. The stock traded significantly below its DCF value, suggesting a potential mispricing by the market. However, the Forward P/E of 45.78 indicates high growth expectations, which may not align with its negative earnings yield of -16.24%. The Altman Z-score of 2.03 hints at moderate financial distress, raising questions about its long-term viability. Overall, the financial health appears fragile, with a mix of high expectations and underlying risks.

AI Exposure / Tech Reliance

Operating within the Software - Application industry, LAW CS Disco, Inc. is well-positioned to leverage AI advancements. Its technology-driven focus allows it to adapt swiftly to modern tech shifts, ensuring resilience in a rapidly evolving landscape. This adaptability is crucial for maintaining competitive advantage in the tech sector.

The Bull Case

For the value or GARP investor, LAW CS Disco, Inc. offers intriguing prospects. Despite a negative ROIC of -35.53%, the company's gross profit margin of 74.88% suggests strong pricing power. The Piotroski F-Score of 3 indicates some financial weaknesses, yet the absence of debt and a robust current ratio of 4.19 highlight liquidity strength. These factors could appeal to investors seeking potential turnaround stories with solid capital efficiency.

The Bear Case

The bear case for LAW CS Disco, Inc. is compelling. The negative EPS and operating margin of -28.14% underscore significant profitability challenges. With a Price/Book ratio of 2.12 and Price/Sales of 1.63, the stock appears overvalued relative to its financial performance. Additionally, the negative FCF yield and EV to EBITDA ratio reveal troubling cash flow issues, casting doubt on its ability to sustain growth without substantial improvements.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$9.00

Institutional Ownership %

1-Year Beta

1.96

Insider Buying % (6 Mo)

Distance to 52-Week High

126.62%

Distance to 52-Week Low

39.05%

EARNINGS SURPRISE %

19.23%

50-DAY SMA

$3.98

200-DAY SMA

$5.55

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.