CS Disco, Inc. (LAW) Stock

CS Disco, Inc. (LAW) is a Technology stock trading at $4.27 (as of 2026-08-21), with a market capitalization of $277.21M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

CS Disco, Inc. provides cloud-based and AI-assisted legal technology for eDiscovery, legal document review, and case management. Its DISCO platform includes eDiscovery, document review, and case-building capabilities used by enterprises, law firms, legal services providers, and governments for matters such as litigation, investigations, compliance, and diligence.

Understand CS Disco, Inc.: how it makes money

CS Disco provides cloud-native, AI-powered legal technology for eDiscovery, legal document review, and case management, selling its DISCO software platform and related services to enterprises, law firms, legal services providers, and governments.

The company reports high gross margins (74.2%), which suggests software-led value creation can be efficient at the product level, but operating profitability is currently negative (operating margin -24.1), indicating that operating expenses are large relative to revenue.

Revenue by segment (latest quarter)
Software	$0.0B
Services	$0.0B

Business quality (Weak): Strong retention signals (Dollar-Based Net Revenue Retention 96%) and AI-enabled performance metrics (Auto Review Precision and Recall 90%), but profitability is still negative (operating margin -24.1) in the latest reported quarter.

Bull case

Retention around 96%: Dollar-Based Net Revenue Retention is 96.0% for the quarter, which suggests existing customers on average are not shrinking revenue materially.
High reported gross margin: Gross margin is 74.2%, supporting the idea that the platform economics are attractive at the gross level.
AI review capability shows measurable performance: Auto Review Precision and Recall is 90.0%, and Auto Review Documents Reviewed Per Hour is 32,000, indicating automated review performance that is measurable.
Cross-sell signal: Multi-Product Attach Rate is 17.0%, suggesting some customers use more than one product.

Bear case

Operating loss persists: Operating margin is -24.1%, meaning operating expenses outweighed operating profitability in the latest reported quarter.
Retention is below 100%: Dollar-Based Net Revenue Retention is 96.0%, which is below 100% (not full net expansion) based on the provided quarter metric.
Revenue appears very small in the provided snapshot: Reported revenue is 0.0B in the latest quarter, while segment candidates show only Software Revenue of 0.03B and Services Revenue of 0.01B, so results may be sensitive to small absolute changes.

Valuation — source: SEC EDGAR (first-party)
Price	$4.27
Market Cap	$277.21M
Price / Book	2.31
Price / Sales	1.65
FCF Yield	-20.8%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$156.85M
Net Margin	-28.3%
Revenue Growth (YoY)	8.3%
EPS Growth (YoY)	-22.6%
FCF Growth (YoY)	56.0%

Financial Health — source: SEC EDGAR
Altman Z-Score	1.57 (distress)

Valuation vs Sector & Industry
Sector P/E (Technology)	34.0
Industry P/E (Business Services)	30.2

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	Deer Management Co. LLC ($33.05M)
Institutional Holders Tracked	10

Company
Sector	Technology
Industry	Business Services
CEO	Eric Friedrichsen
Employees	561
Country	US
IPO Date	2021-07-21

Related Companies (Business model: SaaS / Subscription Software (Enterprise); 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.