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/LAW
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CS Disco Inc

CS Disco Inc

LAW
$4.05USD↓-3.80%-0.16 today

MARKET CAP

259.7M

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.

  • ↑Q1 2026 revenue reached $41.9M (+14% YoY) with 2026 guide upped to $169.3–178.8M.
  • ↑Generative AI tool adoption grew 600% YoY, accelerating customer onboarding.
  • ↓Adjusted EBITDA loss remained negative $3.5M in Q1 despite improvement.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

CS Disco, Inc. (NYSE: LAW) specializes in cloud-native, artificial intelligence-powered legal technology solutions. The company's flagship offerings include the Disco platform and tools like Cecilia AI, which enhance litigation processes by streamlining eDiscovery and case management. Positioned as a disruptor within the legal tech sector, Disco serves various clients, including law firms, legal service providers, and government entities, effectively responding to the increasing demand for advanced legal solutions in a complex data environment.

Bull says

  • ↑Q1 2026 revenue reached $41.9M (+14% YoY) with 2026 guide upped to $169.3–178.8M.
  • ↑Generative AI tool adoption grew 600% YoY, accelerating customer onboarding.
  • ↑Cash of $103M with zero debt funds R&D and sales expansion.
  • ↑Simplified pricing model drove higher matter conversions and user uptake.
  • ↑Management targets >20% CAGR amid mounting legal case complexity.
  • ↑Positive analyst revisions and modest dividend yield reinforce appeal.

Bear says

  • ↓Adjusted EBITDA loss remained negative $3.5M in Q1 despite improvement.
  • ↓Net loss of $4.2M narrows from $4.9M prior year but stays unprofitable.
  • ↓77% of revenue from 347 large accounts increases concentration risk.
  • ↓R&D and sales expenses may drive 2026 EBITDA loss of $4M–$8M.
  • ↓Competition from legacy legal tech and new AI entrants pressures share.
  • ↓Negative profitability factors, high short interest, and leverage risk signal skepticism.

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-12-2026bullish

Transcript signals

Bull points

  • As Eric noted, we are incredibly excited about the customer response we're seeing to the Disco platform and Cecilia Advanced Research. Both are important steps for us, but are really only the beginning of what we know is possible in litigation technology with our AI capabilities.
  • We're currently in testing with select customers on live case data in preparation for this broader rollout to priority customers on our wait list later this month. And the feedback is fantastic. Customers instantly grasp how much more they can accomplish and see it as a very real example of what other AI providers have only been promising.
  • Disco AI lets litigators focus on the output of the process, winning for their clients who hire them to deliver. We believe this means lower barriers to adoption, greater usage of our platform across the life of a matter, and most importantly, better results for our customers and their clients.

Bear points

  • Operating cash flow in Q1 was negative $11.7 million compared to negative $10.5 million in Q1 of the prior year.
Read full transcript analysis ›