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CS Disco, Inc.

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CS Disco, Inc. • NYSE
$7.16 ▼ -0.69% (-0.05)
Market Cap $447.44 M
52w High $7.35
52w Low $3.31
Dividend Yield 0%
P/E -7.16
Volume 51.53K
Outstanding Shares 62.49M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $40.919M ▲ $45.373M ▲ $-13.665M ▼ -33.395% ▼ $-0.22 ▼ $-12.623M ▼
Q2-2025 $38.106M ▲ $40.233M ▲ $-10.812M ▲ -28.373% ▲ $-0.18 ▲ $-9.7M ▲
Q1-2025 $36.653M ▼ $39.76M ▼ $-11.393M ▲ -31.083% ▲ $-0.19 ▲ $-11.683M ▲
Q4-2024 $36.999M ▲ $53.595M ▲ $-25.2M ▼ -68.11% ▼ $-0.42 ▼ $-23.832M ▼
Q3-2024 $36.266M $37.403M $-9.158M -25.252% $-0.15 $-9.888M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $113.486M ▼ $174.761M ▲ $44.131M ▲ $130.63M ▼
Q2-2025 $114.489M ▼ $164.872M ▼ $26.977M ▲ $137.895M ▼
Q1-2025 $118.811M ▼ $168.03M ▼ $25.858M ▼ $142.172M ▼
Q4-2024 $129.127M ▲ $180.32M ▼ $32.806M ▲ $147.514M ▼
Q3-2024 $126.794M $194.382M $27.123M $167.259M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-13.665M ▼ $-979K ▲ $7.96M ▲ $151K ▲ $7.132M ▲ $-2.035M ▲
Q2-2025 $-10.812M ▲ $-4.221M ▲ $-8.632M ▼ $-8K ▲ $-12.861M ▲ $-5.186M ▲
Q1-2025 $-11.393M ▲ $-10.498M ▼ $-7.656M ▲ $-84K ▼ $-18.238M ▲ $-11.023M ▼
Q4-2024 $-25.2M ▼ $2.088M ▲ $-25.878M ▲ $12K ▼ $-23.778M ▲ $1.53M ▲
Q3-2024 $-9.158M $-2.857M $-50.813M $214K $-53.456M $-3.734M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Service
Service
 $10.00M ▲$10.00M ▲$10.00M ▲$10.00M ▲
Software
Software
 $60.00M ▲$30.00M ▼$30.00M ▲$40.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown meaningfully from early days and then flattened out over the last few years, suggesting the company has found a solid niche but is not yet in a rapid expansion phase. Gross margins are healthy, so the core software business appears economically attractive once scaled. However, the company continues to post operating and net losses, with per‑share losses still sizable. Those losses did spike at one point and have since narrowed somewhat, but the business is clearly still in “build and invest” mode rather than profitability mode, and progress toward break-even is gradual rather than dramatic.

Balance Sheet

Balance Sheet The balance sheet shows a company that once held a very large cash cushion relative to its size and has been drawing that down over time. Total assets and shareholders’ equity have both declined from their peaks, reflecting ongoing losses, but equity remains positive and meaningfully larger than the small amount of debt on the books. Leverage looks low, which reduces financial risk, but the shrinking cash and asset base underline the importance of eventually turning the business toward self-funding operations.

Cash Flow

Cash Flow Cash flow from operations has been consistently negative, which means the company is still dependent on its cash reserves (and potentially future financing) to fund day‑to‑day activities. Free cash flow mirrors that pattern, as capital spending has been modest and not the main driver of cash burn. There are signs of some improvement in cash outflows compared with the worst year, but the business is not yet close to being cash‑generative, so the length of the remaining cash runway and discipline on costs are key watch points.

Competitive Edge

Competitive Edge CS Disco operates in a focused niche: legal technology for litigation, ediscovery, and case management, with AI and cloud as the foundation. Its competitive edge rests on a purpose-built, cloud-native platform, strong domain knowledge from legal professionals, and a tightly integrated suite that can make it painful for customers to switch once embedded. The AI layer (Cecilia) that speeds document review and case analysis is a key differentiator in a market where many incumbents rely on older, less flexible tools. At the same time, this is a crowded and fast-moving space, so sustaining that edge will depend on continuing to execute better and innovate faster than larger, well-funded rivals.

Innovation and R&D

Innovation and R&D Innovation is central to the company’s story. Management has invested heavily in AI capabilities like Cecilia Auto Review and Q&A, which automate document review and let lawyers query evidence in plain language. The platform is cloud-native, which supports speed, scale, and easier collaboration. The company is also expanding AI features across its products and pushing into new regions such as Europe and Asia-Pacific. This sustained R&D effort strengthens the product, but it also contributes to ongoing losses, so the big question is whether these innovation investments can translate into steadily rising, higher-quality recurring revenue and, eventually, profits.

Summary

CS Disco is a specialized legal-tech company with solid gross margins and a clearly differentiated, AI-driven product platform, but it remains in a loss-making, cash-burning phase. The balance sheet is still relatively clean, with low debt and positive equity, though cash has trended down as the business invests in growth and innovation. Its competitive position is promising: an integrated, cloud-based suite, deep legal expertise, and AI capabilities that resonate with a profession just beginning to embrace generative tools. Looking ahead, the main opportunities lie in expanding among large enterprises and international clients, while the main risks revolve around achieving sustainable growth fast enough to offset ongoing losses, maintaining its technology lead in a crowded market, and carefully managing its cash runway on the path toward profitability.

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