LAW earnings analysis
What we found in LAW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CS Disco, Inc. showed strong performance in Q1 2026 with revenue reaching $41.9 million, a 14% increase year-over-year, while EPS losses improved from -$11.4 million in Q1 2025 to -$9.6 million. The positive revenue trend was bolstered by growth in both new and existing customer revenues despite some declines in usage from existing accounts. However, increased operational costs continue to press down on profitability.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 14% YOY
- Total revenue rose to $41.9 million from $36.7 million in Q1 2025, representing a 14% increase.
- Improving EPS Loss
- Diluted EPS loss decreased to -$0.23 compared to -$0.31 in Q1 2025.
- Adjusted EBITDA Loss Narrows
- Adjusted EBITDA improved to -$3.5 million from -$5.1 million in Q1 2025.
- Cost of Revenue Flat as Percentage
- Cost of revenue stayed at 26% of revenue, showing efficiency amidst growth.
- Strong Cash Position
- As of March 31, 2026, cash and short-term investments provide a total of $103 million.
- Segment Performance
- Revenue from services increased by 25%, while revenue from software product offerings increased by 12%.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Operating Losses Persist
- Net loss reached $9.6 million compared to $11.4 million in Q1 2025, highlighting ongoing financial challenges.
- Decreases in Usage from Existing Customers
- Revenue decline of $1.6 million from existing customers due to reduced usage.
- Dependency on Litigation Activity
- Revenue heavily tied to litigation workloads, which can be unpredictable.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.23
- Gross margin
- 74%
- Operating margin
- -24%
- Segment
- Software revenue growth 12%
- Segment
- Services revenue growth 25%
What they said about what is next.
Management indicated intentions to stabilize revenue growth but did not issue specific numeric guidance.
The filing reads better than the one before it.
What came before.
- 10-K · February 25, 2026
- DISCO (LAW) shows steady top-line growth and product-led momentum: total quarterly revenue for 2025 summed to $157,000,000 (Q1 $37M, Q2 $38M, Q3 $41M, Q4 $41M), customer base grew to 1,549 with a 98% dollar-based net…
- 10-Q · November 5, 2025
- CS Disco, Inc. reported better-than-expected financial results for Q3 2025, with revenues of $40.9 million, a 12.9% increase from $36.3 million in Q3 2024. However, the company continued to incur net losses, reporting…
- 10-Q · August 6, 2025
- CS Disco reported Q2 revenue of $38,106,000 (up $2,101,000 vs. Q2 2024) with gross margin improving to 74.6% and an operating loss narrowing to $(11,810,000). Cash and cash equivalents fell materially to $21,672,000…
- 10-Q · May 7, 2025
- DISCO reported Q1 revenue of $36.653M, up $1.082M (+3.0%) year-over-year, with gross profit of $27.150M (74.1%) and an operating loss of $12.610M (-34.4% operating margin). Cash decreased materially to $34.533M while…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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