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CS Disco (LAW)
NYSE:LAW
Earnings Data
Report Date
May 07, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.09Last Year’s EPS
-0.08Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a constructive narrative: accelerating software growth, improving adjusted EBITDA margins, strong generative AI and Auto Review adoption, expanded large-account penetration, and a healthy cash position. Key challenges include declining services revenue, worsening operating cash flow, ongoing R&D investment and near-term negative adjusted EBITDA in guidance. Management outlined commercial and product changes intended to drive higher win rates and margin expansion, and set a goal of reaching adjusted EBITDA breakeven in 2026. Overall, positive operational momentum and strategic initiatives outweigh near-term profitability and cash-flow headwinds.Company Guidance
Q4 Revenue and Software Growth
Q4 total revenue of $41.2M, up 11% year over year; Q4 software revenue of $35.1M, up 14% year over year — the third consecutive quarter of accelerating revenue growth (excluding a one-time contingent deal).
Full-Year Revenue and Software Momentum
Fiscal 2025 total revenue of $157.0M, up 8% year over year; full-year software revenue of $134.0M, up 12% year over year, demonstrating multi-year acceleration in software growth (3% in 2023 → 7% in 2024 → 12% in 2025).
Improving Profitability Trends (Adjusted EBITDA and Net Loss)
Q4 adjusted EBITDA was negative $2.2M (‑5% margin) vs. a ‑12% margin in prior-year Q4; fiscal 2025 adjusted EBITDA was negative $10.2M (‑7%) vs. ‑13% in 2024. Net loss for fiscal 2025 was $10.7M (‑7% of revenue), improved from $17.2M (‑12%) in 2024; net loss per share improved to $0.17 from $0.29.
Strong Gross Margin and Efficiency Gains
Q4 gross margin was 77% and fiscal 2025 gross margin was 76% (up from 75% in 2024). Sales & marketing declined as a percent of revenue (35% FY 2025 vs 39% FY 2024), driven by lower personnel and marketing spend.
Large-Account Concentration and Retention
330 customers generated >$100K LTM, contributing $119M (76% of total revenue); 20 customers produced >$1M in revenue. Software dollar-based net retention exceeded 103% (total DBNR finished at 98%).
Generative AI and Auto Review Adoption Accelerating
Significant acceleration in adoption of generative AI capabilities (management cited a 4,100% increase attributable to these features) and strong first-year sales and repeat usage of Auto Review; management reported multi-terabyte matters revenue growth of over 30% year over year in Q4 and record total terabytes on platform.
Product & Commercial Improvements (Pricing & Packaging)
Company announced unified offering with Cecilia AI included per matter, a shift to per-gigabyte pricing tied to data growth, and simplified contracting alternatives — changes tested with customers and expected to improve win rates, reduce discounting, and lift long-term revenue and gross margin.
Healthy Balance Sheet
Ended Q4 with $114.6M in cash, cash equivalents, and short-term investments and no debt, providing runway to fund growth and product investments.
Forward Guidance Indicates Growth Trajectory
FY 2026 revenue guidance of $167M–$177M and software guidance of $145.5M–$152.5M, with management targeting adjusted EBITDA improvement toward breakeven by 2026.
LAW Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
LAW Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 25, 2026 | $3.26 | $2.76 | -15.34% |
Nov 05, 2025 | $6.22 | $6.82 | +9.65% |
Aug 06, 2025 | $4.13 | $4.39 | +6.30% |
May 07, 2025 | $3.63 | $3.99 | +9.92% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does CS Disco (LAW) report earnings?
CS Disco (LAW) is schdueled to report earning on May 07, 2026, After Close (Confirmed).
What is CS Disco (LAW) earnings time?
CS Disco (LAW) earnings time is at May 07, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is LAW EPS forecast?
LAW EPS forecast for the fiscal quarter 2026 (Q1) is -0.09.