CS Disco

LAW · NYSE

$4.67+$0.17 (+3.78%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $4.50

LAW analyst rating

BuyConsensus of 3 analysts over the last 12 months. 67% rate it a buy.

Strong buy0
Buy2
Hold1
Underperform0
Sell0

12-month price target · 4 analysts

Average $6.80 (+45.6% upside)

Low: $4.04
Now: $4.67
High: $10.50

Upgrades and downgrades

The latest rating actions, newest first

LAW analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Canaccord Genuity	Feb 26, 2026	Maintains	Buy	$9.00 → $6.00	52%
Jefferies	Jan 5, 2026	Maintains	Hold	$6.00 → $8.00	60%
Needham	Nov 6, 2025	Maintains	Buy	$8.00 → $10.00	38%

The case for and against

Updated Oct 23, 2025

Bull case

CS Disco Inc is projecting a robust growth in software revenue, with expectations of an increase of 6.9% to reach between $125.5 million and $131.5 million, surpassing earlier forecasts. Additionally, the company has seen a notable 8% year-over-year increase in the number of customers contributing over $100,000 in trailing twelve-month (TTM) revenue, totaling 318 customers. Despite a deceleration in total revenue growth to 3.0% year-over-year, the stability in software revenue growth at 3.3% year-over-year alongside positive customer expansion signals a favorable outlook for the company's financial performance.

Bear case

CS Disco Inc reported a decline in gross margin of 80 basis points year-over-year, indicating potential challenges in profitability despite aligning with forecasted expectations. Additionally, the company experienced a significant decrease in operating cash flow, falling by $3.2 million year-over-year to a negative $10.5 million, which reflects a worsening margin of (28.6%) compared to (20.6%) in the previous quarter. Operating expenses, while lower than estimates at $33.8 million, highlighted a mixed cost structure influenced by reduced selling and marketing expenditures, offset by an increase in general and administrative costs, suggesting inefficiencies in operational management.

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