CS Disco, Inc. (LAW)

In December 2025, CS Disco agreed to settle with investors over allegations of misleading them, which had previously caused a stock drop. In November 2025, Fintel increased price targets for CS Disco, and Needham maintained a "Buy" recommendation. Insider buying of LAW stock was reported in both October and September 2025. In Q3 2025, CS Disco reported EPS of -0.01 and revenue of $40.9 million, leading to a stock price increase. In February 2026, CS Disco's stock fell following an announcement from Anthropic, highlighting thematic risk related to AI competition.

The eDiscovery and legal technology market is experiencing significant growth, driven by the increasing need for organizations to preserve metadata and stringent regulatory requirements. The legal industry is undergoing a transformation with increasing investment in technology, including AI. However, there was a decline in revenue from services in Q1 and Q2 2025, which lessened in Q3 2025, potentially influenced by the increasing adoption of AI for first-pass review. The legal tech hiring market saw renewed energy in early 2025, followed by a pause due to macroeconomic uncertainty. Revenue is primarily from subscription software sales, with usage fees tied to the size and complexity of each case.

CS Disco, Inc. is a legal technology company providing cloud-native and AI-powered legal products and services, operating within the legaltech industry. Its major products simplify and automate legal processes, including DISCO Ediscovery & Cecilia AI for data processing and review, DISCO Hold for automating legal hold workflows, DISCO Request for automating compliance responses, DISCO Review for AI-powered document review services, and DISCO Case Builder for deposition management and trial preparation.

CS Disco, Inc. has a global presence with its principal executive offices in Austin, Texas, and additional offices in New York City, London, and New Delhi. The company offers its cloud-native and AI-powered legal products and services both in the United States and internationally.

In February 2025, CS Disco was named a G2 2025 award winner and a leader in the 2025 IDC MarketScape for eDiscovery software. However, a securities fraud class action complaint against CS Disco and some of its officers has survived a motion to dismiss, alleging the company touted strong revenue growth while not disclosing significant headwinds.

CS Disco, Inc.'s ownership is concentrated with institutional and private equity investors holding the majority of shares. Institutional investors hold approximately 58.05% of the shares, with private equity firms holding about 48%. Insiders own approximately 16.10% of the company, including Eric Friedrichsen, Michael Lafair and other executives and directors. The general public holds about 25.85% of the shares.