CS Disco
CS Disco's revenue rose 8.3% to $157 million in fiscal 2025. Its operating margin was −30.7%, up from −42.6% a year earlier. Free cash flow was −$18 million. It paid out $0 million in dividends and buybacks. The diluted share count rose 2.5%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
Charts show fiscal years, from the 10-K filings.
What CS Disco does
DISCO sells cloud-based, AI-powered software to legal departments. Its products cover legal holds (freezing documents that might be needed in a case), legal requests, ediscovery (collecting and searching electronic records for a lawsuit), document review and case management. Its customers are companies, law firms, legal services providers and government bodies. Its AI models pick out legally relevant documents to speed up review and learn from the legal work done on the platform.
DISCO uses a usage-based pricing model, so customers pay according to how much they use the products, and it says this lets them start small and expand. At the end of 2025 it had 1,549 customers, 330 of which were large customers, which it defines as those with revenue above $100,000 over the previous 12 months. It also relies on law firms and other legal services providers to bring in business.
The company was incorporated in 2013. It says the legal industry has been slow to adopt cloud technology, and it expects to add products for other areas of the legal function, which would put it in front of more competitors.
Its biggest risks, as it describes them
- A limited number of customers account for a substantial part of its revenue.
- Customers may use its products less, or leave, which would hurt its results.
- It depends on law firms and other legal services providers to bring in business.
- Its pricing model is hard to get right, and its sales cycles are long and unpredictable.
- It relies on third-party cloud providers to host its platform.
Income statement
CS Disco lost money in fiscal 2025: a net loss of $44 million.
Returns on capital
Balance sheet
Five years at a glance
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 256 | 203 | 160 | 129 | 115 |
| Debt incl. finance leases | — | — | — | — | — |
| Net debt (negative means net cash) | — | — | — | — | — |
| Net debt to EBITDA | — | — | — | — | — |
| Debt to equity | — | — | — | — | — |
| Interest coverage | −226.9x | — | — | — | — |
| Current ratio | 15.1x | 10.2x | 8.3x | 6.1x | 3.8x |
| Quick ratio | 15.1x | 10.2x | 8.3x | 6.1x | 3.8x |
Cash flow
Projections
Project CS Disco's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.
Insider trades
No officer, director or 10% owner of CS Disco reported buying or selling its shares on the open market between November 7, 2025 and November 6, 2026.
Indicators
Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.
| Indicator | FY23 | FY24 | FY25 |
|---|---|---|---|
| Piotroski F-score | — | — | — |
| Rule of 40 | −19.9% | −3.1% | −3.2% |
| Altman Z'' | 6.70 | 1.82 | −1.07 |
| Accruals ratio | −6.8% | −22.8% | −16.6% |
The nine F-score tests
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Fail | Fail | Fail |
| Cash from operations is positive | Fail | Fail | Fail |
| Return on assets rose | Pass | Fail | Fail |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | — | — | — |
| Current ratio rose | Fail | Fail | Fail |
| Share count didn't rise | Fail | Fail | Fail |
| Gross margin rose | Fail | Fail | Pass |
| Revenue rose relative to assets | Pass | Pass | Pass |
| F-score | — | — | — |
Compare
Put CS Disco side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| CS Disco | FY25 | 8.3% | −30.7% | −11.5% | — | — | — | |
| SmartRent | FY25 | −12.9% | −42.0% | −16.5% | — | — | — | Compare |
| Telos | FY25 | 52.2% | −24.2% | 17.9% | — | — | — | Compare |
| Backblaze | FY25 | 14.3% | −16.2% | 12.9% | — | — | — | Compare |
| SoundHound AI | FY25 | 99.5% | −13.8% | −58.7% | −18.4% | — | 2 | Compare |
6 years of figures
| Fiscal year | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Income statement | ||||||
| Revenue | 68 | 114 | 135 | 138 | 145 | 157 |
| Revenue growth | — | 67.1% | 18.2% | 2.1% | 4.9% | 8.3% |
| Gross profit | 48 | 83 | 101 | 103 | 107 | 117 |
| Research and development | 27 | 34 | 59 | 52 | 52 | 57 |
| Operating income | −22 | −24 | −72 | −50 | −62 | −48 |
| Net income | −23 | −24 | −71 | −42 | −56 | −44 |
| Diluted EPS (US$) | −1.74 | −0.73 | −1.20 | −0.70 | −0.93 | −0.72 |
| Diluted shares (millions) | 13 | 33 | 59 | 60 | 60 | 62 |
| Cash flow | ||||||
| Cash from operations | −23 | −22 | −46 | −26 | −9 | −15 |
| Capital expenditure | 2 | 3 | 4 | 5 | 3 | 3 |
| Free cash flow | −25 | −25 | −50 | −30 | −12 | −18 |
| Dividends paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share buybacks | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 5 | 1 | 0 | 0 |
| Stock-based compensation | 2 | 6 | 22 | 16 | 22 | 24 |
| Balance sheet at fiscal year end | ||||||
| Cash and short-term investments | 59 | 256 | 203 | 160 | 129 | 115 |
| Debt incl. finance leases | — | — | — | — | — | — |
| Total assets | 79 | 287 | 256 | 232 | 180 | 174 |
| Total liabilities | 13 | 19 | 33 | 31 | 33 | 46 |
| Shareholders' equity | −95 | 269 | 224 | 200 | 148 | 128 |
| Margins and ratios | ||||||
| Gross margin | 70.1% | 72.8% | 74.7% | 74.7% | 74.2% | 74.9% |
| Operating margin | −32.9% | −20.8% | −53.1% | −36.1% | −42.6% | −30.7% |
| Net margin | −33.4% | −21.3% | −52.3% | −30.5% | −38.5% | −28.3% |
| Free cash flow margin | −36.0% | −21.6% | −37.3% | −22.0% | −8.0% | −11.5% |
| Rule of 40 (growth + FCF margin) | — | 45.4% | −19.0% | −19.9% | −3.1% | −3.2% |
| Return on capital | — | — | — | — | — | — |
| Return on equity | — | −28.0% | −28.8% | −19.9% | −32.1% | −32.2% |
| Return on assets | — | −13.3% | −26.0% | −17.3% | −27.1% | −25.1% |
| Net debt to EBITDA | — | — | — | — | — | — |