AI-extracted from the 10-Q filed 2026-08-05 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q2 revenue grew 13% YoY to $43.1M, but net loss narrowed to $8.7M as company approaches profitability despite usage-based model volatility.
Biggest Revenue Drivers
Software$36.8M+13% YoY
Increases in usage of software product offerings including DISCO Hold, Request, Ediscovery, Case Builder, Cecilia AI and Auto Review.
Services$6.3M+18% YoY
Increase in usage of DISCO Review offering and professional services supporting Auto Review.
Biggest Revenue Drivers
Total revenue: $43.1M+13% YoY
Software$36.8M+13% YoY
Increases in usage of software product offerings including DISCO Hold, Request, Ediscovery, Case Builder, Cecilia AI and Auto Review.
Within Software
Subscription revenue$3.4M8% of total
Customers committed to minimum data volume; recognized ratably over contract life.
Services$6.3M+18% YoY
Increase in usage of DISCO Review offering and professional services supporting Auto Review.
Largest Expense Items
Sales and marketing$16.9M+11% YoY
Increase of $1.4M in personnel costs including commissions for sales personnel.
Research and development$14.9M+7% YoY
Increase of $0.7M in software costs for AI-powered productivity tools and $0.3M in personnel costs.
Cost of revenue$11.0M+14% YoY
$0.7M increase in cloud hosting costs, $0.4M in salary/benefits, and $0.2M in outsourced staffing.
General and administrative$9.5M-14% YoY
Decrease of $1.6M in legal costs related to securities litigation offset by $0.8M increase in professional services.
Margins: Gross profit margin remained stable at 74% YoY. Operating loss improved substantially to $(9.2)M from $(11.8)M YoY as the company approaches profitability, driven by operating expense discipline despite modest revenue growth.
Watch Items from the Filing
Revenue concentration: substantial portion derived from top 10% of customers; any significant customer loss or usage reduction from major legal matters could materially impact quarterly results.
Geographic exposure: 12% of Q2 revenue from non-US customers; executive orders against certain law firm partners in March 2025 have not yet impacted revenue but litigation validity remains uncertain.
Settlement liability: $11.5M securities litigation settlement recorded as of December 31, 2025, with $8.1M insurance recovery receivable and approval still pending as of July 1, 2026.
Customer concentration risk: existing customers with significant ediscovery spend declining usage; new customers contributed $5.9M revenue offset by $0.9M decline from existing base.
Company will cease emerging growth status December 31, 2026, triggering auditor attestation requirements and increased compliance costs.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Blount Susan LDirectorGrant or award · Jun 10, 2026
About CS Disco, Inc. (LAW): stock profile, AI score and financials
CS Disco, Inc. (LAW) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores LAW at 26.1/100 on a composite quality score built from its SEC filings, placing it at rank #2,600 of 2,925 stocks — the bottom half of the AI-ranked universe. Areas of concern include balance sheet strength (9.4) and institutional flow (14.7), which score below median versus the broader universe. Shareholder dilution risk is elevated at 11.1/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), CS Disco, Inc. reports quarterly revenue of $43.1M, net income of $-8.7M, an operating margin of -21.4%. LAW trades on the NYSE exchange and files with the SEC under CIK 1625641. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate LAW daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for CS Disco, Inc. directly from SEC EDGAR.