Revenue growth remains strong at 13% YoY with slight guidance improvement, but the large EPS miss and worsening adjusted EBITDA highlight ongoing profitability challenges. Monitor next quarter's cash burn rate and progress toward breakeven; the new product launch could be a catalyst if it drives adoption.
Price Chart
Executive Summary
CS Disco reported Q2 2026 revenue of $43.1M (+13% YoY), slightly above consensus of $42.7M, but GAAP EPS of -$0.13 missed the -$0.06 estimate by 116%. Adjusted EBITDA worsened to -$3.4M from -$2.7M a year ago, while FY revenue guidance was narrow-raised. The company continues to burn cash ($10.9M remaining) but showed strong customer growth (354 large customers, +10% YoY) and launched a new unified litigation solution.
Key Financial Metrics
Key Facts
- Total revenue $43.1M (+13% YoY, slightly above $42.7M consensus)
- Software revenue $36.8M (+13% YoY)
- GAAP EPS -$0.13 (miss vs -$0.06 consensus, -116% surprise)
- Adjusted EBITDA -$3.4M vs -$2.7M in Q2 2025
- FY2026 total revenue guidance narrow-raised to $172M-$179M (prior $169.25M-$178.75M)
- Cash and equivalents $10.9M, down from $19.7M at year-end 2025
- Large customers ($100k+ annual revenue) grew to 354, up 10% YoY
- New unified litigation solution announced
Financial Impact
Revenue beat by ~$0.4M (1%) but EPS missed by -$0.07 (116% negative surprise on small base). Cash burn of ~$12.8M in first half 2026.
Risk Factors
- Continued net losses and cash burn may require future capital raises
- Adjusted EBITDA deterioration from -$2.7M to -$3.4M YoY
- Large customer concentration and dependence on legal matter timing
- Stockholder litigation expenses ($1.6M in Q2) add to costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001625641-26-000160 |
| Document: law-20260805.htm | 0001625641-26-000160 |
| Document: 0001625641-26-000160-index-headers.html | 0001625641-26-000160 |
| Document: 0001625641-26-000160-index.html | 0001625641-26-000160 |
| Document: 0001625641-26-000160.txt | 0001625641-26-000160 |
| 8-K Data (Synthetic) | 0001625641-26-000160 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 19, 2026 9w ago | Insider Cluster | $4.34 | awaiting T+60 | — | $4.97 (+14.63%) |
Aug 5, 2026 11w ago | 8-K | $4.05 | awaiting T+60 | — | $4.97 (+22.84%) |
Jul 23, 2026 13w ago | 8-K | $3.52 $4.69 | ▲ +33.24% | ▲ +28.69% | $4.97 (+41.34%) |
Jun 11, 2026 19w ago | Institutional Cluster | $3.58 $4.24 | ▲ +18.44% | ▲ +14.04% | $4.97 (+38.97%) |
May 19, 2026 22w ago | Insider Cluster | $3.84 | awaiting T+60 | — | $4.97 (+29.56%) |
May 6, 2026 24w ago | 8-K | $3.72 $3.90 | ▲ +4.84% | ▲ +2.78% | $4.97 (+33.74%) |
Apr 23, 2026 26w ago | 8-K | $3.94 $4.11 | ▲ +4.31% | ▼ −0.70% | $4.97 (+26.27%) |
Feb 27, 2026 34w ago | Insider Cluster | $3.25 $3.79 | ▲ +16.62% | ▲ +7.23% | $4.97 (+53.08%) |
Feb 27, 2026 34w ago | Insider Cluster | $3.25 $3.79 | ▲ +16.62% | ▲ +7.23% | $4.97 (+53.08%) |
Feb 27, 2026 34w ago | Insider Cluster | $3.25 $3.79 | ▲ +16.62% | ▲ +7.23% | $4.97 (+53.08%) |
US Market Status
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