The revenue beat and raised full-year guidance confirm accelerating top-line momentum and improving unit economics. Watch for continued software revenue acceleration and progress toward breakeven in Q2/Q3 2026. The new all-inclusive DISCO platform and agentic AI capabilities could drive further customer wins and ARPU expansion.
Price Chart
Executive Summary
CS Disco reported Q1 2026 revenue of $41.9M (+14% YoY), beating consensus of $40.3M, with GAAP EPS of -$0.15 (miss vs consensus -$0.09) but non-GAAP EPS of -$0.07 (improving from -$0.08 YoY). The company raised its full-year 2026 total revenue guidance to $169.25M-$178.75M (from $167M-$177M) and narrowed Adjusted EBITDA loss guidance, signaling accelerating growth and improving operating leverage. The stock is likely to react positively to the revenue beat, raised guidance, and continued progress toward profitability.
Key Financial Metrics
Key Facts
- Q1 2026 total revenue $41.9M, up 14% YoY, beating $40.3M consensus
- Software revenue $34.7M, up 12% YoY
- GAAP net loss narrowed to $9.6M from $11.4M YoY
- Adjusted EBITDA improved 32% to -$3.5M from -$5.1M YoY
- Full-year 2026 total revenue guidance raised to $169.25M-$178.75M from $167M-$177M
- Full-year 2026 Adjusted EBITDA guidance narrowed to -$8.0M to -$4.0M from -$8.5M to -$4.5M
- Large customers (>$100K revenue) grew 9% YoY to 347
- Cash and short-term investments of $103M provide ample runway
Financial Impact
Revenue beat of ~$1.6M vs consensus; guidance raised by ~$2.25M at midpoint; Adjusted EBITDA loss guidance narrowed by ~$0.5M at midpoint
Risk Factors
- Still GAAP-unprofitable with cumulative deficit of $351M
- Operating cash flow negative at -$11.7M in Q1
- Dependence on large legal matters for revenue timing
- Stockholder litigation overhang ($11.5M accrued legal loss)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001625641-26-000105 |
| Document: law-20260506.htm | 0001625641-26-000105 |
| Document: 0001625641-26-000105-index-headers.html | 0001625641-26-000105 |
| Document: 0001625641-26-000105-index.html | 0001625641-26-000105 |
| Document: 0001625641-26-000105.txt | 0001625641-26-000105 |
| 8-K Data (Synthetic) | 0001625641-26-000105 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 19, 2026 9w ago | Insider Cluster | $4.34 | awaiting T+60 | — | $5.00 (+15.21%) |
Aug 5, 2026 11w ago | 8-K | $4.05 | awaiting T+60 | — | $5.00 (+23.46%) |
Jul 23, 2026 13w ago | 8-K | $3.52 $4.69 | ▲ +33.24% | ▲ +28.69% | $5.00 (+42.05%) |
Jun 11, 2026 19w ago | Institutional Cluster | $3.58 $4.24 | ▲ +18.44% | ▲ +14.04% | $5.00 (+39.66%) |
May 19, 2026 22w ago | Insider Cluster | $3.84 | awaiting T+60 | — | $5.00 (+30.21%) |
May 6, 2026 24w ago | 8-K | $3.72 $3.90 | ▲ +4.84% | ▲ +2.78% | $5.00 (+34.41%) |
Apr 23, 2026 26w ago | 8-K | $3.94 $4.11 | ▲ +4.31% | ▼ −0.70% | $5.00 (+26.90%) |
Feb 27, 2026 34w ago | Insider Cluster | $3.25 $3.79 | ▲ +16.62% | ▲ +7.23% | $5.00 (+53.85%) |
Feb 27, 2026 34w ago | Insider Cluster | $3.25 $3.79 | ▲ +16.62% | ▲ +7.23% | $5.00 (+53.85%) |
Feb 27, 2026 34w ago | Insider Cluster | $3.25 $3.79 | ▲ +16.62% | ▲ +7.23% | $5.00 (+53.85%) |
US Market Status
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