STOCK TITAN

CS Disco (NYSE: LAW) Q2 2026 revenue $43.1M, loss $8.7M

(High)
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

CS Disco, Inc. reported second quarter 2026 results with total revenue of $43.1 million, up 13% from $38.1 million a year earlier, and software revenue of $36.8 million, also up 13%.

The company recorded a GAAP net loss of $8.7 million, improving from $10.8 million in the prior-year quarter. Adjusted EBITDA was $(3.4) million compared with $(2.7) million, and management continues to use multiple non-GAAP metrics to evaluate operating performance.

CS Disco highlighted 354 customers generating over $100,000 in the past 12 months, a 10% increase year over year, and announced a new unified litigation solution that combines matter facts with U.S. case law. For the third quarter of 2026, it guides total revenue to $43.75–$45.75 million, and for full year 2026 to $172.0–$179.0 million, with negative Adjusted EBITDA expected for both periods.

Positive

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Filing Explained

At June 30, 2026, cash fell to $10,887 thousand and common shares outstanding rose to 64,857 shares from 63,264 shares at year-end.

This Form 8-K reports the completed quarter ended June 30, 2026 and provides the related unaudited financial statements; its new structural information is the reported share count and liquidity position.

Common shares issued and outstanding were 64,857 shares at June 30, 2026, up from 63,264 shares at December 31, 2025; the filing does not identify what transactions caused the change.

Under the supplied definition, issuing additional shares increases the total share count and reduces an existing holder’s percentage ownership absent offsetting changes, but this filing does not establish that the reported increase came from one specific issuance.

At June 30, 2026, cash and equivalents were $10,887 thousand and short-term investments were $90,507 thousand, compared with $19,655 thousand and $94,942 thousand, respectively, at year-end.

Operating activities used $12,757 thousand during the six months ended June 30, 2026; the next Form 10-Q for that quarter will provide the subsequent periodic update to these figures.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Total revenue Q2 2026 $43.1 million Up 13% compared to $38.1 million in the second quarter of 2025
Software revenue Q2 2026 $36.8 million Up 13% compared to the second quarter of 2025
GAAP net loss Q2 2026 $8.7 million Compared to $10.8 million GAAP net loss in the second quarter of 2025
Adjusted EBITDA Q2 2026 $(3.4) million Compared to $(2.7) million in the second quarter of 2025
Cash and cash equivalents 10,887 (thousands) Balance as of June 30, 2026 on the consolidated balance sheet
Short-term investments 90,507 (thousands) Balance as of June 30, 2026 on the consolidated balance sheet
Large customers over $100K 354 Customers with revenue over $100,000 in the prior 12 months as of June 30, 2026
FY 2026 total revenue guidance $172.0–$179.0 million Company’s forecasted total revenue range for fiscal year 2026
Adjusted EBITDA financial
"Adjusted EBITDA was $(3.4) million, compared to $(2.7) million in the second quarter of 2025."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP gross margin financial
"Non-GAAP gross margin | 76 % | | 76 % | | 76 % | | 76 % |"
Non-GAAP gross margin is a measure of a company's profitability that shows how much money it makes from sales after subtracting the direct costs of producing its products or services, but without applying certain accounting adjustments required by standard rules. It helps investors understand the company's core earning ability by excluding items like one-time expenses or accounting changes. This metric provides a clearer picture of ongoing business performance beyond official financial reports.
deferred revenue financial
"Deferred revenue | 4,189 | | | 5,382 |"
Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.
stock-based compensation expense financial
"DISCO adjusts the respective GAAP balances for stock-based compensation expense"
Stock-based compensation expense is the value that a company records when it gives employees or executives shares or options to buy shares as part of their pay. It matters because it shows the true cost of paying employees this way, which can affect the company's profits and how investors see its financial health.
Total revenue $43.1 million Up from $38.1 million in the quarter ended June 30, 2025
GAAP net loss $8.7 million Improved from $10.8 million in the quarter ended June 30, 2025
Adjusted EBITDA $(3.4) million Compared with $(2.7) million in the quarter ended June 30, 2025
Guidance

For Q3 2026, CS Disco expects software revenue of $38.1–$39.1 million, total revenue of $43.75–$45.75 million, and Adjusted EBITDA of $(1.75) million to $(0.25) million. For FY 2026, it guides software revenue to $147.5–$152.5 million, total revenue to $172.0–$179.0 million, and Adjusted EBITDA to $(8.0) million to $(5.0) million.

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FAQ

How did CS Disco (LAW) perform financially in Q2 2026?

CS Disco reported Q2 2026 revenue of $43.1 million, up 13% from $38.1 million in Q2 2025. GAAP net loss was $8.7 million, improving from $10.8 million, while Adjusted EBITDA was $(3.4) million compared with $(2.7) million a year earlier.

What revenue guidance did CS Disco (LAW) provide for Q3 2026?

For Q3 2026, CS Disco expects software revenue of $38.1–$39.1 million and total revenue of $43.75–$45.75 million. The company also forecasts Adjusted EBITDA in a range of $(1.75) million to $(0.25) million, remaining negative but narrower than prior periods.

What is CS Disco (LAW)’s full-year 2026 financial outlook?

For fiscal 2026, CS Disco projects software revenue of $147.5–$152.5 million and total revenue of $172.0–$179.0 million. It expects Adjusted EBITDA between $(8.0) million and $(5.0) million, indicating continued operating losses on a non-GAAP basis for the year.

How many large customers does CS Disco (LAW) have and how is this changing?

As of June 30, 2026, CS Disco had 354 customers generating revenue over $100,000 in the prior 12 months. This represents a 10% increase compared with June 30, 2025, indicating growth among larger, higher-spending accounts on the company’s platform.

What new product did CS Disco (LAW) introduce alongside Q2 2026 results?

CS Disco announced a unified litigation solution that combines matter facts with relevant U.S. case law. This AI-native application is designed to give litigators instant access to critical information in a single platform, extending the company’s capabilities beyond traditional ediscovery offerings.
0001625641FALSE00016256412026-08-052026-08-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (date of earliest event reported): August 5, 2026
 
CS Disco, Inc.

(Exact name of Registrant, as specified in its charter)
Delaware001-4062446-4254444
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification Number)

111 Congress Avenue
Suite 900
Austin, Texas 78701
(Address of principal executive offices) (Zip code)

Registrant's telephone number, including area code: (833) 653-4726

Former name or address, if changed since last report: Not Applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.005LAWNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02          Results of Operations and Financial Condition
On August 5, 2026, CS Disco, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the earnings release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information contained in this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.
Item 9.01          Financial Statements and Exhibits
 
(d) Exhibits
 
Exhibit No.
99.1
Earnings Release dated August 5, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CS Disco, Inc.
Date: August 5, 2026By:/s/ Aaron Barfoot
Name:Aaron Barfoot
Title:Executive Vice President, Chief Financial Officer



DISCO Announces Second Quarter 2026 Financial Results

Total Revenue of $43.1 Million, A Year Over Year Increase of 13%
AUSTIN, Texas - August 5, 2026 - CS Disco, Inc. (“DISCO”) (NYSE: LAW) today announced financial results for its second quarter ended June 30, 2026.

“This was another strong quarter for DISCO as we continue to deepen our relationships with our largest customers, secure large and complex matters and extend our lead in AI built specifically for litigators," said Eric Friedrichsen, CEO of DISCO. "We are also excited to announce our new unified litigation solution that will move DISCO well beyond traditional ediscovery and into delivering full-stack litigation capabilities unlike anything else on the market."

Second Quarter 2026 Financial Highlights:

Software revenue was $36.8 million, up 13% compared to the second quarter of 2025.
Total revenue was $43.1 million, up 13% compared to the second quarter of 2025.
GAAP net loss was $8.7 million, compared to $10.8 million in the second quarter of 2025.
Adjusted EBITDA was $(3.4) million, compared to $(2.7) million in the second quarter of 2025.

Recent Business Highlights:
Director Appointment: DISCO welcomed longtime information security expert and former Meta senior executive, Andre Mintz, to the Board of Directors in July 2026.
Large Customers: DISCO grew to 354 customers with revenue in excess of $100,000 over the previous 12-month period as of June 30, 2026, a 10% increase compared to June 30, 2025.
Unified Litigation Solution: DISCO announced the launch of a new unified litigation solution that combines the facts of a matter with the relevant U.S. case law to give litigators instant access to their most critical information in a single, powerful AI-native application.

Third Quarter and Full Year 2026 Financial Outlook

As of August 5, 2026, DISCO is issuing the following outlook for the third quarter of 2026 and fiscal year 2026:

Third quarter of 2026:

Software revenue in the range of $38.1 million - $39.1 million.
Total revenue in the range of $43.75 million - $45.75 million.
Adjusted EBITDA in the range of $(1.75) million - $(0.25) million.

Fiscal year 2026:

Software revenue in the range of $147.5 million - $152.5 million.
Total revenue in the range of $172.0 million - $179.0 million.
Adjusted EBITDA in the range of $(8.0) million - $(5.0) million.

DISCO’s third quarter and fiscal year 2026 financial outlook is based on assumptions that are subject to change, many of which are outside of its control. If actual results vary from these assumptions, these expectations may change. There can be no assurance that DISCO will achieve these results.

A reconciliation of Adjusted EBITDA on a forward-looking basis to net loss, the most directly comparable GAAP measure, is not available without unreasonable efforts due to the high variability and complexity and low visibility with respect to the charges excluded from this non-GAAP measure; in particular, the effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in DISCO’s stock price and expenses associated with the stockholder litigation. DISCO expects the variability of the above charges to have a significant, and potentially unpredictable, impact on its future GAAP financial results.




Conference Call Information

DISCO will host a conference call and webcast at 7:30 a.m. CT (8:30 a.m. ET) today, August 5, 2026, to discuss its second quarter financial results and business highlights. The conference call can be accessed by dialing (833) 461-5787 from the United States or +1 (585) 542-9983 internationally with conference ID 436-526-207. The live webcast of the conference call and other materials related to DISCO’s financial performance can be accessed from DISCO’s investor relations website at ir.csdisco.com.

Following the completion of the call, a webcast replay will be available at ir.csdisco.com for 12 months.

About DISCO

DISCO (NYSE: LAW) provides comprehensive, innovative solutions for modern litigation. We create and service an intuitive, cloud-native platform at the forefront of litigation technology, backed by the partnership of expert professional services and support. Leveraging the latest in AI to help law firms and corporations achieve smarter outcomes faster, our scalable products and tools allow customers to simplify everyday tasks and tackle complex matters at every stage of litigation.

References to “DISCO,” the “Company,” “our” or “we” in this press release refer to CS Disco, Inc. and its subsidiaries on a consolidated basis.

Use of Non-GAAP Financial Measures

DISCO uses the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin; non-GAAP cost of revenue; non-GAAP gross profit; non-GAAP gross margin; non-GAAP research and development expense; non-GAAP research and development expense as a percentage of revenue; non-GAAP sales and marketing expense; non-GAAP sales and marketing expense as a percentage of revenue; non-GAAP general and administrative expense; non-GAAP general and administrative expense as a percentage of revenue; non-GAAP loss from operations; non-GAAP operating margin; non-GAAP net loss attributable to common stockholders, non-GAAP net loss attributable to common stockholders per share (basic and diluted) and non-GAAP net loss attributable to common stockholders as a percentage of revenue. Management believes that these non-GAAP financial measures are useful measures of operating performance because they exclude items that DISCO does not consider indicative of its core performance.

In the case of Adjusted EBITDA and Adjusted EBITDA margin, DISCO adjusts net loss for such items as depreciation and amortization expense; income tax provision; interest and other, net; stock-based compensation expense; payroll tax expense on employee stock transactions; expenses associated with stockholder litigation; and other one-time, non-recurring items, when applicable. In the case of non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expense, non-GAAP research and development expense as a percentage of revenue, non-GAAP sales and marketing expense and non-GAAP sales and marketing expense as a percentage of revenue, DISCO adjusts the respective GAAP balances for stock-based compensation expense, and other one-time, non-recurring items, when applicable. In the case of non-GAAP general and administrative expense, non-GAAP general and administrative expense as a percentage of revenue, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss attributable to common stockholders, non-GAAP net loss attributable to common stockholders per share (basic and diluted) and non-GAAP net loss attributable to common stockholders as a percentage of revenue, DISCO adjusts the respective GAAP balances for stock-based compensation expense, expenses associated with stockholder litigation, and other one-time, non-recurring items, when applicable.

There are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating loss and net loss. As a result, these non-GAAP financial measures have limitations and should be considered in addition to, not as a substitute for or superior to, the closest GAAP measures, or other financial measures prepared in accordance with GAAP.

DISCO's management uses these non-GAAP measures as measures of operating performance; to prepare DISCO's annual operating budget; to allocate resources to enhance the financial performance of DISCO's business; to evaluate the effectiveness of DISCO's business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of DISCO's results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communication with DISCO’s board of directors concerning financial performance.




Forward-Looking Statements

This press release contains forward-looking statements, including, among other things, statements regarding DISCO’s future financial performance and DISCO’s product offerings, including the capabilities of DISCO’s unified litigation solution, strategies and business initiatives. Words such as “may,” “should,” “will,” “believe,” “expect,” “anticipate,” “target,” “project,” and similar phrases that denote future expectation or intent regarding DISCO’s financial results, operations, and other matters are intended to identify forward-looking statements. You should not rely upon forward-looking statements as predictions of future events.

The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause DISCO’s actual results, performance, or achievements to differ materially, including (i) our history of operating losses; (ii) our ability to maintain and advance our innovation and brand; (iii) our ability to effectively add new customers; (iv) our ability to effectively increase usage and penetration with our existing customer base; (v) our ability to expand our sales coverage and establish a digital sales channel; (vi) our ability to expand internationally; (vii) our ability to grow our partner ecosystem and maintain existing strategic relationships with law firms, legal services providers and our other partners; (viii) our ability to expand our offering portfolio to a wider range of legal processes outside of our current core offerings; (ix) our dependence on revenue from customer usage, which fluctuates based on the timing of and activity driven by legal matters for which our product offerings are used, and any shortfall of large matters on our platform; (x) our ability to pursue strategic acquisitions and strategic investments to expand the functionality and value of our product offerings; (xi) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business in the jurisdictions in which we operate; (xii) the potential that our computer or electronic systems, applications or services, or those of any third parties on whom we depend, fail or suffer security or data privacy breaches or other unauthorized or improper access to, use of, or destruction of our proprietary or confidential data, employee data, or personal data; (xiii) our ability to compete effectively with existing competitors and new market entrants; (xiv) the impact of general macroeconomic conditions, such as fluctuations in inflation and interest rates and the imposition of tariffs in the United States and abroad, on our or our customers’ businesses; (xv) the impact of unfavorable conditions in the legal industry, including as a result of decreased levels of regulatory enforcement and future shutdowns of the U.S. government, on the growth of our business and usage of our product offerings; and (xvi) the impact that global events, such as the Russia-Ukraine war, the war in Iran and the broader conflict and escalating tensions in the Middle East, and any related economic downturn could have on our or our customers’ businesses, financial condition and results of operations.

The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 6, 2026. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that we make with the SEC from time to time, including our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Forward-looking statements represent DISCO’s management’s beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Investor Relations Contact
IR@csdisco.com



CS DISCO, INC.
Consolidated Balance Sheets
(in thousands, except par value amounts)
(unaudited)
June 30,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents$10,887 $19,655 
Short-term investments90,507 94,942 
Accounts receivable, net27,953 25,622 
Insurance recovery receivable related to legal loss8,131 8,039 
Prepaid expenses and other current assets4,099 4,736 
Total current assets141,577 152,994 
Property and equipment, net7,706 7,583 
Operating lease right-of-use assets4,940 6,121 
Other intangible assets, net116 206 
Goodwill5,898 5,898 
Other assets1,151 837 
Total assets$161,388 $173,639 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$4,235 $3,888 
Accrued expenses6,243 6,533 
Accrued legal loss11,500 11,500 
Accrued salary and benefits8,564 10,457 
Deferred revenue4,189 5,382 
Operating leases2,738 2,624 
Finance leases44 44 
Total current liabilities37,513 40,428 
Operating leases, non-current2,828 4,231 
Finance leases, non-current50 72 
Other liabilities838 801 
Total liabilities41,229 45,532 
Commitments and contingencies
Stockholders’ equity
Preferred stock $0.005 par value, 100,000 shares authorized and no shares issued and outstanding as of June 30, 2026 and December 31, 2025
— — 
Common stock $0.005 par value, 1,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 64,857 and 63,264 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
325 317 
Additional paid-in capital479,953 469,560 
Accumulated other comprehensive (loss) income(41)32 
Accumulated deficit(360,078)(341,802)
Total stockholders’ equity 120,159 128,107 
Total liabilities and stockholders’ equity$161,388 $173,639 



CS DISCO, INC.
Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Revenue$43,146 $38,106 $85,028 $74,759 
Cost of revenue11,032 9,683 21,831 19,186 
Gross profit32,114 28,423 63,197 55,573 
Operating expenses:
Research and development14,932 13,968 29,632 28,225 
Sales and marketing16,875 15,241 32,960 29,768 
General and administrative9,523 11,024 19,914 22,000 
Total operating expenses41,330 40,233 82,506 79,993 
Loss from operations(9,216)(11,810)(19,309)(24,420)
Interest and other income, net693 1,208 1,309 2,562 
Loss from operations before income taxes(8,523)(10,602)(18,000)(21,858)
Income tax provision(135)(210)(276)(347)
Net loss attributable to common stockholders$(8,658)$(10,812)$(18,276)$(22,205)
Unrealized loss on investments(20)(9)(73)(49)
Comprehensive loss$(8,678)$(10,821)$(18,349)$(22,254)
Net loss per share attributable to common stockholders, basic and diluted$(0.13)$(0.18)$(0.29)$(0.36)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted64,489 61,245 64,084 60,913 



CS DISCO, INC.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

Six Months Ended
June 30,
20262025
Cash flow from operating activities:
Net loss$(18,276)$(22,205)
Adjustments to reconcile net loss to cash used in operations:
Depreciation and amortization1,573 1,829 
Stock-based compensation10,498 12,357 
Charge to allowance for credit losses555 1,097 
Non-cash operating lease costs1,181 1,118 
Amortization of premium on short-term investments(1,566)(1,707)
Other336 (103)
Changes in operating assets and liabilities:
Accounts receivable(2,887)(1,840)
Insurance recovery receivable related to legal loss(92)— 
Prepaid expenses and other current assets636 125 
Other long-term assets(95)— 
Accounts payable(749)
Accrued expenses and other(2,183)(2,716)
Deferred revenue(1,193)(803)
Operating lease liabilities(1,289)(1,062)
Other liabilities37 (60)
Net cash used in operating activities(12,757)(14,719)
Cash flow from investing activities:
Purchases of property, equipment and capitalized software development costs(1,852)(1,490)
Purchases of short-term investments(77,208)(91,940)
Maturities of short-term investments83,135 77,138 
Proceeds from disposal of equipment11 
Net cash provided by (used in) investing activities4,086 (16,288)
Cash flow from financing activities:
Proceeds from exercise of stock options29 
Net proceeds from issuance of common stock under Employee Stock Purchase Plan220 240 
Repurchase of common stock related to net share settlement(303)(44)
Cash paid for acquisitions— (296)
Principal payments on finance lease obligations(22)(21)
Net cash used in financing activities(97)(92)
Net decrease in cash and cash equivalents:(8,768)(31,099)
Cash and cash equivalents at beginning of period19,655 52,771 
Cash and cash equivalents at end of period$10,887 $21,672 








CS DISCO, INC.

Consolidated Statements of Cash Flows (continued)
(in thousands)
(unaudited)

Six Months Ended
June 30,
20262025
Supplemental disclosure:
Cash paid for taxes$503 $931 
Non-cash investing and financing activities:
Property and equipment included in accounts payable and accrued liabilities
$— $42 



CS DISCO, INC.
Reconciliation from GAAP to Non-GAAP Results
(in thousands, except for percentages and per share amounts)
(unaudited)

Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Net loss$(8,658)$(10,812)$(18,276)$(22,205)
Depreciation and amortization expense596 902 1,573 1,829 
Income tax provision135 210 276 347 
Interest and other, net(693)(1,208)(1,309)(2,562)
Stock-based compensation expense5,063 6,478 10,498 12,357 
Payroll tax expense on employee stock transactions151 161 354 311 
Expenses associated with stockholder litigation— 1,581 — 2,146 
Adjusted EBITDA$(3,406)$(2,688)$(6,884)$(7,777)
Adjusted EBITDA margin(8)%(7)%(8)%(10)%

Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Cost of revenue$11,032 $9,683 $21,831 $19,186 
Non-GAAP adjustments:
Stock-based compensation expense(486)(562)(1,014)(1,061)
Non-GAAP cost of revenue$10,546 $9,121 $20,817 $18,125 
Non-GAAP gross profit$32,600 $28,985 $64,211 $56,634 
Non-GAAP gross margin76 %76 %76 %76 %

Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Research and development$14,932 $13,968 $29,632 $28,225 
Non-GAAP adjustments:
Stock-based compensation expense(1,555)(2,244)(3,397)(4,287)
Non-GAAP research and development$13,377 $11,724 $26,235 $23,938 
Non-GAAP research and development as a % of revenue31 %31 %31 %32 %

Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Sales and marketing$16,875 $15,241 $32,960 $29,768 
Non-GAAP adjustments:
Stock-based compensation expense(1,215)(1,478)(2,537)(2,822)
Non-GAAP sales and marketing$15,660 $13,763 $30,423 $26,946 
Non-GAAP sales and marketing as a % of revenue36 %36 %36 %36 %





Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
General and administrative$9,523 $11,024 $19,914 $22,000 
Non-GAAP adjustments:
Stock-based compensation expense(1,807)(2,194)(3,550)(4,187)
Expenses associated with stockholder litigation— (1,581)— (2,146)
Non-GAAP general and administrative$7,716 $7,249 $16,364 $15,667 
Non-GAAP general and administrative as a % of revenue18 %19 %19 %21 %

Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Loss from operations$(9,216)$(11,810)$(19,309)$(24,420)
Operating margin(21)%(31)%(23)%(33)%
Non-GAAP adjustments:
Stock-based compensation expense5,063 6,478 10,498 12,357 
Expenses associated with stockholder litigation— 1,581 — 2,146 
Non-GAAP loss from operations$(4,153)$(3,751)$(8,811)$(9,917)
Non-GAAP operating margin(10)%(10)%(10)%(13)%

Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Net loss attributable to common stockholders$(8,658)$(10,812)$(18,276)$(22,205)
Non-GAAP adjustments:
Stock-based compensation expense5,063 6,478 10,498 12,357 
Expenses associated with stockholder litigation— 1,581 — 2,146 
Non-GAAP net loss attributable to common stockholders$(3,595)$(2,753)$(7,778)$(7,702)
Non-GAAP net loss attributable to common stockholders per share, basic and diluted$(0.06)$(0.04)$(0.12)$(0.13)
Weighted average shares used to compute basic and diluted net loss per share64,489 61,245 64,084 60,913 
Non-GAAP net loss attributable to common stockholders as a % of revenue(8)%(7)%(9)%(10)%



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