CS Disco, Inc. (LAW)

CS Disco missed adjusted EPS while revenue edged past expectations in the second fiscal quarter of 2026, reported Aug. 5, as adjusted EPS was -$0.06 versus the -$0.06 estimate, about -5%, while revenue came in at roughly $43.1 million versus about $42.7 million, about +1%. Revenue rose about 13% from about $38.1 million a year ago, with gross margin holding near 74% and operating margin staying near -21% as operating income was a loss of about $9.2 million. Net loss narrowed to about $8.7 million, up about 20% from about $10.8 million a year ago, and adjusted EPS was down 50% from -$0.04 a year ago; operating cash flow was negative about $12.8 million and the company repurchased roughly $303,000 of stock. Consensus for the next period calls for EPS of -$0.01 on revenue of $44.7 million.