$LAW

CS Disco, Inc.

CIK:0001625641|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 43,146	$ 38,106	$ 85,028	$ 74,759
Cost of revenue	11,032	9,683	21,831	19,186
Gross profit	32,114	28,423	63,197	55,573
Operating expenses:
Research and development	14,932	13,968	29,632	28,225
Sales and marketing	16,875	15,241	32,960	29,768
General and administrative	9,523	11,024	19,914	22,000
Total operating expenses	41,330	40,233	82,506	79,993
Loss from operations	(9,216)	(11,810)	(19,309)	(24,420)
Interest and other income, net	693	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 (in dollars per share)	$ (0.13)	$ (0.18)	$ (0.29)	$ (0.36)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.13)	$ (0.18)	$ (0.29)	$ (0.36)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	64,489	61,245	64,084	60,913
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	64,489	61,245	64,084	60,913

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flow from operating activities:
Net loss	$ (18,276)	$ (22,205)
Adjustments to reconcile net loss to cash used in operations:
Depreciation and amortization	1,573	1,829
Stock-based compensation	10,498	12,357
Charge to allowance for credit losses	555	1,097
Non-cash operating lease costs	1,181	1,118
Amortization of premium on short-term investments	(1,566)	(1,707)
Other	336	(103)
Changes in operating assets and liabilities:
Accounts receivable	(2,887)	(1,840)
Insurance recovery receivable related to legal loss	(92)	0
Prepaid expenses and other current assets	636	125
Other long-term assets	(95)	0
Accounts payable	8	(749)
Accrued expenses and other	(2,183)	(2,716)
Deferred revenue	(1,193)	(803)
Operating lease liabilities	(1,289)	(1,062)
Other liabilities	37	(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 investments	83,135	77,138
Proceeds from disposal of equipment	11	4
Net cash provided by (used in) investing activities	4,086	(16,288)
Cash flow from financing activities:
Proceeds from exercise of stock options	8	29
Net proceeds from issuance of common stock under Employee Stock Purchase Plan	220	240
Repurchase of common stock related to net share settlement	(303)	(44)
Cash paid for acquisitions	0	(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 period	19,655	52,771
Cash and cash equivalents at end of period	10,887	21,672
Supplemental disclosure:
Cash paid for taxes	503	931
Non-cash investing and financing activities:
Property and equipment included in accounts payable and accrued liabilities	$ 0	$ 42

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 10,887	$ 19,655
Short-term investments	90,507	94,942
Accounts receivable, net	27,953	25,622
Insurance recovery receivable related to legal loss (Note 8)	8,131	8,039
Prepaid expenses and other current assets	4,099	4,736
Total current assets	141,577	152,994
Property and equipment, net	7,706	7,583
Operating lease right-of-use assets	4,940	6,121
Other intangible assets, net	116	206
Goodwill	5,898	5,898
Other assets	1,151	837
Total assets	161,388	173,639
Current liabilities:
Accounts payable	4,235	3,888
Accrued expenses	6,243	6,533
Accrued legal loss (Note 8)	11,500	11,500
Accrued salary and benefits	8,564	10,457
Deferred revenue	4,189	5,382
Operating leases	2,738	2,624
Finance leases	44	44
Total current liabilities	37,513	40,428
Operating leases, non-current	2,828	4,231
Finance leases, non-current	50	72
Other liabilities	838	801
Total liabilities	41,229	45,532
Commitments and contingencies (Note 8)
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	0	0
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 capital	479,953	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