CS Disco (LAW) just closed out FY 2025 with Q4 revenue of US$41.2 million, a basic EPS loss of US$0.14, and a net income loss of US$8.5 million. On a trailing twelve month basis, revenue was US$156.8 million with a basic EPS loss of US$0.72 and a net income loss of US$44.4 million. The company’s quarterly revenue moved from US$36.3 million in Q3 2024 to US$41.2 million in Q4 2025, while basic EPS losses over that span ranged between US$0.42 and US$0.14 per quarter. For investors, the latest results keep the focus on how quickly the business can tighten margins and reduce the impact of ongoing losses.

See our full analysis for CS Disco.

With the headline numbers on the table, the next step is to compare them with the prevailing narratives around growth, profitability, and risk to see which views remain supported by the data and which may need to be reconsidered.

TTM losses of US$44.4 million keep profitability in focus

• On a trailing twelve month basis, CS Disco recorded a net loss of US$44.4 million and a basic EPS loss of US$0.72, compared with quarterly losses in FY 2025 ranging from US$8.5 million to US$13.7 million.
• Consensus narrative talks about improving margins and a path toward long term profitability, but the current numbers show that:
  • Losses over the past five years have grown at an annualized rate of 16.3%, while the latest year still shows US$44.4 million in losses and negative margins.
  • Analysts do not expect the company to be profitable in the next three years, so any margin improvement that the narrative highlights has not yet translated into positive earnings in the reported figures.

Revenue at US$156.8 million with ~10.7% growth expectations

• Trailing twelve month revenue sits at US$156.8 million and is tied to a revenue growth rate of about 10.7% per year, which is also the growth rate analysts are forecasting going forward.
• Bulls point to enterprise demand and AI tools as drivers of faster growth, and the current data interacts with that view in a few ways:
  • The reported 10.7% annual revenue growth and US$156.8 million revenue base are consistent with ongoing growth, but they sit well below the 20% plus annual growth that bullish commentary references as a possibility.
  • At the same time, the company remains unprofitable on this revenue base, so even if revenue tracks the 10.7% forecast, the figures do not yet show the margin lift that bullish investors are hoping AI products and larger matters will eventually support.

Bulls argue that these FY 2025 numbers could be the early stage of a larger AI driven growth story, while the actual revenue and loss figures tell a more cautious tale that they need to reconcile with their expectations. 🐂 CS Disco Bull Case

P/S of 1.1x and DCF fair value above price

• With a current share price of US$2.76, the stock trades on a P/S of about 1.1x, compared with 3.4x for the US Software industry and 9.9x for peers, and below a DCF fair value of US$4.51.
• Bears focus on ongoing losses and recent insider selling, and the valuation data adds some tension to that stance:
  • The low P/S multiple and price below the US$4.51 DCF fair value align with the idea that expectations are restrained, even though revenue is growing at roughly 10.7% a year.
  • At the same time, forecasts still show no profitability over the next three years and there has been significant insider selling alongside a volatile share price, which fits with the bearish concern that the low multiple may be reflecting persistent earnings risk rather than an obvious mispricing.

Skeptics often point to the valuation gap and insider selling as signs to be careful, and this mix of low multiples and continuing losses makes it important to see how the more cautious case stacks up. 🐻 CS Disco Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for CS Disco on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of upside potential and ongoing losses feels finely balanced, now is a good time to look through the numbers yourself and decide where you stand. This includes weighing the 3 key rewards and 3 important warning signs before you make your next move.

Explore Alternatives

CS Disco is still working through US$44.4 million in trailing twelve month losses, ongoing negative EPS, and forecasts that do not yet point to near term profitability.

If those continuing losses and the uncertainty around a clear path to positive earnings make you cautious, take a look at 79 resilient stocks with low risk scores to quickly compare companies with more resilient profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.