As you might know, CS Disco, Inc. (NYSE:LAW) just kicked off its latest first-quarter results with some very strong numbers. Results overall were credible, with revenues arriving 3.9% better than analyst forecasts at US$42m. Higher revenues also resulted in lower statutory losses, which were US$0.15 per share, some 3.9% smaller than the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the consensus forecast from CS Disco's three analysts is for revenues of US$175.3m in 2026. This reflects a decent 8.1% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 22% to US$0.52. Before this latest report, the consensus had been expecting revenues of US$172.7m and US$0.50 per share in losses. So it's pretty clear consensus is mixed on CS Disco after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.

The consensus price target fell 23% to US$6.67per share, with the analysts clearly concerned by ballooning losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic CS Disco analyst has a price target of US$10.00 per share, while the most pessimistic values it at US$4.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of CS Disco'shistorical trends, as the 11% annualised revenue growth to the end of 2026 is roughly in line with the 9.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 17% annually. So it's pretty clear that CS Disco is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at CS Disco. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of CS Disco's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for CS Disco going out to 2028, and you can see them free on our platform here..

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.