law-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40624

CS Disco, Inc.

(Exact name of registrant as specified in its charter)


Delaware	7372	46-4254444
(State or other jurisdiction of incorporation or organization)	(Primary standard industrial classification code number)	(I.R.S. Employer Identification No.)
	111 Congress Ave. Suite 900 Austin, Texas 78701
	(Address of Principal Executive Offices) (Zip Code)

(833) 653-4726

Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.005	LAW	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	o	Accelerated filer	☒
Non-accelerated filer	o	Smaller reporting company	☒
		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.☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of July 31, 2026, the registrant had 64,919,765 shares of common stock, $0.005 par value per share, outstanding.

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TABLE OF CONTENTS


		Page
Part I - Financial Information

Item 1.	Financial Statements	4
	Condensed Consolidated Balance Sheets as of June 30 , 2026 and December 31, 2025 (unaudited)	4
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three a nd Six Months Ended June 30 , 2026 and 2025 (unaudited)	5
	Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended June 3 0 , 2026 and 2025 (unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 3 0 , 2026 and 2025 (unaudited)	8
	Notes to the Condensed Consolidated Financial Statements (unaudited)	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36
Part II - Other Information
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70
Item 3.	Defaults Upon Senior Securities	71
Item 4.	Mine Safety Disclosures	71
Item 5.	Other Information	71
Item 6.	Exhibits and Financial Statement Schedules	72
Signatures		73

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains express or implied forward-looking statements that are based on our management’s belief and assumptions and on information currently available to our management. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions.

These forward-looking statements include, but are not limited to, statements concerning the following:

•our expectations regarding our revenue, expenses and other operating results;

•the impact of fluctuations in customer usage based on the timing of and activity driven by legal matters for which our product offerings are used;

•our ability to acquire new customers and successfully retain existing customers;

•our ability to increase usage of our product offerings;

•our ability to effectively manage our growth;

•our ability to achieve or sustain profitability;

•future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements;

•the costs and success of our sales and marketing efforts and our ability to promote our brand;

•our growth strategies for our product offerings;

•the estimated addressable market opportunity for our product offerings;

•our ability to grow our partner ecosystem and maintain existing strategic relationships with law firms, legal services providers and our other partners;

•our reliance on key personnel and our ability to identify, recruit and retain skilled personnel;

•our ability to effectively manage our growth, including any international expansion;

•our ability to maintain, protect and enforce our intellectual property rights and any costs associated therewith;

•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;

•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;

•the effects of global events, such as the Russia-Ukraine war, the war in Iran and the broader conflict and escalating tensions in the Middle East, on our or our customers’ businesses and the global economy;

•our ability to compete effectively with existing competitors and new market entrants; and

•the growth rates of the markets in which we compete.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject.

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These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe that such information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

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Part I

Item 1. Financial Statements

CS DISCO, INC.

Condensed 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 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
Liabilities and stockholders’ equity
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	—		—
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

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CS DISCO, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except per share amounts)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
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