CS Disco Inc. (LAW) carries a Roarable Rating of D- (Sell) with 35/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.
Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer
20D Institutional Volume Accumulation (±9.2% realized swing band)
FRED Regime × Technicals: 43% of 52W Range • RSI-14 at 71.6 (OVERBOUGHT (>70))
Dilution Drag (+2.48% YoY Shares) & executive Form 4 sales trim 16 pts from alignment
While LAW currently carries a cautious 35/100 (D-) rating due to Insider Conviction & Share Dilution (4/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.
Established market leader in Technology with deep daily trading liquidity.
Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($4.40) and Max Pain ($5.57) forces dealer call-delta covering toward $9.57.
Forensic Repair Trigger: Halting share dilution (Dilution Drag (+2.48% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.
CS Disco Inc. (LAW) advanced +0.95% to $5.30, trading at 43% of its 52-week range ($2.45 – $9.11). Stretched risk/reward at current multiples (-35% return on capital) under elevated 10-year interest-rate pressure.
https://www.lw.com/en/news/2026/10/latham-and-harvey-collaborate-to-advance-ai-enabled-capabilities-for-fund-formation
If you had backed the bullish AI automation story at CS Disco on 1 January 2026, the actual ride has been rough. Holding CS Disco from the start of the year would have meant a 30.5% loss, including dividends. That outcom
Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).
vs. +8.3% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).
No active Ellis Vennor swing setup published on LAW today. View full Setup Ledger →
No direct multi-tier Butterfly edges indexed yet for LAW. Explore sector supply chains on /butterfly.
Across 714 tracked Technology securities in the Roarable RQD universe, CS Disco Inc. (LAW) ranks #618 by composite RQD confidence (35/100, grade D-) and #439 by equity capitalization ($344.1M). Within this direct 5-issuer industry benchmark cohort, API leads on earnings valuation at 39.1x trailing P/E, while MKTW leads on capital efficiency and profitability with 85.0% ROIC and 86.5% gross margin. API currently holds the highest overall quantitative score in the immediate peer group at 59/100 (C-) compared with LAW at 35/100 (D-).
| Ticker / Company | Roarable Grade | RQD Score | Trailing P/E | Gross Margin | ROIC | 1D Change | Market Cap | Head-to-Head |
|---|---|---|---|---|---|---|---|---|
| LAW
ACTIVE
CS Disco Inc. | D- | 35/100 | — | 74.9% | -35.0% | +0.95% | $344.1M | Benchmark Subject |
| CRNC Cerence Inc. | D | 45/100 | — | 72.7% | -0.6% | -3.42% | $370.4M | /crnc-vs-law → |
| API Agora Inc. | C- | 59/100 | 39.1x | 66.4% | -1.5% | -0.22% | $372.8M | /api-vs-law → |
| MKTW MarketWise Inc. (Class A) | D+ | 58/100 | 56.1x | 86.5% | 85.0% | -1.04% | $315.0M | /mktw-vs-law → |
| ARQQ Arqit Quantum Inc. | D | 48/100 | — | — | — | -4.71% | $306.3M | /arqq-vs-law → |
In its most recent audited fiscal period (FY2025, filed 2025-12-31), CS Disco Inc. (LAW) reported GAAP revenue of $156.8M (+8.3% vs. FY2024 revenue of $144.8M , and +13.6% cumulative change since FY2023) , GAAP net income of -$44.4M, operating cash flow of -$14.9M, and free cash flow of -$18.0M (-56.0% YoY). On the balance sheet, LAW closed FY2025 with $173.6M in total assets against $0 in total debt (Altman Z-Score: 2.54, Piotroski F-Score: 5/9).
| Fiscal Period | Filing Date | Revenue | Net Income | Operating Cash Flow | Free Cash Flow | Total Assets | Total Debt |
|---|---|---|---|---|---|---|---|
| FY2025 (FY) | 2025-12-31 | $156.8M | -$44.4M | -$14.9M | -$18.0M | $173.6M | — |
| FY2024 (FY) | 2024-12-31 | $144.8M | -$55.8M | -$8.7M | -$11.5M | $180.3M | — |
| FY2023 (FY) | 2023-12-31 | $138.1M | -$42.1M | -$25.5M | -$25.5M | — | — |
As of 2026-11-01, CS Disco Inc. (NYSE: LAW) is rated D- (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 35/100 at a spot price of $5.30 (+0.95% 1D, market cap $344.1M). Pillar breakdown: Fundamental Cash Engine 4/20, Institutional 13F & Options Flow 11/20, Executive Insider Alignment 7/20, FRED Macro Regime Fit 10/20, and SEC Balance-Sheet Forensics 3/20. Across 714 tracked Technology issuers, LAW ranks #618 in composite RQD confidence.
Within the Technology sector (Computer Software: Prepackaged Software), LAW carries a Roarable D- (35/100 RQD), trailing P/E of N/A, gross margin of 74.9%, and ROIC of -35.0%. By comparison, CRNC (Cerence Inc.) holds a D grade (45/100 RQD, P/E N/A, ROIC -0.6%, cap $370.4M) and API (Agora Inc.) posts a C- grade (59/100 RQD, P/E 39.1x, ROIC -1.5%, cap $372.8M). Among the 5-stock peer group, API leads on earnings multiple (39.1x) while MKTW leads on capital efficiency (85.0% ROIC).
Per LAW's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001625641), CS Disco Inc. generated $156.8M in revenue (+8.3% YoY), -$44.4M in net income, and -$18.0M in free cash flow against $173.6M in total assets and $0 in total debt. Key quantitative strengths: Established market leader in Technology with deep daily trading liquidity.. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately.. Institutional options positioning shows a 50% call / 50% put premium split.
LAW last traded at $5.30 (+0.95% on volume of 333,735 shares), positioning the stock +20.45% above its 50-day simple moving average ($4.40) and +25.59% above its 200-day simple moving average ($4.22). Across its 52-week range of $2.45 to $9.11, LAW sits at the 42.8% percentile with a 14-day RSI of 71.6 (OVERBOUGHT (>70)) and an implied next-earnings move of ±9.2% ($4.81 to $5.79).
Why LAW Stock advanced +0.95% Today — RQD Quant Desk Flash. Stretched risk/reward at current multiples (-35% return on capital) under elevated 10-year interest-rate pressure.