law-20250331

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 March 31, 2025


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 April 30, 2025, the registrant had 60,807,053 shares of common stock, $0.005 par value per share, outstanding.


		Page
Part I - Financial Information

Item 1.	Financial Statements	4
	Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 (unaudited)	4
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2025 and 2024 (unaudited)	5
	Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 2025 and 2024 (unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024 (unaudited)	7
	Notes to the Condensed Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33
Part II - Other Information
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70
Item 3.	Defaults Upon Senior Securities	70
Item 4.	Mine Safety Disclosures	70
Item 5.	Other Information	70
Item 6.	Exhibits and Financial Statement Schedules	71
Signatures		72


	March 31, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	34,533	$	52,771
Short-term investments	84,278		76,356
Accounts receivable, net	22,326		23,117
Prepaid expenses and other current assets	4,459		4,692
Total current assets	145,596		156,936
Property and equipment, net	7,538		7,878
Operating lease right-of-use assets	7,832		8,388
Other intangible assets, net	341		400
Goodwill	5,898		5,898
Other assets	825		820
Total assets	$	168,030	$	180,320
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,409	$	3,994
Accrued expenses	3,901		5,947
Accrued salary and benefits	3,692		9,127
Deferred revenue	3,905		4,296
Operating leases	2,460		2,288
Finance leases	43		42
Total current liabilities	19,410		25,694
Operating leases, non-current	6,216		6,855
Finance leases, non-current	105		116
Other liabilities	127		141
Total liabilities	25,858		32,806
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 March 31, 2025 and December 31, 2024	—		—
Common stock $0.005 par value, 1,000,000 shares authorized as of March 31, 2025 and December 31, 2024; 60,809 and 60,329 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively	305		302
Additional paid-in capital	450,689		444,601
Accumulated other comprehensive income	1		41
Accumulated deficit	(308,823)		(297,430)
Total stockholders’ equity	142,172		147,514
Total liabilities and stockholders’ equity	$	168,030	$	180,320


	Three Months Ended March 31,
	2025		2024
Revenue	$	36,653	$	35,571
Cost of revenue	9,503		8,852
Gross profit	27,150		26,719
Operating expenses:
Research and development	14,257		12,079
Sales and marketing	14,527		15,808
General and administrative	10,976		11,164

Total operating expenses	39,760		39,051
Loss from operations	(12,610)		(12,332)
Interest and other income, net	1,354		1,836
Loss from operations before income taxes	(11,256)		(10,496)
Income tax provision	(137)		(86)
Net loss attributable to common stockholders	$	(11,393)	$	(10,582)
Unrealized loss on investments	(40)		—
Comprehensive loss	$	(11,433)	$	(10,582)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.19)	$	(0.17)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	60,565		61,188


	Common stock			Additional paid-in capital		Accumulated other comprehensive income (loss)		Accumulated deficit		Total
	Shares	Amount
Balance at December 31, 2024	60,329	$	302	$	444,601	$	41	$	(297,430)	$	147,514
Exercise of stock options	12	—		6		—		—		6
Repurchase of common stock related to net share settlement	(5)	—		(24)		—		—		(24)
Vesting of restricted stock units	416	2		(2)		—		—		—
Issuance of common stock under Employee Stock Purchase Plan	57	1		240		—		—		241
Stock compensation expense	—	—		5,868		—		—		5,868
Unrealized loss on investments	—	—		—		(40)		—		(40)
Net loss	—	—		—		—		(11,393)		(11,393)
Balance at March 31, 2025	60,809	$	305	$	450,689	$	1	$	(308,823)	$	142,172


Furniture and fixtures			5 years
Leasehold improvements			Shorter of lease term or 5 years
Computer equipment			2 years


	Three Months Ended March 31,
	2025		2024
Software	$	30,887	$	29,909
Services	5,766		5,662
Total revenue	$	36,653	$	35,571

SEC Form 10-Q filed by CS Disco Inc.