Forensic Analysis · Technology / Software · as of Sep 27, 2026
Cs Disco, Inc. (LAW)
A forensic read on Cs Disco, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Grey Zone
Financial health
2.3
Distress distance
Clean
Earnings quality
2
Forensic signals
-6.8
P / E (ttm)
-34.6%
ROE
$265M
Market cap
0.00%
Dividend yield
8.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Cs Disco, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 2.3, placing it in the Grey zone. 2 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-33.5%
FY2025
Return on invested capital.Return on invested capital is -33.5% in the latest fiscal year and rising across FY2023–FY2025 from -80.6%. After-tax operating profit was ($39M) in FY2023 and ($38M) in FY2025, with operating income at -36.1% of revenue in FY2023, -42.6% in FY2024 and -30.7% in FY2025. The capital base behind it grew +132% across FY2023–FY2025, from $49M to $114M, and the return did not fall doing it, so the dollars added over that window earned at least the -80.6% the older base was already earning. $95M of the $114M base at FY2025 is short-term investments (83.6%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so the loss on the operating capital is larger than this rate shows. FY2024's operating profit carried a $15M asset write-down that alone took about 11.8 points off that year's return; FY2024 sits between the two ends of FY2023–FY2025, so the charge shapes the path between them without moving the change across it.
+13.5%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +13.5% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by receivables up +11% against revenue +8%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 29% of net operating assets, against an accruals ratio of 13.5%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
Key fundamentals
Latest Revenue$156.8M
Revenue Growth YoY+8.3%
Revenue CAGR (2yr)+6.6%
Net Margin-28.3%
Free Cash Flow-$18.0M
Return on Equity-34.6%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Cs Disco, Inc.'s actual 10-K/10-Q/8-K filings?