Cs Disco, Inc. (LAW) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Technology / Software · as of Aug 13, 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
2.4
Distress distance
Clean
Earnings quality
4
Forensic signals
-6.7
P / E (ttm)
-34.6%
ROE
$280M
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). 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 2.4, placing it in the Grey zone. 4 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 from -187% — well below its ~10% cost of capital, and it has been across FY2021–FY2025, so reinvested dollars have not been earning their keep.
+1.7%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +5% over the last 3 years to FY2025 (+1.7%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~5%.
FCF ($18M)
FY2025
Shareholder returns.Returned $105,000 to shareholders (buybacks + dividends) in FY2025, but free cash flow was ($18M) after capex — there was no free cash flow to fund the payout from at all, and operating cash flow itself was negative or zero that year too. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.
+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 total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). 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%. This is the fourth straight fiscal year of building accruals — an even longer streak than the 3-year mark that already signals a materially stronger tell. 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 (3yr)+5.1%
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?