The quarterly results for CS Disco, Inc. (NYSE:LAW) were released last week, making it a good time to revisit its performance. The results look positive overall; while revenues of US$36m were in line with analyst predictions, statutory losses were 5.1% smaller than expected, with CS Disco losing US$0.15 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for CS Disco

Taking into account the latest results, the most recent consensus for CS Disco from six analysts is for revenues of US$150.8m in 2025. If met, it would imply a modest 5.0% increase on its revenue over the past 12 months. Losses are expected to increase slightly, to US$0.65 per share. Before this earnings announcement, the analysts had been modelling revenues of US$154.2m and losses of US$0.56 per share in 2025. So it's pretty clear the analysts have mixed opinions on CS Disco after this update; revenues were downgraded and per-share losses expected to increase.

The average price target was broadly unchanged at US$6.67, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values CS Disco at US$9.00 per share, while the most bearish prices it at US$5.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CS Disco's past performance and to peers in the same industry. We would highlight that CS Disco's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. Factoring in the forecast slowdown in growth, it seems obvious that CS Disco is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$6.67, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on CS Disco. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for CS Disco going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for CS Disco that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.