CS Disco Inc. (LAW) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, LAW scores 34 out of 100 with a letter grade of E, labeled "Roarable Strong Sell — Forensic Risk / Avoid." The five pillars are:

• Fundamental Cash Engine: 4 / 20. Per the Roarable RQD rating, this reflects ROIC of -35% and an FCF yield of -5.23%. For an investor, this is the core weakness: the business is not currently generating cash returns on invested capital, and free cash flow yield is negative, meaning the company is consuming rather than producing cash relative to its valuation.
• Whale 13F Flow: 12 / 20. Per the Roarable RQD rating, this pillar reflects institutional accumulation and options positioning. It is the strongest pillar in the set, indicating some institutional interest, though the rating does not provide the underlying holdings detail to verify its direction.
• Insider Conviction: 3 / 20. Per the Roarable RQD rating, this reflects SEC Form 4 and Congressional PTR cluster flow. The low score signals weak insider conviction in the current setup.
• Macro Regime Fit: 8 / 20. Per the Roarable RQD rating, beta is 1.0 with sector sensitivity noted. The stock moves roughly in line with the market, so it offers no defensive cushion in risk-off regimes.
• Forensic Balance Sheet: 7 / 20. Per the Roarable RQD rating, the Altman Z-Score is 2.54, the Piotroski F-Score is 5/9, and Debt/Equity is 0.5. These figures sit in a middling-to-weak zone rather than signaling distress or strength.

Investor implications, framed analytically: upside would depend on the cash engine turning positive, since the current 4/20 fundamental score is the largest drag. Valuation tradeoffs are difficult to assess directly because P/E, forward P/E, EV/EBITDA, and EPS are not available in source data, so the investor cannot benchmark the $5.30 price against earnings. The 52-week range of $2.45 to $9.11 shows the stock has traded at well below its recent high, but the source data does not establish whether that reflects re-rating or a change in fundamentals.

CS Disco Inc. is a NYSE-listed issuer in the Technology sector, operating in the Computer Software: Prepackaged Software industry, per the profile section. Per the market data, the company reports a gross margin of 74.9%, indicating a high-margin software revenue profile. Source data does not describe its specific products, customers, or revenue model beyond sector and industry classification.

Per the SEC financials, revenue rose from $138.1M in FY 2023 to $156.8M in FY 2025, while operating losses persisted in each period. Per the market data, operating margin is -30.7% and net margin is -28.3%. Per the Roarable RQD rating, ROIC is -35%, the Altman Z-Score is 2.54, and the Piotroski F-Score is 5/9. Cash declined from $52.8M to $19.7M across FY 2024 to FY 2025, and debt figures are not available in source data.

Per the recent news section, six items are present, with two rated RED (RISK WATCH) and four rated YELLOW (MARKET WIRE). The RED items are a Yahoo Finance report headlined "What Investors Got Wrong About CS Disco Before The Drop" and a Simply Wall St report headlined "What Bears Saw Before CS Disco Slid." A MarketBeat item notes the stock price was down 1.1%. A Kalkine item asks how close the company is to breaking even. A scheduled catalyst is listed in a Yahoo Finance item stating DISCO will announce third-quarter 2026 financial results on November 4, 2026. A Stock Traders Daily item covers real-time signals. The butterfly supply-chain graph reports no supply-chain links and no proprietary signals.

Per the Butterfly Supply-Chain Graph, the supply chain is recorded as NONE, with no butterfly links and no proprietary signals. Upstream and downstream dependencies, sector correlations, and second-order bottlenecks are not available in source data. The sector is listed as Technology and the industry as Computer Software: Prepackaged Software, but no correlation data is provided.

• What are the company's EPS, P/E, and EV/EBITDA figures, so the $5.30 price can be benchmarked against earnings?
• What is the debt balance behind the Debt/Equity ratio of 0.5, given that debt is not reported in the financials?
• What drove the decline in cash from $52.8M in FY 2024 to $19.7M in FY 2025, and what is the funding runway at current FCF levels?
• What are the 13F holder positions and options positioning underlying the 12/20 whale flow pillar?
• What did the third-quarter 2026 results, scheduled for November 4, 2026, show relative to the risk items flagged in the news wire?