CS Disco CEO Eric Friedrichsen Purchases 10,000 Shares Amidst Undervalued Stock

Eric Friedrichsen, CEO of CS Disco Inc, acquired 10,000 shares of the company on August 11, 2025, bringing his total to 1,147,067 shares. This purchase is part of a broader trend of insider buying, with 2 insider buys and 16 insider sells in the past year. The stock's GF Value is estimated at $6.55, giving it a price-to-GF-Value ratio of 0.69, suggesting the stock is modestly undervalued.

On August 11, 2025, Eric Friedrichsen, the Chief Executive Officer of CS Disco Inc. (NYSE: LAW), reported purchasing 10,000 shares of the company's common stock. This transaction, which was part of a broader trend of insider buying, saw Friedrichsen's total share count increase to 1,147,067 shares. The purchase was made at a price of $4.51 per share, totaling $45,100 [1].

Friedrichsen's investment comes amidst mixed financial results reported by CS Disco in the second quarter of 2025. The company's revenue reached $38.1 million, representing a 5.8% year-over-year increase, but fell short of analyst expectations by 1.5%. Meanwhile, the company reported a net loss of $10.8 million, which was flat compared to the previous quarter [2].

Despite the revenue shortfall, CS Disco maintained a healthy non-GAAP gross margin of 76% and improved its adjusted EBITDA margin to -7%, compared to -13% in the same period last year. The company's AI-powered litigation technology platform, Cecilia AI, continues to be a key differentiator, enabling lawyers to review documents and receive answers with document citations in under five seconds [2].

Looking ahead, CS Disco projects third-quarter revenue between $37.5 million and $39.5 million, and fiscal year 2025 revenue between $148 million and $158 million. Management remains focused on achieving EBITDA breakeven by 2026, with a target growth trajectory exceeding 20% [2].

However, the company faces several challenges, including revenue shortfalls against expectations, high competition in the legal tech industry, execution risks with new product launches, and economic uncertainties that could affect customer spending. The company’s ability to achieve its EBITDA breakeven target by 2026 will depend on successfully balancing growth investments with operational efficiency [2].

With a current stock price of $4.13, well within its 52-week range of $3.31 to $6.64, investors appear to be taking a cautious approach as they monitor the company’s progress toward profitability while evaluating its growth potential in the expanding legal technology market [2].

References:
[1] https://www.tradingview.com/news/tradingview:9644854da3510:0-cs-disco-ceo-eric-friedrichsen-acquires-10-000-shares/
[2] https://finance.yahoo.com/news/cs-disco-second-quarter-2025-115126697.html