CS Disco Director, CEO Friedrichsen Buys 10K Shares at $4.51/Share.

CS Disco, Inc., a law firm specializing in legal technology, recently announced that its Director and Chief Executive Officer, Friedrichsen Eric, has acquired 10,000 shares at a price of $4.51 per share on August 11, 2025. This strategic investment underscores the company's commitment to its growth and expansion in the legal technology sector.

Title: CS Disco Inc.: CEO's Strategic Investment Signals Growth Commitment

CS Disco Inc., a leading legal technology firm, has recently seen its Director and Chief Executive Officer, Eric Friedrichsen, make a significant investment in the company. On August 11, 2025, Friedrichsen acquired 10,000 shares at a price of $4.51 per share [2].

This strategic move underscores the company's commitment to its growth and expansion in the legal technology sector. The acquisition comes at a time when CS Disco is reporting mixed financial results but remains optimistic about its future prospects.

In the second quarter of 2025, CS Disco reported total revenue of $38.1 million, representing a 6% year-over-year growth, with software revenue increasing 12% to $32.7 million. However, the company fell short of analyst expectations of $37.58 million, resulting in a 12.99% revenue miss [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 [2]. The company's software revenue has shown consistent growth over the past nine quarters, while services revenue has been more volatile [2].

The company's AI-powered litigation technology platform, branded as Cecilia AI, is a key differentiator. It can review up to 32,000 documents per hour, equivalent to a 20-person team working for three months, and enables lawyers to ask complex questions 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://finance.yahoo.com/news/cs-disco-second-quarter-2025-115126697.html
[2] https://www.investing.com/news/company-news/cs-disco-q2-2025-slides-reveal-improving-margins-amid-aipowered-litigation-strategy-93CH-4175435