MeritValue

CS Disco, Inc.

LAWdata completeness 88%6 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

CS Disco, Inc. earns about -115% on invested capital, but has diluted owners by 86% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$114.3M1$135.2M2$138.1M3$144.8M4$156.8M4
Net income−$24.3M5−$70.8M6−$42.2M7−$55.8M8−$44.4M8
Operating cash flow−$21.6M9−$46M10−$25.5M11−$8.75M12−$14.9M12
Capital expenditure$3.11M13$4.38M14$4.86M15$2.78M16$3.05M16
Free cash flow (derived)−$24.7M9−$50.4M10−$30.4M11−$11.5M12−$18M12
Total debt—————
Cash & equivalents$255.5M17$203.2M18$159.6M19$52.8M20$19.7M20
Diluted shares33.2M58.8M60.1M60.2M61.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$20.76
your share of equity
Profit it earned you last year
−$7.19
Free cash flow it threw off
−$2.91
Debt you’d be carrying
—

10 shares is a claim on $20.76 of net worth that earned you −$7.19 and generated −$2.91 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-115% avg · 5y
FY21 -145%FY22 -273%FY23 -81%FY24 -46%FY25 -32%

It earned an average -115% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+86% shares · 5y

Share count is up 86% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001625641-23-000032 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001625641-24-000043 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001625641-25-000027 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001625641-26-000044 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001625641-23-000032 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001625641-24-000043 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001625641-25-000027 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001625641-26-000044 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001625641-23-000032 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001625641-24-000043 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001625641-25-000027 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001625641-26-000044 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001625641-23-000032 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001625641-24-000043 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001625641-25-000027 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001625641-26-000044 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001625641-23-000032 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001625641-24-000043 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001625641-25-000027 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001625641-26-000044 (CashAndCashEquivalentsAtCarryingValue)