Key Highlights

  • DISCO (NYSE:LAW) was up 21.09% at USD 6.26 in intraday trading on November 4, 2026, on a day when the company released third-quarter results before the open.
  • Third-quarter total Revenue was USD 45.3 million, up 11% from a year earlier, while software revenue reached USD 38.6 million, up 10%, according to the company release.
  • Adjusted EBITDA was USD 0.1 million against a loss of USD 0.3 million a year earlier, which management described as break-even a full quarter ahead of schedule.
  • Fourth-quarter total revenue guidance is USD 45.8 million to USD 47.8 million, and the company still expects a full-year adjusted EBITDA loss of USD 6.8 million to USD 5.3 million.

What Moved DISCO During Trading (up USD 1.09, 21.09%)

DISCO (NYSE:LAW) was up 21.09%, or USD 1.09, at USD 6.26 in intraday trading on November 4, 2026, which implies a prior close of about USD 5.17 (calculated). The move coincided with the company's third-quarter 2026 results, released before the market opened and discussed on a call at 8:30 a.m. ET. The release showed total revenue of USD 45.3 million, up 11% year over year, or about 15% excluding a USD 1.3 million contingent matter that boosted the third quarter of 2025. Software revenue was USD 38.6 million, up 10%. Non-GAAP gross Margin was 77%. Intraday Volume was about 141,730 shares, roughly 0.54 times the usual level, so the jump came on modest trading activity.

Results, Break-Even and Outlook

The headline for investors was profitability. Adjusted EBITDA, a measure that strips out Stock Compensation and other items, came in at USD 0.1 million, compared with a loss of USD 0.3 million in the third quarter of 2025. The GAAP net loss narrowed to USD 5.0 million from USD 13.7 million. Chief Executive Eric Friedrichsen said the company reached break-even adjusted EBITDA a full quarter ahead of schedule while building AI for litigators. The release also reported 374 customers with more than USD 100,000 of trailing twelve-month revenue, up 15%. For the fourth quarter the company guided total revenue to USD 45.8 million to USD 47.8 million and adjusted EBITDA of USD 0.0 million to USD 1.5 million. Full-year total revenue is guided to USD 176.1 million to USD 178.1 million.

Balance Sheet, Valuation Context and Risks

The company ended September 30, 2026 with USD 12.5 million in cash and equivalents and USD 84.2 million in short-term investments, and operating cash use was USD 15.8 million over the first nine months. Market Capitalization on the screen was about USD 406 million, so the stock trades at roughly 2.3 times the midpoint of full-year revenue guidance (simple arithmetic on two published numbers). Risks remain. Growth of 11% is moderate for a software business, the full-year adjusted EBITDA guide is still a loss, and GAAP losses continue. Software sold to law firms depends on litigation volumes and AI adoption. A 21.09% intraday gain can also reverse if the price drifts back toward earlier levels once the first reaction fades.

Where Things Stand

DISCO (NYSE:LAW) is up 21.09% because the third-quarter report showed 11% revenue growth, a narrower GAAP loss and adjusted EBITDA of USD 0.1 million, which the company said arrived a quarter early. The market is rewarding evidence that the cost base can support profitability while AI products are added. Readers may watch whether fourth-quarter adjusted EBITDA lands inside the USD 0.0 million to USD 1.5 million range, how AI revenue contributes to growth, and how cash and investments of USD 96.7 million (calculated) hold up. Intraday prices can change quickly and this article is not Investment advice.