Short Interest in CS Disco Surges 33% in March

The legal tech company's stock has seen increased bearish bets amid market volatility.

Mar. 30, 2026 at 12:18am

CS Disco, Inc. (NYSE:LAW), a provider of cloud-based legal software, saw a significant increase in short interest during March. As of March 13th, short interest totaled 1,400,344 shares, up 33.2% from the previous month's 1,051,263 shares. This represents about 2.6% of the company's outstanding shares.

Why it matters

The surge in short interest suggests investors are growing more bearish on CS Disco's stock amid broader market volatility. Short-selling activity can be an indicator of investor sentiment and future stock price movements.

The details

The increase in short interest comes as CS Disco's stock price has declined in recent months. The company's shares traded as high as $9.11 in the past year but have since fallen to around $3.68. The short interest ratio, which measures the number of days it would take to cover all the short positions, currently stands at 2.5 days based on the stock's average daily trading volume.

  • As of March 13th, 2026, short interest in CS Disco totaled 1,400,344 shares.
  • This represents a 33.2% increase from the 1,051,263 shares reported as of February 26th, 2026.

The players

CS Disco, Inc.

A provider of cloud-native, AI-driven legal software applications designed to streamline e-discovery, document review, and compliance processes for law firms and corporate legal departments.

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What’s next

Investors will be closely watching CS Disco's upcoming earnings report and any updates on the company's business performance and outlook, which could impact the stock's short interest in the coming months.

The takeaway

The rise in short interest in CS Disco's stock reflects growing skepticism about the legal tech company's near-term prospects, underscoring the need for the firm to demonstrate strong financial and operational execution to regain investor confidence.