The Motley Fool compares HubSpot and CS Disco to determine which cloud-based software provider offers a better investment opportunity in 2026. HubSpot, an AI-powered customer platform for mid-market B2B companies, reported fiscal 2025 revenue of nearly $3.1 billion, a 19.2% increase, and net income of approximately $45.9 million, with free cash flow of nearly $707.6 million. CS Disco, a legal technology specialist with over 1,500 customers, posted fiscal 2025 revenue of approximately $156.8 million, up 8.3%, but recorded a net loss of nearly $44.4 million and negative free cash flow of $18.0 million. HubSpot trades at a forward price-to-earnings ratio of 15.7 times and a price-to-sales ratio of 3.4 times, while CS Disco has a forward P/E of 43.8 times and a P/S of 1.6 times. The analysis concludes that HubSpot is the preferred pick due to its larger market opportunity, strong double-digit subscription revenue growth, expanding margins, and an attractive entry point after a sharp pullback from highs.
HubSpot IncArticle recommends HubSpot as better buy due to strong financials, growth, and attractive valuation
CS Disco LLCArticle highlights CS Disco's net loss, negative free cash flow, and higher valuation, making it less attractive
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