SAN FRANCISCO, Calif., May 29, 2025 -- Elastic (NYSE: ESTC) (“Elastic”), the Search AI Company, announced financial results for its fourth quarter and full fiscal year ended April 30, 2025.

•Total revenue was $388 million, an increase of 16% year-over-year, as reported and on a constant currency basis

•Elastic Cloud revenue was $182 million, an increase of 23% year-over-year, as reported and on a constant currency basis

•GAAP operating loss was $12 million; GAAP operating margin was -3%

•Non-GAAP operating income was $60 million; non-GAAP operating margin was 15%

•GAAP net loss per share was $0.16; non-GAAP diluted earnings per share was $0.47

•Operating cash flow was $87 million with adjusted free cash flow of $85 million

•Cash, cash equivalents, and marketable securities were $1.397 billion as of April 30, 2025

•Total revenue was $1.483 billion, an increase of 17% year-over-year, as reported and on a constant currency basis

•Elastic Cloud revenue was $688 million, an increase of 26% year-over-year, as reported and on a constant currency basis

•GAAP operating loss was $55 million; GAAP operating margin was -4%

•Non-GAAP operating income was $225 million; non-GAAP operating margin was 15%

•GAAP net loss per share was $1.04; non-GAAP diluted earnings per share was $2.04

•Operating cash flow was $266 million with adjusted free cash flow of $286 million

“Elastic achieved a strong quarter, culminating in a solid finish to the fiscal year,” said Ash Kulkarni, Chief Executive Officer, Elastic. “We delivered strong growth, fueled by our sales execution and the persistent demand for our solutions, with our innovation velocity thriving. We exceeded guidance across all revenue and profitability metrics, demonstrating our leadership in Search AI as customers continue to build Generative AI applications and consolidate onto our platform.”

•Total customer count with Annual Contract Value (ACV) greater than $100,000 was over 1,510 compared to over 1,460 in Q3 FY25, and over 1,330 in Q4 FY24

•Total subscription customer count was approximately 21,500 compared to approximately 21,350 in Q3 FY25, and approximately 21,000 in Q4 FY24

•Net Expansion Rate was approximately 112%

•Expanded Elastic Cloud Serverless, now generally available in 1 region on Google Cloud and 4 regions on AWS

•Introduced Automatic Migration to automate the migration of SIEM detection rules, simplifying the transition to Elastic Security

•Integrated the Elasticsearch vector database as a native RAG option for Google Cloud’s Vertex AI Platform, allowing joint customers to build RAG applications in a single workflow

•Expanded LLM observability support for Google Cloud’s Vertex AI Platform, providing comprehensive visibility into LLM performance

•Delivered ES|QL Joins functionality in search, observability, and security solutions, allowing customers to combine data from different indices

•Released general availability of our industry-leading Better Binary Quantization (BBQ) in Elasticsearch to make it an even more efficient and performant vector database, delivering memory reductions while preserving accuracy

•Released general availability of Elastic Distributions of OpenTelemetry (EDOT), a portfolio of OpenTelemetry (OTel) components designed to improve infrastructure and application monitoring, reinforcing our focus of driving open standards adoption

•Acquired Keep Alerting Ltd, an open source AIOps platform that unifies alerts and automates incident remediation, helping users manage alerts to improve operational efficiency and service reliability

•Announced a collaboration with NVIDIA to bring Elasticsearch as a recommended vector database for the NVIDIA Enterprise AI Factory and to deliver GPU-accelerated indexing and vector search on Elasticsearch

•Signed a five-year global Strategic Collaboration Agreement with Amazon Web Services (AWS), deepening our partnership through solution integrations, joint go-to-market and marketing initiatives

•Awarded two Google Cloud Partner of the Year awards for Artificial Intelligence for our achievements in the Google Cloud ecosystem

•Engaged with thousands of customers and partners across ElasticONs in Sydney and Singapore, at the Elastic Public Sector Summit in Washington D.C., and the Google Cloud Next industry conference

The Company is providing the following guidance:

For the first quarter of fiscal 2026 (ending July 31, 2025):

•Total revenue is expected to be between $396 million and $398 million, representing 14% year-over-year growth at the midpoint (13% year-over-year constant currency growth at the midpoint)

•Non-GAAP operating margin is expected to be approximately 11.5%

•Non-GAAP diluted earnings per share is expected to be between $0.41 and $0.43, assuming between 107.5 million and 108.5 million diluted weighted average ordinary shares outstanding

For fiscal 2026 (ending April 30, 2026):

•Total revenue is expected to be between $1.655 billion and $1.670 billion, representing 12% year-over-year growth at the midpoint (11% year-over-year constant currency growth at the midpoint)

•Non-GAAP operating margin is expected to be approximately 16%

•Non-GAAP diluted earnings per share is expected to be between $2.24 and $2.32, assuming between 109.0 million and 111.0 million diluted weighted average ordinary shares outstanding

The guidance assumes, among others, the following exchange rates: 1 Euro = 1.120 US Dollars; and 1 Great British Pound = 1.335 US Dollars.

See the section titled “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. We present historical and forward-looking non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” below for an explanation of these non-GAAP measures. A reconciliation of forward-looking non-GAAP measures to the corresponding GAAP measures for operating margin and net (loss)/earnings per share is not available without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of the costs and expenses that may be incurred in the future. These items necessary to reconcile such non-GAAP measures could be material and have a significant impact on the Company’s results computed in accordance with GAAP.

Elastic’s executive management team will host a conference call today at 2:00 p.m. PT/5:00 p.m. ET to discuss the Company’s financial results and business outlook. A live audio webcast of the conference call will be available through Elastic’s Investor Relations website at ir.elastic.co. A presentation containing financial and operating information will be available at the same website. The replay of the webcast will also be available on the investor relations website.

Elastic (NYSE: ESTC), the Search AI Company, integrates its deep expertise in search technology with artificial intelligence to help everyone transform all of their data into answers, actions, and outcomes. Elastic's Search AI Platform — the foundation for its search, observability, and security solutions — is used by thousands of companies, including more than 50% of the Fortune 500.

Learn more at elastic.co.

Elastic and associated marks are trademarks or registered trademarks of Elastic N.V. and its subsidiaries. All other company and product names may be trademarks of their respective owners.

This press release contains forward-looking statements that involve substantial risks and uncertainties, which include, but are not limited to, statements regarding our expected financial results for the fiscal quarter ending July 31, 2025 and fiscal year ending April 30, 2026, the expected performance or benefits of and demand for our offerings, our product strategy and innovation, performance in the industries in which we operate, and customer use and adoption of our platform. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements due to uncertainties, risks, and changes in circumstances, including but not limited to those related to: our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit or gross margin, operating expenses (which include changes in sales and marketing, research and development and general and administrative expenses), and our ability to achieve and maintain future profitability; our ability to continue to deliver and improve our offerings and develop new offerings (including innovations around AI use cases); customer acceptance and purchase of our new and existing offerings; the expansion and adoption of our Elastic Cloud offerings; our ability to realize value from investments in the business; our ability to maintain and expand our user and customer base; the impact of the evolving macroeconomic and geopolitical environments on our business, operations, hiring and financial results, and on businesses and spending priorities of our customers and partners; the impact of our pricing model strategies on our business; the impact of our licensing model on the use and adoption of our software; the impact of foreign currency exchange rate fluctuations, the uncertain inflation and interest rate environment, and tariffs and other international trade policies on our results; our international expansion strategy; our operating results and cash flows; the sufficiency of our capital resources; our ability to successfully execute our go-to-market strategy; our forecasts regarding our business; and general market, political, economic and business conditions.

Any additional or unforeseen effects from the evolving macroeconomic and geopolitical environments may exacerbate these risks. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those expressed or implied in our forward-looking statements are included in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended April 30, 2024 and subsequent quarterly and current reports filed with the SEC. SEC filings are available on the Investor Relations section of Elastic’s website at ir.elastic.co and the SEC’s website at www.sec.gov. Elastic assumes no obligation to, and does not currently intend to, update any such forward-looking statements, except as required by law.

In addition to our results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we believe the non-GAAP measures discussed below are useful in evaluating our operating performance. We use these non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review the differences between GAAP financial measures and the corresponding non-GAAP financial measures, and not to rely on any single financial measure to evaluate our business and financial results.

Reconciliations of historical GAAP financial measures to their respective historical non-GAAP financial measures are included below. In relation to constant currency non-GAAP financial measures, the only reconciling item between GAAP financial measures and non-GAAP financial measures is the effect of foreign currency rate fluctuations. Further details on how we calculate such effects can be found in the definition of “Constant Currency” below.

We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding stock-based compensation expense and related employer taxes and amortization of acquired intangible assets. We believe non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables from period to period for reasons unrelated to overall operating performance.

We define non-GAAP operating income and non-GAAP operating margin as GAAP operating loss and GAAP operating margin, respectively, excluding stock-based compensation expense and related employer taxes, amortization of acquired intangible assets, acquisition-related expenses, and restructuring and other related charges. We believe non-GAAP operating income and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables from period to period for reasons unrelated to overall operating performance.

We define non-GAAP net income as GAAP (loss)/income, excluding stock-based compensation expense and related employer taxes, amortization of acquired intangible assets, acquisition-related expenses, restructuring and other related charges, one-time litigation settlements, the related income tax effect of the foregoing adjustments, and the income tax impact from the release of any valuation allowance against deferred tax assets. We define non-GAAP earnings per share, basic, as non-GAAP net income divided by weighted average shares outstanding and non-GAAP earnings per share, diluted, as non-GAAP net income divided by weighted average diluted shares outstanding, which includes the potentially dilutive effect of the company’s employee equity incentive plan awards. We believe non-GAAP earnings per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of certain variables from period to period for reasons unrelated to overall operating performance.

Adjusted free cash flow is a non-GAAP financial measure that we define as net cash provided by operating activities adjusted for cash paid for interest on long-term debt less cash used for investing activities for purchases of property and equipment. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue. Adjusted free cash flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements.

We compare the percent change in certain results from one period to another period using constant currency information to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations. In presenting this information, current and comparative prior period results are converted into United States dollars at the exchange rates in effect on the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

Elastic Investor Relations

ir@elastic.co

Elastic Corporate Communications

PR-Team@elastic.co

 

 

 

Reconciliation of GAAP to Non-GAAP Data
Supplementary Information

 

(1) Adjusted free cash flow includes cash paid for restructuring and other charges of $3.8 million during the year ended April 30, 2025, and $0.6 million and $2.1 million during the three months and year ended April 30, 2024, respectively. There were no cash payments for restructuring and other charges during the three months ended April 30, 2025.

(1) Totals may not sum, due to rounding. Gross margin, operating margin, and earnings per share are calculated based upon the respective underlying, non-rounded data.

(2) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP (loss) income in calculating the non-GAAP financial measures presented above as well as other significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.