Elastic Reports Fourth Quarter and Fiscal 2025 Financial Results

Elastic, the Search AI Company, has released its financial results for the fourth quarter and full fiscal year ending April 30, 2025. The company reported significant growth in both revenue and cloud services, reflecting strong demand for its solutions and effective sales execution.

Financial Highlights

For the fourth quarter of fiscal 2025, Elastic reported a total revenue of $388 million, marking a 16% increase year-over-year. Elastic Cloud revenue grew by 23% year-over-year to $182 million. The company posted a GAAP operating loss of $12 million, with a GAAP operating margin of -3%. Non-GAAP operating income was $60 million, with a non-GAAP operating margin of 15%. GAAP net loss per share was $0.16, while non-GAAP diluted earnings per share stood at $0.47. Operating cash flow for the quarter was $87 million, and adjusted free cash flow was $85 million.

For the full fiscal year 2025, total revenue reached $1.483 billion, a 17% increase year-over-year. Elastic Cloud revenue for the year was $688 million, up 26% year-over-year. The company reported a GAAP operating loss of $55 million and a GAAP operating margin of -4%. Non-GAAP operating income was $225 million, with a non-GAAP operating margin of 15%. GAAP net loss per share was $1.04, while non-GAAP diluted earnings per share was $2.04. Operating cash flow for the year was $266 million, and adjusted free cash flow was $286 million.

Business and Operational Highlights

Elastic's key customer metrics showed growth, with the total customer count with Annual Contract Value (ACV) greater than $100,000 increasing to over 1,510. The total subscription customer count was approximately 21,500. The company also reported a Net Expansion Rate of approximately 112%.

Product innovations included the expansion of Elastic Cloud Serverless, the introduction of Automatic Migration for SIEM detection rules, and the integration of the Elasticsearch vector database with Google Cloud’s Vertex AI Platform. Additionally, Elastic released ES|QL Joins functionality and the general availability of Better Binary Quantization (BBQ) in Elasticsearch.

Strategic Initiatives and Corporate Developments

Elastic acquired Keep Alerting Ltd, an open-source AIOps platform, and announced a collaboration with NVIDIA to enhance Elasticsearch with GPU-accelerated indexing and vector search. The company also signed a five-year global Strategic Collaboration Agreement with Amazon Web Services (AWS) and received two Google Cloud Partner of the Year awards for Artificial Intelligence.

Management's Perspective

Ash Kulkarni, Chief Executive Officer of Elastic, commented, "Elastic achieved a strong quarter, culminating in a solid finish to the fiscal year. 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."

Future Outlook

For the first quarter of fiscal 2026, Elastic expects total revenue to be between $396 million and $398 million, representing 14% year-over-year growth at the midpoint. The non-GAAP operating margin is expected to be approximately 11.5%, with non-GAAP diluted earnings per share between $0.41 and $0.43.

For the full fiscal year 2026, the company anticipates total revenue to be between $1.655 billion and $1.670 billion, representing 12% year-over-year growth at the midpoint. The non-GAAP operating margin is expected to be approximately 16%, with non-GAAP diluted earnings per share between $2.24 and $2.32.

SEC Filing: Elastic N.V. [ ESTC ] - 8-K - May. 29, 2025