ESTCNYSEServices-Prepackaged SoftwareUS GAAP · USD

Elastic N.V.

Elastic N.V. builds software around the Elastic Stack, with Elasticsearch at its core, to help organizations search, analyze, and visualize large volumes of data. Its business is centered on subscription access to search, observability, and security capabilities delivered through Elastic Cloud and self-managed software, with consulting and training as smaller add-ons.

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Revenue1,739m USD
+17.3 %y/y
Operating profit (EBIT)-33.5m USD
+39.0 %y/y
EBIT margin-1.9%
+1.8 ppy/y
Net income368m USD
+440.2 %y/y
Free cash flow322m USD
+22.9 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

-50005001,0001,5002,000m USD2021: 608 m USD2021: EBIT -129 m USD20212022: 862 m USD2022: EBIT -174 m USD20222023: 1,069 m USD2023: EBIT -219 m USD20232024: 1,267 m USD2024: EBIT -130 m USD20242025: 1,483 m USD2025: EBIT -55 m USD20252026: 1,739 m USD2026: EBIT -33 m USD20261,739-33
RevenueOperating profit (EBIT)
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Business

Share of revenue
Subscription software93 %

Paid subscriptions to Elastic Cloud and self-managed software with proprietary features and support.

Services7 %

Consulting and training services that help customers deploy and expand use of the platform.

Products

Reported · share of revenue
45.8%36.8%11.3%FY2026100 %
  • Self Managed Subscription45.8 %
  • Saa S Self Managed Annual36.8 %
  • Saa S Self Managed Monthly11.3 %
  • Professional Services6.0 %

Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Elastic sells primarily to organizations that need search, observability, or security capabilities across large and complex data sets. Customers often start with free downloads or trials, then expand usage through paid subscriptions as more teams and use cases adopt the platform. The company serves commercial and government users through direct sales, partners, and cloud marketplaces.

Elastic Cloud customers

Organizations that start on hosted Elastic Cloud and expand usage over time as workloads and teams grow.

Self-managed software users

Customers that download and run Elastic software themselves, often beginning with free usage before converting to paid subscriptions.

Search use case customers

Businesses using Elasticsearch for application search, site search, vector search, and data exploration.

Observability customers

IT operations and engineering teams buying tools to monitor infrastructure, applications, and cloud workloads.

Security customers

Security operations teams using Elastic Security for threat detection, investigation, and response.

Channel and public-sector buyers

Customers acquired through cloud marketplaces, systems integrators, and OEM/MSP partners.

Strategy

Elastic is focused on growing its developer community by keeping the platform accessible through free and paid usage, then converting adoption into subscription expansion. It is also investing in new features for the Elastic Stack across search, observability, and security, while using cloud partnerships and a global partner network to widen distribution and reduce sales friction.

Community-led adoptionShort term

Free access lowers trial friction and creates a funnel for future paid conversion.

Product innovationMedium term

New search, observability, and security features deepen platform relevance and expand use cases.

Cloud monetizationMedium term

Elastic Cloud is the main entry point for new customers and supports consumption-based expansion.

Partner-led distributionMedium term

Partners extend reach into enterprise and government accounts and reduce direct sales cost.

Geography

Q1/2026

Elastic generates a majority of revenue in the United States, but a meaningful share comes from international markets; management disclosed that revenue outside the U.S. was 44% in fiscal 2025. The company also operates with a distributed team across more than 40 countries, and it sells through cloud marketplaces and partners with Amazon, Google, and Microsoft, which broadens geographic reach and lowers customer acquisition friction.

United States53 %
Other countries (US filing)47 %

Share of the revenue the company reports by geography.

Risks

Elastic faces intense competition from search, observability, and security vendors, as well as cloud providers that offer forked or adjacent solutions. Its freemium and consumption-based model can create uneven conversion and spending patterns, while continued losses, cybersecurity exposure, and rapid growth strain execution and infrastructure.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Competitive pressure from specialized software vendors and cloud platforms1Conversion risk in the free-to-paid funnel2Profitability and financing risk3Cybersecurity and data protection incidents4Execution risk from rapid growth5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Competitive pressure from specialized software vendors and cloud platformsImpact: HighLikelihood: High

    Customers can compare Elastic against lower-cost open source, point solutions, and hyperscaler offerings.

    ExposureSearchObservabilitySecurity markets
  2. Conversion risk in the free-to-paid funnelImpact: HighLikelihood: High

    Many users begin with free downloads or trials, so revenue depends on successful expansion into paid subscriptions.

    Exposure: Elastic Cloud and self-managed software

  3. Profitability and financing riskImpact: HighLikelihood: High

    The company has a history of losses and may need continued investment before achieving durable profitability.

    Exposure: Operating leverage and capital needs

  4. Cybersecurity and data protection incidentsImpact: HighLikelihood: Medium

    The company processes sensitive customer and proprietary data and relies on third-party vendors.

    Exposure: Platform operations and customer trust

  5. Execution risk from rapid growthImpact: MediumLikelihood: High

    Scaling sales, support, engineering, and internal systems can increase costs and reduce service quality.

    Exposure: Global operations and headcount

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Accounting

Judgemental items
Revenue recognition for subscriptions and consumption-based cloud usage

Revenue timing depends on service delivery, contract terms, and monthly usage, which can shift quarter-to-quarter results.

Impact: Affects subscription revenue, deferred revenue, and comparability across periods

Deferred contract acquisition costs

Sales commissions and related costs are capitalized and amortized over the customer relationship period.

Impact: Affects operating expenses and gross-to-operating margin bridge

Stock-based compensation

A meaningful non-cash expense in a growth software company with heavy hiring and retention incentives.

Impact: Affects operating loss, cash flow reconciliation, and diluted share count

Income taxes and jurisdiction mix

Tax expense is influenced by Netherlands, U.S., and foreign jurisdictions and recurring tax items.

Impact: Affects effective tax rate and net income volatility

Senior notes and interest expense

The $575 million senior notes create fixed interest cost and balance-sheet leverage.

Impact: Affects net income, liquidity analysis, and covenant/credit assessment

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Last updated: 24/09/2026

Elastic N.V. (ESTC) Revenue, Earnings & Financials 2026 – Clarifo