Summary
Elastic closed fiscal 2025 with fourth-quarter revenue of $388.4 million, up 16.0% from the prior-year quarter. Full-year revenue reached $1.483 billion, up 17.0% from the prior year. The customer base kept expanding. Customers with annual contract value above $100,000 totaled over 1,510, compared with over 1,460 in the third quarter and over 1,330 in the prior-year quarter. Total subscription customers were approximately 21,500, compared with approximately 21,350 and approximately 21,000 in those same periods. Net Expansion Rate was approximately 112%.
Profitability improved on a GAAP basis even though the company stayed unprofitable. Fourth-quarter GAAP gross margin was 74.8%, up from 73.8% a year earlier. GAAP operating loss narrowed to $12.0 million from $45.7 million. GAAP net loss narrowed to $16.4 million from $41.1 million. For the full year, GAAP operating loss narrowed to $54.9 million from $129.9 million. Full-year GAAP net income swung to a loss, with a GAAP net loss of $108.1 million after a profitable prior year. Full-year diluted EPS was -$1.04, compared with $0.59 in the prior year.
Non-GAAP results were much stronger. Fourth-quarter non-GAAP operating income was $60 million, and the non-GAAP operating margin was 15%. Non-GAAP diluted earnings per share was $0.47. For the full year, non-GAAP operating income was $225 million, the non-GAAP operating margin was 15%, and non-GAAP diluted earnings per share was $2.04. The gap between GAAP and non-GAAP results stays wide because of stock-based compensation and related employer taxes, amortization of acquired intangibles, acquisition-related expenses, and restructuring charges.
Cash generation was a bright spot. Fourth-quarter operating cash flow was $87.0 million, up from $60.9 million in the prior-year quarter. Full-year operating cash flow was $266.2 million, up from $148.8 million. Capital expenditures were $2.1 million in the quarter, up from $0.8 million. Adjusted free cash flow, a non-GAAP measure, was $85 million for the quarter and $286 million for the full year. Deferred revenue was $802.1 million, up 20.8% from $663.8 million. Remaining performance obligations were $1.54 billion, up 14.4% from $1.35 billion.
The product and partner pipeline stayed busy. Elastic expanded Elastic Cloud Serverless, made its Elasticsearch vector database a native retrieval-augmented generation option for Google Cloud's Vertex AI, and released general availability of Better Binary Quantization. It also acquired Keep Alerting, signed a five-year Strategic Collaboration Agreement with AWS, and announced a collaboration with NVIDIA.
Guidance points to slower growth ahead. For the first quarter of fiscal 2026, the company guided to 14% year-over-year growth at the midpoint, or 13% in constant currency, with a non-GAAP operating margin of approximately 11.5% and non-GAAP diluted earnings per share of $0.41 to $0.43. For the full fiscal year 2026, guidance calls for 12% year-over-year growth at the midpoint, 11% in constant currency, a non-GAAP operating margin of approximately 16%, and non-GAAP diluted earnings per share of $2.24 to $2.32.
Risks remain. Management flagged macroeconomic uncertainty, a possible resurgence in inflation, changes in international trade policies, and foreign exchange swings. The company has seen longer and less predictable sales cycles, more scrutiny of prospective deals, and slowing consumption. Elastic Cloud keeps taking a larger share of revenue, which carries higher third-party hosting costs and a modest drag on gross margin. Management also warned that net losses may continue, and that releases of tax valuation allowances can swing results.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $388.4M | $347.4M | +11.8% | $335.0M | +16.0% |
| Gross profit | $290.6M | $255.7M | +13.7% | $247.1M | +17.6% |
| Gross margin | 74.8% | 73.6% | +1.2 pp | 73.8% | +1.1 pp |
| Research & development | $94.7M | $89.3M | +6.0% | $94.0M | +0.8% |
| Sales & marketing | $161.8M | $157.4M | +2.8% | $151.6M | +6.7% |
| General & administrative | $46.2M | $42.7M | +8.3% | $43.1M | +7.2% |
| Total operating expenses | $302.7M | $289.5M | +4.5% | $292.8M | +3.4% |
| Operating income (loss) | -$12.0M | -$33.8M | +64.5% | -$45.7M | +73.7% |
| Operating margin | -3.1% | -9.7% | +6.7 pp | -13.7% | +10.6 pp |
| Net income (loss) | -$16.4M | -$49.2M | +66.7% | -$41.1M | +60.1% |
| Net margin | -4.2% | -14.2% | +9.9 pp | -12.3% | +8.1 pp |
| Diluted EPS | -$0.16 | -$0.48 | +$0.32 | -$0.40 | +$0.24 |
| Customers | 21,500 | 21,200 | +1.4% | 21,000 | +2.4% |
Risks
Risk Factors emphasize that AI initiatives require continued investment and competitors may incorporate AI into their products more quickly or more successfully, and Elastic may not achieve significant AI-related revenue for several years, if at all. MD&A positions Elastic as the Search AI Company and says it plans to continue investing in Search AI platform features.
MD&A Current Economic Conditions states Elastic has experienced and may continue to experience longer and more unpredictable sales cycles, increased scrutiny of prospective sales, slowing consumption and overall customer expenditures due to macroeconomic events. Risk Factors also note some customers are scrutinizing spending more carefully and reducing consumption spending.
Risk Factors state that because Elastic Cloud is primarily consumption-based, revenue timing is less predictable, customers have slowed consumption, and newer customers increase consumption more slowly than tenured customers. MD&A notes Elastic Cloud contributed 46% of total revenue for FY2025, up from 43% for FY2024, and Net Expansion Rate was approximately 112% as of April 30, 2025.
Risk Factors highlight the dual Elastic License/SSPL model for Elasticsearch and Kibana, uncertainty about enforceability, and competition from forked versions such as Amazon OpenSearch; Amazon's offerings may reduce demand for Elastic products and limit Elastic's pricing. MD&A notes AGPL was recently added as a license option to drive further community engagement and adoption.
As a security solutions provider to U.S. government agencies, defense contractors, and non-U.S. governments, the company says it has been and may continue to be specifically targeted by nation-state actors and threat actors seeking to circumvent its security capabilities. A compromise could cause customer data loss, reputational harm, regulatory investigations, and significant remediation costs.
MD&A and Risk Factors indicate Elastic Cloud revenue is expected to continue increasing as a percentage of total revenue, which will continue to have a modest unfavorable impact on gross margin due to third-party hosting costs. Elastic Cloud contributed 46% of total revenue for FY2025, up from 43% for FY2024.
Risk Factors state an increasing portion of revenue comes from U.S. and non-U.S. government entities, subject to public sector budget cycles, funding reductions, audits, security certification changes, and termination for convenience. Pressure to reduce government spending could delay or reduce purchases of Elastic offerings.
Risk Factors note $575.0 million aggregate principal amount of 4.125% Senior Notes due 2029 outstanding as of April 30, 2025, with restrictive covenants and change-of-control repurchase obligations at 101% of principal. Failure to comply could accelerate debt and harm liquidity.
SaaS KPIs
All quarters →Net Expansion Rate
Non-GAAP Operating Margin
Adjusted Free Cash Flow
Adjusted Free Cash Flow Margin
Total remaining performance obligations
Non-GAAP gross margin
Non-GAAP Operating Income
Elastic Cloud Revenue
Summary, forecast, risks and KPIs are extracted from Elastic N.V.'s SEC filings for Q4 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.