ESTC

MKT CAP $9.9BP/E 27.0DIV YIELD —FCF YIELD 3.51%REV TTM $1.8B +16.2%NET INCOME $375.6MNET CASH $308.7M52W 43.30 – 99.91NEXT EARNINGS Nov 19 EST.SEC XBRL · TTM TO Invalid Date

How ESTC rewrote its risk factors

10-K ITEM 1A · FY2025 → FY2026

Text kept

50%

of sentences unchanged

Added

347

new sentences

Dropped

340

sentences removed

Length

+570

words, now 34,455

New in FY2026

• If we do not appropriately manage our future growth or are unable to improve our systems and processes, our business and results of operations may be adversely affected. • We have a history of losses and may not be able to achieve profitability on a consistent basis. • IT spending, sales cycles, and other factors affecting the demand for our offerings and our results of operations have been, and may continue to be, negatively impacted by current macroeconomic conditions, including declining rates of economic growth, inflationary pressures, increased interest rates, changes in U.S. federal government spending, evolving international trade policies and environments, geopolitical turmoil, and other conditions discussed in this report. • Our business, reputation, or financial results may be adversely affected by any failure by us to be successful in our AI initiatives, by significant competition we face in the AI landscape, and by uncertain market understanding and valuation of AI and machine learning technologies, and ethical and regulatory issues relating to the use of AI in our offerings may result in new or enhanced governmental or regulatory scrutiny, reputational harm, damage to our competitive position, and liability. • The use of AI by our workforce may present risks to our business. • We and our third-party vendors are vulnerable to cybersecurity risks and incidents that may disrupt or damage our business. • Our future growth, business, and results of operations will be harmed if we are not able to keep pace with technological and competitive developments, increase sales of our subscriptions to new and existing customers, renew existing customers’ subscriptions, respond effectively to evolving markets, offer high-quality support services, or maintain and enhance our brand. • We may not be able to expand adoption of, or realize expected return on investments in, our cloud-based offerings. • Our operating results may fluctuate from quarter to quarter. • Our consumption-based arrangements for our Elastic Cloud offerings make it difficult to accurately predict the long-term rate of customer adoption or renewal, or the impact those arrangements will have on our near-term or long-term revenue and operating results. • Because we recognize the vast majority of our revenue from subscriptions, downturns or upturns in sales are not immediately reflected in full in our results of operations. • We expect our revenue mix to vary over time. • We may not be able to attract and retain key employees or effectively develop and expand our sales, marketing, and customer support capabilities. • We may not be able to realize the benefits of our marketing strategies, such as where we offer some of our product features free of charge and provide free trials to some of our paid features. • Our international business exposes us to a variety of risks, and if we are not successful in sustaining and expanding our international business, we may incur additional losses and our revenue growth could be harmed. • We are exposed to fluctuations in currency exchange rates. • We are subject to risks associated with our receipt of revenue from sales to government entities. • If our partners, including cloud providers, systems integrators, channel partners, referral partners, original equipment manufacturing (“OEM”) and managed service provider (“MSP”) partners, and technology partners fail to perform, or we are unable to maintain successful relationships with them, our ability to market, sell, and distribute our solution may be limited. • We could be negatively impacted if the source code licenses under which some of our software is licensed are not enforceable. • Our reputation could be harmed if third parties offer inadequate or defective implementations of software that we have previously made available under an open source license. • Limited technological barriers to entry into the markets in which we compete may facilitate entry by other enterprises into our markets to compete with us. • A real or perceived defect, security vulnerability, error, or performance failure in our software could cause us to lose revenue, damage our reputation, and expose us to financial liability. • Interruptions or performance problems, and our reliance on technologies from third parties, may adversely affect our business operations and financial results. • Incorrect implementation or use of our software could negatively affect our business, operations, financial results, and growth prospects. • Failure to protect our proprietary technology and intellectual property rights could substantially harm our business and results of operations. • We could incur substantial costs as a result of any claim of infringement, misappropriation, or violation of another party’s intellectual property rights, including as a result of the indemnity provisions in various agreements. • Our use of third-party open source software within our products could negatively affect our ability to sell our products and subject us to litigation. • An investment in our company is subject to tax risks based on our status as a non-U.S. corporation. • Any actual or perceived failure by us to comply with regulations or any other obligations relating to privacy, data protection, or information security could adversely affect our business. • Our business is subject to a variety of government and industry regulations, as well as other obligations including compliance with export control, trade sanctions, anti-bribery, anti-corruption, and anti-money laundering laws. • The market price for our ordinary shares has been, and is likely to continue to be, volatile. • We may fail to meet our publicly announced guidance or other expectations about our business. • The concentration of our share ownership with insiders will likely limit your ability to influence corporate matters, and the issuance of additional shares will dilute all other shareholders. • Holders of our ordinary shares may not be able to exercise pre-emptive rights and may experience dilution upon future issuances of ordinary shares. • Dutch law and our articles of association include anti-takeover provisions, and we do not comply with all suggested governance provisions of the Dutch Corporate Governance Code (“DCGC”). • We do not intend to pay cash dividends in the foreseeable future. • Claims of U.S. civil liabilities may not be enforceable against us. • Our share repurchase program may not be fully consummated, could increase volatility of the price of our shares, and could diminish our cash reserves. • If industry or financial analysts do not publish research or reports about our business, or if they issue inaccurate or unfavorable research regarding our ordinary shares, our share price and trading volume could decline. • We have a substantial amount of indebtedness and may not be able to generate sufficient cash to service all of our indebtedness. • We may not benefit from our acquisition strategy. • Our reputation or business could be negatively impacted by environmental, social, and governance (“ESG”) matters and our reporting of such matters. • We may fail to maintain an effective system of disclosure controls and internal control over financial reporting.
The Elasticsearch Platform (“our platform”) combines the precision of search with the intelligence of AI to help our customers and community solve real-time business problems, unlock potential value, and achieve better outcomes.
We offer three Elasticsearch-powered solutions—Search & AI, Elastic Observability, and Elastic Security—that are built on our platform.
As digital transformation continues to drive mission-critical business functions towards increasingly complex data landscapes, we believe that every company must incorporate search AI capabilities across IT and line-of-business organizations to find the answers that matter from all of its data in real time and at scale.
With Elasticsearch at its core, our platform is a highly scalable document store, columnar database, and search engine and is the unified data store for all of our solutions and use cases.
Featuring a common, solution-agnostic user interface with an embedded AI agent and support for third-party AI agents, our platform offers powerful drag-and-drop visual analytics, centralized management capabilities, and the world's most downloaded open source vector database, which gives developers a full suite of sophisticated retrieval algorithms and the ability to integrate with large language models (“LLM”).
We make our platform available as a service across major cloud providers (consisting of Amazon Web Services (“AWS”), Google Cloud Platform (“GCP”), and Microsoft Azure (“Azure”)) in more than 55 public cloud regions globally.
Our business has experienced significant growth around the world.
Our total revenue was $1.739 billion, $1.483 billion, and $1.267 billion for the years ended April 30, 2026, 2025, and 2024, respectively, representing year-over-year growth of 17% for the years ended April 30, 2026 and 2025.
Subscriptions accounted for 94% of our total revenue for the year ended April 30, 2026 and 93% of our total revenue for the years ended April 30, 2025 and 2024.
Revenue from customers located outside the United States accounted for 46%, 44%, and 42% of our total revenue for the years ended April 30, 2026, 2025, and 2024, respectively.
We recorded net income of $367.8 million for the year ended April 30, 2026, net loss of $108.1 million for the year ended April 30, 2025, and net income of $61.7 million for the year ended April 30, 2024.
Our net cash provided by operating activities was $326.9 million, $266.2 million, and $148.8 million for the years ended April 30, 2026, 2025, and 2024 respectively.
We also offer software solutions built on our platform that address a wide variety of use cases.
Our platform and each of our solutions (Search & AI, Elastic Observability, and Elastic Security) are designed to run as self-managed software or as a cloud service (in public or private clouds, in hybrid environments, or in multi-cloud environments).
Elasticsearch Platform At its core, our platform is powered by Elasticsearch—a distributed, real-time vector database and analytics engine and data store for all types of data, including textual, numerical, geospatial, structured, and unstructured.
Elastic enables organizations by providing the most complete data platform for context engineering and AI.
Our commitment to transparency and flexibility ensures that organizations have the visibility and control necessary to integrate AI into workflows with confidence.
Paid features enable capabilities such as automating anomaly detection on time-series data at scale through machine learning, generating embeddings using state-of-the-art models, and performing inference with LLMs.
Our platform further facilitates compliance with data security and privacy regulations, supporting search across low-cost cold and frozen data tiers, and allowing real-time notifications and alerts.
Our solutions include the following: • Search & AI.
Powered by Elasticsearch, Search & AI includes context engineering and AI, combining a scalable distributed data store, vector database, hybrid search, embedding and reranking AI models, and an agent builder.
Elasticsearch simplifies building search, AI, and agentic applications by unifying structured and unstructured data, along with vectors into a single, low-latency engine that delivers precise relevance.
Built for production, Elasticsearch scales with near real-time performance and cost efficiency, powering high-throughput ingestion and supporting petabyte-scale datasets. • Elastic Observability.
Our agentic observability platform brings logs, metrics, and traces into a unified datastore so SRE/Operations teams and AI agents can investigate, correlate, and resolve issues across applications, networks, and infrastructure.
Observability includes log analytics, to search, analyze, and visualize petabytes of structured and unstructured logs; infrastructure monitoring, for visibility across cloud, on-premises, Kubernetes, serverless, and hosts; Application Performance Monitoring (“APM”), support for native production-grade OpenTelemetry without proprietary agents and broad language support to pinpoint code issues and debug faster; digital experience monitoring, to improve user experience with synthetic testing and real user monitoring (“RUM”); Streams, which parse and structure raw telemetry data without rebuilding pipelines and Significant Events, which surface critical errors, anomalies, and system changes, cutting time to root cause and giving AI agents the grounded context they need to triage alerts, run investigations, and propose remediations; and LLM observability, to track latency, errors, prompts, responses, usage, and costs across major LLM services and agent frameworks. • Elastic Security.
Elastic Security is an agentic security operations platform where agents handle the full lifecycle from data ingestion through response, and human analysts handle judgment, verification, and approval.
Built on the Elasticsearch data and AI platform, it provides unified protection to prevent, detect, and respond to threats.
The solution combines Security Information and Event Management (“SIEM”), Extended Detection and Response (“XDR”), endpoint security with third-party integrations and first-party protections, cloud security, and native Security Orchestration, Automation, and Response (“SOAR”) capabilities in a single platform, with integrations across network, host, user, cloud, and endpoint data sources.
It enables investigations, incident management, shareable analytics, and workflow automation with AI-driven detection, investigation, and response.
Our Deployment Options Our platform is available either as self-managed software or a cloud service.
With Elastic Self-Managed, users can also download and manage their own deployments of our platform and our solutions.
Elastic Cloud, our family of cloud-based offerings (including both Elastic Cloud Hosted and Elastic Cloud Serverless) is hosted on major public cloud providers.
We regularly deliver new and enhanced capabilities to our customers, such as the enhanced AI technology integrated in our platform, through regular releases, to which everyone has access based on our subscription model.
We continue to offer comprehensive AI capabilities in several key areas, providing organizations with tools and infrastructure to leverage AI, including vector search capabilities, inference and retrieval application programming interfaces (“APIs”), embedding and relevance models, agentic workflows, data ingestion, data management, and domain-specific applications.
We view our AI capabilities as a major competitive differentiator for our products and intend to continue to invest in additional features and functionality related to AI.
We also offer Elastic Cloud Serverless, a fully-managed, stateless architecture that auto-scales with customer usage.
We manage the underlying deployment and customers benefit from automatic upgrades.
We engage our community and our partners to drive awareness and invest in our sales and marketing team to grow our customer base.
We offer varied deployment options, including Elastic Self-Managed, Elastic Cloud Hosted, and Elastic Cloud Serverless, to cater to a wide range of customer use cases.

and 307 more.

Gone since FY2025

• If we do not appropriately manage our future growth or are unable to improve our systems and processes, our business and results of operations may be adversely affected. • We have a history of losses and may not be able to achieve profitability on a consistent basis. • Information technology spending, sales cycles, and other factors affecting the demand for our offerings and our results of operations have been, and may continue to be, negatively impacted by current macroeconomic conditions, including declining rates of economic growth, inflationary pressures, increased interest rates, changes in U.S. federal spending, evolving international trade policies and environments, and other conditions discussed in this report, and by the evolving conflicts in the Middle East and Russia’s war with Ukraine. • We may not be successful in our artificial intelligence initiatives, and ethical and regulatory issues relating to the use of AI in our offerings may result in new or enhanced governmental or regulatory scrutiny, reputational harm, damage to our competitive position, and liability. • We and our third-party vendors are vulnerable to cybersecurity risks and incidents that may disrupt or damage our business. • Our future growth, business, and results of operations will be harmed if we are not able to keep pace with technological and competitive developments, increase sales of our subscriptions to new and existing customers, renew existing customers’ subscriptions, respond effectively to evolving markets, offer high-quality support services, or maintain and enhance our brand. • Our ability to grow our business will suffer if we do not expand adoption of, or realize expected return on investments in, our Elastic Cloud offerings. • Our operating results may fluctuate from quarter to quarter. • Our limited history with consumption-based arrangements for our Elastic Cloud offerings is not adequate to enable us to accurately predict the long-term rate of customer adoption or renewal, or the impact those arrangements will have on our near-term or long-term revenue and operating results. • Because we recognize the vast majority of our revenue from subscriptions, downturns or upturns in sales are not immediately reflected in full in our results of operations. • The sales prices of our offerings may decrease, and we expect our revenue mix to vary over time. • We may not be able to attract and retain key employees or effectively develop and expand our sales, marketing, and customer support capabilities. • We may not be able to realize the benefits of our marketing strategies, such as where we offer some of our product features free of charge and provide free trials to some of our paid features. • Our international business exposes us to a variety of risks, and if we are not successful in sustaining and expanding our international business, we may incur additional losses and our revenue growth could be harmed. • We are subject to risks associated with our receipt of revenue from sales to government entities. • If our partners, including cloud providers, systems integrators, channel partners, referral partners, original equipment manufacturing (“OEM”) and managed service provider (“MSP”) partners, and technology partners fail to perform, or we are unable to maintain successful relationships with them, our ability to market, sell, and distribute our solution may be limited. • Our decision to no longer offer Elasticsearch and Kibana under an open source license may harm the adoption of those products. • We could be negatively impacted if the source code licenses under which some of our software is licensed are not enforceable. • Our reputation could be harmed if third parties offer inadequate or defective implementations of software that we have previously made available under an open source license. • Limited technological barriers to entry into the markets in which we compete may facilitate entry by other enterprises into our markets to compete with us. • A real or perceived defect, security vulnerability, error, or performance failure in our software could cause us to lose revenue, damage our reputation, and expose us to financial liability. • Interruptions or performance problems, and our reliance on technologies from third parties, may adversely affect our business operations and financial results. • Incorrect implementation or use of our software could negatively affect our business, operations, financial results, and growth prospects. • Failure to protect our proprietary technology and intellectual property rights could substantially harm our business and results of operations. • We could incur substantial costs as a result of any claim of infringement, misappropriation, or violation of another party’s intellectual property rights, including as a result of the indemnity provisions in various agreements. • Our use of third-party open source software within our products could negatively affect our ability to sell our products and subject us to litigation. • An investment in our company is subject to tax risks based on our status as a non-U.S. corporation. • Any actual or perceived failure by us to comply with regulations or any other obligations relating to privacy, data protection, or information security could adversely affect our business. • Our business is subject to a variety of government and industry regulations, as well as other obligations including compliance with export control, trade sanctions, anti-bribery, anti-corruption, and anti-money laundering laws. • The market price for our ordinary shares has been, and is likely to continue to be, volatile. • We may fail to meet our publicly announced guidance or other expectations about our business. • The concentration of our share ownership with insiders will likely limit your ability to influence corporate matters, and the issuance of additional shares will dilute all other shareholders. • Holders of our ordinary shares may not be able to exercise pre-emptive rights and may experience dilution upon future issuances of ordinary shares. • Dutch law and our articles of association include anti-takeover provisions, and we do not comply with all suggested governance provisions of the Dutch Corporate Governance Code (“DCGC”). • We do not intend to pay cash dividends in the foreseeable future. • Claims of U.S. civil liabilities may not be enforceable against us. • If industry or financial analysts do not publish research or reports about our business, or if they issue inaccurate or unfavorable research regarding our ordinary shares, our share price and trading volume could decline. • We have a substantial amount of indebtedness and may not be able to generate sufficient cash to service all of our indebtedness. • We may not benefit from our acquisition strategy. • Our reputation or business could be negatively impacted by environmental, social, and governance (“ESG”) matters and our reporting of such matters. • We may fail to maintain an effective system of disclosure controls and internal control over financial reporting.
Elastic’s Search AI Platform (“our platform”) combines the precision of search with the intelligence of AI to help our customers and community solve real-time business problems, unlock potential value, and achieve better outcomes.
We offer three Search AI-powered solutions—Elasticsearch, Elastic Observability, and Elastic Security—that are built on our platform.
As digital transformation continues to drive mission-critical business functions to the cloud, we believe that every company must incorporate search AI capabilities across IT and line-of-business organizations to find the answers that matter from all of its data in real time and at scale.
With Elasticsearch at its core, our platform is a highly scalable document store and search engine, and is the unified data store for all of our solutions and use cases.
Featuring a common, solution-agnostic user interface with powerful drag-and-drop visual analytics, centralized management capabilities, and the world's most downloaded open source vector database, our platform gives developers a full suite of sophisticated retrieval algorithms and the ability to integrate with large language models (“LLM”).
We make our platform available as a service across major cloud providers (Amazon Web Services (“AWS”), Google Cloud Platform (“GCP”), and Microsoft (“Azure”)) in more than 55 public cloud regions globally.
Our business has experienced rapid growth around the world.
As of April 30, 2025, we had approximately 21,500 customers compared to approximately 21,000 customers and approximately 20,200 customers as of April 30, 2024 and 2023, respectively.
Our total revenue was $1.483 billion, $1.267 billion, and $1.069 billion for the years ended April 30, 2025, 2024, and 2023, respectively, representing year-over-year growth of 17% for the year ended April 30, 2025 and 19% for the year ended April 30, 2024.
Subscriptions accounted for 93% of our total revenue for the years ended April 30, 2025 and 2024, and 92% of our total revenue for the year ended April 30, 2023.
Revenue from customers located outside the United States accounted for 44%, 42%, and 41% of our total revenue for the years ended April 30, 2025, 2024, and 2023, respectively.
We recorded a net loss of $108.1 million for the year ended April 30, 2025, a net income of $61.7 million for the year ended April 30, 2024, and a net loss of $236.2 million for the year ended April 30, 2023.
We may incur net losses in the foreseeable future.
Our net cash provided by operating activities was $266.2 million, $148.8 million, and $35.7 million for the years ended April 30, 2025, 2024, and 2023 respectively.
We also offer software solutions built on the Search AI Platform that address a wide variety of use cases.
Our platform and each of our solutions (Elasticsearch, Elastic Observability, and Elastic Security) are designed to run in public or private clouds, in hybrid environments, or in multi-cloud environments.
Elastic’s Search AI Platform At its core, our platform is powered by Elasticsearch—a distributed, real-time vector database and analytics engine and data store for all types of data, including textual, numerical, geospatial, structured, and unstructured.
Elastic enables organizations to integrate generative AI and large language models by building key capabilities into its products.
Paid features enable capabilities such as automating anomaly detection on time-series data at scale through machine learning, facilitating compliance with data security and privacy regulations, supporting search across low-cost cold and frozen data tiers, and allowing real-time notifications and alerts.
Our solutions include the following: • Elasticsearch.
Our search solution provides a powerful foundation for building search AI-powered applications.
Key use cases for Elasticsearch include generative AI and retrieval-augmented generation, search applications, and foundational capabilities for building search experiences to support websites and portals, e-commerce, mobile app search, customer support, and workplace search. • Elastic Observability.
Our observability solution enables unified analysis across the IT ecosystem of applications, networks, and infrastructure.
Observability includes log analytics, to search, analyze, and visualize petabytes of structured and unstructured logs; infrastructure monitoring, to gain visibility across cloud, on-premises, Kubernetes, serverless, and hosts; Application Performance Monitoring (“APM”), to stream native production-grade OpenTelemetry without proprietary agents, and gain broad language support to deliver insight to pinpoint code issues and debug faster; digital experience monitoring, to improve user experience with synthetic testing, real user monitoring (“RUM”), and uptime monitoring AI for IT operations (“AIOps”), always-on machine learning analysis that instantly surfaces anomalies, patterns, correlations, and root cause; and LLM observability, to track latency, errors, prompts, responses, usage, and costs for all major LLM services. • Elastic Security.
Our security solution provides unified protection to prevent, detect, and respond to threats.
Our Search AI-driven security analytics solution includes Security Information and Event Management (“SIEM”), with integrations to network, host, user, and cloud data sources.
Elastic Security enables investigations, incident management, shareable analytics, and workflow automation through Security Orchestration, Automation, and Response (“SOAR”); and extended protection within SIEM with third party integrations and first party protections for both Endpoint Security (prevention, detection, and response); and Cloud Security (cloud posture assessment, vulnerability management, and cloud workload protection).
Our Deployment Options Our platform and our solutions can be deployed in public or private clouds, in hybrid environments, or in multi-cloud environments, to satisfy various user and customer needs.
Elastic Cloud, our family of cloud-based offerings (inclusive of both Elastic Cloud Hosted and Elastic Cloud Serverless), is hosted on major public cloud providers.
Users can also download and manage their own deployments of our platform and our solutions.
We regularly deliver new and enhanced capabilities to our customers, such as the enhanced AI technology now integrated in our platform, through regular releases, to which everyone has access based on our subscription model.
We continue to offer comprehensive Generative AI (“GAI”) capabilities in several key areas offering organizations tools and infrastructure to leverage GAI, including vector search capabilities, inference and retrieval APIs, embedding and relevance models, agentic workflows, data ingestion, data management, and domain-specific applications.
We view our Search AI capabilities as a major competitive differentiator for our products and intend to continue to invest in additional features and functionality related to AI.
We also recently released Elastic Cloud Serverless as an additional paid service offering for our customers.
We engage our community and our partners to drive awareness and to invest in our sales and marketing team to grow our customer base.
Through Elastic Cloud, we provide the fastest and easiest way to get started with a free trial.
However, there is no free subscription tier in Elastic Cloud.
Self-managed users can easily download our software directly from our website and access many features free of charge, which also facilitates adoption.
We offer varied deployment options to cater to a wide range of customer use cases.

and 300 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2025 ↗, FY2026 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

Watch ESTC. Know when insiders buy.

One email the day a filing lands. Free.