Total revenue in Q1 grew 18% year-over-year. Cloud revenue grew 30% year-over-year and we delivered non-GAAP operating margin of 10.7%.
— Ashutosh Kulkarni
03Detailed Report
ESTC
Company ESTC
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
Swipe to view all report sections
Executive Summary
Elastic delivered an 18% year-over-year increase in total revenue to $347.42 million in QQ1 2025, with Elastic Cloud contributing $157.0 million (30% YoY), representing 45% of total revenue. Gross margin stood at 76.3%, and non-GAAP operating margin was 10.7%, underscoring ongoing discipline in expense management amid growth. The quarter featured robust GenAI-driven momentum in the Search stack and amplia platform consolidation benefits, but also a notable near-term execution headwind due to a broad segmentation overhaul in the Americas that delayed deal closures. Management emphasized that deals were not lost and highlighted corrective actions and stronger pipeline progression in Q2. The company reaffirmed a long-term growth trajectory toward a multi-billion dollar, profitability-focused model, while guiding for a modest acceleration in revenue and margin in the near term as sales execution normalizes. Management signaled continued investment in GenAI and platform roadmap, accompanied by cost-reduction measures to offset near-term revenue softness, with a stronger emphasis on regions and opportunities with the highest growth potential.
Key Performance Indicators
Revenue
Increasing
347.42M
QoQ: 3.71% | YoY: 18.27%
Gross Profit
Increasing
255.66M
73.59% margin
QoQ: 3.45% | YoY: 18.21%
Operating Income
Increasing
-33.65M
QoQ: 18.60% | YoY: 7.16%
Net Income
Decreasing
-49.23M
QoQ: -19.77% | YoY: -1.48%
EPS
Increasing
-0.48
QoQ: -17.07% | YoY: 4.00%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability snapshot:
- QQ1 2025 total revenue: $347.42 million, up 18% YoY and 3.71% QoQ (constant currency implied).
- Elastic Cloud revenue: $157.0 million, up 30% YoY and 45% of total revenue; Cloud revenue growth outpaced overall revenue, signaling strong GenAI-driven demand in cloud-based usage.
- Gross margin: 76.3% (solid, in line with guidance).
- Operating performance: Non-GAAP operating margin of 10.7% (outperformed high end of guidance); GAAP operating income: -$33.65 million (operating margin -9.69%).
- Net income: -$49.23 million; net income margin -14.17%; diluted EPS (GAAP): -$0.48.
- Cash flow and liquidity: Net cash provided by operating activities $52.75 million; free cash flow (adjusted) $52.01 million; cash and cash equivalents $594.87 million; cash and short-term investments $1.147 billion; net debt is modestly negative (-$4.13 million).
- Balance sheet anchors: Deferred revenue $599.25 million (non-current portion $27.72 million); total debt $590.74 million; total assets $2.1505 billion; total stockholders’ equity $759.42 million.
- Customer metrics: 1,370+ customers with annual contract value >$100K; 4,430+ customers >$10K ACV; ~21,200 total subscription customers; net expansion rate ~112%.
- Guidance: Q2 revenue guided to $353–$355 million (≈14% YoY at midpoint); non-GAAP operating margin ~13%; non-GAAP EPS $0.37–$0.39; full-year revenue guidance $1.436–$1.444 billion; non-GAAP operating margin ~12.5%; non-GAAP EPS $1.52–$1.56.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
347.42M
18.27%
3.71%
Gross Profit
255.66M
18.21%
3.45%
Operating Income
-33.65M
7.16%
18.60%
Net Income
-49.23M
-1.48%
-19.77%
EPS
-0.48
4.00%
-17.07%
Key Financial Ratios
Gross Profit Margin
Excellent
73.60%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.10%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.14%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.06%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.91
Current ratio shows adequate liquidity to meet short-term obligations
Elastic N.V. (ESTC) QQ2 2026 Results — Gen AI Leadership Accelerates 16% Revenue Growth with Margin Expansion, Large Commitments, and Capital Return...