# Elastic (ESTC) Q1 2026 Financial Results Summary
SAN FRANCISCO, Aug 28, 2025 — Elastic (NYSE: ESTC) announced its financial results for the first quarter of fiscal 2026, which ended on July 31, 2025. The company reported a strong quarter, demonstrating notable growth across several key metrics.
### Financial Highlights
– **Total Revenue**:
– $415 million
– Up **20%** year-over-year (up **18%** in constant currency)
– **Total Subscription Revenue**:
– $389 million
– Up **20%** year-over-year (up **19%** in constant currency)
– **Sales-led Subscription Revenue**:
– $339 million
– Up **22%** year-over-year (up **20%** in constant currency)
– **Elastic Cloud Revenue**:
– $196 million
– Up **24%** year-over-year (reported and on a constant currency basis)
– **Current Remaining Performance Obligations**:
– $956 million
– Up **18%** year-over-year (up **17%** in constant currency)
– **GAAP Operating Loss**:
– $9 million
– GAAP Operating Margin: **-2%**
– **Non-GAAP Operating Income**:
– $65 million
– Non-GAAP Operating Margin: **16%**
– **GAAP Net Loss per Share**:
– $0.23
– **Non-GAAP Diluted Earnings per Share**:
– $0.60
– **Operating Cash Flow**:
– $105 million
– **Adjusted Free Cash Flow**:
– $116 million
– **Cash, Cash Equivalents, and Marketable Securities**:
– $1.494 billion (as of July 31, 2025)
### Key Customer Metrics
– **Customer Count**:
– Total customer count with Annual Contract Value (ACV) greater than $100,000 was over 1,550, compared to:
– Over 1,510 in Q4 FY25
– Over 1,370 in Q1 FY25
– **Net Expansion Rate**:
– Approximately **112%**
### Product Innovations and Updates
– Expanded **Elastic Cloud Serverless**:
– Now available in 1 region on Microsoft Azure, 3 regions on Google Cloud, and 6 regions on AWS.
– Launched **Elastic AI SOC Engine (EASE)**:
– A new serverless security package utilizing AI for enhanced threat detection.
– Introduced **Logs Essentials**:
– A new observability tier within Elastic Cloud Serverless.
– Improved **vector search** capabilities through algorithm updates.
– Delivered general availability of **Cross Cluster Search in ES|QL** with additional features.
### Other Business Highlights
– Recognized as a Leader in the **2025 Gartner® Magic Quadrant™** for Observability Platforms.
– Ranked #1 in **AV-Comparatives Business Security Test** (March – April 2025).
– Collaborated with Dell and Nvidia to power the **Dell AI Data Platform** with Elasticsearch.
– Achieved **FedRAMP High “In Process” status** on AWS GovCloud (US).
### Financial Outlook
**For Q2 FY2026 (ending October 31, 2025)**:
– Total revenue expected between **$415 million and $417 million** (14% year-over-year growth at the midpoint).
– Non-GAAP operating margin expected to be approximately **16%**.
– Non-GAAP diluted earnings per share expected between **$0.56 and $0.58**.
**For FY2026 (ending April 30, 2026)**:
– Total revenue expected between **$1.679 billion and $1.689 billion** (14% year-over-year growth at the midpoint).
– Non-GAAP operating margin expected to be approximately **16%**.
– Non-GAAP diluted earnings per share expected between **$2.29 and $2.35**.
### Dividend and Share Repurchase
– The company did not declare a quarterly dividend during this quarter.
– No share repurchases were mentioned in the financial results.
This report showcases Elastic’s solid performance and growth mechanisms, bolstered by innovation and customer demand for its technology solutions. The growth in subscription and cloud revenue indicates a robust demand for its products moving forward.
| Revenue | July 31, | 2025 | 2024 |
|---|---|---|---|
| Subscription | $388,583 | $323,774 | |
| Services | $26,705 | $23,646 | |
| Total revenue | $415,288 | $347,420 | |
| Cost of revenue | |||
| Subscription | $69,418 | $68,347 | |
| Services | $27,328 | $23,410 | |
| Total cost of revenue | $96,746 | $91,757 | |
| Gross profit | $318,542 | $255,663 | |
| Operating expenses | |||
| Research and development | $109,122 | $89,332 | |
| Sales and marketing | $174,054 | $157,357 | |
| General and administrative | $44,806 | $42,673 | |
| Restructuring and other related charges | $0 | $139 | |
| Total operating expenses | $327,982 | $289,501 | |
| Operating loss | -$9,440 | -$33,838 | |
| Other income, net | |||
| Interest expense | -$6,351 | -$6,526 | |
| Other income, net | $15,782 | $11,208 | |
| Loss before income taxes | -$9 | -$29,156 | |
| Provision for income taxes | $24,594 | $20,071 | |
| Net loss | -$24,603 | -$49,227 | |
| Net loss per share attributable to | -$0.23 | -$0.48 | |
| ordinary shareholders, basic and diluted | |||
| Weighted-average shares used to compute | |||
| net loss per share attributable to | 105,961,879 | 102,284,435 | |
| ordinary shareholders, basic and diluted |
| As of | July 31, 2025 | April 30, 2025 | |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $662,338 | $727,543 | |
| Restricted cash | $3,652 | $3,671 | |
| Marketable securities | $832,000 | $669,717 | |
| Accounts receivable, net of allowance | $221,989 | $375,613 | |
| for credit losses of $5,238 and $5,510 | |||
| as of July 31, 2025 and April 30, 2025, | |||
| respectively | |||
| Deferred contract acquisition costs | $85,009 | $86,205 | |
| Prepaid expenses and other current | $73,323 | $68,258 | |
| assets | |||
| Total current assets | $1,878,311 | $1,931,007 | |
| Property and equipment, net | $6,335 | $6,589 | |
| Goodwill | $326,081 | $319,417 | |
| Operating lease right-of-use assets | $21,582 | $22,334 | |
| Intangible assets, net | $13,828 | $11,404 | |
| Deferred contract acquisition costs, non-current | $114,868 | $117,762 | |
| Deferred tax assets | $146,506 | $168,045 | |
| Other assets | $16,491 | $16,295 | |
| Total assets | $2,524,002 | $2,592,853 | |
| Liabilities and Shareholders’ Equity | |||
| Current liabilities: | |||
| Accounts payable | $26,513 | $17,150 | |
| Accrued expenses and other liabilities | $73,295 | $86,347 | |
| Accrued compensation and benefits | $82,826 | $93,714 | |
| Operating lease liabilities | $8,043 | $8,928 | |
| Deferred revenue | $710,136 | $802,117 | |
| Total current liabilities | $900,813 | $1,008,256 | |
| Deferred revenue, non-current | $44,519 | $50,340 | |
| Long-term debt, net | $570,016 | $569,729 | |
| Operating lease liabilities, non-current | $16,112 | $16,357 | |
| Other liabilities, non-current | $21,186 | $20,937 | |
| Total liabilities | $1,552,646 | $1,665,619 | |
| Shareholders’ equity: | |||
| Preference shares, €0.01 par value; 165,000,000 shares authorized, 0 shares issued and outstanding as of July 31, 2025 and April 30, 2025 | $0 | $0 | |
| Ordinary shares, par value €0.01 per share: 165,000,000 shares authorized; 106,268,106 shares issued and outstanding as of July 31, 2025 and 105,534,887 shares issued and outstanding as of April 30, 2025 | $1,120 | $1,112 | |
| Treasury stock | -$369 | -$369 | |
| Additional paid-in capital | $2,119,669 | $2,049,416 | |
| Accumulated other comprehensive loss | -$24,740 | -$23,204 | |
| Accumulated deficit | -$1,124,324 | -$1,099,721 | |
| Total shareholders’ equity | $971,356 | $927,234 | |
| Total liabilities and shareholders’ equity | $2,524,002 | $2,592,853 |
