Recent News
On February 26, 2026 the company announced product expansions including the general availability of Agent Builder and a technical preview of Elastic Workflows, emphasizing context-driven AI agent capabilities and native automation. On March 16, 2026 Elastic and V2X disclosed a partnership to integrate search and agentic analytics into government mission workflows, targeting defense and intelligence use cases.
Technical Analysis
Directional indicators show bearish bias: DI+ at 17.03 experienced a peak-and-reversal, indicating falling positive directional pressure, while DI- at 25.52 moved through a dip-and-reversal, signaling increasing negative directional pressure; ADX at 22.63 indicates an emerging trend strength rather than a firmly established trend. Together, these directional moves suggest momentum favors downside at present even as a trend develops.
MACD reads -1.7 with a peak-and-reversal pattern, a sign of weakening momentum; the MACD currently sits above its signal line (-2.0), meaning a recent cross above the signal line exists and introduces a short-term bullish trigger inside an otherwise declining MACD profile.
MRO stands at -26.67, which implies the market price sits below the model target and therefore technical pressure exists for price to move higher toward fair-value reference levels; that upside signal conflicts with other momentum signals and frames a conditional rebound scenario.
RSI at 40.31 with a peak-and-reversal indicates waning buying pressure and room to move lower before classical oversold thresholds; the 12-day EMA (price12dayEMA 47.57) has peaked and reversed versus the current close ($46.40), reinforcing short-term momentum erosion. Price sits well below the 200-day average ($73.27), confirming longer-term weakness.
Bollinger bands show the close near the lower band (1x lower band $44.97), with the 20-day average at $47.09 and a 20-day standard deviation of $2.12; short-term volatility compresses around these levels. SuperTrend upper boundary at $50.22 and Ichimoku components (Kijun-sen $49.47, Senkou A $56.84, Senkou B $65.28) mark near-term resistance levels to any rally. Volume recently averaged slightly above 10-day mean, indicating episodic investor attention but no decisive breakout signal.
Fundamental Analysis
Revenue and cash metrics: Total revenue $449,881,000 with YoY revenue growth of 36.20% and QoQ growth of 215.97% as reported; operating cash flow $42,737,000 and adjusted free cash flow $41,801,000 produce a free cash flow yield of 0.58% and a free cash flow growth rate of 60.73% (YoY context shows recent volatility in cash generation). Cash and short-term investments total $1,248,046,000, providing a sizable liquidity buffer.
Profitability: EBIT $12,419,000 yields an EBIT margin of 2.76%, up 53.82% QoQ but essentially flat YoY (0.036%). Compared with the industry peer mean EBIT margin (22.38%) and median (31.80%), Elastic’s EBIT margin sits well below peers, limiting fundamental support for a premium valuation.
Earnings and guidance context: Reported non-GAAP diluted EPS $0.73 exceeded the estimate $0.65 by $0.08, an EPS surprise of 12.31%. Forward EPS stands at $0.7108 with a forward PE of 106.16. Trailing PE reads 994.45; forward PE at 106.16 compresses relative to the trailing figure but remains well above the industry peer mean forward PE (122.72 median roughly 90.54 for forward PE comparisons), indicating stretched expectations priced in to future growth assumptions.
Balance sheet and leverage: Total debt $591,676,000 and debt-to-equity 0.748 indicate moderate leverage; debt-to-EBITDA at 37.39 and an interest coverage ratio near 1.99 show limited cushion versus operating earnings. Cash ratio 1.27 and current ratio 1.82 reflect adequate near-term liquidity.
Margins and unit economics: Gross margin 76.34% remains a structural strength and aligns near the industry peer mean (73.12%). Operating margin near 0.14% lags the industry peer mean operating margin (21.12%), reflecting incremental investments in product and R&D ($114,390,000) that compress operating leverage despite revenue expansion.
Valuation: WMDST values the stock as over-valued. High multiples—especially trailing PE—and modest margin conversion relative to peer means underpin that valuation. Liquidity and AI product momentum support upside for fundamentals, but leverage, low operating margin versus peers, and compressed free cash flow yield restrict valuation expansion absent sustained margin improvement.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-01-31 |
| REPORT DATE: | 2026-02-26 |
| NEXT REPORT DATE: | 2026-05-28 |
| CASH FLOW | Begin Period Cash Flow | $ 804.1 M |
| Operating Cash Flow | $ 42.7 M | |
| Capital Expenditures | $ -936.00 K | |
| Change In Working Capital | $ -83.70 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -63.12 M | |
| End Period Cash Flow | $ 740.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 449.9 M | |
| Forward Revenue | $ 1.1 B | |
| COSTS | ||
| Cost Of Revenue | $ 106.4 M | |
| Depreciation | $ 3.4 M | |
| Depreciation and Amortization | $ 3.4 M | |
| Research and Development | $ 114.4 M | |
| Total Operating Expenses | $ 449.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 343.4 M | |
| EBITDA | $ 15.8 M | |
| EBIT | $ 12.4 M | |
| Operating Income | $ 611.0 K | |
| Interest Income | — | |
| Interest Expense | $ 6.3 M | |
| Net Interest Income | $ -6.25 M | |
| Income Before Tax | $ 6.2 M | |
| Tax Provision | $ -1.59 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ 7.8 M | |
| Net Income From Continuing Operations | $ 7.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.65 | |
| EPS Actual | $ 0.73 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 12.308 % | |
| Forward EPS | $ 0.71 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.4 B | |
| Intangible Assets | $ 374.1 M | |
| Net Tangible Assets | $ 416.9 M | |
| Total Current Assets | $ 1.8 B | |
| Cash and Short-Term Investments | $ 1.2 B | |
| Cash | $ 737.2 M | |
| Net Receivables | $ 357.4 M | |
| Inventory | — | |
| Long-Term Investments | $ 16.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 29.3 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 983.2 M | |
| Net Debt | — | |
| Total Debt | $ 591.7 M | |
| Total Liabilities | $ 1.6 B | |
| EQUITY | ||
| Total Equity | $ 791.0 M | |
| Retained Earnings | $ -1.17 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 7.59 | |
| Shares Outstanding | 104.148 M | |
| Revenue Per-Share | $ 4.32 | |
| VALUATION | Market Capitalization | $ 7.2 B |
| Enterprise Value | $ 6.6 B | |
| Enterprise Multiple | 416.628 | |
| Enterprise Multiple QoQ | -47.848 % | |
| Enterprise Multiple YoY | -47.921 % | |
| Enterprise Multiple IPRWA | ESTC: 416.628 high: 194.987 mean: 86.745 median: 75.766 low: -96.493 |
|
| EV/R | 14.656 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.083 | |
| Asset To Liability | 1.48 | |
| Debt To Capital | 0.428 | |
| Debt To Assets | 0.243 | |
| Debt To Assets QoQ | 1.732 % | |
| Debt To Assets YoY | -3.798 % | |
| Debt To Assets IPRWA | high: 0.624 mean: 0.288 ESTC: 0.243 median: 0.224 low: 0.005 |
|
| Debt To Equity | 0.748 | |
| Debt To Equity QoQ | 12.842 % | |
| Debt To Equity YoY | 9.34 % | |
| Debt To Equity IPRWA | high: 1.63 ESTC: 0.748 mean: 0.358 median: 0.29 low: -0.751 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 9.166 | |
| Price To Book QoQ | -11.113 % | |
| Price To Book YoY | -28.166 % | |
| Price To Book IPRWA | high: 25.147 median: 13.729 mean: 10.992 ESTC: 9.166 low: -15.249 |
|
| Price To Earnings (P/E) | 994.453 | |
| Price To Earnings QoQ | 632.955 % | |
| Price To Earnings YoY | 496.759 % | |
| Price To Earnings IPRWA | ESTC: 994.453 high: 392.443 mean: 121.647 median: 98.016 low: -13.79 |
|
| PE/G Ratio | -8.679 | |
| Price To Sales (P/S) | 16.115 | |
| Price To Sales QoQ | -25.73 % | |
| Price To Sales YoY | -43.829 % | |
| Price To Sales IPRWA | high: 85.311 mean: 33.189 median: 29.344 ESTC: 16.115 low: 3.403 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 106.156 | |
| Forward PE/G | -0.926 | |
| Forward P/S | 6.644 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.171 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.183 | |
| Asset Turnover Ratio QoQ | 8.089 % | |
| Asset Turnover Ratio YoY | 9.282 % | |
| Asset Turnover Ratio IPRWA | high: 0.364 ESTC: 0.183 mean: 0.116 median: 0.108 low: 0.05 |
|
| Receivables Turnover | 1.455 | |
| Receivables Turnover Ratio QoQ | -17.03 % | |
| Receivables Turnover Ratio YoY | 0.255 % | |
| Receivables Turnover Ratio IPRWA | high: 2.885 mean: 1.597 median: 1.51 ESTC: 1.455 low: 0.41 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 62.71 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 32.974 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 93.892 ESTC: 32.974 median: -13.476 mean: -15.844 low: -113.017 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.559 | |
| CapEx To Revenue | -0.002 | |
| CapEx To Depreciation | -0.275 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.4 B | |
| Net Invested Capital | $ 1.4 B | |
| Invested Capital | $ 1.4 B | |
| Net Tangible Assets | $ 416.9 M | |
| Net Working Capital | $ 804.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.269 | |
| Current Ratio | 1.818 | |
| Current Ratio QoQ | -7.675 % | |
| Current Ratio YoY | -10.139 % | |
| Current Ratio IPRWA | high: 4.653 ESTC: 1.818 median: 1.347 mean: 1.336 low: 0.47 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 37.386 | |
| Cost Of Debt | 0.635 % | |
| Interest Coverage Ratio | 1.986 | |
| Interest Coverage Ratio QoQ | 64.401 % | |
| Interest Coverage Ratio YoY | 21.921 % | |
| Interest Coverage Ratio IPRWA | high: 265.5 mean: 11.918 median: 7.462 ESTC: 1.986 low: -144.283 |
|
| Operating Cash Flow Ratio | -0.095 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 29.736 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.541 % | |
| Revenue Growth | 6.234 % | |
| Revenue Growth QoQ | 215.966 % | |
| Revenue Growth YoY | 36.203 % | |
| Revenue Growth IPRWA | high: 17.025 % median: 6.827 % ESTC: 6.234 % mean: 5.363 % low: -14.742 % |
|
| Earnings Growth | -114.583 % | |
| Earnings Growth QoQ | -1818.659 % | |
| Earnings Growth YoY | -1790.015 % | |
| Earnings Growth IPRWA | high: 276.0 % mean: 2.006 % median: 0.518 % low: -39.474 % ESTC: -114.583 % |
|
| MARGINS | ||
| Gross Margin | 76.341 % | |
| Gross Margin QoQ | 0.57 % | |
| Gross Margin YoY | 2.371 % | |
| Gross Margin IPRWA | high: 91.518 % ESTC: 76.341 % mean: 73.12 % median: 73.037 % low: 61.414 % |
|
| EBIT Margin | 2.761 % | |
| EBIT Margin QoQ | 53.816 % | |
| EBIT Margin YoY | 0.036 % | |
| EBIT Margin IPRWA | high: 38.84 % median: 31.795 % mean: 22.378 % ESTC: 2.761 % low: -23.351 % |
|
| Return On Sales (ROS) | 0.136 % | |
| Return On Sales QoQ | -106.992 % | |
| Return On Sales YoY | -95.072 % | |
| Return On Sales IPRWA | high: 37.793 % median: 28.802 % mean: 21.117 % ESTC: 0.136 % low: -24.779 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 41.8 M | |
| Free Cash Flow Yield | 0.577 % | |
| Free Cash Flow Yield QoQ | 103.887 % | |
| Free Cash Flow Yield YoY | -27.513 % | |
| Free Cash Flow Yield IPRWA | high: 6.043 % median: 0.764 % ESTC: 0.577 % mean: 0.32 % low: -3.007 % |
|
| Free Cash Growth | 60.73 % | |
| Free Cash Growth QoQ | -180.934 % | |
| Free Cash Growth YoY | -53.915 % | |
| Free Cash Growth IPRWA | high: 193.107 % ESTC: 60.73 % mean: 49.309 % median: 15.22 % low: -236.573 % |
|
| Free Cash To Net Income | 5.392 | |
| Cash Flow Margin | -20.731 % | |
| Cash Flow To Earnings | -12.029 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.315 % | |
| Return On Assets QoQ | -115.358 % | |
| Return On Assets YoY | -142.112 % | |
| Return On Assets IPRWA | high: 6.683 % mean: 1.861 % median: 1.653 % ESTC: 0.315 % low: -3.646 % |
|
| Return On Capital Employed (ROCE) | 0.853 % | |
| Return On Equity (ROE) | 0.01 | |
| Return On Equity QoQ | -117.029 % | |
| Return On Equity YoY | -149.37 % | |
| Return On Equity IPRWA | high: 0.165 mean: 0.057 median: 0.046 ESTC: 0.01 low: -0.185 |
|
| DuPont ROE | 0.922 % | |
| Return On Invested Capital (ROIC) | 0.547 % | |
| Return On Invested Capital QoQ | 33.09 % | |
| Return On Invested Capital YoY | -160.176 % | |
| Return On Invested Capital IPRWA | high: 14.663 % mean: 3.269 % median: 2.804 % ESTC: 0.547 % low: -4.279 % |
|