Recent News
On August 26, 2025 Elastic announced executive presentations at several investor conferences in early September; on September 5, 2025 the company scheduled a Financial Analyst Day for October 9, 2025; analysts issued an average “Moderate Buy” consensus and updated twelve-month targets in August 2025.
Technical Analysis
ADX / DI+/DI-: ADX at 29.32 signals a strong trend environment; DI+ at 28.68 shows recent loss of upward momentum because DI+ trends decreasing, while DI- registered a dip-and-reversal that corresponds to renewed downside pressure. Together, the directional indicators imply trend strength favors the downside near term, which can widen the valuation gap unless buyers reassert control.
MACD: MACD reads 0.99 with a peak-and-reversal pattern and sits below its signal line at 1.37, indicating bearish momentum that weighs on short-term price appreciation and increases the likelihood of mean reversion toward longer-term averages.
MRO (Momentum/Regression Oscillator): MRO at 25.94 with a peak-and-reversal profile places the price above its model target and therefore suggests downward pressure ahead; this technical overextension conflicts with the company’s cash and free‑cash metrics and introduces near-term valuation risk.
RSI and EMAs / Moving Averages: RSI at 51.41 with a peak-and-reversal profile signals fading buying breadth. Price sits at $85.95, under the 20‑day average $87.95 and the 200‑day average $91.75, yet above the 50‑day average $83.87; that mix implies short-term weakness within a still‑tighter intermediate band, so volatility can produce range compression before a decisive move.
Bollinger Bands, Volume, and Volatility: The close trades essentially at the 1x lower Bollinger band ($85.94) while 10‑day and 50/200‑day volumes run below long-term averages, indicating thinner participation on recent moves and greater sensitivity to directional catalysts; 42‑day and 52‑week volatility at 3% point to moderate realized volatility for swing horizons.
Fundamental Analysis
Revenue and Growth: Total revenue stands at $415,288,000 with YoY revenue growth of 86.46% and QoQ revenue growth reported at 316.01%; that combination signals strong top‑line acceleration driving the valuation context and supports a higher multiple versus earlier periods.
Profitability: EBIT equals $6,342,000, producing an EBIT margin of 1.53%. QoQ change in EBIT margin reads 419.39% while YoY change reads -123.44%; the current margin sits below the industry peer mean of 20.577% and below the industry peer median of 25.525%, indicating operating profitability lags peer central tendencies despite recent margin improvement QoQ.
Earnings and Cash Flow: Reported EPS reached $0.60 versus an estimate of $0.42, an EPS surprise of +42.86%. Free cash flow equals $104,179,000 and free cash flow yield sits at 1.18%, which compares favorably to the industry peer mean free cash flow yield of 0.37% and supports the balance sheet and reinvestment capacity.
Balance Sheet and Liquidity: Cash and short‑term investments total $1,494,338,000 while total debt equals $594,171,000; current ratio registers 2.09, above the industry peer mean current ratio of 1.15. Debt to assets at 23.54% sits below the industry peer mean of 32.50%, even as debt to equity at 0.61 exceeds the industry peer mean of 0.41; overall liquidity and cash buffers reduce solvency risk and underpin discretionary spend on product and go‑to‑market investments.
Margins, Returns and Efficiency: Gross margin at 76.70% tracks slightly above the industry peer mean of 74.19%, while operating margin remains negative at -2.27% and return on equity registers -2.53%, reflecting ongoing investment behind growth. Asset turnover at 0.162 sits above the industry peer mean of 0.114, supporting revenue generation per invested dollar.
Valuation Note: Price multiples show a P/E around 137.93 and a P/B of 9.07, with P/B below the industry peer mean of 17.94. WMDST values the stock as under‑valued, a view shaped by strong cash generation, high revenue growth, and liquidity that offset transitory margin pressure and elevated multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-08-28 |
| NEXT REPORT DATE: | 2025-11-28 |
| CASH FLOW | Begin Period Cash Flow | $ 731.2 M |
| Operating Cash Flow | $ 104.8 M | |
| Capital Expenditures | $ -656.00 K | |
| Change In Working Capital | $ 8.6 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -65.22 M | |
| End Period Cash Flow | $ 666.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 415.3 M | |
| Forward Revenue | $ -207.40 M | |
| COSTS | ||
| Cost Of Revenue | $ 96.7 M | |
| Depreciation | $ 2.3 M | |
| Depreciation and Amortization | $ 2.3 M | |
| Research and Development | $ 109.1 M | |
| Total Operating Expenses | $ 424.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 318.5 M | |
| EBITDA | $ 8.7 M | |
| EBIT | $ 6.3 M | |
| Operating Income | $ -9.44 M | |
| Interest Income | — | |
| Interest Expense | $ 6.4 M | |
| Net Interest Income | $ -6.35 M | |
| Income Before Tax | $ -9.00 K | |
| Tax Provision | $ 24.6 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -24.60 M | |
| Net Income From Continuing Operations | $ -24.60 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.42 | |
| EPS Actual | $ 0.60 | |
| EPS Difference | $ 0.18 | |
| EPS Surprise | 42.857 % | |
| Forward EPS | $ 0.46 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.5 B | |
| Intangible Assets | $ 339.9 M | |
| Net Tangible Assets | $ 631.4 M | |
| Total Current Assets | $ 1.9 B | |
| Cash and Short-Term Investments | $ 1.5 B | |
| Cash | $ 662.3 M | |
| Net Receivables | $ 222.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 16.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 26.5 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 900.8 M | |
| Net Debt | — | |
| Total Debt | $ 594.2 M | |
| Total Liabilities | $ 1.6 B | |
| EQUITY | ||
| Total Equity | $ 971.4 M | |
| Retained Earnings | $ -1.12 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 9.14 | |
| Shares Outstanding | 106.268 M | |
| Revenue Per-Share | $ 3.91 | |
| VALUATION | Market Capitalization | $ 8.8 B |
| Enterprise Value | $ 7.9 B | |
| Enterprise Multiple | 913.757 | |
| Enterprise Multiple QoQ | -64.296 % | |
| Enterprise Multiple YoY | -268.195 % | |
| Enterprise Multiple IPRWA | ESTC: 913.757 high: 358.217 median: 119.829 mean: 97.77 low: -500.562 |
|
| EV/R | 19.05 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.598 | |
| Asset To Liability | 1.626 | |
| Debt To Capital | 0.38 | |
| Debt To Assets | 0.235 | |
| Debt To Assets QoQ | 2.584 % | |
| Debt To Assets YoY | 2172.297 % | |
| Debt To Assets IPRWA | high: 0.701 mean: 0.325 median: 0.28 ESTC: 0.235 low: 0.005 |
|
| Debt To Equity | 0.612 | |
| Debt To Equity QoQ | -4.678 % | |
| Debt To Equity YoY | 1984.123 % | |
| Debt To Equity IPRWA | high: 2.26 ESTC: 0.612 mean: 0.407 median: 0.216 low: -0.716 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 9.071 | |
| Price To Book QoQ | -12.275 % | |
| Price To Book YoY | -38.228 % | |
| Price To Book IPRWA | high: 29.644 median: 24.318 mean: 17.936 ESTC: 9.071 low: -28.017 |
|
| Price To Earnings (P/E) | 137.934 | |
| Price To Earnings QoQ | -28.645 % | |
| Price To Earnings YoY | -55.532 % | |
| Price To Earnings IPRWA | high: 693.657 mean: 181.962 median: 153.023 ESTC: 137.934 low: -214.856 |
|
| PE/G Ratio | 4.987 | |
| Price To Sales (P/S) | 21.218 | |
| Price To Sales QoQ | -14.044 % | |
| Price To Sales YoY | -33.901 % | |
| Price To Sales IPRWA | high: 95.267 mean: 43.437 median: 42.816 ESTC: 21.218 low: 5.82 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 187.924 | |
| Forward PE/G | 6.794 | |
| Forward P/S | -42.485 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 65.858 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.162 | |
| Asset Turnover Ratio QoQ | 2.864 % | |
| Asset Turnover Ratio YoY | 2.624 % | |
| Asset Turnover Ratio IPRWA | high: 0.231 ESTC: 0.162 mean: 0.114 median: 0.104 low: 0.048 |
|
| Receivables Turnover | 1.39 | |
| Receivables Turnover Ratio QoQ | 15.58 % | |
| Receivables Turnover Ratio YoY | 3.909 % | |
| Receivables Turnover Ratio IPRWA | high: 3.437 mean: 1.881 median: 1.716 ESTC: 1.39 low: 0.56 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 65.655 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.425 | |
| CapEx To Revenue | -0.002 | |
| CapEx To Depreciation | -0.283 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.5 B | |
| Net Invested Capital | $ 1.5 B | |
| Invested Capital | $ 1.5 B | |
| Net Tangible Assets | $ 631.4 M | |
| Net Working Capital | $ 977.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.659 | |
| Current Ratio | 2.085 | |
| Current Ratio QoQ | 8.873 % | |
| Current Ratio YoY | 9.255 % | |
| Current Ratio IPRWA | high: 5.697 ESTC: 2.085 mean: 1.146 median: 1.019 low: 0.477 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 68.627 | |
| Cost Of Debt | 0.844 % | |
| Interest Coverage Ratio | 0.999 | |
| Interest Coverage Ratio QoQ | 411.018 % | |
| Interest Coverage Ratio YoY | -128.797 % | |
| Interest Coverage Ratio IPRWA | high: 93.343 mean: 9.216 median: 4.713 ESTC: 0.999 low: -28.274 |
|
| Operating Cash Flow Ratio | 0.156 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 20.372 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.655 % | |
| Revenue Growth | 6.914 % | |
| Revenue Growth QoQ | 316.005 % | |
| Revenue Growth YoY | 86.462 % | |
| Revenue Growth IPRWA | high: 11.139 % ESTC: 6.914 % median: 3.619 % mean: 1.384 % low: -6.143 % |
|
| Earnings Growth | 27.66 % | |
| Earnings Growth QoQ | -208.911 % | |
| Earnings Growth YoY | -58.51 % | |
| Earnings Growth IPRWA | high: 114.286 % ESTC: 27.66 % median: 4.941 % mean: 3.09 % low: -13.529 % |
|
| MARGINS | ||
| Gross Margin | 76.704 % | |
| Gross Margin QoQ | 2.51 % | |
| Gross Margin YoY | 4.233 % | |
| Gross Margin IPRWA | high: 90.981 % ESTC: 76.704 % mean: 74.194 % median: 73.229 % low: 59.218 % |
|
| EBIT Margin | 1.527 % | |
| EBIT Margin QoQ | 419.388 % | |
| EBIT Margin YoY | -123.442 % | |
| EBIT Margin IPRWA | high: 37.642 % median: 25.525 % mean: 20.577 % ESTC: 1.527 % low: -41.293 % |
|
| Return On Sales (ROS) | -2.273 % | |
| Return On Sales QoQ | -873.129 % | |
| Return On Sales YoY | -65.106 % | |
| Return On Sales IPRWA | high: 36.289 % median: 25.525 % mean: 19.773 % ESTC: -2.273 % low: -44.13 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 104.2 M | |
| Free Cash Flow Yield | 1.182 % | |
| Free Cash Flow Yield QoQ | 33.559 % | |
| Free Cash Flow Yield YoY | 153.648 % | |
| Free Cash Flow Yield IPRWA | high: 2.218 % ESTC: 1.182 % mean: 0.369 % median: 0.246 % low: -1.333 % |
|
| Free Cash Growth | 22.763 % | |
| Free Cash Growth QoQ | -917.636 % | |
| Free Cash Growth YoY | -268.99 % | |
| Free Cash Growth IPRWA | high: 187.726 % ESTC: 22.763 % mean: -33.652 % median: -87.615 % low: -108.458 % |
|
| Free Cash To Net Income | -4.234 | |
| Cash Flow Margin | 33.88 % | |
| Cash Flow To Earnings | -5.719 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.962 % | |
| Return On Assets QoQ | 44.662 % | |
| Return On Assets YoY | -57.073 % | |
| Return On Assets IPRWA | high: 6.233 % median: 1.678 % mean: 1.556 % ESTC: -0.962 % low: -9.564 % |
|
| Return On Capital Employed (ROCE) | 0.391 % | |
| Return On Equity (ROE) | -0.025 | |
| Return On Equity QoQ | 43.35 % | |
| Return On Equity YoY | -60.923 % | |
| Return On Equity IPRWA | high: 0.151 median: 0.115 mean: 0.064 ESTC: -0.025 low: -0.192 |
|
| DuPont ROE | -2.592 % | |
| Return On Invested Capital (ROIC) | 0.325 % | |
| Return On Invested Capital QoQ | 441.667 % | |
| Return On Invested Capital YoY | -79.547 % | |
| Return On Invested Capital IPRWA | high: 10.16 % median: 3.218 % mean: 2.983 % ESTC: 0.325 % low: -12.344 % |
|