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On October 9, 2025, Elastic announced a $500 million share repurchase program approved by the Board. On November 14, 2025, IDC named Elastic a Leader in its 2025 MarketScape for worldwide observability platforms. Elastic scheduled a management presentation at Barclays’ Global Technology Conference for December 10, 2025; the presentation was announced November 25, 2025. At AWS re:Invent on December 18, 2025, Elastic highlighted a five-year strategic collaboration with AWS to accelerate AI-native application development and tighter integrations across Elastic Cloud and AWS services.
Technical Analysis
ADX reads 15.88, indicating no dominant trend; that low trend strength increases the probability of range-bound action rather than a sustained directional breakout.
Directional indicators show bullish bias: DI+ registered a dip-and-reversal at 23.61, and DI- decreased to 27.36; those moves favor upside pressure on short-term price momentum and support the idea of a rebound from recent weakness.
MACD sits at -1.40 while its signal line rests at -2.04; MACD has moved above the signal line and shows an increasing trajectory, which indicates returning bullish momentum at the momentum oscillator level.
MRO reads -14.61 with a dip-and-reversal, indicating the market price sits below the model target and therefore carries potential for an upward mean reversion toward valuation-implied levels.
RSI at 46.63 after a dip-and-reversal signals recovered short-term momentum without overbought conditions, aligning with the MACD crossover and suggesting limited near-term upside room before facing resistance.
Price trades at $76.99, slightly above the 20-day average ($76.02) and the 12-day EMA ($76.34) but below the 50-day ($81.58) and 200-day ($84.53) averages; this configuration points to a short-term recovery inside a broader moving-average resistance band.
Bollinger band bounds sit near $73.98–$78.07; current price resides near the middle band, implying limited immediate volatility expansion. Volume runs below the 10–50–200 day averages, which reduces conviction behind intraday moves and raises the importance of a sustained volume lift to confirm directional validity.
Ichimoku components place the price beneath the Kijun-sen ($81.01) and below the cloud (Senkou A $88.97, Senkou B $86.58), which keeps medium-term overhead resistance intact despite short-term momentum improvements.
Fundamental Analysis
Total revenue for the period stands at $423,481,000. Year-over-year revenue shows a decline of -61.79%, while quarter-over-quarter revenue change reads -71.46%, indicating significant contraction on both QoQ and YoY bases.
EBIT equals $7,600,000 and the EBIT margin registers 1.80%; that margin improved by 17.55% QoQ and by 40.13% YoY, but remains below the industry peer mean of 26.606% and the industry peer median of 25.634%. The improvement in margin provides earnings leverage, yet absolute margin sits well under peer central tendency.
Net income totaled -$51,284,000 and operating income registered -$8,236,000; operating margin stands at -1.945%, reflecting ongoing operating losses despite the positive EBIT outcome. EPS came in at -$0.48 versus an estimate of -$0.13, producing an EPS surprise of -269.23%, a material miss relative to consensus.
Gross margin measures 75.91%, above the industry peer mean of 71.923%, showing efficient conversion at the gross profit line. Cash and short-term investments total $1,396,071,000 against total debt of $590,707,000, leaving a net cash-like position and supporting balance-sheet flexibility; the cash ratio reads 1.51 and the current ratio reads 1.97.
Free cash flow equals $26,007,000, with a free cash flow yield of 0.28% and free cash flow growth showing strain QoQ. Interest coverage stands near 1.21, consistent with modest but positive ability to service interest on existing debt.
Valuation multiples sit elevated in levels consistent with growth expectations: price-to-book at 10.31 falls below the industry peer mean of 18.33, and trailing P/E at 135.68 sits below the peer mean of 189.63. Forward P/E reads 184.02. WMDST values the stock as fair-valued, reflecting the balance between strong gross margins, a healthy cash position and a notable earnings miss plus revenue contraction.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-10-31 |
| REPORT DATE: | 2025-11-20 |
| NEXT REPORT DATE: | 2026-02-19 |
| CASH FLOW | Begin Period Cash Flow | $ 666.0 M |
| Operating Cash Flow | $ 26.6 M | |
| Capital Expenditures | $ -605.00 K | |
| Change In Working Capital | $ -60.61 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 138.1 M | |
| End Period Cash Flow | $ 804.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 423.5 M | |
| Forward Revenue | $ -152.28 M | |
| COSTS | ||
| Cost Of Revenue | $ 102.0 M | |
| Depreciation | $ 2.9 M | |
| Depreciation and Amortization | $ 2.9 M | |
| Research and Development | $ 108.2 M | |
| Total Operating Expenses | $ 431.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 321.5 M | |
| EBITDA | $ 10.5 M | |
| EBIT | $ 7.6 M | |
| Operating Income | $ -8.24 M | |
| Interest Income | — | |
| Interest Expense | $ 6.3 M | |
| Net Interest Income | $ -6.29 M | |
| Income Before Tax | $ 1.3 M | |
| Tax Provision | $ 52.6 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -51.28 M | |
| Net Income From Continuing Operations | $ -51.28 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.13 | |
| EPS Actual | $ -0.48 | |
| EPS Difference | $ -0.35 | |
| EPS Surprise | -269.231 % | |
| Forward EPS | $ 0.70 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.5 B | |
| Intangible Assets | $ 377.9 M | |
| Net Tangible Assets | $ 513.2 M | |
| Total Current Assets | $ 1.8 B | |
| Cash and Short-Term Investments | $ 1.4 B | |
| Cash | $ 800.6 M | |
| Net Receivables | $ 260.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 17.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 37.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 927.0 M | |
| Net Debt | — | |
| Total Debt | $ 590.7 M | |
| Total Liabilities | $ 1.6 B | |
| EQUITY | ||
| Total Equity | $ 891.1 M | |
| Retained Earnings | $ -1.18 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 8.42 | |
| Shares Outstanding | 105.820 M | |
| Revenue Per-Share | $ 4.00 | |
| VALUATION | Market Capitalization | $ 9.2 B |
| Enterprise Value | $ 8.4 B | |
| Enterprise Multiple | 798.871 | |
| Enterprise Multiple QoQ | -12.573 % | |
| Enterprise Multiple YoY | -14.929 % | |
| Enterprise Multiple IPRWA | high: 2195.465 ESTC: 798.871 mean: 319.928 median: 83.716 low: -363.609 |
|
| EV/R | 19.796 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.779 | |
| Asset To Liability | 1.562 | |
| Debt To Capital | 0.399 | |
| Debt To Assets | 0.239 | |
| Debt To Assets QoQ | 1.321 % | |
| Debt To Assets YoY | 4953.39 % | |
| Debt To Assets IPRWA | high: 0.687 mean: 0.345 median: 0.296 ESTC: 0.239 low: 0.004 |
|
| Debt To Equity | 0.663 | |
| Debt To Equity QoQ | 8.37 % | |
| Debt To Equity YoY | 5010.948 % | |
| Debt To Equity IPRWA | high: 1.275 ESTC: 0.663 mean: 0.378 median: 0.186 low: -0.721 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 10.312 | |
| Price To Book QoQ | 13.672 % | |
| Price To Book YoY | -6.289 % | |
| Price To Book IPRWA | high: 39.175 median: 23.086 mean: 18.33 ESTC: 10.312 low: -27.991 |
|
| Price To Earnings (P/E) | 135.677 | |
| Price To Earnings QoQ | -1.636 % | |
| Price To Earnings YoY | -7.1 % | |
| Price To Earnings IPRWA | high: 697.934 mean: 189.631 ESTC: 135.677 median: 102.121 low: -66.95 |
|
| PE/G Ratio | 20.351 | |
| Price To Sales (P/S) | 21.698 | |
| Price To Sales QoQ | 2.264 % | |
| Price To Sales YoY | -11.221 % | |
| Price To Sales IPRWA | high: 101.971 mean: 46.348 median: 43.059 ESTC: 21.698 low: 6.148 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 184.022 | |
| Forward PE/G | 27.602 | |
| Forward P/S | -90.946 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.055 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.169 | |
| Asset Turnover Ratio QoQ | 4.343 % | |
| Asset Turnover Ratio YoY | 1.565 % | |
| Asset Turnover Ratio IPRWA | high: 0.206 ESTC: 0.169 mean: 0.105 median: 0.105 low: 0.047 |
|
| Receivables Turnover | 1.754 | |
| Receivables Turnover Ratio QoQ | 26.184 % | |
| Receivables Turnover Ratio YoY | 8.612 % | |
| Receivables Turnover Ratio IPRWA | high: 2.828 median: 1.757 ESTC: 1.754 mean: 1.702 low: 0.601 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 52.031 | |
| 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 | 0.471 | |
| CapEx To Revenue | -0.001 | |
| CapEx To Depreciation | -0.209 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.5 B | |
| Net Invested Capital | $ 1.5 B | |
| Invested Capital | $ 1.5 B | |
| Net Tangible Assets | $ 513.2 M | |
| Net Working Capital | $ 898.4 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.506 | |
| Current Ratio | 1.969 | |
| Current Ratio QoQ | -5.562 % | |
| Current Ratio YoY | -1.186 % | |
| Current Ratio IPRWA | high: 5.255 ESTC: 1.969 mean: 1.266 median: 0.984 low: 0.491 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 56.29 | |
| Cost Of Debt | 0.844 % | |
| Interest Coverage Ratio | 1.208 | |
| Interest Coverage Ratio QoQ | 20.96 % | |
| Interest Coverage Ratio YoY | 66.781 % | |
| Interest Coverage Ratio IPRWA | high: 58.966 mean: 7.419 median: 7.0 ESTC: 1.208 low: -9.8 |
|
| Operating Cash Flow Ratio | -0.083 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 30.063 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.879 % | |
| Revenue Growth | 1.973 % | |
| Revenue Growth QoQ | -71.464 % | |
| Revenue Growth YoY | -61.793 % | |
| Revenue Growth IPRWA | high: 13.653 % median: 6.257 % mean: 4.804 % ESTC: 1.973 % low: -6.711 % |
|
| Earnings Growth | 6.667 % | |
| Earnings Growth QoQ | -75.897 % | |
| Earnings Growth YoY | -90.277 % | |
| Earnings Growth IPRWA | high: 53.741 % mean: 25.121 % median: 10.811 % ESTC: 6.667 % low: -91.667 % |
|
| MARGINS | ||
| Gross Margin | 75.908 % | |
| Gross Margin QoQ | -1.038 % | |
| Gross Margin YoY | 1.894 % | |
| Gross Margin IPRWA | high: 91.096 % ESTC: 75.908 % mean: 71.923 % median: 70.967 % low: 61.57 % |
|
| EBIT Margin | 1.795 % | |
| EBIT Margin QoQ | 17.551 % | |
| EBIT Margin YoY | 40.125 % | |
| EBIT Margin IPRWA | high: 46.077 % mean: 26.606 % median: 25.634 % ESTC: 1.795 % low: -23.567 % |
|
| Return On Sales (ROS) | -1.945 % | |
| Return On Sales QoQ | -14.43 % | |
| Return On Sales YoY | -251.835 % | |
| Return On Sales IPRWA | high: 32.121 % median: 23.862 % mean: 18.152 % ESTC: -1.945 % low: -27.164 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 26.0 M | |
| Free Cash Flow Yield | 0.283 % | |
| Free Cash Flow Yield QoQ | -76.058 % | |
| Free Cash Flow Yield YoY | -32.938 % | |
| Free Cash Flow Yield IPRWA | high: 2.533 % ESTC: 0.283 % median: 0.236 % mean: -0.181 % low: -1.441 % |
|
| Free Cash Growth | -75.036 % | |
| Free Cash Growth QoQ | -429.64 % | |
| Free Cash Growth YoY | 172.037 % | |
| Free Cash Growth IPRWA | high: 403.227 % mean: 95.64 % median: 80.524 % ESTC: -75.036 % low: -362.462 % |
|
| Free Cash To Net Income | -0.507 | |
| Cash Flow Margin | -18.095 % | |
| Cash Flow To Earnings | 1.494 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -2.051 % | |
| Return On Assets QoQ | 113.202 % | |
| Return On Assets YoY | 76.506 % | |
| Return On Assets IPRWA | high: 7.246 % median: 2.165 % mean: 1.919 % ESTC: -2.051 % low: -5.229 % |
|
| Return On Capital Employed (ROCE) | 0.49 % | |
| Return On Equity (ROE) | -0.058 | |
| Return On Equity QoQ | 127.201 % | |
| Return On Equity YoY | 83.514 % | |
| Return On Equity IPRWA | high: 0.205 mean: 0.094 median: 0.039 ESTC: -0.058 low: -0.138 |
|
| DuPont ROE | -5.507 % | |
| Return On Invested Capital (ROIC) | 0.411 % | |
| Return On Invested Capital QoQ | 26.462 % | |
| Return On Invested Capital YoY | -232.154 % | |
| Return On Invested Capital IPRWA | high: 9.599 % median: 3.856 % mean: 3.239 % ESTC: 0.411 % low: -5.12 % |
|