Recent News
Jan 22, 2026 — Elastic announced general availability of Agent Builder, a developer-focused toolset for rapid, context-driven AI agents built on Elasticsearch.
Feb 3, 2026 — Elastic added two Jina reranker models to Elastic Inference Service to deliver low‑latency, multilingual reranking for production search and RAG workloads.
Feb 3, 2026 — Elastic made Elastic Inference Service available to self‑managed Elasticsearch customers via Cloud Connect, enabling on‑demand GPU inference without relocating data.
Jan 20, 2026 — Elastic boosted performance for its Elastic Cloud Serverless on AWS, citing material indexing and latency gains using Graviton instances.
Jan 6, 2026 — Management scheduled a presentation at the Needham Growth Conference for mid‑January.
Technical Analysis
ADX at 29.82 indicates a strong underlying trend; the ADX reading signals trend strength without directional bias.
Directional indicators show DI– at 34.70 and DI+ at 16.78; DI+ displays a peak‑and‑reversal pattern (bearish), while DI– shows a peak‑and‑reversal pattern that signals decreasing downward pressure — the net picture suggests bears retained advantage but recent directional reversal dynamics favor a loss of downside momentum.
MACD reads –3.21 with an increasing trend and sits above its signal line (signal –3.27), a bullish momentum shift from shorter‑term momentum lows.
MRO at –25.8 places the price below the WMDST target and implies upward potential pressure; the oscillator’s reading declined further, signaling that the gap to target still exists.
RSI at 41.07 registered a dip‑and‑reversal, indicating a recovery from lower momentum and room to rally before encountering overbought conditions.
Price sits at $62.06, above the 20‑day average ($61.44) but below the 50‑day ($71.15) and 200‑day ($81.21) averages; the 12‑day EMA trend declines, so short‑term strength currently faces medium‑term moving‑average resistance. Bollinger bands center near $61.44 with a 1× lower band at $58.84; the current price sits inside the lower half of the band range, leaving defined technical support around the lower band and resistance near the super trend upper at $66.22.
Fundamental Analysis
Revenue totaled $423,481,000. Year‑over‑year revenue fell by 61.79% and quarter‑over‑quarter revenue declined by 71.46%, reflecting material sequential softening over the last periods provided.
Gross margin registered 75.91%, consistent with software‑centric unit economics. Operating margin recorded –1.95% and EBIT margin measured 1.80% (EBIT $7,600,000), showing marginal operating profitability on an adjusted basis while GAAP operating income remained negative.
EPS came in at –$0.48 versus an estimate of –$0.13, a miss of $0.35, equivalent to a –269.23% surprise to that estimate. Forward EPS stands at $0.699, and forward PE reads 184.02x versus the trailing PE of 135.68x.
Liquidity sits comfortably: cash and short‑term investments total $1,396,071,000 and the cash ratio measures 1.51. Free cash flow equals $26,007,000 with a free cash flow yield of 0.28%, which sits above the industry peer mean of 0.144%.
Leverage highlights include total debt $590,707,000 and debt‑to‑EBITDA at 56.29x, with interest coverage near 1.21x — coverage well below the industry peer mean of 48.77x and suggesting sensitivity to profit volatility.
Capital efficiency shows asset turnover at 0.169 (above the industry peer mean of 0.1236) while return on equity equals –5.76% and return on assets equals –2.05%, indicating negative returns despite improved cash metrics.
Price multiples: P/B at 10.31 sits below the industry peer mean of 12.16; P/S at 21.70 sits below the industry peer mean of 43.86; trailing PE of 135.68 sits slightly above the industry peer mean of 128.45; PEG at 20.35 sits materially above the industry peer mean of 8.15. WMDST values the stock as over‑valued, reflecting stretched multiples versus near‑term operating metrics and the company’s leverage profile.
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 | $ -152.80 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 | ESTC: 798.871 high: 554.615 mean: 67.94 median: 61.115 low: -442.099 |
|
| 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 ESTC: 0.239 mean: 0.17 median: 0.087 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: 2.989 ESTC: 0.663 mean: 0.199 median: 0.147 low: -1.778 |
|
| 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 mean: 12.158 ESTC: 10.312 median: 9.178 low: -16.001 |
|
| Price To Earnings (P/E) | 135.677 | |
| Price To Earnings QoQ | -1.636 % | |
| Price To Earnings YoY | -7.1 % | |
| Price To Earnings IPRWA | high: 522.411 ESTC: 135.677 mean: 128.454 median: 84.43 low: -185.3 |
|
| 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 median: 44.141 mean: 43.861 ESTC: 21.698 low: 4.135 |
|
| 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: 0.373 ESTC: 0.169 median: 0.125 mean: 0.124 low: 0.0 |
|
| Receivables Turnover | 1.754 | |
| Receivables Turnover Ratio QoQ | 26.184 % | |
| Receivables Turnover Ratio YoY | 8.612 % | |
| Receivables Turnover Ratio IPRWA | high: 4.512 ESTC: 1.754 mean: 1.584 median: 1.485 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 median: 1.386 mean: 1.339 low: 0.466 |
|
| 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: 147.069 median: 66.552 mean: 48.769 ESTC: 1.208 low: -110.193 |
|
| 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: 14.586 % mean: 4.643 % median: 4.635 % ESTC: 1.973 % low: -6.711 % |
|
| Earnings Growth | 6.667 % | |
| Earnings Growth QoQ | -75.897 % | |
| Earnings Growth YoY | -90.277 % | |
| Earnings Growth IPRWA | high: 100.0 % mean: 14.543 % ESTC: 6.667 % median: 3.226 % low: -128.333 % |
|
| 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: 70.115 % median: 68.036 % low: 40.427 % |
|
| EBIT Margin | 1.795 % | |
| EBIT Margin QoQ | 17.551 % | |
| EBIT Margin YoY | 40.125 % | |
| EBIT Margin IPRWA | high: 60.268 % median: 60.268 % mean: 48.294 % ESTC: 1.795 % low: -44.038 % |
|
| Return On Sales (ROS) | -1.945 % | |
| Return On Sales QoQ | -14.43 % | |
| Return On Sales YoY | -251.835 % | |
| Return On Sales IPRWA | high: 47.094 % median: 47.094 % mean: 37.271 % ESTC: -1.945 % low: -31.502 % |
|
| 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: 3.753 % ESTC: 0.283 % median: 0.164 % mean: 0.144 % low: -1.998 % |
|
| 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: -34.072 % ESTC: -75.036 % median: -77.08 % low: -132.549 % |
|
| 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: 8.509 % median: 5.909 % mean: 4.598 % ESTC: -2.051 % low: -10.846 % |
|
| 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: 0.344 median: 0.098 mean: 0.095 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: 13.9 % median: 9.056 % mean: 7.209 % ESTC: 0.411 % low: -11.474 % |
|