Elastic N.V. Delivers 17% Revenue Growth and 16.5% Margin with $1.4B Cash
Elastic N.V. reported FY25 revenue of $1.48 billion, up 17% year-on-year, driven by a 26% increase in cloud revenue and 1,510 clients with over $100 K ACV. In Q2 FY26 the company achieved a non-GAAP operating margin of 16.5% and holds $1.4 billion cash, trading at 3.8× EV/NTM sales.
1. Business Growth
Elastic N.V. reached $1.48 billion in FY25 revenue, up 17% year-on-year, supported by a 26% cloud revenue increase and 1,510 enterprise clients with over $100 K ACV. New GenAI-driven customer cohorts delivered 42% ARR expansion, fueling a medium-term 20%+ revenue growth target.
2. Profitability and Cash Position
In Q2 FY26 Elastic achieved a non-GAAP operating margin of 16.5% and moved toward the Rule of 40 benchmark while maintaining $1.4 billion in cash. Management prioritizes organic investments, strategic M&A like Jina AI and Keep Alerting, and share repurchases to drive self-funding profitability.
3. Valuation and Investment Thesis
Elastic trades at 3.8× EV/NTM sales and 21.2× EV/NTM FCF, significantly below peers such as Snowflake and Datadog, pricing in only 11–12% annual FCF growth. The combination of hybrid search leadership, expanding enterprise adoption, and attractive valuation underpins a high-conviction asymmetric investment case.