One-glance verdict
Within fair range
$127.07 our estimate vs market $102.43
Wall Street consensus: $111.74 (-12.1% lower than our fair-value estimate)
19% below our estimate
Fundamentals snapshot
Elastic N.V.
ESTC · NYQ · Technology · Software - Application
Current price
$102.43
52-week range
$42.05 - $108.00
Market cap
$10.75B
Balance sheet
Healthy
-1.33x Concerning
Net cash $865.27M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 3.6% last year.
- Reward Returns 33.1% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 6/10 years.
What this company does
Elastic N.V.
Elastic N.V. makes software that helps businesses search, analyze, and secure their data, wherever it's stored, and their money mostly comes from selling subscriptions to this software. This matters because many companies need to sift through vast amounts of information quickly and securely to operate efficiently, and Elastic's platform helps them do just that. They also offer related security and monitoring tools, often sold as part of a recurring revenue (money that comes in regularly from subscriptions) model.
How the company got here
Elastic N.V. started in 2012 with a focus on making search technology more accessible and powerful. Their core innovation, Elasticsearch, was designed to handle vast amounts of data quickly and efficiently, making it a go-to solution for businesses needing to search and analyze information. Over time, the company expanded its offerings beyond just search to include security and observability solutions, adapting to the evolving needs of cloud-based environments. This evolution has positioned Elastic as a key player in the data analytics and AI space.
What it actually does
Elastic N.V. provides software that helps companies manage, search, and analyze large volumes of data. Think of it like a super-powered search engine for a business's internal information, whether that's customer data, website activity, or security logs. Their platforms can store, search, and visualize this data, helping businesses gain insights, monitor their systems, and protect against cyber threats. They offer this as software that companies can run themselves or as a cloud-based service.
Elasticsearch Platform
This is the heart of Elastic's business, acting as a powerful engine for searching and analyzing data. It's a distributed system, meaning it can spread data across many computers to handle massive amounts of information and provide fast results. Companies use this platform to power everything from website search functions to complex data analytics, allowing them to quickly find and understand information stored in various formats. This segment is the foundation upon which many of Elastic's other products are built.
Search & AI
This part of Elastic focuses on enhancing search capabilities with artificial intelligence, particularly by integrating with large language models (LLMs). LLMs are AI systems trained on vast amounts of text data that can understand and generate human-like language. By combining their search technology with AI, Elastic helps businesses create more intelligent search experiences and derive deeper insights from their data. This segment is crucial for staying at the forefront of AI-driven data solutions.
Elastic Security
Elastic Security provides a comprehensive solution to help organizations protect themselves from cyber threats. It works by unifying different security functions, allowing businesses to prevent, detect, and respond to potential attacks in real-time. This means it can help stop threats before they cause damage, identify suspicious activity as it happens, and provide tools to quickly address any security incidents. This is a critical offering as businesses increasingly rely on digital systems.
Elastic Observability
This solution helps businesses monitor and understand the performance and health of their IT systems. It brings together data from various sources, such as application logs and infrastructure metrics, into a single place for analysis. This allows companies to quickly identify and fix issues with their applications or systems, ensuring smooth operations. It provides visibility across cloud environments, servers, and applications, which is essential for maintaining reliable services.
Elastic Cloud
Elastic Cloud is a subscription-based offering that provides Elastic's software solutions as a managed service in the cloud. This means customers don't have to worry about managing the underlying infrastructure themselves; Elastic handles the deployment, scaling, and maintenance. It offers flexibility with options like hosted services and serverless computing, making it easier for businesses of all sizes to access and utilize Elastic's powerful data and AI capabilities without significant upfront investment in hardware or IT expertise.
What management is betting on now
Management is heavily focused on integrating artificial intelligence across their product suite, particularly leveraging large language models to enhance search and analytics capabilities. They are also prioritizing the growth of their cloud-based offerings, Elastic Cloud, as businesses increasingly prefer managed services. The strategy aims to make their solutions more intuitive and powerful, helping customers derive greater value from their data while expanding Elastic's reach in the rapidly evolving technology landscape.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$37.66M
FY2025 Q3
$87.29M
FY2025 Q4
$84.86M
FY2026 Q1
$104.18M
FY2026 Q2
$26.01M
FY2026 Q3
$41.80M
FY2026 Q4
$149.81M
FY2027 Q1
$131.41M
Revenue
$478.11M
Net income
$-16.73M
Diluted EPS
-0.16
Operating cash flow
$132.00M
Free cash flow
$131.41M
Fetching…
Sources
Revenue
$450.68M
Net income
$435.90M
Diluted EPS
4.07
Operating cash flow
$152.71M
Free cash flow
$149.81M
Fetching…
Sources
Revenue
$449.88M
Net income
$7.75M
Diluted EPS
0.07
Operating cash flow
$42.74M
Free cash flow
$41.80M
Fetching…
Sources
Revenue
$423.48M
Net income
$-51.28M
Diluted EPS
-0.48
Operating cash flow
$26.61M
Free cash flow
$26.01M
Fetching…
Sources
Revenue
$415.29M
Net income
$-24.60M
Diluted EPS
-0.23
Operating cash flow
$104.83M
Free cash flow
$104.18M
Fetching…
Sources
Revenue
$388.43M
Net income
$-16.38M
Diluted EPS
-0.15
Operating cash flow
$86.98M
Free cash flow
$84.86M
Fetching…
Sources
Revenue
$382.08M
Net income
$-17.06M
Diluted EPS
-0.16
Operating cash flow
$88.06M
Free cash flow
$87.29M
Fetching…
Sources
Revenue
$365.36M
Net income
$-25.45M
Diluted EPS
-0.25
Operating cash flow
$38.38M
Free cash flow
$37.66M
Fetching…
Sources
Is it cheap or expensive?
Fair value $127.07 vs current price $102.43
Wall Street consensus is the average analyst price target: $111.74 (-12.1% lower than our fair-value estimate).
Our most-likely fair value is $127.07 a share — about 24.1% away from today's price of $102.43, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $865.3M - more cash than debt. Interest coverage -1.3x.
Net debt
$-865.27M
Interest coverage
-1.33x
Elastic N.V.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ESTC
BASELINE
Elastic N.V.
Total debt $595.77M Interest coverage -1.33x This is the baseline the peer rows are being compared against.
Total debt $159.27M Interest coverage 77.42x This peer still has a real interest-payment cushion, while ESTC does not.
Total debt $55.01M Interest coverage -43.79x Neither company has much profit cushion over interest right now.
Total debt $0.00 Interest coverage -1.54x Neither company has much profit cushion over interest right now.
Total debt $1.28B Interest coverage -4.01x Neither company has much profit cushion over interest right now.
What you should know
The case for and against ESTC
3 Rewards
0 Risks
Rewards
-
Revenue grew 3.6% last year.
-
Returns 33.1% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
29.27x
Forward P/E
25.90x
P/B
8.30x
P/S
5.97x
EV/EBITDA
-444.09x
PEG ratio
1.37x
Profitability
How much profit each dollar creates
Gross margin
75.6%
Operating margin
-0.6%
Net margin
20.8%
ROE
33.1%
ROA
-0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.46x
Current ratio
1.81x
Quick ratio
1.64x
Total debt
$595.77M
Total cash
$1.46B
Growth
How the business has been compounding
Revenue TTM
$1.80B
Revenue 5Y CAGR
19.2%
EPS TTM
3.50
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$354.06M
Free CF TTM
$321.80M
FCF margin
17.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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