Elastic N.V.

Elastic N.V.

Overview

• Elastic offers the Elasticsearch Platform, combining fast, scalable search with AI capabilities to turn data into insights, actions, and outcomes.
• Platform delivery: self-managed software or cloud service.
• Core solutions:
  • Search & AI
  • Elastic Observability
  • Elastic Security
• Platform components: Elasticsearch (vector database and search engine), Kibana (visualization/UI), open source components, and AI-enabled features such as embeddings and agent capabilities.
• Global deployments across major clouds (AWS, Google Cloud, Azure) in more than 55 public cloud regions; supports hybrid, multi-cloud, and on-premises deployments.

Platform capabilities

• Ingests data from any source, stores it, and provides search, analysis, and visualization at millisecond speeds.
• Elasticsearch is the distributed, real-time vector database and analytics engine; Kibana is the visualization and platform management interface.
• Core Elasticsearch and Kibana are open source under AGPL; code is available in public repositories.
• Key features:
  • Vector search and embeddings, hybrid text+vector retrieval, and advanced relevance/ranking
  • Agent Builder for AI agents that operate over customer data
  • Built-in machine learning for anomaly detection, forecasting, and categorization, with native vector/model support
  • Security capabilities including encryption, role-based access control (RBAC), and single sign-on (SSO)
• Unified UI for data exploration, visualization, and platform management.
• Licensing mix includes Apache 2.0, Elastic License, SSPL, and AGPL across different components.

Business model and strategy

• Revenue model: primarily subscription-based, with Elastic Cloud (cloud) and Elastic Self-Managed (on-prem/self-hosted) offerings.
• Cloud pricing is resource-based; features are available across free and paid tiers.
• Strategic priorities:
  • Continue product development in AI features, vector search, and inference APIs
  • Improve ease of use and broaden developer adoption
  • Grow customers through direct and partner channels and multiple deployment options
  • Expand usage within existing customers via new use cases and larger deployments
  • Increase enterprise/commercial penetration and regional partnerships
  • Pursue targeted acquisitions to enhance AI, security, and observability capabilities

Customers and scale

• Total customers:
  • April 30, 2026: ~24,000
  • April 30, 2025: ~21,500
  • April 30, 2024: ~21,000
• High-value customers (as of April 30, 2026):

  • 1,720 customers spend >$100,000 annually

  • 240 customers spend >$1 million annually

• Revenue concentration: one channel partner accounted for 11% of total revenue in 2026 and 2024, and 12% in 2025.
• Geographic mix: international revenue (outside the U.S.) was 46% of total revenue in 2026; 44% in 2025; 42% in 2024.

Financial highlights (year ended April 30)

• Revenue:
  • 2026: $1.739 billion
  • 2025: $1.483 billion
  • 2024: $1.267 billion
• Revenue growth: 17% year-over-year in 2026 and 2025
• Elastic Cloud contribution to revenue:
  • 2026: 48%
  • 2025: 46%
  • 2024: 43%
• Net income:
  • 2026: $367.8 million
  • 2025: $(108.1) million
  • 2024: $61.7 million
• Net cash provided by operating activities:
  • 2026: $326.9 million
  • 2025: $266.2 million
  • 2024: $148.8 million

Capital structure and shareholder returns

• Indebtedness: $575.0 million aggregate principal amount of 4.125% Senior Notes due July 15, 2029.
• Debt considerations include covenants and potential refinancing needs that could affect liquidity and flexibility.
• No cash dividends currently; share repurchases are permitted under a program authorized in October 2025 (up to $500 million of outstanding ordinary shares).
• Corporate form: Dutch-registered company listed on the NYSE under ticker ESTC; distributed workforce with no principal U.S. office.

International and regulatory context

• Operates in over 125 countries with employees in more than 40 countries; subject to international regulatory and tax requirements including privacy, data protection, export controls, and anti-corruption laws.
• Uses a mix of open source licenses (Apache 2.0, AGPL, SSPL) and the Elastic License; this creates enforcement and compliance considerations for open source components and third-party LLM integrations.
• Potential Dutch withholding tax considerations for any distributions.

People and culture

• Employees: 4,019 as of April 30, 2026, across more than 40 countries.
• Company emphasizes a distributed workforce with no centralized U.S. headquarters; culture centers on collaboration, transparency, and a "Source Code" mentality.

Products, technology, and ecosystem

• Elasticsearch Platform: document indexing, inverted indexes, scalable search, vector embeddings, and hybrid retrieval across large datasets.
• Solutions:
  • Search & AI: embedding and retrieval, context engineering, and agent capabilities
  • Elastic Observability: logs, metrics, traces, AIOps, and digital experience monitoring
  • Elastic Security: SIEM/XDR, endpoint and cloud security, native SOAR, and incident workflows
• Kibana provides visualization, platform management, and support for enterprise deployments and custom visualizations.
• Active open source community with programs, meetups, and conferences (ElasticON).

Partners and integrations

• Partnerships with major cloud providers (AWS, Google Cloud, Microsoft Azure) for Elastic Cloud, plus MSPs, system integrators, OEMs, and technology partners.
• AI ecosystem integrations include Anthropic, OpenAI, Hugging Face, LangChain, NVIDIA, and others; collaborations with hyperscalers and AI vendors support AI use cases.
• Third-party dependencies include cloud hosting and systems integrators; partnerships are non-exclusive and may create channel dynamics.

Risks and regulatory considerations

• Key risks include macroeconomic conditions, AI regulation (EU AI Act and U.S. state laws), privacy and cross-border data transfer rules (GDPR/UK GDPR), export controls, data security incidents, and litigation.
• Competitive pressure from incumbents and new entrants across search, observability, and security markets.
• Intellectual property and licensing risks arise from the mixed-license model and third-party components.

Customer value proposition

• A unified data platform for storing, searching, analyzing, and visualizing large-scale data, with AI and retrieval capabilities to ground LLMs and AI agents in enterprise data.
• Rapid deployment across cloud, hybrid, and on-premises environments with flexible pricing and deployment options.
• Prebuilt Observability and Security capabilities alongside AI-enabled search and context engineering for diverse enterprise use cases.

Notes

• Figures reflect disclosed metrics for fiscal years ended April 30, 2024–2026 and are based on Elastic’s annual report data.