While revenue growth remains robust at 15.1% year-over-year, operating losses persist with a -0.6% operating margin in 2027Q1, indicating that elevated SG&A expenses, which consistently exceed 50% of revenue, are preventing the conversion of gross profit into operating income.
Elastic N.V. (ESTC) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Apr'26 | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Apr'18 | Apr'17 |
|---|
| Sales/Revenue | 1.8B | 1.74B | 1.48B | 1.27B | 1.07B | 862.37M | 608.49M | 427.62M | 271.65M | 159.94M | 88.18M |
| Revenue Growth % | 16.18% | 17.26% | 17.04% | 18.55% | 23.96% | 41.72% | 42.3% | 57.41% | 69.85% | 81.38% | - |
| Cost of Goods Sold | 441.45M | 416.27M | 379.87M | 330.08M | 296.63M | 232.19M | 161.05M | 122.69M | 78.01M | 40.74M | 19.84M |
| COGS % of Revenue | - | 23.93% | 25.61% | 26.05% | 27.75% | 26.92% | 26.47% | 28.69% | 28.72% | 25.47% | 22.51% |
| Gross Profit | 1.36B | 1.32B | 1.1B | 937.24M | 772.36M | 630.18M | 447.44M | 304.93M | 193.64M | 119.19M | 68.33M |
| Gross Margin % | 75.5% | 76.07% | 74.39% | 73.95% | 72.25% | 73.08% | 73.53% | 71.31% | 71.28% | 74.53% | 77.49% |
| Gross Profit Growth % | - | 19.91% | 17.73% | 21.35% | 22.56% | 40.84% | 46.73% | 57.47% | 62.46% | 74.44% | - |
| Operating Expenses | 1.39B | 1.36B | 1.16B | 1.07B | 991.53M | 803.86M | 576.91M | 476.04M | 295M | 167.19M | 115.5M |
| OpEx % of Revenue | - | 77.99% | 78.09% | 84.2% | 92.75% | 93.21% | 94.81% | 111.32% | 108.59% | 104.54% | 130.99% |
| Selling, General & Admin | 933.1M | 904.61M | 792.36M | 720.28M | 646.78M | 530.1M | 377.71M | 310.67M | 193.83M | 111.55M | 82.9M |
| SG&A % of Revenue | - | 52.01% | 53.42% | 56.83% | 60.5% | 61.47% | 62.07% | 72.65% | 71.35% | 69.75% | 94.02% |
| Research & Development | 455.3M | 451.93M | 365.76M | 341.95M | 313.45M | 273.76M | 199.2M | 165.37M | 101.17M | 55.64M | 32.6M |
| R&D % of Revenue | - | 25.98% | 24.66% | 26.98% | 29.32% | 31.75% | 32.74% | 38.67% | 37.24% | 34.79% | 36.97% |
| Other Operating Expenses | 0 | 0 | 225K | 4.92M | 31.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -26.93M | -33.48M | -54.92M | -129.9M | -219.17M | -173.68M | -129.48M | -171.1M | -101.36M | -47.99M | -47.17M |
| Operating Margin % | -1.49% | -1.92% | -3.7% | -10.25% | -20.5% | -20.14% | -21.28% | -40.01% | -37.31% | -30.01% | -53.5% |
| Operating Income Growth % | - | 39.05% | 57.72% | 40.73% | -26.19% | -34.14% | 24.33% | -68.82% | -111.18% | -1.74% | - |
| EBITDA | -14.06M | -21.64M | -42.61M | -111.9M | -198.94M | -153.95M | -112.24M | -158.25M | -95.66M | -42.93M | -44.02M |
| EBITDA Margin % | -0.78% | -1.24% | -2.87% | -8.83% | -18.61% | -17.85% | -18.45% | -37.01% | -35.21% | -26.84% | -49.92% |
| EBITDA Growth % | 29.94% | 49.21% | 61.93% | 43.75% | -29.22% | -37.16% | 29.07% | -65.42% | -122.84% | 2.49% | - |
| D&A (Non-Cash Add-back) | 12.88M | 11.83M | 12.31M | 18M | 20.23M | 19.73M | 17.24M | 12.86M | 5.7M | 5.07M | 3.15M |
| EBIT | 51.59M | 22.84M | -6.26M | -96.62M | -191.72M | -177.07M | -121.53M | -169.14M | -101.36M | -47.99M | -47.17M |
| Net Interest Income | -63.76M | -25.14M | -25.31M | -26.13M | -25.16M | -20.72M | -185K | 0 | 0 | 0 | 0 |
| Interest Income | 12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 75.76M | 25.14M | 25.31M | 26.13M | 25.16M | 20.72M | 185K | 0 | 0 | 0 | 0 |
| Other Income/Expense | 7.38M | 31.18M | 23.35M | 7.15M | 2.29M | -24.11M | 7.76M | 1.96M | 3.44M | -1.36M | -583K |
| Pretax Income | -19.55M | -2.3M | -31.57M | -122.76M | -216.88M | -197.79M | -121.71M | -169.14M | -97.92M | -49.35M | -47.76M |
| Pretax Margin % | -1.08% | -0.13% | -2.13% | -9.69% | -20.29% | -22.94% | -20% | -39.55% | -36.04% | -30.86% | -54.16% |
| Income Tax | -395.19M | -370.07M | 76.55M | -184.48M | 19.28M | 6.06M | 7.72M | -1.97M | 4.39M | 3.38M | 4.21M |
| Effective Tax Rate % | 2021.43% | 16082.88% | -242.47% | 150.28% | -8.89% | -3.06% | -6.34% | 1.16% | -4.48% | -6.84% | -8.82% |
| Net Income | 375.64M | 367.77M | -108.11M | 61.72M | -236.16M | -203.85M | -129.43M | -167.17M | -102.3M | -52.73M | -51.97M |
| Net Margin % | 20.84% | 21.14% | -7.29% | 4.87% | -22.09% | -23.64% | -21.27% | -39.09% | -37.66% | -32.97% | -58.94% |
| Net Income Growth % | 549.92% | 440.17% | -275.17% | 126.13% | -15.85% | -57.49% | 22.58% | -63.41% | -94.02% | -1.46% | - |
| Net Income (Continuing) | 375.64M | 367.77M | -108.11M | 61.72M | -236.16M | -203.85M | -129.43M | -167.17M | -102.3M | -52.73M | -51.97M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.59 | 3.43 | -1.04 | 0.59 | -2.47 | -2.20 | -1.48 | -2.12 | -1.86 | -0.85 | -0.84 |
| EPS Growth % | 546.63% | 429.81% | -276.27% | 123.89% | -12.27% | -48.65% | 30.19% | -13.98% | -118.82% | -1.19% | - |
| EPS (Basic) | - | 3.49 | -1.04 | 0.62 | -2.47 | -2.20 | -1.48 | -2.12 | -1.86 | -0.85 | -0.84 |
| Diluted Shares Outstanding | 104.64M | 107.22M | 103.66M | 103.98M | 95.73M | 92.55M | 87.21M | 78.8M | 54.89M | 61.92M | 61.92M |
| Basic Shares Outstanding | 104.64M | 105.34M | 103.66M | 99.65M | 95.73M | 92.55M | 87.21M | 78.8M | 54.89M | 61.92M | 61.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ESTC stock.
For fiscal year 2026, Elastic N.V. (ESTC) reported total revenue of $1.74B. This represents a 1872.5% increase compared to $88.2M in 2017.
Elastic N.V. (ESTC) is profitable, generating $367.8M in net income for the fiscal year ending 2026 with a net profit margin of 21.1%.
Elastic N.V. (ESTC) reported an operating income of $-33.5M, resulting in an operating profit margin of -1.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Elastic N.V. (ESTC) generated $1.32B in gross profit for the year, representing a gross profit margin of 76.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin pressure from rising costs
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Strong Absolute Gains
While ESTC maintains robust double-digit revenue growth, the trend is clearly decelerating, falling from a peak of 19.7% year-over-year in 2024Q4 to 15.1% in the most recent quarter, as reported in the company's financial statements.
The deceleration appears driven by the law of large numbers and potential enterprise spending caution, as the company's absolute revenue base has expanded significantly. However, the consistent growth above 15% suggests the core demand for search and observability remains intact, even if the pace is normalizing from hyper-growth levels.
Gross Margin Resilience vs. Operating Losses
ESTC's gross margin has shown resilience, stabilizing in the mid-70% range, yet the company remains operationally unprofitable, with operating losses persisting despite revenue scaling, as indicated by the reported quarterly financials.
The stable gross margin suggests the company is managing its cloud infrastructure costs effectively, a key structural driver. However, the persistent negative operating margin indicates that operating expenses, particularly in R&D and SG&A, are scaling nearly in line with gross profit, preventing the realization of operating leverage.
Operating Leverage Remains Elusive
Despite revenue growing 15.1% year-over-year in 2027Q1, operating income remained negative at -$2.9M, indicating that operating expenses are consuming the entirety of gross profit gains and preventing leverage, according to the income statement data.
The data shows that SG&A and R&D expenses have grown substantially in absolute terms, outpacing the growth in gross profit. This suggests management is prioritizing investment in product development and market expansion over near-term profitability, a strategy that may be necessary for long-term positioning but pressures current earnings.
Elevated SG&A as Primary Cost Headwind
Selling, General & Administrative expenses represent the largest cost line item, consistently exceeding R&D and consuming over 50% of revenue in recent quarters, which appears to be the primary constraint on operating profitability based on the reported figures.
The magnitude of SG&A suggests a heavy investment in the sales and marketing apparatus required to compete in the crowded observability and security markets. The discipline here is questionable, as the ratio of SG&A to revenue has not meaningfully improved despite consistent top-line growth, indicating potential inefficiencies or a necessary but costly go-to-market strategy.
The Profitability Paradox in a Growth Market
The strongest challenge to ESTC's narrative is the persistent inability to convert strong revenue growth into operating profit, with operating losses continuing even as the company scales, a trend highlighted in its recent financial results.
Short-sellers would focus on the fact that despite a 15%+ revenue growth rate and a 75% gross margin, the company is still losing money at the operating level. This raises questions about the long-term unit economics and whether the current investment phase will ever yield sustainable profitability, especially if growth continues to decelerate.