Elastic NV delivered a solid second quarter of fiscal 2025, marking a return to stronger sales execution after a challenging Q1. Revenue rose 18% year over year to $365.4 million, with Cloud revenue up 25% YoY and Elastic Cloud accounting for 46% of total revenue. Non-GAAP operating margin reached approximately 18% in Q2 (reported around 17.6-18%), underscoring improving operating leverage as the company continues to scale. The company also expanded its Gen AI momentum, with over 1,550 customers on Elastic Cloud using Gen AI use cases and three deals exceeding $1 million in annual contract value. Gross margin stood at 76.9%, and the company generated adjusted free cash flow of about $38 million, keeping a healthy liquidity profile with roughly $658.5 million in cash and equivalents and a net cash position of about $69 million. Management reiterated confidence in a long-term growth trajectory driven by Gen AI, vector database capabilities, and platform consolidation across security, observability, and search. In parallel, Elastic signaled a strategic transition in leadership with CFO Janesh Moorjani exiting later in the year and Eric Pringle stepping in as Interim CFO. Guidance was raised for the full year, with Q3 revenue guidance of $367–$369 million (+12% YoY at midpoint) and full-year revenue target of $1.451–$1.457 billion, along with a mid-teens non-GAAP operating margin target and EPS of $1.68–$1.72 for fiscal 2025. The quarter’s results and commentary imply a favorable long-run trajectory, though near-term headwinds include FX strength, variability in cloud consumption, and the impact of prior quarter under-commitment on year-over-year growth. Investors should monitor Gen AI adoption velocity, continued platform consolidation by customers, geographic mix, and the evolution of RPO trends as a read-through of demand pipeline.