Elastic delivered a solid QQ3 2025 performance, underscoring durable demand for its Elastic Stack-powered platform across search, observability, and security. Total revenue of $382.1 million rose 17% year over year, led by cloud revenue growth of 26% YoY, and the company achieved a non-GAAP operating margin of 17% of revenue. Cloud now accounted for 47% of total revenue, and Elastic Cloud represented over half of all subscription revenue for the first time, signaling a decisive shift to a cloud-first consumption model. Customer momentum remained robust, with over 1,460 customers spending more than $100,000 in annual contract value (ACV), and more than 1,750 Elastic Cloud customers using Gen AI use cases, including more than 270 customers spending $100,000+ annually on Gen AI workloads.
Management attributed the outperformance to continued GTM execution, a multi-solution platform strategy, and Gen AI tailwinds that are driving broader consolidation onto the Elastic platform (search, observability, and security). Notable product and go-to-market milestones included serverless GA on AWS (Azure in tech preview with planned GA), logsdb Index Mode (enterprise tier) and the new Rerank model to improve retrieval quality and cost efficiency. The company also highlighted five deals above $1 million in annual contract value tied to Gen AI deployments, and a continued emphasis on land-and-expand within enterprise and high-potential mid-market segments.
Guidance was raised for full-year 2025: revenue of $1.474–$1.476 billion (~16% YoY at the midpoint, ~17% in constant currency) and non-GAAP operating margin of about 14.7% with non-GAAP diluted EPS in the $1.91–$1.96 range. For Q4, Elastic expects $379–$381 million in revenue (about 13% YoY at the midpoint), ~13.5% non-GAAP operating margin, and EPS of $0.36–$0.37. The firm signaled that Gen AI investments will continue to be front-ended into FY2026, with margins expanding only modestly and a focus on revenue growth at scale. On the balance sheet, cash and equivalents stood around $587.6 million with total debt approximately $587.7 million and net debt near $3.7 million; the company generated roughly $88.1 million of cash from operations and about $87.3 million of adjusted free cash flow in the quarter. The management transition to Navam Welihinda as CFO from February 28, 2025 was announced, with Eric Prengel transitioning to a broader FP&A role.
Overall, Elastic is positioned to leverage Gen AI-driven demand across its three solution areas and to continue expanding margins through operational leverage as it scales, while balancing investments in Gen AI capabilities, platform breadth, and go-to-market execution.