Elastic N.V. (NYSE: ESTC), known for its innovative search and data solutions leveraging artificial intelligence, reported strong financial results for its fourth quarter of fiscal 2025. The company generated total revenue of $388 million, marking a 16% increase year-over-year both on an as-reported and constant currency basis. Elastic Cloud revenue was $182 million, reflecting a growth of 23% year-over-year, also consistent in constant currency.

For the full fiscal year 2025, Elastic’s total revenue reached $1.483 billion, up 17% year-over-year, same as the constant currency growth. Subscription revenue accounted for $1.384 billion, a 20% increase compared to the previous year. The company ended the fiscal year with approximately 1,510 customers spending over $100,000 annually, up from over 1,460 in the preceding quarter.

The non-GAAP operating income for Q4 was $60 million, resulting in a non-GAAP operating margin of 15%. In FY 2025, non-GAAP operating income was $225 million with a consistent operating margin of 15%. Additionally, the operating cash flow for the fourth quarter was reported at $87 million, and adjusted free cash flow was $85 million, culminating in a 19% adjusted free cash flow margin for the year.

In the financial outlook for fiscal 2026, Elastic anticipates total revenue between $1.655 billion and $1.670 billion, projecting a 12% year-over-year growth at the midpoint. The guidance includes a forecast for Q1 fiscal 2026, expecting revenue ranging between $396 million and $398 million and a non-GAAP operating margin of roughly 11.5%.

Elastic’s current remaining performance obligations (cRPO) for Q4 approximated $1 billion, representing an 18% increase year-over-year, while the number of customers with an annual contract value exceeding $1 million increased by about 27%. The company experienced some challenges in the U.S. public sector, which caused elongation in sales cycles; however, this was offset by solid performance across other geographies, notably APJ and EMEA.

Overall, Elastic maintained robust growth in its subscription business, particularly in the cloud segment, while continuing to innovate with new product offerings and enhancements in AI capabilities, positioning itself effectively for ongoing demand in the enterprise market.