Elastic N.V. reported its financial results for the second quarter of fiscal 2026, ending October 31, 2025, revealing a total revenue of $423.5 million, a 16% increase from $365.4 million in the same quarter of the previous year. Subscription revenue, which constitutes the majority of the company's income, rose by 17% to $397.7 million, driven by a 22% increase in Elastic Cloud subscriptions. The company also noted a net loss of $51.3 million for the quarter, compared to a loss of $25.5 million in the prior year, reflecting increased operating expenses and a higher provision for income taxes.
In terms of operational metrics, Elastic's customer base continued to expand, with over 1,600 customers generating more than $100,000 in annual contract value as of October 31, 2025, up from 1,420 a year earlier. The company reported a net expansion rate of approximately 112%, indicating strong growth in spending among existing customers. Elastic's employee count reached 3,827, reflecting ongoing investments in talent to support its growth strategy.
Strategically, Elastic made significant acquisitions during the reporting period, including the purchase of Conic AI Technology Limited for $44.6 million and Paladin Data Inc. for $10.9 million. These acquisitions are expected to enhance Elastic's capabilities in AI and data management. The company also launched a share repurchase program in October 2025, authorizing up to $500 million in buybacks, with $114.1 million already spent to repurchase 1.4 million shares at an average price of $84.45.
The company’s balance sheet remains strong, with cash, cash equivalents, and marketable securities totaling $1.4 billion as of October 31, 2025. However, Elastic continues to face challenges, including macroeconomic uncertainties that could impact customer spending and sales cycles. The company anticipates that its investments in product development and marketing will continue to affect its operating results in the near term, but it remains optimistic about future growth driven by increased adoption of its cloud offerings and ongoing product enhancements.
About Elastic N.V.
Elastic N.V. develops Search AI platform combining advanced search, machine learning, and AI capabilities. Its solutions—Elasticsearch, Elastic Observability, and Elastic Security—serve organizations across industries, enabling real-time data analysis, security, and IT monitoring. The company offers cloud and self-managed software, open source development, and community engagement, focusing on scalable, flexible, and developer-friendly products to support digital transformation and data-driven decision-making worldwide.
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