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ESTC, Elastic

Software asset-light Distress / turnaround

We offer three Elasticsearch-powered solutions—Search & AI, Elastic Observability, and Elastic Security—that are built on our platform.

Elastic, the Search AI Company, enables its customers to transform data into answers, actions, and outcomes with Search AI.

While search technology revolutionized information retrieval through its ability to instantly return relevant results from massive datasets, it struggles when it comes to understanding context and generating insights.

Latest annual: FY2026 10-K

ESTC · Elastic

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2026

$1.7B

+17.3% YoY · 23% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.7B 5-yr avg $1.3B

Gross margin 76% 5-yr avg 74%

Operating margin −1.9% 5-yr avg −11.3%

ROIC −2% 5-yr avg −38%

Owner-earnings margin 19% 5-yr avg 10%

Free cash flow margin 19% 5-yr avg 10%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has run around −21% through the cycle on a 74% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Read this kind of business on retention and the cost of growth. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −54%, above 15% in 0 of 7 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

46% of revenue comes from outside the United States.

Revenue by geography, FY2026

United States54%$947M
International46%$792M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2017–2026

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	2026’26	TTMTTMApr 2026
											Income statement
$88M	$160M	$272M	$428M	$608M	$862M	$1.1B	$1.3B	$1.5B	$1.7B	$1.7B	RevenueRevenue
77%	75%	71%	71%	74%	73%	72%	74%	74%	76%	76%	Gross marginGross mgn
30%	18%	17%	21%	17%	14%	13%	13%	12%	11%	11%	SG&A / revenueSG&A/rev
37%	35%	37%	39%	33%	32%	29%	27%	25%	26%	26%	R&D / revenueR&D/rev
($47M)	($48M)	($101M)	($171M)	($129M)	($174M)	($219M)	($130M)	($55M)	($33M)	($33M)	Operating incomeOp. inc.
−53.5%	−30.0%	−37.3%	−40.0%	−21.3%	−20.1%	−20.5%	−10.3%	−3.7%	−1.9%	−1.9%	Operating marginOp. mgn
($52M)	($53M)	($102M)	($167M)	($129M)	($204M)	($236M)	$62M	($108M)	$368M	$368M	Net incomeNet inc.
											Cash flow & returns
($16M)	($21M)	($24M)	($31M)	$23M	$6M	$36M	$149M	$266M	$327M	$327M	Operating cash flowOp. cash
$3M	$5M	$6M	$3M	$3M	$4M	$4M	$4M	$3M	$3M	$3M	DepreciationDeprec.
$33M	$27M	$73M	$134M	$146M	$203M	$268M	$84M	$371M	($44M)	($46M)	Working capital & otherWC & other
$843K	$3M	$3M	$5M	$4M	$2M	$3M	$3M	$4M	$5M	$5M	CapexCapex
1.0%	1.9%	1.3%	1.2%	0.6%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	Capex / revenueCapex/rev
($17M)	($24M)	($27M)	($33M)	$19M	$3M	$33M	$145M	$263M	$324M	$324M	Owner earningsOwner earn.
−19.2%	−14.9%	−10.1%	−7.8%	3.2%	0.4%	3.1%	11.5%	17.7%	18.6%	18.6%	Owner earnings marginOE mgn
($17M)	($24M)	($27M)	($36M)	$19M	$3M	$33M	$145M	$262M	$322M	$322M	Free cash flowFCF
−19.2%	−14.9%	−10.1%	−8.3%	3.1%	0.4%	3.1%	11.5%	17.7%	18.5%	18.5%	Free cash flow marginFCF mgn
$4M	$4M	$2M	$24M	$0	$120M	$0	$19M	$0	$37M	$37M	AcquisitionsAcquis.
$25K	$344K	$0	$0	—	—	—	$0	$0	$340M	—	BuybacksBuybacks
—	—	—	-116%	-205%	-113%	-54%	-13%	-6%	-2%	-2%	ROICROIC
—	—	-39%	-40%	-29%	-49%	-59%	8%	-12%	29%	29%	Return on equityROE
—	—	−39%	−40%	−29%	−49%	−59%	8%	−12%	29%	29%	Retained to equityRetained/eq
											Balance sheet
—	$51M	$298M	$297M	$401M	$861M	$644M	$1.1B	$1.4B	$1.4B	$1.4B	Cash & investmentsCash+inv
—	$53M	$81M	$129M	$160M	$215M	$261M	$323M	$376M	$464M	$464M	ReceivablesReceiv.
—	$2M	$4M	$11M	$7M	$28M	$35M	$26M	$17M	$9M	$9M	Accounts payablePayables
—	$51M	$77M	$117M	$153M	$187M	$226M	$297M	$358M	$456M	$456M	Operating working capitalOper. WC
—	$132M	$430M	$480M	$637M	$1.2B	$1.3B	$1.5B	$1.9B	$2.0B	$2.0B	Current assetsCur. assets
—	$125M	$204M	$333M	$450M	$593M	$717M	$871M	$1.0B	$1.2B	$1.2B	Current liabilitiesCur. liab.
—	1.1×	2.1×	1.4×	1.4×	2.0×	1.8×	1.8×	1.9×	1.7×	1.7×	Current ratioCurr. ratio
$12M	$19M	$20M	$198M	$199M	$304M	$304M	$319M	$319M	$356M	$356M	GoodwillGoodwill
—	$183M	$486M	$804M	$973M	$1.6B	$1.7B	$2.2B	$2.6B	$3.2B	$3.2B	Total assetsAssets
—	—	—	—	$0	$567M	$568M	$569M	$570M	$571M	$571M	Total debtDebt
—	—	—	—	($401M)	($294M)	($77M)	($516M)	($828M)	($799M)	($799M)	Net debt / (cash)Net debt
—	—	—	—	-699.9×	-8.4×	-8.7×	-5.0×	-2.2×	-1.3×	-1.3×	Interest coverageInt. cov.
($129M)	($154M)	$263M	$414M	$451M	$415M	$399M	$738M	$927M	$1.3B	$1.3B	Shareholders’ equityEquity
—	—	—	—	0.4%	0.3%	—	—	—	—	0.1%	Stock comp / revenueSBC/rev
											Per share
30.4M	32.0M	54.9M	78.8M	87.2M	92.5M	95.7M	104M	104M	107M	107M	Shares out (diluted)Shares
$2.90	$4.99	$4.95	$5.43	$6.98	$9.32	$11.17	$12.19	$14.31	$16.22	$16.22	Revenue / shareRev/sh
$-1.71	$-1.65	$-1.86	$-2.12	$-1.48	$-2.20	$-2.47	$0.59	$-1.04	$3.43	$3.43	EPS (diluted)EPS
$-0.56	$-0.74	$-0.50	$-0.42	$0.22	$0.03	$0.34	$1.40	$2.54	$3.02	$3.02	Owner earnings / shareOE/sh
$-0.56	$-0.74	$-0.50	$-0.45	$0.21	$0.03	$0.34	$1.40	$2.53	$3.00	$3.00	Free cash flow / shareFCF/sh
$0.03	$0.09	$0.06	$0.06	$0.04	$0.03	$0.03	$0.03	$0.04	$0.05	$0.05	Cap. spending / shareCapex/sh
$-4.23	$-4.79	$4.79	$5.25	$5.17	$4.49	$4.17	$7.10	$8.94	$11.91	$11.91	Book value / shareBVPS

The diluted share count moved ×1.71 into 2019 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1.44 into 2020 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+21.1%/yr	+18.4%/yr
Owner earnings / share	—	+68.4%/yr
Capital spending / share	+6.1%/yr	+1.1%/yr
Book value / share	—	+18.2%/yr

The record, charted

FY2017–2026

Each measure over its full record; the current point and the worst year marked.

Share count

107Mpeak FY2026

ROIC

−2%low FY2021

Gross margin

76%low FY2019

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$324Mowner earningsvs.$368Mnet incomelow FY2020

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2021FY2026

Owner-earnings bridge

FY2022–FY2026cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2026 the business earned $324M of owner earnings, the operating cash left after the $3M it takes just to hold its position. It put $2M more into growth; free cash flow, after that spending, was $322M.

Reported net income$368M

Owner earnings$324M · 19% of revenue

	FY2026	FY2025	FY2024	FY2023	FY2022
Reported net income	$368M	($108M)	$62M	($236M)	($204M)
Depreciation & amortizationnon-cash charge added back	+$3M	+$3M	+$4M	+$4M	+$4M
Stock-based compensationreal costnon-cash, but a real cost	—	—	—	—	+$3M
Working capital & othertiming of cash in and out, other non-cash items	−$44M	+$371M	+$84M	+$268M	+$203M
Cash from operations	$327M	$266M	$149M	$36M	$6M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$3M	−$3M	−$3M	−$3M	−$2M
Owner earnings	$324M	$263M	$145M	$33M	$3M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$2M	−$1M	—	—	—
Free cash flow	$322M	$262M	$145M	$33M	$3M
Owner-earnings marginowner earnings ÷ revenue	19%	18%	11%	3%	0%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $3M, roughly its depreciation, the rate its assets wear out). The other $2M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2026 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -1.3×

Does not cover its interest

Operating income ($33M) ÷ interest expense $25M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? +$799M

Net cash

Cash $769M + ST investments $602M − debt $571M

What this means
Cash and short-term investments exceed every dollar of debt by $799M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 90d

Long (60+ days)

DSO 97 + DIO 0 − DPO 8 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)

Is it a good business?

Return on invested capital -54%

Below average through the cycle

7-yr median, range -205%–-2%; -2% latest = NOPAT ($26M) ÷ invested capital $1.1B

Industry peers: median 7%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 7 years (it ran -2% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 19%

High, recently turned positive

latest $324M = operating cash $327M − maintenance capex $3M; positive each of the last 3 years, after an earlier loss stretch (10-yr median 0%)

Industry peers: median 16%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 19% of revenue this year, a 0% median across 10 years. Treating stock comp as the real expense it is (less $3M of SBC) leaves $321M.
Are earnings backed by cash? 0.89×

Mostly cash-backed

Cash from ops $327M ÷ net income $368M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 105%

Returned more than it generated

Dividends + buybacks $340M ÷ Owner Earnings $324M

What this means
The company returned more than it generated: against $324M of Owner Earnings, $340M (105%) went back to shareholders, $0 dividends, $340M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Net of $3M stock comp, the real buyback was about $338M. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 1.70×

Expanding

Capex $5M ÷ depreciation $3M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $1.7B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.68×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $571M vs $818M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 8 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $1.03/share (latest year $3.54), the averaged base the calculator's gate runs on, and book value is $12.28/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2026

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 2 of 10

What this means
Lost money in 8 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 6 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −40% → −5% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −40% early to −5% lately, median −21% — pricing power intact or improving.
Reinvestment, incremental ROIC −1%

What this means
Reinvested capital came back at a negative incremental return over this window — the invested base grew while operating profit did not. The filings show where it went.
Worst year 2017 · −53.5% op. margin

What this means
Operations went underwater in 2017, understand why before trusting the good years.

Does AI threaten the moat?

Elevated contestability

The product is software or information, the very thing capable AI now produces more cheaply, so the moat is more contestable than the record alone implies.

In its own filing A competitive risk, new this year

Its FY2026 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“Our business, reputation, or financial results may be adversely affected by any failure by us to be successful in our AI initiatives, by significant competition we face in the AI landscape, and by uncertain market understanding and valuation of AI and machine learning technologies.…”

AI has collapsed the cost of building a capable substitute for the very thing this business sells. When a credible alternative can be assembled for a fraction of the incumbent's price, it is pricing power that erodes first, not revenue tomorrow. The live question is whether the moat survives that, not whether it held in the past. Whether that question is answerable at all is yours to decide, against your own circle of competence.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Apr 30, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$2.0B

Cash & short-term investments$1.4B
Receivables$464M
Other current assets$189M

Current liabilities$1.2B

Accounts payable$9M
Other current liabilities$1.2B

Current ratio1.68×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.68×stricter: inventory excluded

Cash ratio1.14×strictest: cash alone against what's due

Working capital$818Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+17.7%the freshest read on whether the business is still growing

Current ratio, recent quarters1.9× → 1.7×

Deeper floors

Tangible book value$907Mequity stripped of goodwill & intangibles

Net current asset value$147MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$592M$21M of it operating leases

Deferred revenue$1.0Bcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2017–2026

Over the record, the business generated $714M of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$34M · 5%
Buybacks$340M · 48%
Retained (debt / cash)$340M · 48%

Returned to owners$340M
50% of the owner earnings the business produced over the span, $0 as dividends and $340M as buybacks.
Average price paid for buybacks$76.93
Across the years where the filing reports a share count, 4M shares were bought for $340M, about $76.93 each.
Net change in share count253.2%
The diluted count rose from 30M to 107M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Ashutosh Kulkarni	$10.6M	$28.8M	$19M
2022	Ashutosh Kulkarni	$17.9M	$12.9M	$3M
2022	Ashutosh Kulkarni	$7.9M	$2.9M	$3M
2023	Ashutosh Kulkarni	$13.7M	$9.4M	$33M
2024	Ashutosh Kulkarni	$12.5M	$30.1M	$145M
2024	Ashutosh Kulkarni	$6.5M	$11.3M	$145M
2025	Ashutosh Kulkarni	$14.3M	$6.4M	$263M
2025	Ashutosh Kulkarni	$5.9M	$1.5M	$263M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$3M
The slice of the business handed to employees in shares this year, 0% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Elastic is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2017–2026.

1 of the 3 tests turned up something to look into; the other 2 came back clean.

Look hereDid the share count rise anyway?253.2%
Diluted shares grew 253.2% over 2017–2026, even as the company spent $340M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2026

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Software

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
DTDynatrace	$2.0B	81%	8.7%	8%	27%
MBLYMobileye Global Inc.	$1.9B	47%	-13.1%	-1%	27%
UUnity Software	$1.8B	76%	-36.8%	-15%	-6%
ACIWACI Worldwide Inc.	$1.8B	51%	14.8%	7%	13%
ESTCElastic	$1.7B	74%	-20.9%	-54%	2%
TDCTeradata Corporation	$1.7B	57%	8.3%	47%	16%
PATHUiPath	$1.6B	83%	-18.2%	-14%	4%
BSYBentley Systems Incorporated	$1.5B	80%	18.9%	11%	29%
Group median	—	75%	-2.4%	3%	15%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Elastic has delivered.

Elastic’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Elastic earns about $30M on its 1.7% median owner-earnings margin. This year’s 18.6% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($30M) Net of stock comp (−$3M) Steady-state · maintenance capex ($324M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’22→’26+101%/yr

Owner-earnings growth · since FY2021+77%/yr

Owner-earnings yield—

P/E (3-yr earnings ’24–’26)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $322M on 104M shares outstanding, per the 10-K cover, as of 2026-05-29; net cash $799M. The if-converted diluted count is 107M, 3% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($5M) runs well above depreciation ($3M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $324M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh ESTC against another business →

The owners of ESTC: the meeting and the votes →

Cite: Owner Scorecard, "Elastic (ESTC), the owner's record," https://ownerscorecard.com/c/ESTC, data as of 2026-07-09.

Manual order: ← ESTA its page in the Manual ET →

Industry order: ← ECX the Software chapter EVCM →