Elastic Q3 2025 Earnings Report
Key Takeaways
Elastic delivered a solid Q3 FY25 performance, achieving total revenue of $382 million, reflecting a 17% year-over-year increase. Elastic Cloud revenue grew by 26% year-over-year, highlighting strong demand for its cloud offerings. The company reported a GAAP operating loss of $5 million, while non-GAAP operating income reached $64 million. Free cash flow improved to $99 million, underscoring strong cash generation.
Total revenue grew 17% YoY to $382 million.
Elastic Cloud revenue increased 26% YoY to $180 million.
Non-GAAP EPS was $0.63, exceeding expectations.
Free cash flow surged to $99 million, reflecting strong cash management.
Elastic Revenue
Elastic EPS
Elastic Revenue by Segment
Forward Guidance
Elastic expects continued revenue growth in Q4 FY25, with steady demand for its cloud offerings driving momentum.
Positive Outlook
- Total revenue projected between $379M and $381M.
- Non-GAAP operating margin expected to be 13.5%.
- Non-GAAP EPS guidance set between $0.36 and $0.37.
- Fiscal 2025 revenue forecasted at $1.474B to $1.476B.
- Continued growth driven by AI and cloud-based solutions.
Challenges Ahead
- Macroeconomic uncertainties could impact IT spending.
- Currency fluctuations may affect reported revenue.
- Competition in cloud and AI sectors remains high.
- Operational expenses may increase due to expansion plans.
- Ongoing market volatility poses a potential risk to profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income