Elastic N.V. (ESTC) Stock

Elastic N.V. (ESTC) is a Technology stock trading at $85.87 (as of 2026-08-20), with a market capitalization of $8.93B and a trailing P/E of 24.3. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

I can’t generate this description to the required standard because the company’s SEC 10‑K “Business” (Item 1) text—the primary source—is not included in your message. Please paste that section (or the relevant excerpts), and I’ll produce a 1–2 sentence, ~45-word JSON description based only on it.

Understand Elastic N.V.: how it makes money

Elastic N.V. develops the Elastic Stack (for search, analysis, and visualization) and makes money primarily from subscription software revenue, sold via sales-led subscriptions (excluding monthly Elastic Cloud) and via Elastic Cloud, with a smaller amount from professional services.

Because Elastic’s revenue is driven by recurring subscriptions, growth is best understood through customer renewal and expansion signals (Net Expansion Rate, Net Revenue Retention) and the cash-flow visibility captured by Remaining Performance Obligations.

Revenue by segment (latest quarter)
Sales-led sub	$0.4B
Pro services	$0.0B

Business quality (Mixed): Elastic shows strong customer expansion metrics (Net Expansion Rate and Net Revenue Retention above 100%) and sizable Remaining Performance Obligations, but profitability is thin at the operating level (Operating margin around 0.1%) and revenue is concentrated in large customers (80% from 100,000+ ACV cohort).

Valuation: Trades at 16× trailing earnings · $6B market cap.

Bull case

Customer economics look healthy on the renewal and expansion side, with Net Expansion Rate at 112% and Net Revenue Retention at 110%: These above-100% metrics suggest customers are, on average, expanding their spending or staying engaged beyond simple renewals.
There is forward visibility into subscription revenue via Remaining Performance Obligations of 1.98 USD_B: This supports a view that a meaningful portion of future revenue is already committed.
Large-customer momentum appears positive, with Net New Customers (Quarter-over-Quarter) at 50 and Customers Added With Annual Contract Value of 100,000 Dollars at 40: This indicates continued acquisition or expansion among high-value accounts.

Bear case

Operating profitability is very low, with operating_margin_pct at 0.1%: Even with high gross margin (76.3%), execution and cost control are critical, and small changes in expenses or growth can swing results.
Revenue concentration risk is present, with Annual Contract Value Concentration From 100,000 Dollar Customers at 80%: If large customers slow purchases or churn, the impact could be outsized compared with a more diversified customer base.

Valuation — source: SEC EDGAR (first-party)
Price	$85.87
Market Cap	$8.93B
P/E Ratio	24.3
Price / Book	6.99
Price / Sales	5.13
FCF Yield	3.6%
DCF Value (model)	$121.99
DCF Upside vs Price	42.1%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.74B
Net Margin	21.1%
Revenue Growth (YoY)	17.3%
EPS Growth (YoY)	-435.6%
FCF Growth (YoY)	22.9%

Financial Health — source: SEC EDGAR
Altman Z-Score	3.36 (safe)
Piotroski F-Score	6/9 (moderate)

Valuation vs Sector & Industry
Stock P/E	24.3
Sector P/E (Technology)	33.9
Industry P/E (Business Services)	30.0
vs Sector	-28.5%
vs Industry	-19.0%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($765.95M)
Institutional Holders Tracked	10
Congressional Trades (recent)	3

Company
Sector	Technology
Industry	Business Services
CEO	Ashutosh Kulkarni
Employees	3,403
Country	US
IPO Date	2018-10-05

Related Companies (Business model: SaaS / Subscription Software (Enterprise); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.