Earnings release
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Exhibit 99.1 Elastic Reports First Quarter Fiscal 2027 Financial Results cRPO growth of 21% as reported and 20% on a constant currency basis Q1 net additions to our >$100K ACV customer cohort reach the highest level to date SAN FRANCISCO, Aug 27, 2026 -- Elastic (NYSE: ESTC), the Search AI Company, announced financial results for its first quarter of fiscal 2027 ended July 31, 2026. First Quarter Fiscal 2027 Financial Highlights • Total revenue was $478 million, an increase of 15% year-over-year, as reported and on a constant currency basis • Total subscription revenue was $449 million, an increase of 15% year-over-year, as reported and on a constant currency basis • Sales-led subscription revenue (calculated as subscription revenue excluding Monthly Elastic Cloud) was $399 million, an increase of 18% year-over-year, or 17% on a constant currency basis • Current remaining performance obligations were $1.153 billion, an increase of 21% year-over- year, or 20% on a constant currency basis • Remaining performance obligations were $1.854 billion, an increase of 27% year-over-year, as reported and on a constant currency basis • GAAP operating loss was $24 million; GAAP operating margin was -5% • Non-GAAP operating income was $77 million; non-GAAP operating margin was 16.2% • GAAP net loss per share was $0.16; non-GAAP diluted earnings per share was $0.70 • Operating cash flow was $132 million with adjusted free cash flow of $143 million • Cash, cash equivalents, and marketable securities were $1.461 billion as of July 31, 2026 “Elastic delivered a strong start to fiscal 2027, beating our guidance across all key metrics,” said Ash Kulkarni, chief executive officer, Elastic. “AI is reshaping the enterprise technology stack, and organizations are making deliberate choices about where to build and how to observe and secure their applications and data. Our record quarter-over-quarter net customer additions to our >$100K ACV cohort and continued strength in cRPO and RPO growth reflect the durability of that demand. We enter the year with growing momentum across Search & AI, Security, and Observability and confidence in the trajectory of our business.” First Quarter Fiscal 2027 Key Metrics and Recent Business Highlights Key Customer Metrics • Total customer count with Annual Contract Value (ACV) greater than $100,000 was over 1,800 compared to over 1,720 in Q4 FY26, and over 1,550 in Q1 FY26 • Net Expansion Rate was approximately 111% Product Innovations and Updates • Delivered general availability of native Prometheus and PromQL support, out-of-the-box Kubernetes agentic investigations, and automated migration features in our unified platform for metrics and logs
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• Introduced Columnar Mode in technical preview, combining the efficiency of columnar analytics with Elasticsearch’s best-in-class search across all data, with especially significant improvements to the cost and performance of metrics and log analytics • Introduced general availability of VectorDB index mode and Auto Calibration for DiskBBQ, enabling instant vector search out of the box, no setup or index tuning required • Delivered Jina AI embedding and reranker models for on-premises and air-gapped environments through Jina On-Prem • Introduced an agentic Kubernetes investigation workflow and MCP-based observability skills that analyze logs, metrics, anomalies, and cluster events, surfacing root causes and next steps automatically • Expanded Attack Discovery, broader endpoint protection, and enhanced native workflow automation with Alert Zero, an AI-driven alert triage and attack investigation for the agentic SOC Other Business Highlights • Acquired Deductive AI, an AI-powered investigation platform that helps engineering teams identify and resolve production issues faster, bringing more AI-powered investigation and automation to Elastic Observability • Recognized as a Leader for the Third Consecutive Year in the Gartner® Magic Quadrant™ for Observability Platforms • Recognized as a Leader in the IDC MarketScape: Worldwide SIEM 2026 • Recognized as a Strong Performer in The Forrester Wave™: Extended Detection And Response Platforms, Q2 2026 • Achieved the industry’s 100% malware protection score in AV-Comparatives 2026 Business Security Test, tied for the highest score in the Real-World Protection Test with a 99.8% protection rate, and earned the AV-Comparatives Approved Business Product Award • Announced our collaboration with OpenAI to bring OpenAI’s advanced reasoning models with governed enterprise context in Elasticsearch across AI applications, security operations, and observability • Achieved the AI Security distinction in the Amazon Web Services (AWS) Security Competency • Engaged with thousands of customers and partners at Black Hat and the RAISE AI Summit in Paris Share Repurchase Program In October 2025, Elastic announced a share repurchase program pursuant to which the Company may repurchase up to $500 million of the Company’s outstanding ordinary shares. As part of this program, during the first quarter of fiscal 2027, Elastic repurchased approximately 0.8 million ordinary shares at an average price per share of $49.71 on the open market, representing an aggregate value of approximately $40 million. Financial Outlook The Company is providing the following guidance:
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For the second quarter of fiscal 2027 (ending October 31, 2026): • Total revenue is expected to be between $486 million and $487 million, representing 14.9% year- over-year growth at the midpoint (15.0% year-over-year constant currency growth at the midpoint) • Sales-led subscription revenue is expected to be between $407.5 million and $408.5 million, representing 16.9% year-over-year growth at the midpoint (17.1% year-over-year constant currency growth at the midpoint) • GAAP operating margin is expected to be positive • Non-GAAP operating margin is expected to be approximately 19.0% • Non-GAAP diluted earnings per share is expected to be between $0.80 and $0.82, assuming between 108.0 million and 109.0 million diluted weighted average ordinary shares outstanding For fiscal 2027 (ending April 30, 2027): • Total revenue is expected to be between $1.998 billion and $2.010 billion, representing 15.2% year-over-year growth at the midpoint (15.3% year-over-year constant currency growth at the midpoint) • Sales-led subscription revenue is expected to be between $1.682 billion and $1.694 billion, representing 17.4% year-over-year growth at the midpoint (17.5% year-over-year constant currency growth at the midpoint) • GAAP operating margin is expected to be positive • Non-GAAP operating margin is expected to be approximately 19.4% • Non-GAAP diluted earnings per share is expected to be between $3.29 and $3.37, assuming between 108.5 million and 109.5 million diluted weighted average ordinary shares outstanding • Adjusted free cash flow margin is expected to be approximately 21.5%, excluding any acquisitions or other one-time charges The diluted weighted average ordinary shares outstanding reflect only share buybacks completed as of July 31, 2026. The guidance assumes, among others, the following exchange rates: 1 Euro = 1.166 US Dollars; and 1 Great British Pound = 1.361 US Dollars.
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See the section titled “Forward-Looking Statements” below for information on the risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward- looking statements. We present historical and forward-looking non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” below for an explanation of these non-GAAP measures. A reconciliation of forward-looking non-GAAP measures to the corresponding GAAP measures for sales-led subscription revenue, operating margin, net (loss) earnings per share, and adjusted free cash flow margin is not available without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of the costs and expenses that may be incurred in the future. These items necessary to reconcile such non-GAAP measures could be material and have a significant impact on the Company’s results computed in accordance with GAAP. Conference Call and Webcast As previously announced, Elastic’s executive management team will host a conference call today at 2:00 p.m. PT / 5:00 p.m. ET to discuss the Company’s financial results and business outlook. A live audio webcast of the conference call will be available through Elastic’s Investor Relations website at ir.elastic.co. A presentation containing financial and operating information will be available at the same website. The replay of the webcast will also be available on the investor relations website. About Elastic Elastic (NYSE: ESTC) integrates its deep expertise in search technology with artificial intelligence to help everyone transform all of their data into answers, actions, and outcomes. The Elasticsearch Platform, which is the foundation for its search, observability, and security solutions, is used by thousands of companies, including more than 50% of the Fortune 500. Learn more at elastic.co. Elastic and associated marks are trademarks or registered trademarks of Elastic N.V. and its subsidiaries. All other company and product names may be trademarks of their respective owners.
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Forward-Looking Statements This press release contains forward-looking statements that involve substantial risks and uncertainties, which include, but are not limited to, statements regarding our expected financial results for the fiscal quarter ending October 31, 2026 and fiscal year ending April 30, 2027, the expected performance or benefits of and demand for our offerings, our product strategy and innovation, and the impacts of AI on enterprise technology, our industry and organizational decision-making. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements due to uncertainties, risks, and changes in circumstances, including but not limited to, those related to: our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit or gross margin, operating expenses (which include changes in sales and marketing, research and development and general and administrative expenses), and our ability to achieve and maintain profitability; the success of our AI initiatives; competition we face in the AI landscape; market understanding and valuation of AI technologies; the use of AI by our workforce; the impact of the evolving macroeconomic and geopolitical environments on our business, operations, hiring and financial results, and on businesses and spending priorities of our customers and partners; the impact of our pricing model strategies on our business; the impact of foreign currency exchange rate fluctuations, the uncertain inflation and interest rate environment, and tariffs and other international trade policies on our results; our ability to continue to deliver and improve our offerings and develop new offerings; customer acceptance and purchase of our new and existing offerings; the expansion and adoption of our offerings; our ability to realize value from investments in the business, including acquisitions; our ability to maintain and expand our user and customer base; our international expansion strategy; the impact of our licensing model on the use and adoption of our software; our operating results and cash flows; the sufficiency of our capital resources; our ability to successfully execute our go-to-market strategy; our forecasts regarding our business; risks affecting continuation of our share repurchase program; our plan to align our investments more closely with our strategic priorities that we announced earlier this year; and general market, political, economic and business conditions. Any additional or unforeseen effects from the evolving macroeconomic and geopolitical environments may exacerbate these risks. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those expressed or implied in our forward-looking statements are included in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended April 30, 2026 and subsequent quarterly and current reports filed with the SEC. SEC filings are available on the Investor Relations section of Elastic’s website at ir.elastic.co and the SEC’s website at www.sec.gov. Elastic assumes no obligation to, and does not currently intend to, update any such forward-looking statements, except as required by law.
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Statement Regarding Use of Non-GAAP Financial Measures In addition to our results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we believe the non-GAAP measures discussed below are useful in evaluating our operating performance. We use these non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review the differences between GAAP financial measures and the corresponding non-GAAP financial measures, and not to rely on any single financial measure to evaluate our business and financial results. Reconciliations of historical GAAP financial measures to their respective historical non-GAAP financial measures are included below. In relation to constant currency non-GAAP financial measures, the only reconciling item between GAAP financial measures and non-GAAP financial measures is the effect of foreign currency rate fluctuations. Further details on how we calculate such effects can be found in the definition of “Constant Currency” below. Sales-led Subscription Revenue Sales-led subscription revenue is a non-GAAP financial measure that we calculate as total subscription revenue excluding Monthly Elastic Cloud. We believe sales-led subscription revenue provides management and our investors with a consistent metric with which to measure the health of our business. Non-GAAP Gross Profit and Non-GAAP Gross Margin We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding stock-based compensation expense and related employer taxes, and amortization of acquired intangible assets. We believe non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables from period to period for reasons unrelated to overall operating performance. Non-GAAP Operating Income and Non-GAAP Operating Margin We define non-GAAP operating income and non-GAAP operating margin as GAAP operating loss and GAAP operating margin, respectively, excluding stock-based compensation expense and related employer taxes, amortization of acquired intangible assets, acquisition-related expenses, and restructuring and other related charges. We believe non-GAAP operating income and non-GAAP operating margin provide our management and investors consistency and
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comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables from period to period for reasons unrelated to overall operating performance. Non-GAAP Net Income and Non-GAAP Earnings Per Share We define non-GAAP net income as GAAP loss, excluding stock-based compensation expense and related employer taxes, amortization of acquired intangible assets, acquisition-related expenses, restructuring and other related charges, and the income tax benefit from the release of any valuation allowance against deferred tax assets. Additionally, non-GAAP net income and non-GAAP earnings per share are adjusted for an assumed provision for income taxes based on a projected non-GAAP annual effective tax rate in fiscal 2027 and 2026 of 12% and 13%, respectively. We define non-GAAP earnings per share, basic, as non-GAAP net income divided by weighted average shares outstanding and non- GAAP earnings per share, diluted, as non-GAAP net income divided by weighted average diluted shares outstanding, which includes the potentially dilutive effect of the company’s employee equity incentive plan awards. We believe non-GAAP earnings per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of certain variables from period to period for reasons unrelated to overall operating performance. Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin Adjusted free cash flow is a non-GAAP financial measure that we define as net cash provided by operating activities adjusted for cash paid for interest on long-term debt less cash used for investing activities for purchases of property and equipment. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue. Adjusted free cash flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements. Constant Currency We compare the percent change in certain results from one period to another period using constant currency information to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations. In presenting this information, current and comparative prior period results are converted into United States dollars at the exchange rates in effect on the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.
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Contact Information Elastic Investor Relations ir@elastic.co Elastic Corporate Communications PR-Team@elastic.co Elastic N.V.
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Elastic N.V. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited) Three Months Ended July 31, 2026 2025 Revenue Subscription $ 448,735 $ 388,583 Services 29,378 26,705 Total revenue 478,113 415,288 Cost of revenue Subscription 91,931 69,418 Services 29,994 27,328 Total cost of revenue 121,925 96,746 Gross profit 356,188 318,542 Operating expenses Research and development 112,493 109,122 Sales and marketing 198,997 174,054 General and administrative 48,352 44,806 Restructuring and other related charges 19,920 — Total operating expenses 379,762 327,982 Operating loss (23,574) (9,440) Other income, net Interest expense (6,281) (6,351) Other income, net 12,597 15,782 Loss before income taxes (17,258) (9) (Benefit from) provision for income taxes (529) 24,594 Net loss $ (16,729) $ (24,603) Net loss per share attributable to ordinary shareholders, basic and diluted $ (0.16) $ (0.23) Weighted-average shares used to compute net loss per share attributable to ordinary shareholders, basic anddiluted 104,640,231 105,961,879
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Elastic N.V. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited) As ofJuly 31, 2026 As ofApril 30, 2026 Assets Current assets: Cash and cash equivalents $ 879,869 $ 768,725 Restricted cash 1,966 1,773 Marketable securities 581,173 601,537 Accounts receivable, net of allowance for credit losses of $5,143 and $6,847 as of July 31, 2026 andApril 30, 2026, respectively 236,433 464,413 Deferred contract acquisition costs 103,055 106,447 Prepaid expenses and other current assets 75,138 80,368 Total current assets 1,877,634 2,023,263 Property and equipment, net 8,172 8,591 Goodwill 356,580 356,442 Operating lease right-of-use assets 23,058 18,641 Intangible assets, net 10,443 13,059 Deferred contract acquisition costs, non-current 146,487 150,989 Deferred tax assets 566,053 567,278 Other assets 13,461 14,413 Total assets $ 3,001,888 $ 3,152,676 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 14,185 $ 8,618 Accrued expenses and other liabilities 77,922 96,713 Accrued compensation and benefits 99,612 119,231 Operating lease liabilities 5,709 6,539 Deferred revenue 839,758 973,820 Total current liabilities 1,037,186 1,204,921 Deferred revenue, non-current 44,189 52,502 Long-term debt, net 571,195 570,895 Operating lease liabilities, non-current 18,871 14,129 Other liabilities, non-current 33,604 33,729 Total liabilities 1,705,045 1,876,176 Shareholders’ equity: Preference shares, €0.01 par value; 165,000,000 shares authorized; no shares issued or outstanding as ofJuly 31, 2026 and April 30, 2026 — — Ordinary shares, €0.01 par value; 165,000,000 shares authorized; 108,605,243 shares issued and105,120,583 shares outstanding as of July 31, 2026; 108,360,340 shares issued and 104,751,470 sharesoutstanding as of April 30, 2026 1,167 1,154 Treasury stock, at cost; 3,484,660 shares held as of July 31, 2026; 3,608,870 shares held as of April 30,2026 (249,270) (275,695) Additional paid-in capital 2,322,498 2,310,866 Accumulated other comprehensive loss (28,868) (27,870) Accumulated deficit (748,684) (731,955) Total shareholders’ equity 1,296,843 1,276,500 Total liabilities and shareholders’ equity $ 3,001,888 $ 3,152,676
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Elastic N.V. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended July 31, 2026 2025 Cash flows from operating activities Net loss $ (16,729) $ (24,603) Adjustments to reconcile net loss to cash provided by operating activities: Depreciation and amortization 3,358 2,316 Amortization of premium and accretion of discount on marketable securities, net (311) (1,393) Amortization of deferred contract acquisition costs 32,467 26,173 Amortization of debt issuance costs 300 287 Non-cash operating lease cost 1,768 2,316 Stock-based compensation expense 74,782 69,935 Deferred income taxes 1,061 21,562 Unrealized foreign currency transaction loss (gain) 472 (364) Other 6 — Changes in operating assets and liabilities, net of impact of business acquisitions: Accounts receivable, net 227,026 153,982 Deferred contract acquisition costs (24,872) (22,284) Prepaid expenses and other current assets 5,208 (5,066) Other assets 1,414 (1,075) Accounts payable 5,753 9,570 Accrued expenses and other liabilities (18,914) (14,892) Accrued compensation and benefits (19,493) (10,987) Operating lease liabilities (2,127) (2,730) Deferred revenue (139,165) (97,912) Net cash provided by operating activities 132,004 104,835 Cash flows from investing activities Purchases of property and equipment (590) (656) Business acquisitions, net of cash acquired — (8,489) Purchases of marketable securities (114,760) (248,596) Sales, maturities, and redemptions of marketable securities 133,490 87,366 Net cash provided by (used in) investing activities 18,140 (170,375) Cash flows from financing activities Proceeds from issuance of ordinary shares upon exercise of stock options 3,304 326 Repurchases of ordinary shares (40,016) — Net cash (used in) provided by financing activities (36,712) 326 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (2,095) (10) Net increase (decrease) in cash, cash equivalents, and restricted cash 111,337 (65,224) Cash, cash equivalents, and restricted cash, beginning of period 770,498 731,214 Cash, cash equivalents, and restricted cash, end of period $ 881,835 $ 665,990
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Elastic N.V. Revenue by Type (in thousands, except percentages) (unaudited) Three Months Ended July 31, 2026 2025 Amount % ofTotalRevenue Amount % ofTotalRevenue Annual Elastic Cloud $ 185,003 39 % $ 145,912 35 % Monthly Elastic Cloud 50,202 10 % 49,862 12 % Total Elastic Cloud 235,205 49 % 195,774 47 % Other subscription 213,530 45 % 192,809 47 % Total subscription 448,735 94 % 388,583 94 % Services 29,378 6 % 26,705 6 % Total revenue $ 478,113 100 % $ 415,288 100 %
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Elastic N.V. Reconciliation of GAAP to Non-GAAP Data Supplementary Information (in thousands, except percentages) (unaudited) Three MonthsEndedJuly 31, 2026 % ChangeYear OverYear % ChangeYear Over YearExcluding CurrencyChanges % ChangeQuarter OverQuarter % ChangeQuarter Over QuarterExcluding CurrencyChanges Revenue Annual Elastic Cloud $ 185,003 27% 27% 9% 9% Monthly Elastic Cloud 50,202 1% 1% 5% 5% Total Elastic Cloud 235,205 20% 20% 8% 8% Other subscription 213,530 11% 10% 4% 4% Total subscription $ 448,735 15% 15% 6% 6% Total revenue $ 478,113 15% 15% 6% 6% Total sales-led subscription revenue $ 398,533 18% 17% 6% 7% Total deferred revenue $ 883,947 17% 17% (14)% (14)% Total remaining performance obligations $ 1,854,226 27% 27% (6)% (6)% Remaining performance obligations duewithin 12 months $ 1,152,670 21% 20% (4)% (4)%
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Elastic N.V. Reconciliation of GAAP to Non-GAAP Data Adjusted Free Cash Flow (in thousands, except percentages) (unaudited) Three Months Ended July 31, 2026 2025 Net cash provided by operating activities $ 132,004 $ 104,835 Less: Purchases of property and equipment (590) (656) Add: Interest paid on long-term debt 11,859 11,859 Adjusted free cash flow $ 143,273 $ 116,038 Net cash provided by (used in) investing activities $ 18,140 $ (170,375) Net cash (used in) provided by financing activities $ (36,712) $ 326 Net cash provided by operating activities (as a percentage of total revenue) 28 % 25 % Less: Purchases of property and equipment (as a percentage of total revenue) — % — % Add: Interest paid on long-term debt (as a percentage of total revenue) 2 % 3 % Adjusted free cash flow margin 30 % 28 % Adjusted free cash flow includes cash paid for restructuring and other charges of $13.0 million during the three months ended July 31, 2026. There were no cash payments for restructuring and other charges during the three months ended July 31, 2025. (1) (1)
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Elastic N.V. Reconciliation of GAAP to Non-GAAP Data (in thousands, except percentages, share and per share data) (unaudited) Three Months Ended July 31, 2026 2025 Gross Profit Reconciliation: GAAP gross profit $ 356,188 $ 318,542 Stock-based compensation expense and related employer taxes 7,620 6,843 Amortization of acquired intangibles 2,616 1,576 Non-GAAP gross profit $ 366,424 $ 326,961 Gross Margin Reconciliation : GAAP gross margin 74.5 % 76.7 % Stock-based compensation expense and related employer taxes 1.6 % 1.6 % Amortization of acquired intangibles 0.5 % 0.4 % Non-GAAP gross margin 76.6 % 78.7 % Operating (Loss) Income Reconciliation: GAAP operating loss $ (23,574) $ (9,440) Stock-based compensation expense and related employer taxes 77,545 72,863 Amortization of acquired intangibles 2,616 1,576 Acquisition-related expenses 755 127 Restructuring and other related charges 19,920 — Non-GAAP operating income $ 77,262 $ 65,126 Operating Margin Reconciliation : GAAP operating margin (4.9)% (2.3)% Stock-based compensation expense and related employer taxes 16.2 % 17.5 % Amortization of acquired intangibles 0.5 % 0.4 % Acquisition-related expenses 0.2 % — % Restructuring and other related charges 4.2 % — % Non-GAAP operating margin 16.2 % 15.7 % Net (Loss) Income Reconciliation: GAAP net loss $ (16,729) $ (24,603) Stock-based compensation expense and related employer taxes 77,545 72,863 Amortization of acquired intangibles 2,616 1,576 Acquisition-related expenses 755 127 Restructuring and other related charges 19,920 — Income tax effects and adjustments (10,401) 14,902 Income tax benefit from the release of a valuation allowance against deferred tax assets (157) — Non-GAAP net income $ 73,549 $ 64,865 Non-GAAP earnings per share attributable to ordinary shareholders, basic $ 0.70 $ 0.61 Non-GAAP earnings per share attributable to ordinary shareholders, diluted $ 0.70 $ 0.60 Weighted-average shares used to compute non-GAAP earnings per share attributable to ordinary shareholders,basic 104,640,231 105,961,879 Weighted-average shares used to compute non-GAAP earnings per share attributable to ordinary shareholders,diluted 105,686,573 107,891,810 Totals may not sum, due to rounding. Gross margin, operating margin, and earnings per share are calculated based upon the respective underlying, non- rounded data. We use a projected non-GAAP annual effective tax rate for the purpose of determining non-GAAP net income and non-GAAP earnings per share, basic and diluted, across the interim period. We believe this approach provides investors with a more consistent view of our underlying operating performance. Our annual projected non-GAAP tax rate excludes the impact from stock-based compensation expense and related employer taxes, amortization of acquired intangible assets, acquisition-related expenses, restructuring and other related charges, discrete tax items, valuation allowances against deferred tax assets, and other non-recurring tax adjustments, which may vary in size and frequency. Our annual projected non-GAAP tax rate for fiscal 2027 and 2026 was 12% and 13%, respectively. Our annual projected non-GAAP tax rate may change due to factors such as new tax legislation, shifts in the geographic mix of earnings, or other significant business developments. We assess this rate as needed to ensure it reflects current conditions. Applying a consistent annual rate improves comparability across reporting periods by excluding the effects of discrete or non-recurring tax items. (1) (1) (2) (2) (1) (1) (1) (2)
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Elastic N.V. Reconciliation of GAAP to Non-GAAP Data (in thousands) (unaudited) Three Months Ended July 31, 2026 2025 Cost of revenue reconciliation: GAAP subscription $ 91,931 $ 69,418 Stock-based compensation expense and related employer taxes (2,908) (2,653) Amortization of acquired intangibles (2,616) (1,576) Non-GAAP subscription $ 86,407 $ 65,189 GAAP services $ 29,994 $ 27,328 Stock-based compensation expense and related employer taxes (4,712) (4,190) Non-GAAP services $ 25,282 $ 23,138 Operating expenses reconciliation: GAAP research and development expense $ 112,493 $ 109,122 Stock-based compensation expense and related employer taxes (25,525) (27,773) Acquisition-related expenses (238) (8) Non-GAAP research and development expense $ 86,730 $ 81,341 GAAP sales and marketing expense $ 198,997 $ 174,054 Stock-based compensation expense and related employer taxes (26,003) (24,069) Non-GAAP sales and marketing expenses $ 172,994 $ 149,985 GAAP general and administrative expense $ 48,352 $ 44,806 Stock-based compensation expense and related employer taxes (18,397) (14,178) Acquisition-related expenses (517) (119) Non-GAAP general and administrative expense $ 29,438 $ 30,509