Is the business good?
How good a business is ESTC?
Elastic N.V. earns −5.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−5.5%
Return on invested capital · cost of capital 9.0% · 15 points below what the capital costs: growth destroys value
- Operating margin
- −1.9%
Operating margin · Software - Application median 8.2% · 12 months to Q4 2026
- Cash conversion
- 0.88×
Cash conversion · some of the reported profit has not turned into cash yet
- R&D as % of revenue
- 26%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | −21% |
| FY2022 | −20% |
| FY2023 | −21% |
| FY2024 | −10% |
| FY2025 | −3.7% |
| FY2026 | −1.9% |
Details›
- Gross margin12 months to Q4 2026
- 76%
- Operating margin12 months to Q4 2026
- −1.9%
- Net margin12 months to Q4 2026
- 21%
- Free cash flow margin
- 19%
- R&D as % of revenue
- 26%
- Revenue, trailing twelve months
- $1.74B
- Free cash flow, trailing twelve months
- $322M
- Net income, trailing twelve months
- $368M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −5.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #43 of 90 by Smart Score