Financial Analysis

Acquisitions Conic AI Technology Limited On October 7, 2025, the Company acquired 100% of the share capital of Conic AI Technology Limited and its subsidiaries (collectively, Jina AI) for a total purchase consideration of $43.4 million. The purchase consideration includes $6.9 million held back by the Company for indemnity obligations, which will be released upon the 24-month anniversary of the acquisition. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations, and, accordingly, the total purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The total purchase price allocated to developed technology and goodwill was $6.5 million and $30.2 million, respectively. The fair value assigned to developed technology was determined using the cost to recreate approach. The developed technology asset is being amortized on a straight-line basis over the useful life of 2 years, which approximates the pattern in which the developed technology is utilized. Goodwill resulted primarily from the expectation of enhancing the Elastic Search AI-powered solutions and the value of the acquired workforce. The resulting goodwill is not deductible for income tax purposes. The financial results of Jina AI have been included in the Companys consolidated results of operations since the acquisition date. Pro forma and historical results …

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Commitments and Contingencies Cloud Hosting Commitments The table below reflects the Companys future minimum purchase obligations relating to non-cancelable agreements for cloud hosting as of April 30, 2026 (in thousands): Years Ending April 30, Purchase Obligations 2027 $ 217,688 2028 174,665 2029 128,630 2030 92,643 2031 Total $ 613,626 Actual timing may vary depending on services used and total payments under these capacity commitments may be higher than the total minimum depending on services used. Other Purchase Commitments The Company has future purchase obligations primarily related to general corporate services, subscription software, and sales and marketing contracts. As of April 30, 2026, the Company had purchase commitments of $96.0 million related to these contracts, primarily due within the next twelve months. Letters of Credit The Company had a total of $1.6 million in letters of credit outstanding in favor of certain landlords for office space as of April 30, 2026. Legal Matters From time to time, the Company has become involved in claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise. Although claims are inherently unpredictable, the Company is currently not aware of any matters that, if determined adversely to the Company, would individually or taken together have a material adverse effect on its business, results of operations, financial position or cash flows. On February 11, 2025, an …

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Employee Benefit Plans The Company has a defined-contribution plan in the United States intended to qualify under Section 401 of the Internal Revenue Code (the 401(k) Plan). The Company has contracted with a third-party provider to act as the 401(k) Plans custodian and trustee, and to process and maintain the records of participant data. Substantially all the expenses incurred for administering the 401(k) Plan are paid by the Company. The 401(k) Plan covers substantially all U.S. employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation. The Company makes contributions to the 401(k) Plan of up to 6% of the participating employees 401(k) eligible wages. The Company recorded $22.3 million, $19.6 million, and $18.4 million for the years ended April 30, 2026, 2025, and 2024, respectively, related to the 401(k) Plan. The Company also has defined-contribution and other employee benefit plans in certain other countries for which the Company recorded $16.4 million, $14.6 million, and $12.7 million for the years ended April 30, 2026, 2025, and 2024, respectively. …

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Equity Incentive Plans 2022 Employee Stock Purchase Plan The Company reserved 6.0 million of its ordinary shares for purchase and issuance under the ESPP. The ESPP allows eligible employees to acquire ordinary shares of the Company at a discount at periodic intervals through accumulated payroll deductions. Eligible employees purchase ordinary shares of the Company during a purchase period at 85% of the market value of the ordinary shares at either the beginning or end of an offering period, whichever is lower. Offering periods under the ESPP are approximately six months long and begin on each of March 16 or September 16 or the next trading day thereafter. The Company issued 462,103 and 364,236 ordinary shares under the ESPP during the years ended April 30, 2026 and 2025, respectively. As of April 30, 2026, there were 4,828,496 shares available for issuance under the ESPP. Stock-based compensation expense recognized related to the ESPP was $9.0 million, $9.2 million, and $7.1 million for the years ended April 30, 2026, 2025, and 2024, respectively. The fair value of the ESPP offerings was estimated on the offering date using the Black-Scholes option pricing model with the following assumptions: Year Ended April 30, 2026 2025 Expected term (in years) 0.5 0.5 Expected stock price volatility 49.7% - 54.9% 50.4% - 59.2% Risk-free interest rate 3.7% - 3.8% 4.3% - 4.6% Dividend yield % % 2012 Stock Option Plan Under the Companys 2012 Stock Option Plan (as amended and restated, the 2 …

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Fair Value Measurements Financial Assets The following table summarizes assets that are measured at fair value on a recurring basis as of April 30, 2026 (in thousands): Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 505,672 $ $ $ 505,672 Corporate debt securities 3,002 3,002 Municipal securities 2,011 2,011 Total included in cash equivalents 505,672 5,013 510,685 Marketable securities: U.S. treasury securities 108,761 108,761 Corporate debt securities 316,523 316,523 Certificates of deposit 62,611 62,611 International treasuries 42,558 42,558 Municipal securities 41,679 41,679 U.S. agency securities 22,699 22,699 Commercial paper 6,706 6,706 Total marketable securities 108,761 492,776 601,537 Mutual fund investments (1) 5,140 5,140 Total financial assets $ 619,573 $ 497,789 $ $ 1,117,362 (1) Mutual fund investments are held in an irrevocable rabbi trust for payment obligations to non-qualified deferred compensation plan participants. The investments are recorded as part of other assets, non-current on the Companys consolidated balance sheets. The following table summarizes assets that are measured at fair value on a recurring basis as of April 30, 2025 (in thousands): Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 197,710 $ $ $ 197,710 U.S. treasury securities 90,642 90,642 U.S. agency securities 20,001 20,001 Commercial paper 9,462 9,462 Certificates of deposit 6,020 6,020 Corporate debt securiti …

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Income Taxes The Company is incorporated in the Netherlands but operates in various countries with differing tax laws and rates. The geographical breakdown of loss before income taxes is summarized as follows (in thousands): Year Ended April 30, 2026 2025 2024 Dutch $ (143,468) $ (135,145) $ (233,089) Foreign 141,167 103,576 110,333 Loss before income taxes $ (2,301) $ (31,569) $ (122,756) The components of the (benefit from) provision for income taxes were as follows (in thousands): Year Ended April 30, 2026 2025 2024 Current: Dutch $ 6,641 $ 5,815 $ 4,297 Foreign 19,163 15,540 24,558 Total current tax expense 25,804 21,355 28,855 Deferred: Dutch (431,715) 448 43 Foreign 35,844 54,742 (213,374) Total deferred tax (income) expense (395,871) 55,190 (213,331) Total (benefit from) provision for income taxes $ (370,067) $ 76,545 $ (184,476) The Companys effective tax rate substantially differed from the Dutch statutory tax rate of 25.8% primarily due to recurring items, such as tax rates in jurisdictions both within and outside the Netherlands and the relative amounts of income that is earned in those jurisdictions, non-deductible stock-based compensation, BEAT legislation in the United States, and other one-time tax benefits including the release of valuation allowances against deferred tax assets in the Netherlands, the United Kingdom, and California. Upon the adoption of ASU 2023-09, as described in Note 2, the reconciliation of taxes at the federal statutory rate to the Compa …

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Leases The Companys leases provide for rental of corporate office space under non-cancelable operating lease agreements that expire at various dates through fiscal 2036. The Company does not have any finance leases. Lease Costs Components of lease costs included in the consolidated statements of operations were as follows (in thousands): Year Ended April 30, 2026 2025 2024 Operating lease cost $ 9,083 $ 11,102 $ 12,114 Short-term lease cost 2,831 2,232 1,921 Variable lease cost 1,683 1,456 1,342 Total lease cost $ 13,597 $ 14,790 $ 15,377 Lease term and discount rate information are summarized as follows: As of April 30, 2026 Weighted average remaining lease term (in years) 5.4 Weighted average discount rate 5.3 % Future minimum lease payments under non-cancelable operating leases on an undiscounted cash flow basis as of April 30, 2026 were as follows (in thousands, by fiscal year): 2027 $ 7,491 2028 5,167 2029 3,070 2030 1,435 2031 1,237 Thereafter 5,768 Total minimum lease payments 24,168 Less imputed interest (3,500) Present value of future minimum lease payments 20,668 Less current lease liabilities (6,539) Operating lease liabilities, non-current $ 14,129 During the year ended April 30, 2026, the Company executed an operating lease agreement for an office space with an expected commencement date in the first quarter of fiscal 2027 and a lease term of approximately 8.5 years. The undiscounted future minimum lease payments as of April 30, 2026 are approximately $7.9 millio …

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Recently Adopted Accounting Pronouncements Income Taxes: In December 2023, the Financial Accounting Standards Board (the FASB) issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhancements and further transparency for certain income tax disclosures. The new guidance mandates consistent categories and greater disaggregation of information in the tax rate reconciliation, as well as disaggregation of income taxes paid by jurisdiction. The Company adopted ASU No. 2023-09 during the fourth quarter of fiscal 2026 on a prospective basis. The Companys adoption of this ASU did not have a material impact on its consolidated financial statements. See Note 13 for additional details. New Accounting Pronouncements Not Yet Adopted Financial Instruments: In July 2025, the FASB issued ASU No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, including those assets acquired in a business combination. The practical expedient permits an entity to assume that current conditions as of the balance sheet date do not change for the remaining life of the current accounts receivable and current contract assets. The guidance becomes effective for the Company for fis …

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Revenue Disaggregation of Revenue The following table presents revenue by category (in thousands): Year Ended April 30, 2026 2025 2024 Amount % of Total Revenue Amount % of Total Revenue Amount % of Total Revenue Annual Elastic Cloud $ 640,937 37 % $ 502,320 34 % $ 364,062 29 % Monthly Elastic Cloud 196,334 11 % 185,299 12 % 183,458 14 % Total Elastic Cloud 837,271 48 % 687,619 46 % 547,520 43 % Other subscription 797,184 46 % 696,901 47 % 629,086 50 % Total subscription 1,634,455 94 % 1,384,520 93 % 1,176,606 93 % Services 104,876 6 % 98,776 7 % 90,715 7 % Total revenue $ 1,739,331 100 % $ 1,483,296 100 % $ 1,267,321 100 % Concentration of Credit Risk One customer, a channel partner, accounted for 11% of total revenue during the years ended April 30, 2026 and 2024, and 12% of total revenue during the year ended April 30, 2025. The same customer accounted for 11% of net accounts receivable as of April 30, 2026. No customer accounted for 10% or more of net accounts receivable as of April 30, 2025. Deferred Revenue The Company recognized revenue of $807.9 million, $660.9 million, and $522.8 million for the years ended April 30, 2026, 2025, and 2024, respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods. Unbilled Accounts Receivable Unbilled accounts receivable is recorded as part of accounts receivable, net in the Companys consolidated balance sheets. As of April 30, 2026 and 2025, unbilled accounts receivable was $3. …

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Segment Information The Companys Chief Executive Officer is its CODM. The Companys CODM reviews discrete financial information at the consolidated level to make operating decisions, allocate resources, and evaluate financial performance. The Company operates in one operating segment and, therefore, one reportable segment. The CODM uses consolidated net income (loss) to measure segment profit or loss to evaluate the Company's overall performance and identify any underlying trends in the business to facilitate the allocation of resources to support strategic priorities and capital allocation needs (including personnel-related and other financial or capital resources). Significant segment expenses that are reviewed and utilized by the CODM at the consolidated level to manage the Companys operations include cost of revenue, research and development, sales and marketing, and general and administrative expenses, which are presented in the Companys consolidated statements of operations. Other segment items that impact net income (loss) include interest expense, other income, net, and the (benefit from) provision for income taxes, which are presented in the Companys consolidated statements of operations. The following table summarizes the Companys total revenue by geographic area based on the location of customers (in thousands): Year Ended April 30, 2026 2025 2024 United States $ 947,307 $ 836,226 $ 730,488 Rest of world 792,024 647,070 536,833 Total revenue $ 1,739,331 $ 1,483,296 …

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Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the financial statements of the Company and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. Fiscal Year The Companys fiscal year ends on April 30. References to fiscal 2026, for example, refer to the fiscal year ended April 30, 2026. Use of Estimates and Judgments The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include, but are not limited to, the SSP for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred contract acquisition costs, allowance for credit losses, valuation of stock-based compensation, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, whether an arrangement is or contains a lease, discount rate used for operating leases, and valuation allowances for deferred income taxes. The Company bases these estimates on historical and anticip …

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Ordinary Shares The Companys authorized ordinary share capital pursuant to its articles of association amounts to 165 million ordinary shares at a par value per ordinary share of 0.01. Each holder of ordinary shares has the right to one vote per ordinary share. The holders of ordinary shares are also entitled to receive dividends whenever funds are legally available and when proposed by the Companys board of directors and adopted by the general meeting of shareholders, subject to the prior rights of holders of all classes of shares outstanding having priority rights to dividends. No dividends have been declared from the Companys inception through April 30, 2026. The board of directors has been authorized by the general meeting of shareholders, on the Companys behalf, to issue the Companys ordinary shares and grant rights to acquire the Companys ordinary shares in an amount up to 20% of the issued share capital of the Company as of August 21, 2025. This authorization is valid for a period of 18 months from September 30, 2025, the date of such general meeting of shareholders, until March 30, 2027. Preference Shares The Companys authorized preference share capital pursuant to its articles of association amounts to 165 million preference shares at a par value per preference share of 0.01. Each holder of preference shares has rights and preferences, including the right to one vote per preference share. As of April 30, 2026, there were no preference shares issued or outstanding. Pr …

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