Elastic N.V. 10-K

Item 8. Financial Statements and Supplementary Data The following financial statements are filed as part of this Annual Report on Form 10-K: Report of Independent Registered Public Accounting Firm (PCAOB ID 238 ) 70 Financial Statements: Consolidated Balance Sheets 72 Consolidated Statements of Operations 73 Consolidated Statements of Comprehensive Income (Loss) 74 Consolidated Statements of Shareholders’ Equity 75 Consolidated Statements of Cash Flows 76 Notes to Consolidated Financial Statements 77 69 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Elastic N.V. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Elastic N.V. and its subsidiaries (the “Company”) as of April 30, 2026 and 2025, and the related consolidated statements of operations, of comprehensive income (loss), of shareholders' equity and of cash flows for each of the three years in the period ended April 30, 2026, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of April 30, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of April 30, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended April 30, 2026 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of April 30, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 70 Table of Contents Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue Recognition – Identification and Evaluation of Terms and Conditions in Contracts As described in Note 2 to the consolidated financial statements, management applies the following steps in their determination of revenue to be recognized: (i) identification of the contract with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when the Company satisfies each performance obligation. The Company’s contracts include varying terms and conditions, and identifying and evaluating the impact of these terms and conditions on revenue recognition requires significant judgment. For the fiscal year ended April 30, 2026, the Company’s revenue was $1,739 million. The principal considerations for our determination that performing procedures relating to revenue recognition, specifically the identification and evaluation of terms and conditions in contracts, is a critical audit matter are the significant judgment by management in identifying and evaluating terms and conditions in contracts that impact revenue recognition. This in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and in evaluating the audit evidence to determine whether terms and conditions in contracts were appropriately identified and evaluated by management. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls related to the identification and evaluation of terms and conditions in contracts that impact revenue recognition. These procedures also included (i) testing the completeness and accuracy of management’s identification and evaluation of the specific terms with customers by examining revenue contracts on a sample basis and (ii) assessing the terms and conditions of the contract including their impact on revenue recognition. /s/ PricewaterhouseCoopers LLP San Jose, California June 8, 2026 We have served as the Company’s auditor since 2018. 71 Table of Contents Elastic N.V. Consolidated Balance Sheets (in thousands, except share and per share data) As of April 30, 2026 2025 Assets Current assets: Cash and cash equivalents $ 768,725 $ 727,543 Restricted cash 1,773 3,671 Marketable securities 601,537 669,717 Accounts receivable, net of allowance for credit losses of $ 6,847 and $ 5,510 as of April 30, 2026 and 2025, respectively 464,413 375,613 Deferred contract acquisition costs 106,447 86,205 Prepaid expenses and other current assets 80,368 68,258 Total current assets 2,023,263 1,931,007 Property and equipment, net 8,591 6,589 Goodwill 356,442 319,417 Operating lease right-of-use assets 18,641 22,334 Intangible assets, net 13,059 11,404 Deferred contract acquisition costs, non-current 150,989 117,762 Deferred tax assets 567,278 168,045 Other assets 14,413 16,295 Total assets $ 3,152,676 $ 2,592,853 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 8,618 $ 17,150 Accrued expenses and other liabilities 96,713 86,347 Accrued compensation and benefits 119,231 93,714 Operating lease liabilities 6,539 8,928 Deferred revenue 973,820 802,117 Total current liabilities 1,204,921 1,008,256 Deferred revenue, non-current 52,502 50,340 Long-term debt, net 570,895 569,729 Operating lease liabilities, non-current 14,129 16,357 Other liabilities, non-current 33,729 20,937 Total liabilities 1,876,176 1,665,619 Commitments and contingencies (Notes 8 and 9) Shareholders’ equity: Preference shares, € 0.01 par value; 165,000,000 shares authorized; no shares issued or outstanding as of April 30, 2026 and 2025 — — Ordinary shares, € 0.01 par value; 165,000,000 shares authorized; 108,360,340 shares issued and 104,751,470 shares outstanding as of April 30, 2026; 105,534,887 shares issued and outstanding as of April 30, 2025 1,154 1,112 Treasury stock, at cost; 3,608,870 shares held as of April 30, 2026; 35,937 shares held as of April 30, 2025 ( 275,695 ) ( 369 ) Additional paid-in capital 2,310,866 2,049,416 Accumulated other comprehensive loss ( 27,870 ) ( 23,204 ) Accumulated deficit ( 731,955 ) ( 1,099,721 ) Total shareholders’ equity 1,276,500 927,234 Total liabilities and shareholders’ equity $ 3,152,676 $ 2,592,853 The accompanying notes are an integral part of these consolidated financial statements. 72 Table of Contents Elastic N.V. Consolidated Statements of Operations (in thousands, except share and per share data) Year Ended April 30, 2026 2025 2024 Revenue Subscription $ 1,634,455 $ 1,384,520 $ 1,176,606 Services 104,876 98,776 90,715 Total revenue 1,739,331 1,483,296 1,267,321 Cost of revenue Subscription 310,169 282,585 246,285 Services 106,103 97,288 83,794 Total cost of revenue 416,272 379,873 330,079 Gross profit 1,323,059 1,103,423 937,242 Operating expenses Research and development 451,925 365,758 341,951 Sales and marketing 710,188 617,176 559,648 General and administrative 194,422 175,186 160,628 Restructuring and other related charges — 225 4,917 Total operating expenses 1,356,535 1,158,345 1,067,144 Operating loss ( 33,476 ) ( 54,922 ) ( 129,902 ) Other income, net Interest expense ( 25,142 ) ( 25,307 ) ( 26,132 ) Other income, net 56,317 48,660 33,278 Loss before income taxes ( 2,301 ) ( 31,569 ) ( 122,756 ) (Benefit from) provision for income taxes ( 370,067 ) 76,545 ( 184,476 ) Net income (loss) $ 367,766 $ ( 108,114 ) $ 61,720 Net earnings (loss) per share attributable to ordinary shareholders Basic $ 3.49 $ ( 1.04 ) $ 0.62 Diluted $ 3.43 $ ( 1.04 ) $ 0.59 Weighted-average shares used to compute net earnings (loss) per share attributable to ordinary shareholders Basic 105,335,440 103,661,704 99,646,231 Diluted 107,220,768 103,661,704 103,980,132 The accompanying notes are an integral part of these consolidated financial statements. 73 Table of Contents Elastic N.V. Consolidated Statements of Comprehensive Income (Loss) (in thousands) Year Ended April 30, 2026 2025 2024 Net income (loss) $ 367,766 $ ( 108,114 ) $ 61,720 Other comprehensive loss: Unrealized (loss) gain on available-for-sale securities, net of taxes ( 2,109 ) 3,995 ( 1,728 ) Foreign currency translation adjustments ( 2,557 ) ( 5,561 ) 105 Other comprehensive loss ( 4,666 ) ( 1,566 ) ( 1,623 ) Total comprehensive income (loss) $ 363,100 $ ( 109,680 ) $ 60,097 The accompanying notes are an integral part of these consolidated financial statements. 74 Table of Contents Elastic N.V. Consolidated Statements of Shareholders’ Equity (in thousands, except share data) Ordinary Shares Treasury Shares Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Shareholders' Equity Shares Outstanding Amount Shares Amount Balances as of April 30, 2023 97,366,947 $ 1,024 35,937 $ ( 369 ) $ 1,471,584 $ ( 20,015 ) $ ( 1,053,327 ) $ 398,897 Issuance of ordinary shares upon exercise of stock options 1,292,375 14 — — 20,905 — — 20,919 Issuance of ordinary shares upon release of restricted stock units 2,701,448 28 — — ( 28 ) — — — Issuance of ordinary shares under employee stock purchase plan 345,165 4 — — 19,131 — — 19,135 Stock-based compensation — — — — 239,137 — — 239,137 Net income — — — — — — 61,720 61,720 Other comprehensive loss — — — — — ( 1,623 ) — ( 1,623 ) Balances as of April 30, 2024 101,705,935 1,070 35,937 ( 369 ) 1,750,729 ( 21,638 ) ( 991,607 ) 738,185 Issuance of ordinary shares upon exercise of stock options 791,874 9 — — 17,845 — — 17,854 Issuance of ordinary shares upon release of restricted stock units 2,672,842 29 — — ( 29 ) — — — Issuance of ordinary shares under employee stock purchase plan 364,236 4 — — 23,089 — — 23,093 Stock-based compensation — — — — 257,782 — — 257,782 Net loss — — — — — — ( 108,114 ) ( 108,114 ) Other comprehensive loss — — — — — ( 1,566 ) — ( 1,566 ) Balances as of April 30, 2025 105,534,887 1,112 35,937 ( 369 ) 2,049,416 ( 23,204 ) ( 1,099,721 ) 927,234 Issuance of ordinary shares upon exercise of stock options 218,707 3 — — 2,801 — — 2,804 Issuance of ordinary shares upon release of restricted stock units 2,108,706 24 — — ( 24 ) — — — Issuance of ordinary shares under employee stock purchase plan 462,103 5 — — 25,010 — — 25,015 Reissuance of treasury shares upon release of restricted stock units 847,733 10 ( 847,733 ) 64,762 ( 64,772 ) — — — Repurchases of ordinary shares ( 4,420,666 ) — 4,420,666 ( 340,088 ) — — — ( 340,088 ) Stock-based compensation — — — — 298,435 — — 298,435 Net income — — — — — — 367,766 367,766 Other comprehensive loss — — — — — ( 4,666 ) — ( 4,666 ) Balances as of April 30, 2026 104,751,470 $ 1,154 3,608,870 $ ( 275,695 ) $ 2,310,866 $ ( 27,870 ) $ ( 731,955 ) $ 1,276,500 The accompanying notes are an integral part of these consolidated financial statements. 75 Table of Contents Elastic N.V. Consolidated Statements of Cash Flows (in thousands) Year Ended April 30, 2026 2025 2024 Cash flows from operating activities Net income (loss) $ 367,766 $ ( 108,114 ) $ 61,720 Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation and amortization 11,834 12,315 17,999 Amortization of premium and accretion of discount on marketable securities, net ( 3,428 ) ( 7,186 ) ( 8,808 ) Amortization of deferred contract acquisition costs 111,112 96,688 78,549 Amortization of debt issuance costs 1,166 1,117 1,069 Non-cash operating lease cost 8,870 10,040 11,010 Stock-based compensation expense 298,435 257,782 239,137 Deferred income taxes ( 398,617 ) 57,431 ( 217,195 ) Unrealized foreign currency transaction loss 790 2,211 1,930 Other 71 39 ( 34 ) Changes in operating assets and liabilities, net of impact of business acquisitions: Accounts receivable, net ( 86,840 ) ( 48,903 ) ( 63,519 ) Deferred contract acquisition costs ( 163,717 ) ( 106,691 ) ( 119,834 ) Prepaid expenses and other current assets ( 11,664 ) ( 25,320 ) ( 2,875 ) Other assets 4,975 ( 10,794 ) 1,906 Accounts payable ( 8,968 ) ( 8,952 ) ( 9,998 ) Accrued expenses and other liabilities 11,213 9,845 18,144 Accrued compensation and benefits 25,043 ( 546 ) 17,357 Operating lease liabilities ( 9,767 ) ( 11,906 ) ( 12,391 ) Deferred revenue 168,620 147,112 134,595 Net cash provided by operating activities 326,894 266,168 148,762 Cash flows from investing activities Purchases of property and equipment ( 5,092 ) ( 4,345 ) ( 3,450 ) Business acquisitions, net of cash acquired ( 36,828 ) — ( 19,100 ) Purchases of marketable securities ( 528,885 ) ( 549,574 ) ( 536,833 ) Sales, maturities, and redemptions of marketable securities 597,397 435,251 271,423 Other ( 521 ) — — Net cash provided by (used in) investing activities 26,071 ( 118,668 ) ( 287,960 ) Cash flows from financing activities Proceeds from issuance of ordinary shares under employee stock purchase plan 25,015 23,093 19,135 Proceeds from issuance of ordinary shares upon exercise of stock options 2,804 17,854 20,919 Repurchases of ordinary shares ( 340,088 ) — — Net cash (used in) provided by financing activities ( 312,269 ) 40,947 40,054 Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 1,412 ) ( 322 ) ( 4,407 ) Net increase (decrease) in cash, cash equivalents, and restricted cash 39,284 188,125 ( 103,551 ) Cash, cash equivalents, and restricted cash, beginning of period 731,214 543,089 646,640 Cash, cash equivalents, and restricted cash, end of period $ 770,498 $ 731,214 $ 543,089 Supplemental disclosures of cash flow information Cash paid for interest $ 23,976 $ 24,191 $ 25,063 Cash paid for income taxes, net $ 28,011 $ 21,994 $ 24,219 Cash paid for operating lease liabilities $ 10,571 $ 13,127 $ 14,000 Supplemental disclosures of non-cash investing and financing information Property and equipment included in accounts payable $ 294 $ 305 $ 398 Operating lease right-of-use assets for new lease obligations $ 5,142 $ 11,771 $ 11,539 Acquisition-related indemnity holdback $ 8,343 $ — $ 3,000 The accompanying notes are an integral part of these consolidated financial statements. 76 Table of Contents Elastic N.V. Notes to Consolidated Financial Statements Note Page 1. Organization and Description of Business 78 2. Summary of Significant Accounting Policies 78 3. Revenue 87 4. Fair Value Measurements 88 5. Acquisitions 90 6. Balance Sheet Components 90 7. Senior Notes 92 8. Commitments and Contingencies 93 9. Leases 94 10. Ordinary Shares 95 11. Equity Incentive Plans 96 12. Net Earnings (Loss) Per Share Attributable to Ordinary Shareholders 98 13. Income Taxes 98 14. Employee Benefit Plans 103 15. Segment Information 103 77 Table of Contents 1. Organization and Description of Business Elastic N.V. (individually and together with its consolidated subsidiaries, “Elastic” or the “Company”) was incorporated under the laws of the Netherlands in 2012. The Company created the Elasticsearch Platform, a powerful set of software products that ingest and store data from any source and in any format, and perform search, analysis, and visualization on that data. Developers build on top of the Company’s platform to apply the power of search to their data and solve business problems. The Company offers three software solutions built into its platform: Search & AI, Elastic Observability, and Elastic Security. The Company’s platform and its solutions are designed to run across hybrid clouds, public or private clouds, and multi-cloud environments. 2. 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 Company’s 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 anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Estimates and assumptions about future events and their effects cannot be determined with certainty and, therefore, require the exercise of judgment. As of the date of issuance of these consolidated financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates or judgments or revise the carrying value of the Company’s assets or liabilities. These estimates may change as new events occur and additional information is obtained and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s consolidated financial statements. Foreign Currency The reporting currency of the Company is the U.S. dollar. The Company determines the functional currency of each subsidiary in accordance with ASC 830, Foreign Currency Matters, based on the currency of the primary economic environment in which each subsidiary operates. Items included in the financial statements of such subsidiaries are measured using that functional currency. The Company periodically reassesses its operations to determine if previous conclusions are still valid. Changes in functional currencies are applied prospectively if the operations encounter a significant and permanent change. For the subsidiaries where the U.S. dollar is the functional currency, foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at current exchange rates and foreign currency denominated non-monetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in other income, net in the consolidated statements of operations. For the years ended April 30, 2026, 2025, and 2024, the Company recognized remeasurement losses of $ 2.1 million, $ 2.5 million, and $ 3.4 million, respectively. 78 Table of Contents For subsidiaries where the functional currency is other than the U.S. dollar, the Company uses the period-end exchange rates to translate assets and liabilities, the average monthly exchange rates to translate revenue and expenses, and historical exchange rates to translate shareholders’ equity into U.S. dollars. The Company records foreign currency translation gains and losses in accumulated other comprehensive loss as a component of shareholders’ equity in the consolidated balance sheets. Other Comprehensive Loss The Company’s other comprehensive loss includes net income (loss), unrealized (loss) gain on available-for-sale securities, net of taxes, and foreign currency translation adjustments. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments, including money market funds with an original maturity of three months or less at the date of purchase, to be cash equivalents. The carrying amount of the Company’s cash equivalents approximates fair value due to the short maturities of these instruments. The Company’s restricted cash consists primarily of cash deposits with financial institutions in support of letters of credit in favor of certain landlords for non-cancelable lease agreements. Cash, cash equivalents, and restricted cash as reported in the Company’s consolidated statements of cash flows includes the aggregate amounts of cash and cash equivalents and the restricted cash as shown on the consolidated balance sheets. Cash, cash equivalents, and restricted cash as reported in the Company’s consolidated statements of cash flows consists of the following (in thousands): As of April 30, 2026 2025 Cash and cash equivalents $ 768,725 $ 727,543 Restricted cash 1,773 3,671 Cash, cash equivalents, and restricted cash $ 770,498 $ 731,214 Marketable Securities The Company’s marketable securities consist of highly liquid investment-grade fixed-income securities. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable securities as available-for-sale debt securities as the Company may sell these securities at any time for use in its current operations or for other purposes, including prior to maturity. As a result, the Company has classified its marketable securities within current assets on the consolidated balance sheets. Available-for-sale debt securities are recorded at fair value each reporting period. Premiums and discounts are amortized or accreted over the life of the related available-for-sale debt security as an adjustment to yield using the effective interest method. Interest income is recognized when earned. Unrealized gains and losses on these marketable securities are reported as a separate component of accumulated other comprehensive loss until realized. Realized gains and losses are determined based on the specific identification method and are reported in other income, net in the consolidated statements of operations. For available-for-debt securities in an unrealized loss position, the Company first assesses whether it intends to sell the security or it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through other income, net in the consolidated statements of operations. If neither of these criteria are met, the Company evaluates whether the decline in fair value below amortized cost is due to credit or non-credit-related factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. Credit-related unrealized losses are recognized as an allowance for expected credit losses of available-for-sale securities on the consolidated balance sheets with a corresponding charge in other income, net in the consolidated statements of operations. Non-credit-related unrealized losses are included in accumulated other comprehensive loss. 79 Table of Contents Fair Value of Financial Instruments The Company follows ASC 820, Fair Value Measurements and Disclosures, with respect to assets and liabilities that are measured at fair value. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: • Level 1: Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial instruments consist of cash equivalents, marketable securities, mutual fund investments held in a rabbi trust, accounts receivable, accounts payable, and accrued liabilities. Cash equivalents are stated at amortized cost, which approximates fair value at the balance sheet dates due to the short period of time to maturity. Marketable securities and mutual fund investments are recorded at fair value. Accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents, restricted cash, marketable securities, and accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company maintains its cash accounts with financial institutions where, at times, deposits exceed federal insurance limits. The Company invests its excess cash in highly rated money market funds and in short-term investments. The Company extends credit to customers in the normal course of business. The Company performs credit analyses and monitors the financial health of its customers to reduce credit risk. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Management performs ongoing credit evaluations of customers and maintains allowances for potential credit losses on customers’ accounts when deemed necessary. Accounts Receivable, Unbilled Accounts Receivable, and Allowance for Credit Losses Accounts receivable primarily consists of amounts billed currently due from customers. The Company’s accounts receivable are subject to collection risk. Gross accounts receivable are reduced for this risk by an allowance for credit losses. This allowance is for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company determines the need for an allowance for credit losses based on various factors, including past collection experience, credit quality of the customer, age of the receivable balance, and current economic conditions, as well as specific circumstances arising with individual customers. Accounts receivables are written off against the allowance when management determines a balance is uncollectible and the Company no longer actively pursues collection of the receivable. The Company does not typically offer a right of refund in its contracts. The allowance for credit losses reflects the Company’s best estimate of probable losses inherent in the Company’s receivables portfolio. Unbilled accounts receivable represents amounts for which the Company has recognized revenue, pursuant to the Company’s revenue recognition policy for fulfilled obligations not yet billed. Capitalized Software Development and Implementation Costs Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established upon the completion of a working prototype that has been certified as having no critical bugs and is a release candidate. To date, costs to develop software that is marketed externally have not been capitalized as the current software development process is essentially completed concurrently with the establishment of technological feasibility. As such, all related software development costs are expensed as incurred and included in research and development expense in the consolidated statements of operations. 80 Table of Contents Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, with no substantive plans to market such software at the time of development, and costs related to the development of web-based product are capitalized during the application development stage. Costs incurred during the preliminary planning and evaluation stage of the project and during the post-implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. The Company also capitalizes qualifying implementation costs incurred in a hosting arrangement that is a service contract. These costs are amortized on a straight-line basis over the expected life of the service contract, including consideration of the reasonably certain renewal periods, and are presented in the same income statement line-items as the service for the related hosting arrangement. The Company did not capitalize any costs during the years ended April 30, 2026 and 2025. All previously capitalized costs are recorded in other assets, non-current on the consolidated balance sheets. Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the financial statements and any resulting gain or loss is reflected within the consolidated statements of operations. There was no material gain or loss incurred as a result of retirement or sale in the periods presented. Repair and maintenance costs are expensed as incurred. Leases Leases arise from contractual obligations that convey the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company determines whether an arrangement is or contains a lease at inception, based on whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. At the lease commencement date, the Company determines the lease classification between finance and operating, and recognizes a right-of-use asset and corresponding lease liability for each lease component. A right-of-use asset represents the Company’s right to use an underlying asset and a lease liability represents the Company’s obligation to make payments during the lease term. The operating lease right-of-use asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company accounts for lease components and non-lease components as a single lease component. Leases with an initial term of twelve months or less are classified as short-term leases and, therefore, are not recognized on the consolidated balance sheets and are expensed on a straight-line basis within the consolidated statements of operations. The lease liability is initially measured as the present value of the remaining lease payments over the lease term. The discount rate used to determine the present value is the Company’s incremental borrowing rate, unless the interest rate implicit in the lease is readily determinable. The Company estimates its incremental borrowing rate based on the information available at the lease commencement date for borrowings with a similar term. The right-of-use asset is initially measured as the present value of the lease payments, adjusted for initial direct costs, prepaid lease payments to lessors, and lease incentives. Acquisitions When the Company acquires a business, the Company allocates the purchase price, which is the sum of the elements of consideration provided and may consist of cash, equity, or a combination of the two, in a business combination to the identifiable assets and liabilities of the acquired business at their estimated respective fair values. The Company recognizes and measures contract assets and contract liabilities acquired in a business combination on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. The excess of the purchase price over the amount allocated to the identifiable assets and liabilities, if any, is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including, but not limited to, the selection of valuation methodologies, estimates of future revenue and cash flows, costs to rebuild developed technology, discount rates, and selection of comparable companies. The Company’s estimates of fair value are based on assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to other income, net in the consolidated statements of operations. When the Company issues stock-based or cash awards to an acquired company’s shareholders, the Company evaluates whether the awards are consideration or compensation for post-acquisition services. The evaluation includes, among other things, whether the vesting of the awards is contingent on the continued employment of the acquired company’s shareholders beyond the acquisition date. If continued employment is required for vesting, the awards are treated as compensation for post- acquisition services and recognized as expense over the requisite service period. 81 Table of Contents Acquisition-related transaction costs incurred by the Company are not included as a component of consideration transferred but, rather, are accounted for as an operating expense in the period in which the costs are incurred. The results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the date of acquisition. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations accounted for using the acquisition method. Goodwill is not amortized. The Company tests goodwill for impairment at least annually, in the fourth quarter of each year, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. For the purposes of impairment testing, the Company has determined that it has one operating segment and one reporting unit. The Company’s test of goodwill impairment starts with a qualitative assessment to determine whether it is necessary to perform a quantitative goodwill impairment test. If qualitative factors indicate that the fair value of the reporting unit is more likely than not less than its carrying amount, then a quantitative goodwill impairment test is performed. For the quantitative analysis, the Company compares the fair value of its reporting unit to its carrying value. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. However, if the fair value of the reporting unit is less than book value, then goodwill will be impaired by the amount that the carrying amount exceeds the implied fair value. There was no impairment of goodwill recorded for the years ended April 30, 2026, 2025, and 2024. Acquired Intangible Assets Acquired amortizable intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets. Useful life (in years) Developed technology 2 - 5 Customer relationships 4 Trade names 4 Impairment of Long-Lived Assets The Company evaluates the recoverability of long-lived assets, including property and equipment and amortizable acquired intangible assets, for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Such events and changes may include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in the Company’s business strategy. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. The Company determined that there were no events or changes in circumstances that indicated that its long-lived assets were impaired during the years ended April 30, 2026, 2025, and 2024. In addition to the recoverability assessment, the Company periodically reviews the remaining estimated useful lives of property and equipment and amortizable intangible assets. If the estimated useful life assumption for any asset is changed, the remaining unamortized balance would be depreciated or amortized over the revised estimated useful life on a prospective basis. Revenue Recognition The Company generates revenue primarily from the sale of self-managed subscriptions (which include licenses for proprietary features, support, and maintenance) and from the sale of software-as-a-service (“SaaS”) subscriptions. The Company also generates revenue from services, which consist of consulting and training. 82 Table of Contents Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods and services. The Company’s contracts include varying terms and conditions, and identifying and evaluating the impact of these terms and conditions on revenue recognition requires significant judgment. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements, the Company performs the following steps: (i) Identification of the contract with a customer: The Company contracts with its customers through order forms which, in some cases, are governed by master sales agreements. The Company determines that it has a contract with a customer when the order form has been approved, each party’s rights regarding the products or services to be transferred can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, the customer’s credit, reputation, and financial or other pertinent information. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. The Company has concluded that its contracts with customers generally do not contain warranties that give rise to a separate performance obligation. (ii) Identification of the performance obligations in the contract: Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the products or services, either on their own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products and services is separately identifiable from other promises in the contract. The Company’s self-managed subscriptions include both a license providing the right to use proprietary features in its software, as well as an obligation to provide support (on both open source and proprietary features) and maintenance. The Company’s SaaS products provide access to hosted software as well as support, which the Company considers to be a single performance obligation. Performance obligations to provide services relate to the provision of consulting and training services. These services are distinct from subscriptions and do not result in significant customization of the software. (iii) Determination of the transaction price: The transaction price is the total amount of consideration to which the Company expects to be entitled in exchange for the subscriptions and services in a contract. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company’s contracts contain a significant financing component. (iv) Allocation of the transaction price to the performance obligations: If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation based on a relative SSP. The SSP is determined based on the prices at which the Company separately sells these products assuming the majority of such prices fall within a pricing range. For instances in which the SSP is not directly observable, such as when the Company does not sell the software license separately, the Company derives the SSP using information that may include market conditions and other observable and unobservable inputs, which can require significant judgment. Individual products and services typically have more than one SSP due to the stratification of such products and services by quantity, subscription term, sales channel, and other circumstances. If one of the performance obligations is outside of the SSP range, the Company allocates the transaction price considering the midpoint of the SSP range. The Company also considers whether there are any additional material rights inherent in a contract and, if so, the Company allocates a portion of the transaction price to such rights based on the relative SSP. (v) Recognition of revenue when the Company satisfies each performance obligation: Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to the customer. Revenue for SaaS offerings that relate to a specified amount of services is recognized on a consumption basis as the customer utilizes the services. Revenue from SaaS offerings that are stand-ready arrangements is recognized ratably over the contract period as the Company satisfies the performance obligation. The Company’s self-managed subscriptions include both upfront revenue recognition when the license is delivered, as well as revenue recognized ratably over the contract period for support and maintenance based on the stand-ready nature of these subscription elements. 83 Table of Contents Services comprise consulting services as well as public and private training. Revenue from services is recognized as these services are delivered. The Company generates sales directly through its sales team and through its channel partners. Sales to channel partners are made at a discount and revenues are recorded at this discounted price once all the revenue recognition criteria above are met. To the extent that the Company offers rebates, incentives, or joint marketing funds to such channel partners, recorded revenues are reduced by this amount. Channel partners generally receive an order from an end customer prior to placing an order with the Company. Payment from channel partners is not contingent on the partner’s collection from end customers. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers. For annual contracts, the Company typically invoices customers at the time of entering into the contract. For multi-year agreements, the Company generally invoices customers on an annual basis prior to each anniversary of the contract start date. The Company records unbilled accounts receivable related to revenue recognized in excess of amounts invoiced as the Company has an unconditional right to invoice and receive payment in the future related to those fulfilled obligations. Contract liabilities consist of deferred revenue, which is recognized over the contractual period. Deferred Contract Acquisition Costs Deferred contract acquisition costs represent costs that are incremental to the acquisition of customer contracts, which consist mainly of sales commissions and associated payroll taxes. The Company determines whether costs should be deferred based on sales compensation plans if the commissions are, in fact, incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a subscription contract are not considered commensurate with the commissions paid for contracts with new customers and incremental sales to existing customers given the substantive difference in commission rates in proportion to their respective contract values. Commissions paid for contracts with new customers and incremental sales to existing customers are amortized over an estimated period of benefit of five years , while commissions paid for renewal contracts are amortized based on the pattern of the associated revenue recognition over the related contractual renewal period for the pool of renewal contracts. The Company determines the period of benefit for commissions paid for contracts with new customers and incremental sales to existing customers by taking into consideration its initial estimated customer life and the technological life of its software and related significant features. Commissions paid on services are typically amortized in accordance with the associated revenue as the commissions paid on new and renewal services are commensurate with each other. Amortization of deferred contract acquisition costs is recognized in sales and marketing expense in the consolidated statements of operations. The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. Cost of Revenue Cost of revenue consists primarily of costs related to providing subscriptions and services to the Company’s customers, including cloud hosting costs, personnel costs (salaries, bonuses and benefits, and stock-based compensation) and related expenses for customer support and services personnel, third-party contractors, depreciation of fixed assets, amortization associated with acquired intangible assets, and allocated overhead. Research and Development Research and development costs are expensed as incurred and consist primarily of personnel costs including salaries, bonuses and benefits, and stock-based compensation. Research and development costs also include cloud hosting costs, depreciation, and allocated overhead. Advertising Advertising costs are charged to operations as incurred and recorded in sales and marketing expense in the consolidated statements of operations. Advertising costs were $ 20.4 million, $ 22.5 million, and $ 26.0 million for the years ended April 30, 2026, 2025, and 2024, respectively. 84 Table of Contents Stock-Based Compensation Compensation expense related to stock options and restricted stock units (“RSUs”), including those with performance or market conditions, issued to employees and directors is measured at the fair value on the date of the grant and recognized over the requisite service period. The fair value of stock options and purchase rights issued to employees under the 2022 Employee Stock Purchase Plan (the “ESPP”) is estimated on the date of the grant using the Black-Scholes option-pricing model. The fair value of RSUs with service or performance conditions is estimated on the date of the grant based on the fair value of the Company’s underlying ordinary shares. The fair value of RSUs with market conditions is estimated using a Monte Carlo simulation. Compensation expense for stock options and RSUs with only a service condition is recognized on a straight-line basis over the requisite service period, and over the six-month offering period for ordinary shares purchased under the ESPP. Compensation expense relating to RSUs with a performance condition is recognized using the accelerated attribution method over the requisite service period when it is probable that the performance condition will be satisfied. Compensation expense for RSUs with a market condition is recognized using the accelerated attribution method over the requisite service period of each tranche, regardless of whether the market condition is ultimately satisfied. The Company recognizes forfeitures as they occur. Debt Issuance Costs Costs incurred in connection with the issuance of debt are deferred and amortized as interest expense over the term of the related debt using the effective interest method. To the extent that the debt is outstanding, these amounts are reflected in the consolidated balance sheets as direct deductions from the carrying amount of the outstanding borrowings. Net Earnings (Loss) Per Share Attributable to Ordinary Shareholders The Company calculates basic net earnings (loss) per share by dividing the net income (loss) by the weighted-average number of ordinary shares outstanding during the period, less shares subject to repurchase. Diluted net earnings (loss) per share is computed by giving effect to all potentially dilutive ordinary share equivalents outstanding for the period, including stock options, RSUs, and ESPP shares. Treasury Shares Treasury shares are accounted for using the cost method and recorded as a reduction to stockholders’ equity on the consolidated balance sheets. Incremental direct costs to purchase treasury shares are included in the cost of the shares acquired. The cost of treasury shares that are either sold or reissued is determined based on the weighted-average basis, computed in the aggregate across all shares held in treasury, regardless of the repurchase program or transaction under which they were originally acquired. When treasury shares are reissued at a price higher than their cost, the increase is recorded in additional paid-in capital on the consolidated balance sheets. When treasury shares are reissued at a price lower than their cost, the decrease is recorded in additional paid-in capital to the extent that there are previously recorded increases to offset the decrease. Any decreases in excess of that amount are recorded in accumulated deficit on the consolidated balance sheets. Segments The Company’s Chief Executive Officer is its chief operating decision maker (“CODM”). The Company’s 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 Company’s operations include cost of revenue, research and development, sales and marketing, and general and administrative expenses, which are presented in the Company’s 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 Company’s consolidated statements of operations. The Company presents financial information about its reportable segment and geographical areas in Note 15. 85 Table of Contents Income Taxes The Company is subject to income taxes in the Netherlands and numerous foreign jurisdictions. These foreign jurisdictions may have different statutory rates than the Netherlands. The Company records a (benefit from) provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and the tax basis of assets and liabilities, as well as for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that it believes is more likely than not to be realized. The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company assesses its income tax positions and recorded tax benefits for all years subject to examination, based on the Company’s evaluation of the facts, circumstances, and information available at each period end. For those tax positions where the Company determines there is a likelihood of greater than 50 % that a tax benefit will be sustained, the Company records the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is determined there is a likelihood of less than 50% that a tax benefit will be sustained, no tax benefit is recognized. The Company makes adjustments to its reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the (benefit from) provision for income taxes in the period in which such determination is made. 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 Company’s 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 Instruments—Credit 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 fiscal years beginning after April 30, 2026, and interim periods within those fiscal years. Early adoption is permitted. An entity that elects the practical expedient should apply the guidance prospectively. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. Codification Improvements: In December 2025, the FASB issued ASU No. 2025-12, Codification Improvements, as part of an ongoing project to make non-substantive technical corrections, clarifications, and improvements that are not expected to have a significant effect on accounting practices or create a significant administrative cost to most entities. The amendments are varied in nature and may affect the application of guidance for cases in which the original guidance may have been unclear. The guidance becomes effective for the Company for fiscal years beginning after April 30, 2027, and interim periods within those fiscal years. Early adoption is permitted. Upon adoption, the guidance may be applied prospectively or retrospectively on an issue-by-issue basis. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. 86 Table of Contents Comprehensive Income: In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring more detailed disclosures about specified categories of expenses included in certain expense captions presented on the face of the income statement. The guidance becomes effective for the Company for fiscal years beginning after April 30, 2027, and interim periods within fiscal years beginning after April 30, 2028. Early adoption is permitted. Upon adoption, the guidance may be applied prospectively or retrospectively. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. Internal-Use Software: In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, to modernize the accounting for software costs that are accounted for under Subtopic 350-40. The new guidance removes all references to software development stages and allows software development costs to be capitalized once management commits to funding the project and it is probable that the project will be completed and used as intended. The new guidance also introduces the concept of “significant development uncertainty” which, if present, precludes capitalization. The guidance becomes effective for the Company for fiscal years beginning after April 30, 2028, and interim periods within those fiscal years. Early adoption is permitted. Upon adoption, the guidance may be applied prospectively, retrospectively, or using a modified prospective transition method. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. Interim Reporting: In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, to enhance the existing interim reporting guidance without changing the fundamental nature or volume of required interim disclosures. The new guidance improves the organization and accessibility of required interim disclosure requirements, clarifies when that guidance is applicable, and introduces a new principle requiring disclosure of events occurring after the end of the most recent annual reporting period that have a material impact on the entity. The guidance becomes effective for the Company for interim periods within fiscal years beginning after April 30, 2028. Early adoption is permitted. Upon adoption, the guidance may be applied prospectively or retrospectively. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. 3. 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. 87 Table of Contents Unbilled Accounts Receivable Unbilled accounts receivable is recorded as part of accounts receivable, net in the Company’s consolidated balance sheets. As of April 30, 2026 and 2025, unbilled accounts receivable was $ 3.1 million and $ 2.5 million, respectively. Remaining Performance Obligations Remaining performance obligations (“RPO”) represent the amount of contracted future revenue that has not been recognized, including deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. The Company’s RPO excludes performance obligations from on-demand arrangements as there are no minimum purchase commitments associated with such arrangements. As of April 30, 2026, the Company had $ 1.982 billion of RPO, of which the Company expects to recognize approximately 61 % as revenue over the next twelve months , approximately 86 % over the next twenty-four months , and the remainder thereafter. Deferred Contract Acquisition Costs Amortization expense with respect to deferred contract acquisition costs was $ 111.1 million, $ 96.7 million, and $ 78.5 million for the years ended April 30, 2026, 2025, and 2024, respectively. The Company did not recognize any impairment of deferred contract acquisition costs for the years ended April 30, 2026, 2025, and 2024. 4. 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 Company’s consolidated balance sheets. 88 Table of Contents 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 securities — 3,128 — 3,128 Total included in cash equivalents 288,352 38,611 — 326,963 Marketable securities: U.S. treasury securities 113,440 — — 113,440 Corporate debt securities — 390,077 — 390,077 Certificates of deposit — 63,377 — 63,377 International treasuries — 40,135 — 40,135 Municipal securities — 34,966 — 34,966 Commercial paper — 17,739 — 17,739 U.S. agency securities — 9,983 — 9,983 Total marketable securities 113,440 556,277 — 669,717 Mutual fund investments (1) 2,646 — — 2,646 Total financial assets $ 404,438 $ 594,888 $ — $ 999,326 (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 Company’s consolidated balance sheets. Interest income from the Company’s cash, cash equivalents, and marketable securities was $ 51.8 million, $ 48.3 million, and $ 28.1 million for the years ended April 30, 2026, 2025, and 2024, respectively, and is included in other income, net in the consolidated statements of operations. As of April 30, 2026 and 2025, gross unrealized gains and losses on the marketable securities were not significant. The fluctuations in market interest rates impacted the unrealized losses or gains on these securities. The fair value of available-for-sale securities, by remaining contractual maturity, are as follows (in thousands): As of April 30, 2026 2025 Due within 1 year $ 304,833 $ 368,374 Due between 1 year and 3 years 296,704 299,522 Due between 3 years and 5 years — 1,821 Total marketable securities $ 601,537 $ 669,717 Financial Liabilities In July 2021, the Company issued $ 575.0 million aggregate principal amount of 4.125 % Senior Notes due July 15, 2029 in a private placement. Based on the trading prices of the Senior Notes, the fair value of the Senior Notes as of April 30, 2026 was approximately $ 545.9 million. While the Senior Notes are recorded at cost, the fair value of the Senior Notes was determined based on quoted prices in markets that are not active; accordingly, the Senior Notes are categorized as Level 2 for purposes of the fair value measurement hierarchy. 89 Table of Contents 5. 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 Company’s consolidated results of operations since the acquisition date. Pro forma and historical results of operations for this acquisition have not been presented as they were not material to the Company’s consolidated results of operations. Paladin Data Inc. On May 21, 2025, Elasticsearch, Inc., a wholly-owned subsidiary of the Company, acquired 100 % of the share capital of Paladin Data Inc., including its wholly-owned subsidiary, Keep Alerting Ltd. (collectively, “Keep”), for a total purchase consideration of $ 10.9 million. The purchase consideration includes $ 1.4 million held back by the Company for indemnity obligations, which will be released upon the 18-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 $ 4.0 million and $ 6.7 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 5 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 Keep have been included in the Company’s consolidated results of operations since the acquisition date. Pro forma and historical results of operations for this acquisition have not been presented as they were not material to the Company’s consolidated results of operations. 6. Balance Sheet Components Property and Equipment, Net The cost and accumulated depreciation of property and equipment were as follows (in thousands): As of April 30, Useful Life (in years) 2026 2025 Leasehold improvements Lesser of estimated useful life or remaining lease term $ 9,774 $ 14,780 Computer hardware and software 3 4,066 4,390 Furniture and fixtures 3 - 5 5,163 8,025 Assets under construction 3,575 33 Total property and equipment 22,578 27,228 Less: accumulated depreciation ( 13,987 ) ( 20,639 ) Property and equipment, net $ 8,591 $ 6,589 Depreciation expense related to property and equipment was $ 3.0 million, $ 3.1 million, and $ 3.5 million for the years ended April 30, 2026, 2025, and 2024, respectively. 90 Table of Contents Intangible Assets, Net Intangible assets consisted of the following as of April 30, 2026 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life (in years) Developed technology $ 85,291 $ 72,208 $ 13,083 2.2 Foreign currency translation adjustment ( 24 ) Total $ 13,059 Intangible assets consisted of the following as of April 30, 2025 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life (in years) Developed technology $ 76,130 $ 64,702 $ 11,428 2.2 Foreign currency translation adjustment ( 24 ) Total $ 11,404 Amortization expense for the intangible assets for the years ended April 30, 2026, 2025, and 2024 was as follows (in thousands): Year Ended April 30, 2026 2025 2024 Cost of revenue – subscription $ 8,795 $ 9,213 $ 12,353 Sales and marketing — — 2,143 Total amortization of acquired intangible assets $ 8,795 $ 9,213 $ 14,496 The expected future amortization expense related to the intangible assets as of April 30, 2026 was as follows (in thousands, by fiscal year): 2027 $ 7,301 2028 3,413 2029 1,501 2030 798 2031 46 Total $ 13,059 Goodwill The following table represents the changes to goodwill (in thousands): Carrying Amount Balance as of April 30, 2024 $ 319,380 Foreign currency translation adjustment 37 Balance as of April 30, 2025 319,417 Additions from acquisitions 36,916 Foreign currency translation adjustment 109 Balance as of April 30, 2026 $ 356,442 There was no impairment of goodwill during the years ended April 30, 2026, 2025, and 2024. 91 Table of Contents Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): As of April 30, 2026 2025 Accrued expenses $ 44,109 $ 36,585 Income taxes payable 12,899 11,690 Value added taxes payable 12,837 9,872 Accrued interest 6,918 6,918 Other 19,950 21,282 Total accrued expenses and other liabilities $ 96,713 $ 86,347 Accrued Compensation and Benefits Accrued compensation and benefits consisted of the following (in thousands): As of April 30, 2026 2025 Accrued vacation $ 46,702 $ 42,136 Accrued commissions 46,420 28,051 Accrued payroll and withholding taxes 11,138 10,007 Other 14,971 13,520 Total accrued compensation and benefits $ 119,231 $ 93,714 Allowance for Credit Losses The following is a summary of the changes in the Company’s allowance for credit losses (in thousands): Year Ended April 30, 2026 2025 2024 Beginning balance $ 5,510 $ 4,979 $ 3,409 Bad debt expense 4,358 3,909 3,864 Accounts written off ( 3,021 ) ( 3,378 ) ( 2,294 ) Ending balance $ 6,847 $ 5,510 $ 4,979 7. Senior Notes In July 2021, the Company issued $ 575.0 million aggregate principal amount of Senior Notes in a private placement. Interest on the Senior Notes is payable semi-annually in arrears on January 15 and July 15 of each year. The Company may at its election redeem all or a part of the Senior Notes, on any one or more occasions, at the redemption prices set forth in the indenture governing the Senior Notes (the “Indenture”), plus, in each case, accrued and unpaid interest thereon, if any, to, but excluding, the applicable redemption date. The Company may also at its election redeem the Senior Notes in whole, but not in part, at a price equal to 100 % of the principal amount thereof plus accrued and unpaid interest, if any, if certain changes in tax law occur as set forth in the Indenture. If the Company experiences a change of control triggering event (as defined in the Indenture), the Company must offer to repurchase the Senior Notes at a repurchase price equal to 101 % of the principal amount of the Senior Notes to be repurchased, plus accrued and unpaid interest, if any, to the repurchase date. The Indenture contains covenants limiting the Company’s ability and the ability of certain subsidiaries to create liens on certain assets to secure debt; grant a subsidiary guarantee of certain debt without also providing a guarantee of the Senior Notes; and consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of its assets to, another person. These covenants are subject to a number of limitations and exceptions. Certain of these covenants will not apply during any period in which the Senior Notes are rated investment grade by Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services. 92 Table of Contents The net carrying amount of the Senior Notes was as follows (in thousands): As of April 30, 2026 2025 Principal $ 575,000 $ 575,000 Unamortized debt issuance costs ( 4,105 ) ( 5,271 ) Net carrying amount $ 570,895 $ 569,729 The following table sets forth the interest expense recognized related to the Senior Notes (in thousands): Year Ended April 30, 2026 2025 2024 Contractual interest expense $ 23,719 $ 23,719 $ 23,719 Amortization of debt issuance costs 1,166 1,117 1,069 Total interest expense related to the Senior Notes $ 24,885 $ 24,836 $ 24,788 8. Commitments and Contingencies Cloud Hosting Commitments The table below reflects the Company’s 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. 93 Table of Contents On February 11, 2025, an alleged shareholder of the Company filed a complaint in the United States District Court for the Eastern District of New York against the Company and one of its executive officers, Ashutosh Kulkarni, as well as a former executive officer of the Company, Janesh Moorjani, on behalf of a putative class of shareholders of the Company who purchased or otherwise acquired the Company’s ordinary shares during the period from May 31, 2024 to August 29, 2024. The complaint, captioned “In re Elastic N.V. Securities Litigation,” alleges that the defendants made materially false and misleading statements and omitted material information about the Company’s business and financial results during the foregoing period in violation of Sections 10(b) and 20(a) of the Exchange Act and Exchange Act Rule 10b-5, which allegedly resulted in artificially inflated prices of the Company’s shares. The complaint states that plaintiffs seek damages and attorneys’ fees and costs. In May 2025, the Court appointed Lucid Alternative Fund, LP and Jeff Milan as co-lead plaintiffs in this matter. On August 1, 2025, the plaintiffs filed an amended complaint, citing the same core theories and claims but extending the class period to cover the period June 2, 2023 to August 29, 2024. On October 1, 2025, the Company filed a motion to dismiss the complaint. The plaintiffs filed an opposition to the motion on November 17, 2025, and the Company filed a reply on December 17, 2025. The motion to dismiss is pending before the Court. At this stage of the proceedings, the Company can neither predict the ultimate outcome of the litigation nor estimate any range of possible losses. The Company accrues estimates for resolution of legal and other contingencies when losses are probable and reasonably estimable. Indemnification The Company enters into indemnification provisions under its agreements with other companies in the ordinary course of business, including business partners, landlords, contractors and parties performing its research and development. Pursuant to these arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party as a result of the Company’s activities. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. The Company to date has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the fair value of these agreements is not material. The Company maintains commercial general liability insurance and product liability insurance to offset certain of the Company’s potential liabilities under these indemnification provisions. In addition, the Company indemnifies its officers, directors and certain key employees against certain liabilities that may arise as a result of their service on behalf of the Company. To date, there have been no claims under any indemnification provisions. 9. Leases The Company’s 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 % 94 Table of Contents 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 million. 10. Ordinary Shares The Company’s 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 Company’s 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 Company’s inception through April 30, 2026. The board of directors has been authorized by the general meeting of shareholders, on the Company’s behalf, to issue the Company’s ordinary shares and grant rights to acquire the Company’s 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 Company’s 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. Preference shares in the capital of the Company may currently only be issued pursuant to a resolution adopted by the general meeting of shareholders at the proposal of the board of directors. Share Repurchase Program In October 2025, the Company’s board of directors authorized a program to repurchase up to $ 500.0 million of the Company’s ordinary shares (the “Share Repurchase Program”). Repurchases under the Share Repurchase Program may be effected through open market purchases, block trades, accelerated or other structured share repurchase programs, or otherwise in accordance with applicable federal securities laws, including trading arrangements conducted in accordance with Rule 10b5-1 under the Exchange Act. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, the Company’s liquidity, and other factors. The current authorization may be modified, suspended, or terminated at any time and does not have a specified expiration date. 95 Table of Contents The following table summarizes the share repurchase activity under the Company’s Share Repurchase Program (in thousands, except share and per share data): Year Ended April 30, 2026 Number of shares repurchased 4,420,666 Weighted-average price per share (1) $ 76.91 Aggregate purchase price (1) $ 340,000 (1) Excludes transaction costs associated with the repurchases. All repurchases were made in open market transactions. As of April 30, 2026, $ 160.0 million remained available for future share repurchases under the Share Repurchase Program. 11. 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 Company’s 2012 Stock Option Plan (as amended and restated, the “2012 Plan”), the board of directors, the compensation committee, as administrator of the 2012 Plan, and any other duly authorized committee may grant stock options and other equity-based awards, such as RSUs (including those with performance or market conditions) to eligible employees, directors, and consultants to attract and retain talented personnel for positions of substantial responsibility, to provide additional incentive to employees, directors, and consultants, and to promote the success of the Company’s business. The Company’s board of directors, compensation committee, or other duly authorized committee determines the vesting schedule for all equity-based awards. Stock options and RSUs granted to employees generally vest over four years , subject to the employees’ continued service to the Company. The Company’s compensation committee may explicitly deviate from the general vesting schedules in its approval of an equity-based award as it may deem appropriate. Stock options expire ten years after the date of grant. Shares subject to stock options and RSUs that are canceled under certain conditions become available for future grant of awards under the 2012 Plan unless the 2012 Plan is terminated. As of April 30, 2026, there were 28,438,422 shares available for grant under the 2012 Plan. Stock Incentive Plans Assumed in Acquisitions In connection with acquisitions completed in prior years, the Company assumed certain unvested stock options that were outstanding on the date of the respective acquisitions. The assumed stock options will continue to be outstanding and will be governed by the provisions of their respective plans and are included in the stock option activity table below. 96 Table of Contents Stock Options The following table summarizes stock option activity: Stock Options Outstanding Number of Stock Options Outstanding Weighted- Average Exercise Price Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Balance as of April 30, 2025 1,775,723 $ 42.16 3.88 $ 88,617 Stock options exercised ( 218,707 ) $ 12.83 Stock options canceled ( 9,250 ) $ 49.51 Stock options assumed in acquisition canceled ( 656 ) $ 74.36 Balance as of April 30, 2026 1,547,110 $ 46.25 3.10 $ 30,020 Exercisable as of April 30, 2026 1,539,658 $ 46.07 3.09 $ 30,020 Aggregate intrinsic value represents the difference between the exercise price of the stock options to purchase the Company’s ordinary shares and the fair value of the Company’s ordinary shares. The intrinsic value of options exercised for the years ended April 30, 2026, 2025, and 2024 was $ 12.1 million, $ 65.6 million, and $ 95.0 million, respectively. No stock options were granted during the years ended April 30, 2026, 2025, and 2024. As of April 30, 2026, the Company had unrecognized stock-based compensation expense of $ 0.3 million related to unvested stock options that the Company expects to recognize over a weighted-average period of 0.31 years. RSUs The following table summarizes RSU activity under the 2012 Plan: Number of Awards Weighted-Average Grant Date Fair Value Outstanding and unvested at April 30, 2025 6,523,077 $ 93.95 RSUs granted 5,508,638 $ 76.67 RSUs released ( 2,956,439 ) $ 88.49 RSUs canceled ( 912,698 ) $ 91.08 Outstanding and unvested at April 30, 2026 8,162,578 $ 84.58 The total fair value of RSUs vested during the years ended April 30, 2026, 2025, and 2024 was $ 219.8 million, $ 261.0 million, and $ 248.9 million, respectively. As of April 30, 2026, the Company had unrecognized stock-based compensation expense of $ 623.9 million related to RSUs that the Company expects to recognize over a weighted-average period of 2.70 years. Stock-Based Compensation Expense Total stock-based compensation expense recognized in the Company’s consolidated statements of operations was as follows (in thousands): Year Ended April 30, 2026 2025 2024 Cost of revenue Subscription $ 10,056 $ 9,443 $ 8,774 Services 15,918 14,747 12,539 Research and development 112,638 97,412 93,588 Sales and marketing 94,961 86,743 78,069 General and administrative 64,862 49,437 46,167 Total stock-based compensation expense $ 298,435 $ 257,782 $ 239,137 97 Table of Contents 12. Net Earnings (Loss) Per Share Attributable to Ordinary Shareholders The following table sets forth the computation of basic and diluted net earnings (loss) per share attributable to ordinary shareholders (in thousands, except share and per share data): Year Ended April 30, 2026 2025 2024 Numerator: Net income (loss) $ 367,766 $ ( 108,114 ) $ 61,720 Denominator: Weighted-average shares used to compute net earnings (loss) per share attributable to ordinary shareholders Basic 105,335,440 103,661,704 99,646,231 Diluted 107,220,768 103,661,704 103,980,132 Net earnings (loss) per share attributable to ordinary shareholders Basic $ 3.49 $ ( 1.04 ) $ 0.62 Diluted $ 3.43 $ ( 1.04 ) $ 0.59 The following outstanding potentially dilutive ordinary shares were excluded from the computation of diluted net earnings (loss) per share attributable to ordinary shareholders for the periods presented because the impact of including them would have been antidilutive: Year Ended April 30, 2026 2025 2024 Stock options 536,368 1,775,723 634,519 RSUs 3,798,106 6,523,077 1,496,213 ESPP 6,405 147,488 4,010 Total 4,340,879 8,446,288 2,134,742 13. 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 ) 98 Table of Contents The Company’s 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 Company’s benefit from income taxes for the fiscal year ended April 30, 2026 is as follows (in thousands, except for rates): Year Ended April 30, 2026 Tax Rate Netherlands federal statutory tax rate $ ( 594 ) 25.8 % Foreign tax effects Brazil Foreign withholding taxes 1,756 ( 76.3 ) % Other 40 ( 1.7 ) % Canada Stock-based compensation 1,196 ( 52.0 ) % Research and development credit ( 1,034 ) 44.9 % Other 69 ( 3.0 ) % State and local income taxes, net of federal income tax effect 502 ( 21.8 ) % France Stock-based compensation 1,027 ( 44.6 ) % Other ( 1,335 ) 58.0 % Israel Gain on transfer of intellectual property 1,236 ( 53.7 ) % GAAP to stat: Book gain on transfer of intellectual property ( 1,414 ) 61.5 % Stock-based compensation 1,449 ( 63.0 ) % Other ( 1,191 ) 51.8 % Spain Research and development credit ( 1,373 ) 59.7 % Other ( 8 ) 0.4 % United Kingdom Valuation allowance ( 24,535 ) 1,066.4 % Prior-year adjustments 4,571 ( 198.7 ) % Stock-based compensation ( 2,994 ) 130.1 % Other 537 ( 23.4 ) % United States BEAT waiver election 51,231 ( 2,226.8 ) % Current-year deferred only 3,248 ( 141.2 ) % Foreign-Derived Intangible Income (“FDII”) ( 2,052 ) 89.2 % Foreign rate differential ( 2,476 ) 107.6 % Global intangible low-taxed income 1,386 ( 60.2 ) % Prior-year tax adjustment ( 1,022 ) 44.4 % Research and development credit ( 4,989 ) 216.9 % Sec. 162(m) limitation 5,963 ( 259.2 ) % Stock-based compensation 5,018 ( 218.1 ) % Other 605 ( 26.3 ) % 99 Table of Contents Year Ended April 30, 2026 Tax Rate State and local income taxes, net of federal income tax effect ( 14,722 ) 639.9 % Other foreign jurisdictions 1,054 ( 45.8 ) % Tax credits Foreign tax credit ( 2,812 ) 122.2 % Nontaxable or nondeductible items Branch profits adjustment ( 39 ) 1.7 % Meals and entertainment 42 ( 1.8 ) % Non-deductible mergers and acquisitions transaction costs 223 ( 9.7 ) % Other ( 5 ) 0.1 % Valuation allowance ( 390,506 ) 16,973.4 % Other Prior-year adjustments ( 50 ) 2.2 % Stock-based compensation 2,200 ( 95.6 ) % Worldwide changes in unrecognized tax benefits ( 269 ) 11.7 % Effective tax rate $ ( 370,067 ) 16,085.0 % A reconciliation of income taxes at the statutory income tax rate to the provision for (benefit from) income taxes included in the consolidated statements of operations for the fiscal years ended April 30, 2025 and 2024 is as follows (in thousands, except for rates): Year Ended April 30, 2025 2024 Tax Rate Tax Rate Dutch statutory income tax $ ( 8,145 ) 25.8 % $ ( 31,671 ) 25.8 % Foreign income taxed at different rates ( 5,561 ) 17.6 % ( 2,406 ) 2.0 % Tax credits ( 13,508 ) 42.8 % ( 10,149 ) 8.3 % Stock-based compensation ( 9,282 ) 29.4 % ( 10,296 ) 8.4 % Change in valuation allowance 48,539 ( 153.8 ) % ( 186,166 ) 151.6 % Intellectual property migration 610 ( 1.9 ) % 7,353 ( 6.0 ) % BEAT waiver election 45,321 ( 143.6 ) % 40,141 ( 32.7 ) % FDII exclusion ( 2,241 ) 7.1 % ( 2,328 ) 1.9 % Executive compensation 6,523 ( 20.7 ) % 4,091 ( 3.3 ) % Foreign withholding taxes 2,701 ( 8.6 ) % 2,864 ( 2.3 ) % State taxes 6,867 ( 21.8 ) % 1,866 ( 1.5 ) % Unrecognized tax benefit 6,713 ( 21.3 ) % 1,406 ( 1.1 ) % Tax credit add-back 1,215 ( 3.8 ) % 950 ( 0.8 ) % Meals and entertainment 598 ( 1.9 ) % 566 ( 0.5 ) % Prior-year true-ups ( 3,680 ) 11.7 % ( 846 ) 0.7 % Other ( 125 ) 0.5 % 149 ( 0.2 ) % Provision for (benefit from) income taxes $ 76,545 ( 242.5 ) % $ ( 184,476 ) 150.3 % 100 Table of Contents Income Tax Payments Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended April 30, 2026 was as follows (in thousands): Year Ended April 30, 2026 Netherlands $ 3,175 Foreign Brazil 1,533 France 1,831 Germany - federal 2,237 Germany - local 1,442 Israel 3,725 United States - federal 3,572 United States - states 4,135 Other 6,361 Cash paid for income taxes, net of refunds received $ 28,011 Deferred Income Taxes Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Management assesses whether it is more likely than not that some portion or all of the deferred tax assets will be realized. Deferred tax assets are reduced by a valuation allowance where management has concluded it is more likely than not that the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management makes estimates and judgments about future taxable income based on assumptions that are consistent with the Company’s plans and estimates. Significant components of the Company’s deferred tax assets and liabilities are summarized as follows (in thousands): As of April 30, 2026 2025 Deferred tax assets: Accrued compensation $ 8,476 $ 5,837 NOL carryforwards 502,126 537,912 Intangible assets 4,377 5,641 Deferred revenue 13,118 7,478 Stock-based compensation 29,314 20,613 Tax credits 28,371 32,271 Disallowed interest expense 13,642 13,183 Lease liabilities 3,487 4,727 Other 10,298 11,018 Gross deferred tax assets 613,209 638,680 Less valuation allowance ( 4,219 ) ( 437,497 ) Total deferred tax assets 608,990 201,183 Deferred tax liabilities: Deferred contract acquisition costs ( 51,574 ) ( 38,629 ) Right of use assets ( 3,108 ) ( 4,133 ) Other ( 89 ) — Gross deferred tax liabilities ( 54,771 ) ( 42,762 ) Net deferred tax assets $ 554,219 $ 158,421 101 Table of Contents The valuation allowance for deferred tax assets as of April 30, 2026 and 2025 was $ 4.2 million and $ 437.5 million, respectively. As of April 30, 2025, the valuation allowance for the Netherlands, the United Kingdom, and California deferred tax assets was $ 390.5 million, $ 24.3 million, and $ 22.7 million, respectively. During the year ended April 30, 2026, the Company released valuation allowances of $ 390.5 million, $ 23.7 million, and $ 20.7 million related to deferred tax assets in the Netherlands, the United Kingdom, and California, respectively. As of April 30, 2026, the remaining valuation allowance of $ 4.2 million relates to certain U.S. states and foreign jurisdictions. The release of the valuation allowance in the Netherlands and California was supported by the implementation of a committed tax planning action in fiscal 2027 that is expected to generate future taxable income in each jurisdiction. The release of the valuation allowance in the United Kingdom was attributable to achieving three years cumulative income during the three months ended April 30, 2026 as well as forecasts of future taxable income. Based on the weight of all available positive and negative evidence, the Company determined that realization of the related deferred tax assets was more likely than not for each of these jurisdictions. As of April 30, 2026, the Company had NOL carryforwards for Netherlands, United States (federal and state, respectively), and United Kingdom income tax purposes of $ 1.557 billion, $ 229.6 million, $ 505.4 million, and $ 68.9 million, respectively, with losses being carried forward indefinitely and beginning to expire in the year ending April 30, 2026 for the United States (federal and state, respectively), with Netherlands and United Kingdom losses being carried forward indefinitely. The Company also has research and development tax credit carryforwards for the United States (federal and state, respectively), Canada, and Spain for income tax purposes of $ 30.0 million, $ 9.1 million, $ 0.7 million, and $ 2.3 million, respectively, which begin to expire on April 30, 2039, April 30, 2027, April 30, 2042, and April 30, 2041, respectively. Uncertain Tax Positions The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based on the Company’s evaluation of the facts, circumstances, and information available at each period end. Although the Company believes that it has adequately reserved for its uncertain tax positions, the Company can provide no assurance that the final tax outcome of these matters will not be materially different. As the Company continues to grow in size, it will face increased complexity, and the Company’s unrecognized tax benefits may increase in the future. The Company adjusts its reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The Company had unrecognized tax benefits of $ 29.7 million as of April 30, 2026, of which none would impact the effective tax rate before consideration of any valuation allowance. The activity within the Company’s unrecognized tax benefits is summarized as follows (in thousands): As of April 30, 2026 2025 2024 Balance as of beginning of year $ 29,625 $ 22,691 $ 18,157 (Decrease) increase related to tax positions taken in prior periods ( 3,003 ) 1,553 1,201 Increase related to tax positions taken in the current period 4,038 5,381 3,333 Decrease related settlement with tax authorities ( 991 ) — — Balance as of end of year $ 29,669 $ 29,625 $ 22,691 During the year ended April 30, 2026, the Company released approximately $ 3.0 million of prior positions upon completion of the audit and filing of tax returns in applicable jurisdictions. The increase in tax positions related to the current period is primarily from research and development tax credits generated for the year ended April 30, 2026. The Company’s policy is to recognize penalties and interest accrued on any unrecognized tax benefits as a component of income tax expense. The Company recognized interest and penalties of $ 0.7 million, $ 0.9 million, and $ 0.2 million for the years ended April 30, 2026, 2025, and 2024, respectively. The amount of accrued interest and penalties recorded on the consolidated balance sheets as of April 30, 2026 and 2025 was $ 0.7 million and $ 1.3 million, respectively. The Company is subject to periodic examination of income tax returns by various domestic and international tax authorities. During the year ended April 30, 2026, the Company was subject to new audits by various tax authorities. 102 Table of Contents The Company does not anticipate any significant increases or decreases in its uncertain tax positions within the next twelve months. The Company files tax returns in multiple jurisdictions, including the Netherlands and United States. The Company’s tax filings for fiscal years starting with the year ended April 30, 2019 remain open in certain tax jurisdictions. Withholding taxes associated with the repatriation of earnings or for temporary differences related to investments in non-Dutch subsidiaries have not been provided for, as the Company intends to reinvest the earnings of such subsidiaries indefinitely. As of April 30, 2026, if such earnings were to be repatriated, they would be exempt from taxation in the Netherlands and the amount of dividend withholding taxes from such foreign jurisdictions would be $ 6.5 million, due to the various income tax treaties between the Netherlands and the respective foreign jurisdictions. In 2021, the OECD published Pillar Two Model Rules defining a global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD has since issued administrative guidance providing transition and safe harbor rules concerning the implementation of the Pillar Two global minimum tax. A number of countries have enacted legislation to implement core elements of the Pillar Two proposal. Pillar Two did not have a significant impact on the Company’s consolidated financial statements for the year ended April 30, 2026. The Company continues to monitor the impact of proposed and enacted global tax legislation. 14. 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) Plan’s 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 employee’s 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. 15. Segment Information The Company’s Chief Executive Officer is its CODM. The Company’s 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 Company’s operations include cost of revenue, research and development, sales and marketing, and general and administrative expenses, which are presented in the Company’s 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 Company’s consolidated statements of operations. The following table summarizes the Company’s 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 $ 1,267,321 Other than the United States, no individual country accounted for 10% or more of total revenue during the periods presented. 103 Table of Contents The following table presents the Company’s long-lived assets, including property and equipment, net, and operating lease right-of-use assets, by geographic region (in thousands): As of April 30, 2026 2025 United States $ 13,994 $ 16,514 The Netherlands 2,096 2,824 Rest of world 11,142 9,585 Total long-lived assets $ 27,232 $ 28,923 104 Table of Contents Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure None.