What changed in this filing

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Item 1. Financial Statements

2025-10-31 compared with 2025-05-02 · 241 added, 217 removed, 449 unchanged (50% of the section changed)

3 unchanged sentences

(in thousands, except par value and share data)

March 31, 2025 June 30, 2024

September 30, 2025 June 30, 2025

Current assets:

30 unchanged sentences

Class A Common Stock, $ 0.00001 par value;

750,000,000 shares authorized, 165,150,665 and 159,544,123 issued and outstanding at March 31, 2025 and June 30, 2024, respectively

750,000,000 shares authorized, 167,247,629 and 165,949,196 issued and outstanding at September 30, 2025 and June 30, 2025, respectively

Class B Common Stock, 0.00001 par value;

230,000,000 shares authorized, 98,008,049 and 101,012,393 issued and outstanding at March 31, 2025 and June 30, 2024, respectively

230,000,000 shares authorized, 96,049,867 and 97,030,987 issued and outstanding at September 30, 2025 and June 30, 2025, respectively

Additional paid-in capital 5,925,417 5,574,290

7 unchanged sentences

(in thousands, except per share data)

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Three Months Ended September 30,

Subscription $ 1,374,502 $ 1,131,948

12 unchanged sentences

Total operating expenses 1,270,966 1,002,135

Operating income (loss) ( 12,456 ) 17,804 ( 101,913 ) ( 50,127 )

Other expense, net ( 14,861 ) ( 10,990 ) ( 42,292 ) ( 23,964 )

Operating loss ( 96,337 ) ( 31,978 )

Other income (expense), net 18,804 ( 19,432 )

Interest income 29,845 28,564

Interest expense ( 8,636 ) ( 7,318 )

Income (loss) before income taxes ( 7,354 ) 19,775 ( 84,701 ) ( 31,288 )

Provision for income taxes ( 63,453 ) ( 7,023 ) ( 148,083 ) ( 72,312 )

Net income (loss) $ ( 70,807 ) $ 12,752 $ ( 232,784 ) $ ( 103,600 )

Net income (loss) per share attributable to Class A and Class B common stockholders:

Loss before income taxes ( 56,324 ) ( 30,164 )

Provision for (benefit from) income taxes ( 4,454 ) 93,605

Net loss $ ( 51,870 ) $ ( 123,769 )

Net loss per share attributable to Class A and Class B common stockholders:

Basic $ ( 0.20 ) $ ( 0.48 )

Diluted $ ( 0.20 ) $ ( 0.48 )

Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders:

Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders:

Basic 262,991 260,477

13 unchanged sentences

(in thousands)

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Net income (loss) $ ( 70,807 ) $ 12,752 $ ( 232,784 ) $ ( 103,600 )

Three Months Ended September 30,

Net loss $ ( 51,870 ) $ ( 123,769 )

Other comprehensive income (loss), net of reclassification adjustments:

Foreign currency translation adjustment ( 5,746 ) 5,660

Net change in unrealized gain (loss) on marketable and privately held debt securities 456 ( 191 ) 1,069 ( 160 )

Net change in unrealized gain on marketable and privately held debt securities 394 1,354

Net gain (loss) on cash flow hedging derivative instruments ( 10,688 ) 10,506

7 unchanged sentences

(in thousands)

Three Months Ended March 31, 2025

Common Stock Additional paid in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders’ equity

Class A Class B

Shares Amount Shares Amount

Balance at December 31, 2024 162,978 $ 2 98,977 $ 1 $ 4,876,944 $ ( 38,617 ) $ ( 3,618,775 ) $ 1,219,555

Common stock issued 1,722 — — — — — — —

Conversion from Class B Common Stock to Class A Common Stock 969 — ( 969 ) — — — — —

Stock-based compensation — — — — 346,842 — — 346,842

Repurchases of Class A Common Stock ( 609 ) — — — — — ( 138,930 ) ( 138,930 )

Other comprehensive income (loss), net of tax — — — — — 12,262 — 12,262

Net loss — — — — — — ( 70,807 ) ( 70,807 )

Balance at March 31, 2025 165,060 $ 2 98,008 $ 1 $ 5,223,786 $ ( 26,355 ) $ ( 3,828,512 ) $ 1,368,922

Three Months Ended March 31, 2024

Common Stock Additional paid in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders’ equity

Class A Class B

Shares Amount Shares Amount

Balance at December 31, 2023 156,057 $ 2 103,047 $ 1 $ 3,656,057 $ 38,664 $ ( 2,789,801 ) $ 904,923

Common stock issued 1,296 — — — 1 — — 1

Conversion from Class B Common Stock to Class A Common Stock 2,035 — ( 2,035 ) — — — — —

Stock-based compensation — — — — 282,519 — — 282,519

Repurchases of Class A Common Stock ( 206 ) — — — — — ( 41,127 ) ( 41,127 )

Other comprehensive income (loss), net of tax — — — — — ( 24,897 ) — ( 24,897 )

Net income — — — — — — 12,752 12,752

Balance at March 31, 2024 159,182 $ 2 101,012 $ 1 $ 3,938,577 $ 13,767 $ ( 2,818,176 ) $ 1,134,171

ATLASSIAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (CONTINUED)

(in thousands)

Nine Months Ended March 31, 2025

Three Months Ended September 30, 2025

Common Stock Additional paid in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders’ equity

8 unchanged sentences

Net loss — — — — — — ( 51,870 ) ( 51,870 )

Balance at March 31, 2025 165,060 $ 2 98,008 $ 1 $ 5,223,786 $ ( 26,355 ) $ ( 3,828,512 ) $ 1,368,922

Nine Months Ended March 31, 2024

Balance at September 30, 2025 167,175 $ 2 96,050 $ 1 $ 5,925,417 $ ( 2,814 ) $ ( 4,543,670 ) $ 1,378,936

Three Months Ended September 30, 2024

Common Stock Additional paid in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders’ equity

8 unchanged sentences

Net loss — — — — — — ( 123,769 ) ( 123,769 )

Balance at March 31, 2024 159,182 $ 2 101,012 $ 1 $ 3,938,577 $ 13,767 $ ( 2,818,176 ) $ 1,134,171

The above condensed consolidated financial statements should be read in conjunction with the accompanying notes.

Balance at September 30, 2024 160,558 $ 2 99,995 $ 1 $ 4,498,214 $ 42,820 $ ( 3,512,203 ) $ 1,028,834

T he above condensed consolidated financial statements should be read in conjunction with the accompanying notes.

ATLASSIAN CORPORATION

1 unchanged sentence

(in thousands)

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Three Months Ended September 30,

Cash flows from operating activities:

Net income (loss) $ ( 70,807 ) $ 12,752 $ ( 232,784 ) $ ( 103,600 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Net loss $ ( 51,870 ) $ ( 123,769 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization 24,333 22,827

Stock-based compensation 351,127 286,146

Impairment charges for leases and leasehold improvements 26,673 —

Deferred income taxes ( 80 ) ( 768 )

Amortization of interest rate swap contracts ( 5,552 ) ( 7,155 )

Net loss on strategic investments 6,643 4,060 24,546 11,750

Net foreign currency loss (gain) ( 5,169 ) ( 2,276 ) ( 7,750 ) 142

Net loss (gain) on strategic investments ( 26,526 ) 15,292

Net foreign currency loss 1,831 3,040

Other 168 991

12 unchanged sentences

Proceeds from maturities of marketable securities 31,887 46,148

Proceeds from sales of marketable securities and strategic investments 2,622 — 6,935 61,392

Proceeds from sales of strategic investments — 4,042

Net cash used in investing activities ( 60,686 ) ( 18,690 )

Cash flows from financing activities:

Principal payments of term loan facility — ( 12,500 ) — ( 25,000 )

Repurchases of Class A Common Stock ( 252,807 ) ( 183,610 )

2 unchanged sentences

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash ( 5,929 ) 3,564

Net increase (decrease) in cash, cash equivalents, and restricted cash 443,189 488,430 483,706 ( 153,722 )

Net decrease in cash, cash equivalents, and restricted cash ( 190,707 ) ( 121,387 )

Cash, cash equivalents, and restricted cash at beginning of period 2,513,762 2,178,122

13 unchanged sentences

Atlassian Corporation (the “Company”) is a global technology company with a mission to unleash the potential of every team.

Through a portfolio of interconnected products with discrete value propositions that are powered by the Atlassian platform and data model, Atlassian gives all teams the right teamwork foundations so they can plan and track work, align on goals, and unleash knowledge across the organization.

The Company’s primary products include Jira for planning and project management, Confluence for content creation and sharing, Jira Service Management for team service, management and support applications.

The Company’s team collaboration software enables organizations to connect all teams through a system of work that unlocks productivity at scale.

The Company’s portfolio of interconnected apps, AI agents, and products, each with discrete value propositions, delivers solutions for software teams, IT operations and support teams, and business teams.

The Company’s fiscal year ends on June 30 of each year.

3 unchanged sentences

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S.

generally accepted accounting principles (“GAAP”).

These principles are established primarily by the Financial Accounting Standards Board (“FASB”).

The accompanying condensed consolidated financial statements contain all normal recurring adjustments which are necessary to fairly present the condensed consolidated balance sheets as of March 31, 2025 and June 30, 2024, the statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the three and nine months ended March 31, 2025 and 2024.

Certain reclassifications have been made to prior period balances to conform to the current period presentation.

“Maintenance” revenues have been reclassified to “Other” revenues on the Company’s condensed consolidated statements of operations.

This reclassification had no impact on previously reported total revenues.

generally accepted accounting principles (“GAAP”), which are established primarily by the Financial Accounting Standards Board (“FASB”).

The accompanying condensed consolidated financial statements contain all normal recurring adjustments which are necessary to fairly present the condensed consolidated balance sheets as of September 30, 2025 and June 30, 2025, the statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the three months ended September 30, 2025 and 2024.

These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting.

11 unchanged sentences

Actual results could differ materially from these estimates.

The Company operates as a single operating segment and derives revenue primarily from fees earned from subscription-based arrangements for providing customers with software in a cloud-based-infrastructure that the Company provides, and from the sale of on-premises term license agreements.

An operating segment is defined as a component of an entity for which discrete financial information is available and whose results of operations are regularly reviewed by the chief operating decision maker (“CODM”).

The Company has identified the CEO, Mike Cannon-Brookes, as the CODM.

The CODM manages the Company using consolidated financial information.

Further, the Company offers a connected portfolio of apps that are built on a single Atlassian platform and data model.

Accordingly, the Company has determined it operates as a single operating and reportable segment.

The CODM uses consolidated net loss to allocate resources, including headcount, and make business investment decisions during the Company’s budgeting process.

The CODM also uses consolidated net loss to assess performance by comparing the consolidated results to forecasts.

Significant segment expenses are organized by function and are presented on the condensed consolidated statements of operations.

Other segment items included in consolidated net loss are:

other income and expense, net, interest income, interest expense, and the provision for income taxes, which are reflected in the condensed consolidated statements of operations.

Significant Accounting Policies

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The Company manages credit risk with customers by closely monitoring its receivables and contract assets.

The Company continuously monitors outstanding receivables locally to assess whether there is objective evidence that outstanding accounts receivables and contract assets are credit-impaired.

As of March 31, 2025 and June 30, 2024, no customer represented more than 10% of the total accounts receivable balance.

For the three and nine months ended March 31, 2025 and 2024, no customer represented more than 10% of total revenues.

The Company continuously monitors outstanding receivables locally to assess whether there is objective evidence that outstanding accounts receivable and contract assets are credit-impaired.

As of September 30, 2025, and June 30, 2025, no customer represented more than 10% of the total accounts receivable balance.

For the three months ended September 30, 2025, and 2024, no customer represented more than 10% of total revenues.

New Accounting Standards Not Yet Adopted in Fiscal Year 2026

In November 2023, the FASB issued Accounting Standards Update (“ASU”) No.

2023-07 “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.” This ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets.

All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment.

This ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted and requires retrospective application to all prior periods.

The Company is currently evaluating the impact of the new guidance and does not expect it to have a material impact on its consolidated financial statements.

In December 2023, the FASB issued ASU No.

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The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

Recently Adopted Accounting Pronouncements

In June 2022, the FASB issued ASU No.

2022-03 “Fair Value Measurement (Topic 820):

Fair Value Measurement of Equity Securities Subject to Contractual Sale Restriction.” This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.

This amendment also requires public entities to add certain disclosures for equity securities subject to contractual sale restrictions.

The Company prospectively adopted this standard effective July 1, 2024.

The adoption did not have a material impact on the Company’s condensed consolidated financial statements and disclosures.

In July 2025, the FASB issued ASU 2025-05 “ Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets for Private Companies and Certain Not-for-Profit Entities,” which amends ASC 326-20 to provide a practical expedient and an accounting policy election (for all entities, other than public business entities that elect the 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.

This ASU is effective for fiscal years beginning after December 15, 2025, and early adoption is permitted.

The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.” This ASU makes targeted improvements to the accounting for internally developed software subject to ASC 350-40.

This ASU is effective for fiscal years beginning after December 15, 2027, and early adoption is permitted.

The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

Fair Value Measurements

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2025, by level within the fair value hierarchy (in thousands):

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2025, by level within the fair value hierarchy (in thousands):

Level 1 Level 2 Total

2 unchanged sentences

Money market funds $ 1,599,347 $ — $ 1,599,347

treasury securities — 9,975 9,975

Marketable securities:

14 unchanged sentences

Money market funds $ 1,774,138 $ — $ 1,774,138

Corporate debt securities — 382 382

Marketable securities:

9 unchanged sentences

Total liabilities measured at fair value $ — $ 2,445 $ 2,445

Due to the short-term nature of accounts receivables, net, contract assets, accounts payable, accrued expenses, and other current liabilities, their carrying amount is assumed to approximate their fair value.

Due to the short-term nature of accounts receivable, net, contract assets, accounts payable, accrued expenses, and other current liabilities, their carrying amount is assumed to approximate their fair value.

Determination of Fair Value

4 unchanged sentences

Privately held equity securities that have been remeasured during the period based on observable price changes in orderly transactions are classified within Level 2 or Level 3 in the fair value hierarchy because the Company estimates the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights and preferences of the investments, and obligations of the securities the Company holds.

The fair value of privately held equity securities that have been remeasured due to impairment are classified within Level 3.

The Company’s privately held debt and equity securities amounted to $ 166.5 million and $ 148.7 million as of March 31, 2025 and June 30, 2024, respectively.

The fair value of privately held equity securities that have been remeasured due to impairment is classified within Level 3.

The Company’s privately held debt and equity securities amounted to $ 150.6 million and $ 168.8 million as of September 30, 2025, and June 30, 2025, respectively.

Marketable Securities

The Company’s investments of marketable securities as of March 31, 2025, consisted of the following (in thousands):

The Company’s investments of marketable securities as of September 30, 2025, consisted of the following (in thousands):

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

14 unchanged sentences

The table below summarizes the Company’s marketable securities by remaining contractual maturity (in thousands):

March 31, 2025 June 30, 2024

September 30, 2025 June 30, 2025

Due in one year or less $ 319,559 $ 271,923

2 unchanged sentences

The Company regularly reviews the changes to the rating of its marketable securities by rating agencies and monitors the surrounding economic conditions to assess the risk of expected credit losses.

As of March 31, 2025, and June 30, 2024, unrealized losses and the related risk of expected credit losses were not material.

As of September 30, 2025, and June 30, 2025, unrealized losses and the related risk of expected credit losses were not material.

Strategic Investments

Carrying value of privately held debt securities

The Company’s investments of privately held debt securities as of March 31, 2025, consisted of the following (in thousands):

The Company’s investments of privately held debt securities as of September 30, 2025, consisted of the following (in thousands):

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

3 unchanged sentences

Privately held debt securities $ 7,780 $ — $ ( 3,350 ) $ 4,430

Carrying value of privately held equity securities

Privately held equity securities are measured using the measurement alternative.

Carrying value of publicly traded and privately held equity securities

Publicly traded equity securities are recorded at fair value, and privately held equity securities are measured using the measurement alternative.

The carrying value is measured as the total initial cost plus the cumulative net gain (loss).

The carrying values for privately held equity securities as of March 31, 2025 are summarized below (in thousands):

Privately held equity securities

The carrying values for publicly traded and privately held equity securities as of September 30, 2025 are summarized below (in thousands):

Publicly traded equity securities Privately held equity securities Total

Initial total cost $ 20,000 $ 146,302 $ 166,302

Cumulative net losses ( 3,458 )

Cumulative net gains (losses) 24,729 ( 112 ) 24,617

Carrying value $ 44,729 $ 146,190 $ 190,919

Privately held equity securities’ cumulative net losses are comprised of downward adjustments and impairment charges of $ 8.5 million and upward adjustments of $ 5.0 million as of March 31, 2025.

The carrying values for privately held equity securities as of June 30, 2024 are summarized below (in thousands):

Privately held equity securities’ cumulative net losses are composed of downward adjustments and impairment charges of $ 9.0 million and upward adjustments of $ 8.9 million as of September 30, 2025.

During the period ended September 30, 2025, one of the Company's privately held equity investments completed an initial public offering.

This publicly traded equity security was reclassified from strategic investments to prepaid expenses and other current assets on the condensed consolidated balance sheets as the Company intends to sell this investment within 12 months from the balance sheet date.

The Company did not have any publicly traded equity securities as of June 30, 2025 and the carrying values for privately held equity securities as of June 30, 2025 are summarized below (in thousands):

Privately held equity securities

2 unchanged sentences

Carrying value $ 164,393

Privately held equity securities’ cumulative net losses are comprised of downward adjustments and impairment charges of $ 7.5 million and upward adjustments of $ 5.0 million as of June 30, 2024.

Privately held equity securities’ cumulative net losses are composed of downward adjustments and impairment charges of $ 8.5 million and upward adjustments of $ 6.6 million as of June 30, 2025.

Gains and Losses on Strategic Investments

The components of gains and losses on strategic investments were as follows (in thousands):

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Three Months Ended September 30,

Unrealized gains recognized on publicly traded equity securities $ 24,729 $ —

Unrealized gains recognized on privately held equity securities 2,297 —

Unrealized losses recognized on privately held equity securities including impairment ( 500 ) —

Unrealized losses on privately held debt securities — ( 500 ) — ( 500 )

Unrealized gains (losses), net $ ( 967 ) $ 440 $ ( 967 ) $ ( 1,002 )

Realized gains recognized on sales of publicly traded equity securities — — — 515

Unrealized gains, net $ 26,526 $ —

Realized losses recognized on privately held equity securities — ( 34 )

Gains (losses) on strategic investments, net $ 26,526 $ ( 34 )

Unrealized gains (losses) recognized during the reporting period on privately held equity securities still held at the reporting date $ ( 967 ) $ 940 $ ( 967 ) $ ( 502 )

Realized gains and losses recognized on sales of securities reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

Unrealized gains recognized on privately held equity securities includes upward adjustments from equity securities accounted for under the measurement alternative while unrealized losses recognized on privately held equity securities includes downward adjustments and impairment.

Unrealized gains recognized during the reporting period on privately held equity securities still held at the reporting date

Unrealized gains recognized on privately held equity securities include upward adjustments from equity securities accounted for under the measurement alternative, while unrealized losses recognized on privately held equity securities include downward adjustments and impairment.

Realized gains on sales of privately held securities, net, reflect the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

Equity Method Investment

4 unchanged sentences

Under the equity method, the Company records its proportionate share of VFT’s earnings or losses.

The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal year 2024 and the nine months ended March 31, 2025 (in thousands):

The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal year 2025 and the three months ended September 30, 2025 (in thousands):

Equity Method Investment

5 unchanged sentences

Effect of change in exchange rates 327

Balance as of March 31, 2025

Balance as of September 30, 2025

The carrying amount of the Company’s investment in VFT was reported within strategic investments in the condensed consolidated balance sheets.

1 unchanged sentence

The Company has derivative instruments that are used for hedging activities as discussed below.

The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of March 31, 2025 (in thousands):

The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of September 30, 2025 (in thousands):

Notional Amounts of Derivative Instruments

7 unchanged sentences

Forward contracts $ 1,064,280 $ 79,858 $ 1,144,138 $ 765,613 $ 378,525 $ 1,144,138

The fair value of the Company’s derivative instruments were as follows (in thousands):

Balance Sheet Location March 31, 2025 June 30, 2024

The fair values of the Company’s derivative instruments were as follows (in thousands):

Balance Sheet Location September 30, 2025 June 30, 2025

Derivative assets

13 unchanged sentences

The pre-tax effects of derivatives designated as cash flow hedging instruments on the condensed consolidated financial statements were as follows (in thousands):

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Beginning balance of accumulated gains (losses) in accumulated other comprehensive income (loss) $ ( 15,267 ) $ 51,306 $ 41,424 $ 48,170

Three Months Ended September 30,

Beginning balance of accumulated gains in accumulated other comprehensive income (loss) $ 24,679 $ 41,424

Gross unrealized gains (losses) recognized in other comprehensive income (loss) ( 6,709 ) 18,015

5 unchanged sentences

Recognized in interest expense ( 5,552 ) ( 7,155 )

Ending balance of accumulated gains (losses) in accumulated other comprehensive income (loss) $ ( 7,030 ) $ 31,125 $ ( 7,030 ) $ 31,125

Ending balance of accumulated gains in accumulated other comprehensive income (loss) $ 13,991 $ 51,930

Property and Equipment

Property and equipment, net consisted of the following (in thousands):

March 31, 2025 June 30, 2024

September 30, 2025 June 30, 2025

Equipment $ 15,949 $ 15,008

3 unchanged sentences

Property and equipment, gross 253,796 252,897

accumulated depreciation and impairment ( 149,493 ) ( 128,825 )

accumulated depreciation ( 154,085 ) ( 147,779 )

Property and equipment, net $ 99,711 $ 105,118

Depreciation expense was $ 9.3 million and $ 7.3 million for the three months ended March 31, 2025 and 2024, respectively and $ 27.5 million and $ 21.3 million for the nine months ended March 31, 2025 and 2024, respectively .

Depreciation expense was $ 10.7 million and $ 8.9 million for the three months ended September 30, 2025, and 2024, respectively.

During the three months ended September 30, 2025, the Company recorded a $ 1.1 million impairment charge, which is recorded in leasehold improvements and other, as a result of its facilities consolidation restructuring efforts.

Refer to Note 14, “ Restructuring ,” for additional information.

Business Combinations

Completed Acquisition

During the first quarter of fiscal year 2026, the Company completed an acquisition to expand Atlassian’s product and service offerings.

The transaction was accounted for as a business combination and was not material to the condensed consolidated financial statements.

Pending Acquisition

A Software Company

In September 2025, the Company entered into a definitive agreement to acquire A Software Company (“ DX”), a leader in engineering intelligence.

Under the terms of the agreement, the Company will acquire DX for approximately $ 1.0 billion , inclusive of DX’s cash balance, subject to customary adjustments.

Total consideration will be comprised of cash and shares of the Company’s Class A Common Stock, which are subject to continued vesting provisions.

The Company expects to fund the cash consideration through existing cash balances.

The transaction is anticipated to close in the second quarter of fiscal year 2026, subject to customary closing conditions, including required regulatory approvals.

Subsequent Event

The Browser Company of New York Inc.

On October 20, 2025, the Company acquired 100 % of the outstanding equity of The Browser Company of New York Inc.

(“BCNY”), the company behind the Dia and Arc browsers.

Under the terms of the agreement, the Company acquired BCNY for approximately $ 610 million.

Total consideration was composed of approximately $ 488.3 million in cash, which was funded through the Company’s existing cash balance, and the remainder in the form of shares of the Company’s Class A Common Stock, which are subject to continued vesting provisions.

The Company is currently evaluating the purchase price allocation for this acquisition, which will be treated as a business combination.

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired.

Goodwill amounts are not amortized, but rather are tested for impairment at least annually during the fourth quarter, or when indicators of impairment exist.

Goodwill amounts are not amortized, but rather tested for impairment at least annually during the fourth quarter, or when indicators of impairment exist.

Goodwill consisted of the following (in thousands):

2 unchanged sentences

Effect of change in exchange rates ( 252 )

Balance as of March 31, 2025 $ 1,292,942

During the first quarter of fiscal year 2025 the Company completed an acquisition to expand the Company’s product and service offerings.

The transaction was accounted for as a business combination and was not significant to the condensed consolidated financial statements.

On November 30, 2023, the Company acquired Loom, Inc.

The fair values assigned to assets acquired and liabilities assumed have been finalized and there were no measurement period adjustments recorded during the nine months ended March 31, 2025.

Balance as of September 30, 2025 $ 1,318,028

Intangible Assets

Intangible assets consisted of the following (in thousands):

March 31, 2025 June 30, 2024 Weighted-Average Remaining Useful Lives

Intangible assets consisted of the following as of September 30, 2025 (in thousands):

Gross Carrying Amount Accumulated Amortization Net

Acquired developed technology $ 471,632 $ ( 288,482 ) $ 183,150

1 unchanged sentence

Customer relationships 135,687 ( 115,060 ) 20,627

Intangible assets, gross 673,547 676,367

accumulated amortization ( 414,865 ) ( 377,310 )

Intangible assets, net $ 258,682 $ 299,057

Amortization expense for intangible assets was approximately $ 13.9 million and $ 16.2 million for the three months ended March 31, 2025 and 2024, respectively and $ 41.7 million and $ 34.3 million for the nine months ended March 31, 2025 and 2024, respectively.

The following table presents the estimated future amortization expense related to intangible assets held as of March 31, 2025 (in thousands):

Total Intangible Assets $ 678,247 $ ( 442,357 ) $ 235,890

Intangible assets consisted of the following as of June 30, 2025 (in thousands):

Gross Carrying Amount Accumulated Amortization Net

Acquired developed technology $ 466,932 $ ( 278,525 ) $ 188,407

Patents, trade names, and other rights 70,928 ( 37,337 ) 33,591

Customer relationships 135,687 ( 112,845 ) 22,842

Total Intangible Assets $ 673,547 $ ( 428,707 ) $ 244,840

The weighted-average remaining useful lives of the Company’s acquired intangible assets as of September 30, 2025 were as follows:

Weighted-Average Remaining Useful Lives (Years)

Acquired developed technology 5

Patents, trade names, and other rights 6

Customer relationships 3

Amortization expense for intangible assets was approximately $ 13.6 million and $ 13.9 million for the three months ended September 30, 2025, and 2024, respectively.

The following table presents the estimated future amortization expense related to intangible assets held as of September 30, 2025 (in thousands):

Fiscal Years:

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Accrued expenses and other current liabilities consist of the following (in thousands):

March 31, 2025 June 30, 2024

September 30, 2025 June 30, 2025

Accrued expenses $ 208,105 $ 180,197

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Customer deposits 19,188 16,396

Derivative liabilities 23,302 1,694

Restructuring provision 18,269 —

Other payables 24,375 25,296

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operating subsidiary, Atlassian US, Inc., entered into an amended and restated credit agreement (the "2024 Credit Agreement") which eliminated a term loan facility and provides for a $ 750 million senior unsecured revolving credit facility (the “2024 Credit Facility”).

The 2024 Credit Agreement replaced the Company's prior credit agreement entered into in October 2020 (“2020 Credit Agreement”) which provided for a $ 1 billion senior unsecured delayed-draw term loan facility and a $ 500 million senior unsecured revolving credit facility.

The 2024 Credit Agreement replaced the Company's prior credit agreement entered into in October 2020 (“2020 Credit Agreement”) which provided for a $ 1 billion senior unsecured delayed-draw term loan facility (the “Term Loan”) and a $ 500 million senior unsecured revolving credit facility.

The 2024 Credit Facility bears interest, at the Company’s option, at a base rate or the Secured Overnight Financing Rate, plus, in each case, a spread of 0.875 % to 1.50 % per annum.

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The 2024 Credit Facility matures in August 2029.

As of September 30, 2025 there were no borrowings under the 2024 Credit Facility.

The Company is also obligated to pay a commitment fee on the undrawn amounts of the 2024 Credit Facility at an annual rate ranging from 0.075 % to 0.20 %, determined by the Company’s consolidated leverage ratio, or, following the Company’s one-time option, the Company’s credit rating.

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The financial covenants include a maximum consolidated leverage ratio of 3.5 x, which increases to 4.5 x during the period of four fiscal quarters immediately following a material acquisition.

As of March 31, 2025, the Company was in compliance with all covenants associated with the 2024 Credit Facility.

As of September 30, 2025, the Company was in compliance with all covenants associated with the 2024 Credit Facility.

On May 15, 2024, the Company issued $ 500.0 million aggregate principal amount of 5.250 % senior notes due 2029 (the “2029 Notes”) and $ 500.0 million aggregate principal amount of 5.500 % senior notes due 2034 (the “2034 Notes,” and together with the 2029 Notes, the “Notes”).

The 2029 Notes and the 2034 Notes will mature on May 15, 2029, and May 15, 2034, respectively.

The 2029 Notes bear interest at a rate of 5.250 % per year.

The 2034 Notes bear interest at a rate of 5.500 % per year.

Interest on the Notes is paid semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2024.

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The indenture governing the Notes also includes covenants (including certain limited covenants restricting the Company’s ability to incur certain liens and enter into certain sale and leaseback transactions), events of default, and other customary provisions.

As of March 31, 2025, the Company was in compliance with all covenants associated with the Notes.

As of September 30, 2025, the Company was in compliance with all covenants associated with the Notes.

The Company incurred debt discount and issuance costs of approximately $ 14.3 million in connection with the Notes offering, which were allocated on a pro rata basis to the 2029 Notes and 2034 Notes.

The debt discount and issuance costs are amortized on an effective interest rate method to interest expense over the contractual term of the Notes.

The proceeds from this offering, net of debt discounts and issuance costs, was $ 985.7 million.

The proceeds from this offering, net of debt discounts and issuance costs, were $ 985.7 million.

The net proceeds were used primarily to repay the Term Loan.

The components of the Notes were as follows (in thousands, except percentage data):

Instrument Expected Remaining Term (years) Contractual Interest Rate Effective Interest Rate March 31, 2025 June 30, 2024

Instrument Expected Remaining Term (years) Contractual Interest Rate Effective Interest Rate September 30, 2025 June 30, 2025

2029 Notes 3.6 5.250 % 5.55 % $ 500,000 $ 500,000

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Long-term debt $ 988,143 $ 987,684

The total estimated fair value of the Notes was approximately $ 1.0 billion as of March 31, 2025 and June 30, 2024.

The total estimated fair value of the Notes was approximately $ 1.05 billion and $ 1.03 billion as of September 30, 2025, and June 30, 2025, respectively.

The estimated fair value of the Notes, which the Company deems Level 2 financial instruments, was determined based on quoted bid prices in an over-the-counter market on the last trading day of the reporting period.

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Noncancellable Purchase Obligations

The Company has contractual commitments for services with third-parties related to its cloud services platform and other services.

These commitments are non-cancellable and expire within one to four years as disclosed in Note 12, “Commitments and Contingencie s” of its Annual Report on Form 10-K for fiscal year 2024.

During the nine months ended March 31, 2025, the Company entered into additional non-cancelable purchase commitments of approximately $ 157.3 million which expire within two to three years .

The Company has contractual commitments for services with third parties related to its cloud services platform, marketing-related contracts, and other services.

These commitments are non-cancellable and expire within two to seven years , as disclosed in Note 11, “Commitments and Contingencies ” of its Annual Report on Form 10-K for fiscal year 2025.

Operating Leases

There were no material changes to the Company’s operating lease arrangements and future lease payments under non-cancelable operating leases including obligations for leases that have not yet commenced disclosed in Note 10, “ Leases, ” of the Company’s Annual Report on Form 10-K for fiscal year 2024.

Supplemental information related to operating leases were as follows (in thousands):

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

During the three months ended September 30, 2025, the Company recorded a $ 25.2 million impairment charge for operating lease right-of-use assets as a result of its facilities consolidation restructuring efforts.

Refer to Note 14, “ Restructuring ,” for additional information.

There were no other material changes to the Company’s operating lease arrangements and future lease payments under non-cancelable operating leases, including, obligations for leases that have not yet commenced, disclosed in Note 9, “ Leases, ” of the Company’s Annual Report on Form 10-K for fiscal year 2025.

Supplemental information related to operating leases was as follows (in thousands):

Three Months Ended September 30,

Operating lease costs

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In addition, the Company has entered into indemnification agreements with its directors, executive officers and certain other officers that will require the Company to, among other things, indemnify these individuals for certain liabilities that may arise as a result of their affiliation with the Company.

For the periods presented, the Company has not incurred any costs as a result of such indemnification obligations and has not recorded any liabilities related to such obligations in the condensed consolidated financial statements.

Remaining Performance Obligations

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods.

The transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods.

Transaction price allocated to the remaining performance obligations is influenced by several factors, including the timing of renewals, the timing of delivery of software licenses, average contract terms, and foreign currency exchange rates.

Unbilled portions of the remaining performance obligations are subject to future economic risks, including bankruptcies, regulatory changes, and other market factors.

As of March 31, 2025, approximately $ 2.9 billion of revenue is expected to be recognized from the transaction price allocated to remaining performance obligations.

As of September 30, 2025, approximately $ 3.3 billion of revenue is expected to be recognized from the transaction price allocated to remaining performance obligations.

The Company expects to recognize revenue on approximately 74 % of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.

Disaggregated Revenue

The Company’s revenues by geographic region based on end-users who purchased the Company’s products or services are as follows (in thousands):

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

The Company’s revenues by geographic region based on end-users who purchased the Company’s offerings were as follows (in thousands):

Three Months Ended September 30,

United States $ 613,017 $ 506,227

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Total revenues $ 1,432,553 $ 1,187,781

The Company’s revenues by deployment options are as follows (in thousands):

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

The Company’s revenues by deployment options were as follows (in thousands):

Three Months Ended September 30,

Cloud $ 997,708 $ 792,306

Data Center 372,648 335,594

Server — 29,720 — 177,645

Marketplace and other 62,197 59,881

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Premier support consists of subscription-based arrangements for a higher level of support across different deployment options, and revenues from this offering are included in Subscription revenues within the Company’s condensed consolidated statements of operations.

The revenues from Server offerings for the three and nine months ended March 31, 2024 consisted of only revenue from maintenance services for the Company’s Server offerings as the Company was no longer selling perpetual licenses for its Server offerings.

The Company generally ended maintenance for Server offerings in February 2024.

Revenue related to Server offerings is included in Other revenues within the Company’s condensed consolidated statements of operations.

In September 2025, the Company announced plans to end-of-life its Data Center deployment offering.

Beginning in March 2026, the Company will no longer sell term licenses to new customers, and the Company will stop selling term licenses and expansions to existing customers in March 2028.

Subject to limited exceptions, the Company plans to end maintenance and support for its Data Center offerings in March 2029.

Deferred Revenue

The Company records deferred revenues when cash payments are received or due in advance of the Company satisfying its performance obligations, including amounts which are refundable.

The changes in the balances of deferred revenue are as follows (in thousands):

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

The Company records deferred revenues when cash payments are received or due in advance of the Company satisfying its performance obligations, including amounts that are refundable.

The changes in the balances of deferred revenue were as follows (in thousands):

Three Months Ended September 30,

Balance, beginning of period $ 2,481,254 $ 2,114,736

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Balance, end of period $ 2,281,156 $ 2,012,820

For the three months ended March 31, 2025 and 2024, approximately 25 % and 21 % of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

For the nine months ended March 31, 2025 and 2024, approximately 42 % and 38 % of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

For the three months ended September 30, 2025 and 2024, approximately 61 % of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year.

Deferred Contract Acquisition Costs

The changes in the balances of deferred contract acquisition costs are as follows (in thousands):

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

The changes in the balances of deferred contract acquisition costs were as follows (in thousands):

Three Months Ended September 30,

Balance, beginning of period $ 136,340 $ 79,711

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Total $ 140,598 $ 83,444

The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit.

There were no impairment losses recorded during the periods presented.

Geographic Information

The Company’s long-lived assets by geographic regions were as follows (in thousands):

September 30, 2025 June 30, 2025

United States $ 134,248 $ 168,841

Australia 54,595 54,073

India 30,632 34,909

All other countries 14,846 16,422

Total long-lived assets $ 234,321 $ 274,245

Long-lived assets for this purpose consist of property and equipment and operating lease right-of-use assets.

Restructuring

During the three months ended September 30, 2025, the Company initiated a rebalancing of resources resulting in the elimination of certain roles.

These actions were part of the Company’s initiatives to reduce additional capacity no longer necessary due to the increased ability, accessibility, performance, stability, and supportability of its products.

As a result, the Company recorded severance and other termination benefits of $ 27.9 million, and stock-based compensation of $ 1.4 million for the affected employees for the three months ended September 30, 2025.

In addition, during the three months ended September 30, 2025, the Company exited certain floors of a leased property, which it plans to sublease, in order to optimize its real estate footprint.

As a result, the Company recorded impairment charges for the related operating lease right-of-use assets and leasehold improvements of $ 26.3 million for the three months ended September 30, 2025.

The fair values of the impaired assets were estimated using discounted cash flow models (income approach) based on market participant assumptions with Level 3 fair value inputs.

The assumptions used in estimating fair value include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods, and discount rates that reflect the level of risk associated with receiving future cash flows.

The execution of these actions, including cash payment of the severance and other termination benefits related liabilities, is expected to be substantially completed as of December 31, 2025.

A summary of the Company’s restructuring charges for the three months ended September 30, 2025, by major activity type was as follows (in thousands):

Severance and Other Termination Benefits Stock-based Compensation Lease Consolidation Total

Cost of revenue $ 27,794 $ 1,432 $ 2,366 $ 31,592

Research and development — — 12,102 12,102

Marketing and sales — — 8,154 8,154

General and administrative 95 — 3,735 3,830

Total $ 27,889 $ 1,432 $ 26,357 $ 55,678

The following table is a summary of the changes in the liabilities, included within accrued expenses and other current liabilities on the condensed consolidated balance sheets as of September 30, 2025, related to the restructuring charges (in thousands):

Severance and Other Termination Benefits Stock-based Compensation Lease Consolidation Total

Charges $ 27,889 $ 1,432 $ 26,357 $ 55,678

Payments ( 9,224 ) — — ( 9,224 )

Non-cash items ( 446 ) ( 1,432 ) ( 26,307 ) ( 28,185 )

Liability as of September 30, 2025

$ 18,219 $ — $ 50 $ 18,269

Stockholders’ Equity

Stock-based Compensation

A summary of restricted stock unit (“RSU”) activity for the nine months ended March 31, 2025 was as follows (in thousands except share and per share data):

A summary of restricted stock unit (“RSU”) activity for the three months ended September 30, 2025 was as follows (in thousands except share and per share data):

Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value

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Forfeited or cancelled ( 820,398 ) 181.93 —

Balance as of March 31, 2025 17,689,910 $ 191.87 $ 3,753,976

As of March 31, 2025, total compensation cost not yet recognized in the condensed consolidated financial statements related to employee and director RSU awards was $ 2.6 billion.

During the nine months ended March 31, 2025, the Company did not grant any shares of restricted stock awards (“RSA”).

During the nine months ended March 31, 2024, the Company granted 301,751 shares of RSA.

As of March 31, 2025 and June 30, 2024, there were 91,178 and 156,856 shares of RSA outstanding, respectively.

Balance as of September 30, 2025 $ 23,711,430 $ 182.22 $ 3,786,715

As of September 30, 2025, total compensation cost not yet recognized in the condensed consolidated financial statements related to employee and director RSU awards was $ 3.3 billion.

During the three months ended September 30, 2025, the Company granted 7,744 shares of restricted stock awards (“RSA”) in connection with a business combination.

During the three months ended September 30, 2024, the Company did not grant any shares of RSA.

As of September 30, 2025 and June 30, 2025, there were 72,874 and 90,083 shares of RSA outstanding, respectively.

These outstanding shares of RSA are subject to forfeiture or repurchase at the original exercise price during the repurchase period following employee termination, as applicable.

The total aggregate intrinsic value of outstanding shares of RSA were $ 19.3 million and $ 27.7 million as of March 31, 2025 and June 30, 2024, respectively.

Share Repurchase Programs

The total aggregate intrinsic value of outstanding shares of RSA were $ 11.6 million and $ 18.3 million as of September 30, 2025 and June 30, 2025, respectively.

Share Repurchase Program

In January 2023, the Board of Directors authorized a program to repurchase up to $ 1.0 billion of the Company’s outstanding Class A Common Stock (the “2023 Repurchase Program”).

In September 2024, the Board of Directors authorized a new program under which the Company may repurchase up to an additional $ 1.5 billion of the Company’s outstanding Class A Common Stock (the “2024 Repurchase Program” and, together with the 2023 Repurchase Program, the “Repurchase Programs”).

The 2024 Repurchase Program will commence following completion of the 2023 Repurchase Program.

The Repurchase Programs do not have a fixed expiration date, may be suspended or discontinued at any time, and do not obligate the Company to repurchase any specific dollar amount or to acquire any specific number of shares.

The Company may repurchase shares of Class A Common Stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions.

The 2023 Repurchase Program was completed in fiscal year 2025.

The 2024 Repurchase Program commenced in April 2025 following completion of the 2023 Repurchase Program.

The 2024 Repurchase Program does not have a fixed expiration date, may be suspended or discontinued at any time, and does not obligate the Company to repurchase any specific dollar amount or to acquire any specific number of shares.

The Company may repurchase shares of Class A Common Stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in accordance with applicable securities laws and other restrictions.

The timing, manner, price, and amount of any repurchases will be determined by the Company at its discretion and will depend on a variety of factors, including business, economic, and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations.

During the three and nine months ended March 31, 2025, the Company repurchased and subsequently retired approximately 0.6 million and 2.1 million shares of its Class A Common Stock for approximately $ 138.9 million and $ 391.2 million at an average price per share of $ 228.05 and $ 185.57 , respectively.

During the three months ended September 30, 2025, the Company repurchased and subsequently retired approximately 1.4 million shares of its Class A Common Stock for approximately $ 249.9 million at an average price per share of $ 180.74 .

All repurchases were made in open market transactions.

As of March 31, 2025, the Company was authorized to purchase a remaining $ 60.7 million and $ 1.5 billion of its Class A Common Stock under the 2023 Share Repurchase Program and 2024 Share Repurchase Program, respectively.

Net Income (Loss) Per Share

The Company computes net income (loss) per share of Class A and Class B Common Stock using the two-class method.

As the liquidation and dividend rights for both Class A and Class B Common Stock are identical, the net income (loss) is allocated on a proportionate basis to the weighted-average number of shares of common stock outstanding for the period.

Basic net income (loss) per share attributable to Class A and Class B stockholders is computed by dividing the net income (loss) by the weighted-average number of Class A and Class B Common Stock outstanding during the period.

For the calculation of diluted net income per share, basic earnings per share is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans.

As of September 30, 2025, $ 921.3 million of the Company’s Class A Common Stock remained available for repurchase under the 2024 Repurchase Program.

Net Loss Per Share

The Company computes net loss per share of Class A and Class B Common Stock using the two-class method.

As the liquidation and dividend rights for both Class A and Class B Common Stock are identical, the net loss is allocated on a proportionate basis to the weighted-average number of shares of common stock outstanding for the period.

Basic net loss per share attributable to Class A and Class B stockholders is computed by dividing the net loss by the weighted-average number of Class A and Class B Common Stock outstanding during the period.

For the calculation of diluted net loss per share, net loss for basic earnings per share is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans.

The dilutive potential shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable.

For the report periods that the Company is in a loss position, basic net loss per share are the same as diluted net loss per share as the inclusion of potential dilutive shares would have been anti-dilutive.

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Class A Class B Class A Class B Class A Class B Class A Class B

Net income (loss) per share, basic:

Net income (loss) $ ( 44,384 ) $ ( 26,423 ) $ 7,743 $ 5,009 $ ( 144,622 ) $ ( 88,162 ) $ ( 62,334 ) $ ( 41,266 )

Weighted-average shares outstanding 164,652 98,019 157,710 102,007 162,415 99,008 155,676 103,062

Net income (loss) per share, basic $ ( 0.27 ) $ ( 0.27 ) $ 0.05 $ 0.05 $ ( 0.89 ) $ ( 0.89 ) $ ( 0.40 ) $ ( 0.40 )

Net income (loss) per share, diluted

Net income (loss) $ ( 44,384 ) $ ( 26,423 ) $ 7,743 $ 5,009 $ ( 144,622 ) $ ( 88,162 ) $ ( 62,334 ) $ ( 41,266 )

Reallocation of undistributed earnings as a result of conversion of shares of Class B Common Stock to Class A Common Stock — 5,009 — — — — —

Reallocation of undistributed earnings — — — ( 40 ) — — — —

Net income (loss) for net income (loss) per share, diluted $ ( 44,384 ) $ ( 26,423 ) $ 12,752 $ 4,969 $ ( 144,622 ) $ ( 88,162 ) $ ( 62,334 ) $ ( 41,266 )

Weighted-average shares used in computing net income (loss) per share, basic 164,652 98,019 157,710 102,007 162,415 99,008 155,676 103,062

Conversion of shares of Class B Common Stock to Class A Common Stock outstanding — 102,007 — — — — —

RSA — — 300 — — — — —

Dilution from dilutive securities — — 1,761 — — — — —

Weighted-average shares used in computation net income (loss) per share, diluted 164,652 98,019 261,778 102,007 162,415 99,008 155,676 103,062

Net income (loss) per share, diluted $ ( 0.27 ) $ ( 0.27 ) $ 0.05 $ 0.05 $ ( 0.89 ) $ ( 0.89 ) $ ( 0.40 ) $ ( 0.40 )

The potential weighted average dilutive securities that were not included in the dilutive earnings per share calculation because the effect would be anti-dilutive are as follows (shares in thousands):

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Since the Company is in a loss position for all periods reported, basic and diluted net loss per share are the same for all periods as the inclusion of potential dilutive shares would have been anti-dilutive.

The following tables present the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):

Three Months Ended September 30,

Class A Class B Class A Class B

Net loss $ ( 32,539 ) $ ( 19,331 ) $ ( 76,255 ) $ ( 47,514 )

Weighted-average shares outstanding, basic and diluted 164,979 98,012 160,482 99,995

Net loss per share, basic and diluted $ ( 0.20 ) $ ( 0.20 ) $ ( 0.48 ) $ ( 0.48 )

The potential weighted average dilutive securities that were not included in the dilutive earnings per share calculation because the effect would be anti-dilutive were as follows (shares in thousands):

Three Months Ended September 30,

Class A Common Stock restricted stock units 8,569 10,390

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Total 8,572 10,409

The Company computes its provision for income taxes by applying the estimated annual effective tax rate to year-to-date ordinary income and adjusts the provision for income taxes for discrete tax items recorded in the period.

The Company computes its provision for (benefit from) income taxes by applying the estimated annual effective tax rate to year-to-date ordinary income and adjusting the provision for (benefit from) income taxes for discrete tax items recorded in the period.

In each quarter, the Company updates the estimated annual effective tax rate and makes a year-to-date adjustment to the provision.

The estimated annual effective tax rate is subject to volatility due to several factors, including changes in the Company’s relative proportion of domestic and foreign earnings, current cash taxes in jurisdictions with valuation allowances, material discrete tax items, or a combination of these factors as a result of certain transactions or events.

The Company reported an income tax provision of $ 63.5 million and $ 148.1 million for the three and nine months ended March 31, 2025, respectively, as compared to an income tax provision of $ 7.0 million and $ 72.3 million for the three and nine months ended March 31, 2024, respectively.

The income tax provision for the three and nine months ended March 31, 2025 was primarily attributable to the mix of earnings and losses at various jurisdictions, non-deductible stock-based compensation in certain foreign jurisdictions, and valuation allowances in the U.S.

and Australia, offset by research and development tax credits and incentives.

The income tax provision for the three and nine months ended March 31, 2024 was primarily attributable to the mix of earnings and losses at various jurisdictions, non-deductible stock-based compensation in certain foreign jurisdictions, and valuation allowances in the U.S.

The Company reported an income tax benefit of $ 4.5 million for the three months ended September 30, 2025, as compared to an income tax provision of $ 93.6 million for the three months ended September 30, 2024, respectively.

The income tax benefit for the three months ended September 30, 2025 was primarily attributable to the mix of earnings and losses at various jurisdictions, valuation allowances in the U.S.

and Australia, and non-deductible stock-based compensation in certain foreign jurisdictions.

The income tax provision for the three months ended September 30, 2024 was primarily attributable to the mix of earnings and losses at various jurisdictions, non-deductible stock-based compensation in certain foreign jurisdictions, and valuation allowances in the U.S.

and Australia, offset by research and development tax credits and incentives.

On July 4, 2025, the U.S.

government enacted The One Big Beautiful Bill Act (“OBBBA”), which includes, among other provisions, changes to the U.S.

corporate income tax system such as allowing the immediate expensing of qualifying domestic research and development expenses and permanent extensions of certain provisions within the Tax Cuts and Jobs Act.

Certain provisions are effective for the Company beginning in fiscal year 2026.

The changes had an immaterial impact on the Company’s benefit from income taxes for the three months ended September 30, 2025.

The Company regularly assesses the need for a valuation allowance against its deferred tax assets.

In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized.

Based on available evidence as of March 31, 2025, the Company will continue to maintain a valuation allowance against U.S.

likely than not that some or all of the deferred tax assets will not be realized.

Based on available evidence as of September 30, 2025, the Company will continue to maintain a valuation allowance against U.S.

federal, U.S.

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The Company intends to maintain the valuation allowance until sufficient positive evidence exists to support the reversal of, or a decrease in, the valuation allowance.

Subsequent Events

In October 2025, the Board of Directors authorized a new program to repurchase up to $ 2.5 billion of the Company’s outstanding Class A Common Stock (the “2025 Share Repurchase Program”) which will commence after the completion of the 2024 Share Repurchase Program.

The 2025 Share Repurchase Program does not have a fixed expiration date, may be suspended or discontinued at any time, and does not obligate the Company to repurchase any specific dollar amount or to acquire any specific number of shares.

The Company may repurchase shares of Class A Common Stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, in accordance with applicable securities laws and other restrictions.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements