What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-10-31 compared with 2025-05-02 · 162 added, 233 removed, 232 unchanged (63% of the section changed)

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This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995 .

In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “should,” “estimate,” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements.

In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “plan,” “should,” “estimate,” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements.

Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results and timing expressed or implied by such forward-looking statements.

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You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q.

Company Overview

Our mission is to unleash the potential of every team.

The Atlassian System of Work is our philosophy of how technology-driven organizations should work, connecting technology and business teams to accelerate progress and maximize team impact.

Through a portfolio of interconnected products with discrete value propositions that are powered by the Atlassian platform and data model, the Atlassian System of Work helps customers of any size align work to goals, plan and track work, and unleash their organization's collective knowledge.

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

Together, our connected portfolio of products form integrated solutions and, when deployed in the cloud, provide customers all the benefits of analytics, automation, and AI apps and agents with Rovo, along with integrations with thousands of third-party apps as a solution that is deeply entrenched in how teams collaborate and how organizations run.

The Atlassian platform is the common technology foundation for our products that drives connection between teams, information, and workflows.

It allows work to flow seamlessly across tools, automates the mundane so teams can focus on what matters, and enables better decision-making based on the data customers choose to put into our products.

Our mission is possible with a deep investment in product development to create and refine innovative, high-value, and versatile products that users love.

We make our products affordable for organizations of all sizes and transparently share our pricing online for most of our products.

We aim to grow our customer base, targeting organizations of all sizes, in every industry, and in most geographies, and strategically expand our relationships with customers over time, including with our dedicated sales team.

This product-led philosophy enables us to go to market in a unique and efficient way.

To land new customers, we’ve engineered a low-friction flywheel with an emphasis on self-service, making it easy to try and get value first and foremost.

This allows us to operate at an unusual scale for an enterprise software company, with customers across virtually every industry sector in approximately 200 countries and territories as of March 31, 2025.

Our customers range from small organizations that have adopted one of our products for a small group of users, to over eighty percent of the Fortune 500, many of which use a combination of our products across thousands of users.

By designing our products to be simple, powerful, affordable, and easy to adopt, we generate demand through word-of-mouth and viral expansion within organizations, allowing our sales force to focus primarily on expanding and deepening strategic relationships with existing customers, particularly in the enterprise.

Our high-velocity, low-friction distribution model is designed to drive exceptional customer scale by making products that are free to try and affordable to purchase online.

W e prioritize product quality, automated distribution, transparent pricing, and customer service to land new customers and expand to new teams.

We also have a sales team focused primarily on expanding and deepening strategic relationships with existing customers, particularly large enterprises.

We primarily rely on word-of-mouth and low-touch demand generation to drive trial, adoption, and initial expansion of our products.

A substantial majority of our sales are automated through our website, including sales of our products through our solution partners and resellers.

Our solution partners and resellers primarily focus on customers in regions that require local language support and other customized needs.

We plan to continue to invest in our partner programs to help us enter and grow in new markets, complementing our automated, low-touch approach.

Our culture of innovation, transparency and dedication to customer service drives our success in implementing and refining this unique approach.

We believe this approach creates a self-reinforcing effect that fosters innovation, quality, customer success, and scale.

As part of this strategy, we invest significantly more in research and development activities than in traditional sales activities relative to other enterprise software companies.

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

Our deeply interconnected portfolio of apps, AI agents, and products, each with discrete value propositions, delivers solutions for software teams, IT operations and support teams, leadership, and business teams.

We’ve put AI at the center of our portfolio to enhance teamwork for users across our apps and Collections;

a carefully curated set of apps and agents designed to solve complex tasks.

These apps, agents, and Collections are all built on the Atlassian Cloud Platform and data model:

a common technology foundation that seamlessly connects teams, information, and workflows throughout an organization.

We generate revenues primarily in the form of subscription fees.

Subscription revenues consist primarily of fees earned from subscription-based arrangements for providing customers the right to use our software in a cloud-based-infrastructure that we provide (“Cloud offerings”).

Subscription revenues consist primarily of fees earned from subscription-based arrangements for providing customers the right to use our software apps in a cloud-based-infrastructure that we provide (“Cloud offerings”).

We also sell on-premises term license agreements for our Data Center products (“Data Center offerings”), consisting of software licensed for a specified period and support and maintenance services that are bundled with the license for the term of the license period.

Subscription revenues also include subscription-based agreements for our premier support services.

From time to time, we make changes to our product offerings, prices, and pricing plans for our products w hich may impact the growth rate of our revenue, our deferred revenue balances, and customer retention.

From time to time, we make changes to our apps and product offerings, prices, and pricing plans for our offerings, which may impact the growth rate of our revenue, and our deferred revenue balances, remaining performance obligations, and customer retention.

Subscription revenue, through our Cloud and Data Center offerings, results in a large recurring revenue base.

In September 2025, we announced plans to end-of-life our Data Center deployment offering.

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

Subject to limited exceptions, we also plan to end maintenance and support for on-premises versions of our products in March 2029.

In order to support customers who face unique requirements or challenges, we will offer an approximately three-year extended maintenance period for certain customers.

Economic Conditions

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The extent to which these risks ultimately impact our business, results of operations, and financial position will depend on future developments, which are uncertain and cannot be predicted at this time.

Restructuring

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

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

As a result, we 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, we exited certain floors of a leased property, which we plan to sublease, in order to optimize our real estate footprint.

As a result, we 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.

A summary of restructuring charges for the three months ended September 30, 2025 by major activity type is 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 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.

Refer to Note 14, “ Restructuring ,” in the notes of our condensed consolidated financial statements for additional information.

Key Business Metrics

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Customer Base

We have a history of successfully growing both our total customer base and the spend per customer through growth in users, higher average price per user and adoption of new products.

We have a history of successfully growing both our total customer base and the spend per customer through growth in users, higher average price per user, and adoption of new apps or products.

We believe our ability to attract new customers is critical, and expanding within the existing customer base is the primary driver of our success as a business.

Typically, new customers begin their journey with Atlassian products with a small footprint by either adopting our free editions or purchasing a single product for a limited number of users.

Typically, new customers begin their journey with Atlassian with a small footprint by either adopting our free editions or purchasing a single app or product for a limited number of users.

We are focused on continuing to grow our total customer base, specifically the number of customers with more than $10,000 in annualized recurring revenue from our Cloud offerings (“Cloud ARR”), as it measures our ability to successfully expand within our existing customer base.

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We calculate Cloud ARR by taking the Cloud monthly recurring revenue (“Cloud MRR”) run-rate and multiplying it by 12.

Cloud MRR for each month is calculated by aggregating monthly recurring revenue from committed contractual amounts at a point in time.

Cloud ARR and Cloud MRR should be viewed independently of revenue and do not represent our revenue under U.S.

generally accepted accounting principles (“GAAP”), as they are operational metrics that can be affected by contract start and

end dates and renewal rates.

While a single customer may have distinct departments, operating segments, or subsidiaries with multiple active licenses or subscriptions of our products, if the product deployments share a unique domain name, we only include the customer once for purposes of calculating a customer.

As of March 31, 2025, we had more than 300,000 customers.

If we include single user accounts and organizations who have only adopted our free or starter products, the active use of our products extends well beyond our total customer base.

Cloud MRR for each month is

calculated by aggregating monthly recurring revenue from committed contractual amounts at a point in time.

Cloud ARR and Cloud MRR should be viewed independently of revenue and do not represent our revenue under GAAP, as they are operational metrics that can be affected by contract start and end dates and renewal rates.

While a single customer may have distinct departments, operating segments, or subsidiaries with multiple active licenses or subscriptions of our apps, if the app deployments share a unique domain name, we only include the customer once for purposes of calculating a customer.

As of September 30, 2025, we had more than 300,000 customers.

If we include single-user accounts and organizations that have only adopted our free or starter offerings, the active use of our offerings extends well beyond our total customer base.

Through the extensive use of our software, we are able to reach a vast number of users, gather insights to refine our offerings, and generate growing revenue by expanding within our total customer base.

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The following table sets forth our number of customers with greater than $10,000 in Cloud ARR as of the dates presented:

March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025

September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025

Number of customers with greater than $10,000 in Cloud ARR 46,844 49,449 50,715 51,978 53,017

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Free cash flow is not a measure calculated in accordance with GAAP and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP, such as GAAP net cash provided by operating activities.

In addition, free cash flow may not be comparable to similarly titled metrics of other companies due to differences among methods of calculation.

In addition, free cash flow may not be comparable to similarly titled metrics of other companies due to differences in the methods of calculation.

The following table presents a reconciliation of net cash provided by operating activities to free cash flow for the periods presented (in thousands):

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

2025 2024 2025 2024

Three Months Ended September 30,

Net cash provided by operating activities $ 128,715 $ 80,492

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Free cash flow $ 114,603 $ 74,341

Free cash flow increased by $83.4 million and $52.8 million during the three months and nine months ended March 31, 2025 as compared to the three months and nine months ended March 31, 2024, respectively.

In both periods the increase in free cash flow was primarily attributable to an increase in net cash provided by operating activities.

The increase in net cash provided by operating activities was primarily attributable to an increase in cash received from customers, a decrease in cash paid for income taxes, partially offset by an increase in cash paid to employees and vendors.

Free cash flow increased by $40.3 million during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024.

The increase in free cash flow was primarily attributable to an increase in net cash provided by operating activities.

The increase in net cash provided by operating activities was primarily attributable to an increase in cash received from customers, partially offset by an increase in cash paid to employees and vendors.

For more information about net cash provided by operating activities, please see “Liquidity and Capital Resources.”

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Subscription revenues also include subscription-based agreements for our premier support services.

Subscription revenues are driven primarily by the number and size of active licenses, the type of product and the price of the licenses.

Subscription revenues are driven primarily by the number and size of active licenses, the type of deployment, and the price of the licenses.

Our subscription-based arrangements generally have a contractual term of one to twelve months.

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Premier support consists of subscription-based arrangements for a higher level of support across different deployment options, and revenue is recognized ratably as the services are delivered over the term of the arrangement.

In September 2025, we announced plans to end-of-life our Data Center deployment offering.

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

Subject to limited exceptions, we plan to end maintenance and support for these on-premises versions of our products in March 2029.

We expect subscription revenue, specifically from our Cloud offerings, to increase and continue to be our primary driver of revenue growth.

We expect our revenue to fluctuate quarterly and within our quarterly financial results based on customer buying patterns.

Other Revenues

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Revenue from consulting and training is recognized over time as the services are performed.

We expect subscription revenue to increase and continue to be our primary driver of revenue growth.

M aintenance revenue related to our Server offerings is immaterial after the Server end of support date and has been classified in other revenues within our condensed consolidated statements of operations for all periods presented.

Cost of Revenues

Cost of revenues primarily consists of expenses related to compensation expenses for our employees, including stock-based compensation, hosting our cloud infrastructure, which includes third-party hosting fees and depreciation associated with computer equipment and software, payment processing fees, consulting and contractors costs associated with our customer support and infrastructure service teams, amortization of acquired intangible assets, such as the amortization of the cost associated with an acquired company’s developed technology, certain IT program expenses, and facilities and related overhead costs.

To support our cloud-based infrastructure, we utilize third-party managed hosting facilities.

Cost of revenues primarily consists of expenses related to compensation expenses for our employees, including stock-based compensation, hosting our cloud infrastructure, which includes third-party hosting fees and depreciation associated with computer equipment, payment processing fees, consulting and contractors costs associated with our customer support and infrastructure service teams, amortization of acquired intangible assets, such as the amortization of the cost associated with an acquired company’s developed technology, certain IT program expenses, and facilities and related overhead costs.

We expect cost of revenues to increase as we continue to invest in our cloud-based infrastructure to support our Cloud customers.

We allocate stock-based compensation based on the expense category in which the employee works.

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As such, general overhead expenses are reflected in cost of revenues and operating expense categories.

We expect cost of revenues to increase as we continue to invest in our cloud-based infrastructure to support migrations and our Cloud customers.

Gross Profit and Gross Margin

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Gross margin can fluctuate from period to period as a result of changes in product mix.

We expect gross margin to modestly decrease due to the sales mix shift from Data Center offerings to Cloud offerings.

This impact will be primarily driven by increased hosting costs and personnel costs to support our Cloud customers.

We expect gross margin to be approximately flat, driven by the optimization of Cloud infrastructure costs, offset by the revenue mix shift from Data Center offerings to Cloud offerings.

Operating Expenses

Our operating expenses are classified as research and development, marketing and sales, and general and administrative.

For each functional category, the largest component is compensation expenses, which include salaries and bonuses, stock-based compensation and employee benefit costs.

We allocate overhead, such as information technology costs, rent, and occupancy charges, in each expense category based on headcount in that category.

For each functional category, the largest component is compensation expenses, which include salaries, bonuses, stock-based compensation, and employee benefit costs.

Research and Development

Research and development expenses consist primarily of compensation expenses for our employees, including stock-based compensation, facilities and related overhead costs, consulting and contractor costs associated with our software development teams, and certain IT program expenses.

We continue to focus our research and development efforts on building new products, adding new features and services, integrating acquired technologies, increasing functionality, enhancing our cloud infrastructure and developing our artificial intelligence capabilities.

Research and development expenses consist primarily of compensation expenses for our employees, including stock-based compensation, facilities and related overhead costs, certain IT program expenses, and consulting and contractor costs associated with our software development teams.

We continue to focus our research and development efforts on building new apps, and AI agents, adding new features and services, integrating acquired technologies, increasing functionality, enhancing our Cloud infrastructure, and advancing our artificial intelligence capabilities.

Marketing and Sales

Marketing and sales expenses consist primarily of compensation expenses for our employees, including stock-based compensation, marketing and sales programs, consulting and contractor costs, facilities and related overhead costs, and certain IT program expenses.

Marketing programs consist of advertising, promotional events, corporate communications, brand building and product marketing activities such as online lead generation.

Sales programs consist of activities and teams focused on supporting our solution partners and resellers, tracking channel sales activity, supporting and servicing our customers by helping them optimize their experience and expand the use of our products across their organizations and helping product evaluators learn how they can use our tools most effectively.

Marketing and sales expenses consist primarily of compensation expenses for our employees, including stock-based compensation, marketing and sales program expenses, consulting and contractor costs, facilities and related overhead costs, and certain IT program expenses.

Marketing programs consist of advertising, promotional events, such as user conferences, sponsorships, corporate communications, brand building, and marketing activities such as online lead generation.

Sales programs consist of activities and teams focused on direct sales to customers, supporting our solution partners and resellers, tracking channel sales activity, supporting and servicing our customers by helping them optimize their experience and expand the use of our offerings across their organizations, and helping product evaluators learn how they can use our tools most effectively.

General and Administrative

General and administrative expenses consist primarily of compensation expenses for our employees, including stock-based compensation, for finance, legal, human resources and information technology personnel, facilities and related overhead costs, consulting and contractor costs, certain IT program expenses, and other corporate expenses.

Provision for income taxes consists primarily of income taxes related to federal, state, and foreign jurisdictions where we conduct business.

Provision for (benefit from) income taxes consists primarily of income taxes related to federal, state, and foreign jurisdictions where we conduct business.

Critical Accounting Estimates

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Actual results may differ from these estimates under different assumptions or conditions, and such differences could be material.

There have been no significant changes to our critical accounting policies and estimates during the three and nine months ended March 31, 2025, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Results of Operations included in our Annual Report on Form 10-K for fiscal year 2024.

There have been no significant changes to our critical accounting policies and estimates during the three months ended September 30, 2025, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Results of Operations included in our Annual Report on Form 10-K for fiscal year 2025.

New Accounting Pronouncements Pending Adoption

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The following table sets forth our results of operations for the periods indicated (in thousands, except for percentages of total revenues):

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

2025 % of Total Revenues 2024 % of Total Revenues 2025 % of Total Revenues 2024 % of Total Revenues

Three Months Ended September 30,

2025 % of Total Revenues 2024 % of Total Revenues

Subscription $ 1,374,502 96 % $ 1,131,948 95 %

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Total operating expenses 1,270,966 89 1,002,135 85

Operating income (loss) (12,456) (1) 17,804 1 (101,913) (2) (50,127) (1)

Other expense, net (14,861) (1) (10,990) (1) (42,292) (1) (23,964) (1)

Operating loss (96,337) (7) (31,978) (3)

Other income (expense), net 18,804 1 (19,432) (2)

Interest income 29,845 2 28,564 2

Interest expense (8,636) — (7,318) —

Income (loss) before income taxes (7,354) (1) 19,775 2 (84,701) (2) (31,288) (1)

Provision for income taxes (63,453) (4) (7,023) (1) (148,083) (4) (72,312) (2)

Net income (loss) $ (70,807) (5) % $ 12,752 1 % $ (232,784) (6) % $ (103,600) (3) %

Three Months Ended March 31, 2025 and 2024

Three Months Ended March 31,

Loss before income taxes (56,324) (4) (30,164) (3)

Provision for (benefit from) income taxes (4,454) — 93,605 7

Net loss $ (51,870) (4) % $ (123,769) (10) %

Three Months Ended September 30, 2025 and 2024

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

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Total revenues $ 1,432,553 $ 1,187,781 $ 244,772 21 %

Total revenues increased $167.6 million, or 14%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Growth in total revenues was primarily attributable to increased demand for our products from existing customers.

Of total revenues recognized in the three months ended March 31, 2025, over 90% were attributable to sales to customer accounts existing on or before December 31, 2024.

Subscription revenues increased $201.5 million, or 19%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Total revenues increased $244.8 million, or 21%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Growth in total revenues was primarily attributable to increased demand for our offerings from existing customers.

Of total revenues recognized in the three months ended September 30, 2025, over 90% was attributable to sales to customer accounts existing on or before June 30, 2025.

Subscription revenues increased $242.6 million, or 21%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers and price increases.

Other revenues decreased $33.9 million, or 29%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

The decrease in other revenues was primarily attributable to a decrease of $27.8 million in maintenance revenue due to the end of support for our Server offerings.

Total revenues by deployment options were as follows:

Three Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Cloud $ 880,429 $ 703,036 $ 177,393 25 %

Data Center 388,516 364,134 24,382 7

Server — 29,720 (29,720) (100)

Marketplace and other 87,771 92,238 (4,467) (5)

Total revenues $ 1,356,716 $ 1,189,128 $ 167,588 14 %

Total revenues by geography were as follows:

Three Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Americas $ 637,316 $ 564,387 $ 72,929 13 %

EMEA 571,553 500,005 71,548 14

Asia Pacific 147,847 124,736 23,111 19

Total revenues $ 1,356,716 $ 1,189,128 $ 167,588 14 %

Cost of Revenues

Three Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Cost of revenues $ 219,675 $ 213,425 $ 6,250 3 %

Gross margin 84 % 82 %

Cost of revenues increased $6.3 million, or 3%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

The overall increase was primarily attributable to an increase of $6.0 million in compensation expense for employees (which includes an increase of $3.1 million in stock-based compensation).

Operating Expenses

Research and Development

Three Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Research and development $ 685,320 $ 576,490 $ 108,830 19 %

Research and development expenses increased $108.8 million, or 19%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

The overall increase was primarily attributable to an increase of $112.8 million in compensation expenses for employees (which includes an increase of $50.5 million in stock-based compensation ).

Marketing and Sales

Three Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Marketing and sales $ 295,832 223,814 $ 72,018 32 %

Marketing and sales expenses increased $72.0 million , or 32%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 .

The overall increase was primarily attributable to an increase of $45.4 million in compensation expenses for employees (which includes an increase of $9.7 million in stock-based compensation) , and an increase of $24.4 million in advertising and marketing event expenses.

General and Administrative

Three Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

General and administrative $ 168,345 157,595 $ 10,750 7 %

General and administrative expenses increased $10.8 million, or 7%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 .

The overall increase was primarily attributable to an increase of $8.4 million in compensation expense for employees (which includes an increase of $1.0 million in stock-based compensation).

Other Expense, net

Three Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Other expense, net $ (14,861) $ (10,990) $ (3,871) 35 %

Other expense, net increased $3.9 million, or 35%, in the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

The overall increase in other expense was primarily attributable to an increase of $1.9 million in net loss related to strategic investments and an increase of $1.8 million in contributions to the Atlassian Foundation.

Interest Income

Three Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Interest income 27,767 21,414 $ 6,353 30 %

Interest income increased $6.4 million, or 30% in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 .

The increase was primarily attributable to an increase in investment income as a result of increased investment balances.

Interest Expense

Three Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Interest expense $ (7,804) $ (8,453) $ 649 (8) %

Interest expense decreased $0.6 million, or 8% in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 .

The decrease was primarily attributable to a decrease in interest expense on our outstanding debt as a result of the issuance of the Notes (as defined below) and repayment of the Term Loan (as defined below) in the fourth quarter of fiscal year 2024.

Provision for Income Taxes

Three Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Provision for income taxes $ (63,453) $ (7,023) $ (56,430) *

Effective tax rate * *

* Not meaningful

Provision for income taxes increased $56.4 million for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.

The increase was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions.

See Note 14, “ Income Taxes ,” of the notes to our condensed consolidated financial statements for additional information.

Our future effective annual tax rate may be materially impacted by the expense or benefit from tax amounts associated with our foreign earnings that are taxed at rates different from the federal statutory rate, level of profit before tax, accounting for uncertain tax positions, business combinations, changes in our valuation allowances to the extent sufficient positive evidence becomes available, closure of statute of limitations or settlement of tax audits, and changes in tax laws.

A significant amount of our earnings is generated by our Australian subsidiaries.

Our future effective tax rates may be adversely affected to the extent earnings are lower than anticipated in countries where we have lower statutory tax rates.

Changes in our global operations could result in changes to our effective tax rates, future cash flows, and overall profitability of our operations.

We recognize the tax benefit of an uncertain tax position only if we conclude it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits.

The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority.

We believe we have provided adequate reserves for income tax uncertainties in all open tax years.

Based on the information currently available, we do not anticipate a material change in unrecognized tax benefits in the next 12 months.

The Organization for Economic Co-operation and Development introduced a framework for a global minimum corporate income tax of 15% known as the Global Anti-Base Erosion rules.

This legislation has been enacted in certain jurisdictions where we operate and is effective for our fiscal year 2025.

As of March 31, 2025, the global minimum tax does not have a significant impact on our financial statements.

As additional jurisdictions enact legislation, transitional rules lapse, and other provisions of the global minimum tax legislation become effective, our effective tax rate and cash tax payments may increase in future years.

Nine Months Ended March 31, 2025 and 2024

Nine Months Ended March 31,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Subscription $ 3,618,072 $ 2,855,518 $ 762,554 27 %

Other 212,888 371,495 (158,607) (43)

Total revenues $ 3,830,960 $ 3,227,013 $ 603,947 19 %

Total revenues increased $603.9 million, or 19%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.

Growth in total revenues was primarily attributable to increased demand for our products from existing customers.

Of total revenues recognized in the nine months ended March 31, 2025, over 90% was attributable to sales to customer accounts existing on or before June 30, 2024.

Subscription revenues increased $762.6 million, or 27%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.

The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers, price increases, and migrations.

Other revenues decreased $158.6 million, or 43%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.

The decrease in other revenues was primarily attributable to a decrease of $169.5 million in maintenance revenue due to the end of support for our Server offerings.

Other revenues increased $2.2 million, or 4%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

The increase in other revenues was primarily attributable to an increase of $3.0 million in marketplace revenue.

Total revenues by deployment options were as follows:

Nine Months Ended March 31,

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

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Data Center 372,648 335,594 37,054 11

Server — 177,645 (177,645) (100)

Marketplace and other 62,197 59,881 2,316 4

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Total revenues by geography were as follows:

Nine Months Ended March 31,

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

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Cost of Revenues

Nine Months Ended March 31,

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

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Gross margin 82 % 82 %

Cost of revenues increased $74.4 million, or 13%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.

The overall increase was primarily attributable to an increase of $31.5 million in hosting fees paid to third-party providers, an increase of $19.5 million in compensation expense for employees (which includes an increase of $8.4 million in stock-based compensation), and an increase of $11.6 million in software subscription costs.

Cost of revenues increased $40.3 million, or 19%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

The overall increase was primarily attributable to restructuring charges of $31.6 million, which were composed of $29.2 million of severance and other termination benefits, and $2.4 million related to impairment charges for a lease and leasehold improvements, as well as an increase of $14.4 million in hosting fees.

Operating Expenses

Research and Development

Nine Months Ended March 31,

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Research and development $ 755,994 $ 603,101 $ 152,893 25 %

Research and development expenses increased $373.6 million, or 23%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.

Research and development expenses increased $152.9 million, or 25%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

The overall increase was primarily attributable to an increase of $136.5 million in compensation expenses for employees (which includes an increase of $53.0 million in stock-based compensation ).

In addition, we recorded restructuring charges of $12.1 million in the three months ended September 30, 2025 related to impairment charges for a lease and leasehold improvements.

Marketing and Sales

Nine Months Ended March 31,

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Marketing and sales $ 336,427 252,393 $ 84,034 33 %

Marketing and sales expenses increased $182.2 million, or 29%, for the nine months ended March 31, 2025 , compared to the nine months ended March 31, 2024 .

The overall increase was primarily attributable to an increase of $113.3 million in compensation expenses for employees (which includes an increase of $18.5 million in stock-based compensation), and an increase of $54.7 million in advertising and marketing event expenses.

Marketing and sales expenses increased $84.0 million , or 33%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 .

The overall increase was primarily attributable to an increase of $45.8 million in compensation expenses for employees (which includes an increase of $8.0 million in stock-based compensation) , and an increase of $21.2 million in advertising and marketing program expenses.

In addition, we recorded restructuring charges of $8.2 million in the three months ended September 30, 2025 related to impairment charges for a lease and leasehold improvements.

General and Administrative

Nine Months Ended March 31,

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

General and administrative $ 178,545 146,641 $ 31,904 22 %

General and administrative expenses increased $25.4 million, or 6%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 .

The overall increase was primarily attributable to an increase of $25.1 million in compensation expenses for employees (which includes an increase of $10.9 million in stock-based compensation).

Other Expense, net

Nine Months Ended March 31,

General and administrative expenses increased $31.9 million, or 22%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 .

The overall increase was primarily attributable to an increase of $19.6 million in compensation expense for employees (which includes an increase of $2.2 million in stock-based compensation), and an increase of $4.4 million in legal fees.

In addition, we recorded restructuring charges of $3.7 million in the three months ended September 30, 2025 related to impairment charges for a lease and leasehold improvements.

Other Income (Expense), net

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Other expense, net $ (42,292) $ (23,964) $ (18,328) 76 %

Other expense, net increased $18.3 million, or 76% in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.

The overall increase was primarily attributable to an increase of $9.2 million in expense related to our share of loss from an equity method investment and an increase of $5.6 million in contributions to the Atlassian Foundation.

Other income (expense), net $ 18,804 $ (19,432) $ 38,236 (197) %

Other income (expense), net increased $38.2 million, or 197%, in the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The overall increase in other income (expense) was primarily attributable to an increase of $24.7 million in unrealized gains on public equity investments and a decrease of $15.3 million in expense r elated to our share of loss from an equity method investment.

Interest Income

Nine Months Ended March 31,

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Interest income 29,845 28,564 $ 1,281 4 %

Interest income increased $12.7 million , or 18% in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 .

The increase was primarily attributable to an increase in investment income as a result of increased investment balances.

Interest income increased $1.3 million, or 4% in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 .

The increase was primarily attributable to an increase in investment income as a result of increased invested cash balances.

Interest Expense

Nine Months Ended March 31,

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Interest expense $ (8,636) $ (7,318) $ (1,318) 18 %

Interest expense decreased $4.0 million, or 15%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 .

The decrease was primarily attributable to a decrease in interest expense on our outstanding debt as a result of the issuance of the Notes (as defined below), and repayment of the Term Loan (as defined below) in the fourth quarter of fiscal year 2024.

Provision for Income Taxes

Nine Months Ended March 31,

Interest expense increased $1.3 million, or 18% in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 .

The increase was primarily attributable to the amortization of interest rate swap contracts.

Provision for (Benefit from) Income Taxes

Three Months Ended September 30,

(in thousands, except percentage data) 2025 2024 $ Change % Change

Provision for income taxes $ (148,083) $ (72,312) $ (75,771) *

Provision for (benefit from) income taxes $ (4,454) $ 93,605 $ (98,059) *

Effective tax rate * *

* Not meaningful

Provision for income taxes increased $75.8 million for the nine months ended March 31, 2025, as compared to the nine months ended March 31, 2024.

The increase was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions.

Provision for (benefit from) income taxes decreased $98.1 million for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024.

The decrease was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions.

See Note 17, “ Income Taxes ,” of the notes to our condensed consolidated financial statements for additional information.

Our future effective annual tax rate may be materially affected by the expense or benefit from tax amounts associated with our foreign earnings that are taxed at rates different from the federal statutory rate, level of profit before tax, accounting for uncertain tax positions, business combinations, changes in our valuation allowances to

the extent sufficient positive evidence becomes available, closure of statute of limitations or settlement of tax audits, and changes in tax laws.

A significant amount of our earnings is generated by our Australian subsidiaries.

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Based on the information currently available, we do not anticipate a material change in unrecognized tax benefits in the next 12 months.

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 costs and permanent extensions of certain provisions within the Tax Cuts and Jobs Act.

Certain provisions are effective for us beginning in fiscal year 2026.

The changes had an immaterial impact on our income tax benefit for the three months ended September 30, 2025 and we currently do not anticipate these changes to have a material impact on our results for fiscal year 2026.

We will continue to monitor any developments and guidance related to OBBBA.

The Organization for Economic Co-operation and Development introduced a framework for a global minimum corporate income tax of 15% known as the Global Anti-Base Erosion rules.

This legislation has been enacted in certain jurisdictions where we operate and is effective for our fiscal year 2026.

As of March 31, 2025, the global minimum tax does not have a significant impact on our financial statements.

As of September 30, 2025, the global minimum tax does not have a significant impact on our financial statements.

Liquidity and Capital Resources

As of March 31, 2025, we had cash and cash equivalents totaling $2.7 billion, marketable securities totaling $313.6 million and accounts receivables totaling $642.0 million.

As of September 30, 2025, we had cash and cash equivalents totaling $2.3 billion, marketable securities totaling $456.0 million, and accounts receivable totaling $536.9 million.

Since our inception, we have primarily financed our operations through cash flows generated by operations and corporate debt.

Our cash flows from operating activities, investing activities, and financing activities for the periods presented were as follows (in thousands):

Nine Months Ended March 31,

Three Months Ended September 30,

Net cash provided by operating activities $ 128,715 $ 80,492

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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 $ 483,706 $ (153,722)

Our primary source of cash is through collections from our customers.

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

Our primary source of cash is collections from our customers.

Our primary uses of cash from operating activities are general business expenses, including employment expenses, cloud platform and other infrastructure services, income taxes, professional services fees, marketing expenses, software expenses, and facility expenses.

Net cash provided by operating activities increased by $63.1 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024.

The net increase was primarily attributable to an increase in cash received from customers, a decrease in cash paid for income taxes, partially offset by an increase in cash paid to employees and vendors.

Net cash used in investing activities decreased by $738.3 million during the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024.

The net decrease was primarily attributable to a decrease in cash consideration paid for acquisitions, net of cash acquired of approximately $838.8 million, partially offset by an increase in net outflows of $90.2 million related to our strategic investment and marketable security activity.

Net cash used in financing activities increased by $162.3 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024.

The net increase was primarily attributable to an increase in repurchases of Class A Common Stock of $184.1 million, partially offset by a decrease in principal payments for the Term Loan (defined below) of $25.0 million.

Net cash provided by operating activities increased by $48.2 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The net increase was primarily attributable to an increase in cash received from customers, partially offset by an increase in cash paid to employees and vendors.

Net cash used in investing activities increased by $42.0 million during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The net increase was primarily attributable to an increase in net outflows of $23.3 million related to our strategic investment and marketable security activity and an increase in cash consideration paid for acquisitions, net of cash acquired of approximately $10.7 million.

Net cash used in financing activities increased by $66.1 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The net increase was primarily attributable to an increase in repurchases of Class A Common Stock of $69.2 million.

Material Cash Requirements

As of March 31, 2025 , we had $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”).

As of September 30, 2025 , we had $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.

Interest on the Notes will be paid semi-annually in arrears on May 15 and November 15 of each year, starting from November 15, 2024.

In August 2024, our prior credit facility was amended and restated to provide for a $750 million senior unsecured revolving credit facility (the “2024 Credit Facility”).

On August 12, 2024, Atlassian US, Inc.’s prior credit facility was amended and restated to provide for a $750 million senior unsecured revolving credit facility (the “2024 Credit Facility”).

We may repay outstanding loans under the 2024 Credit Facility at any time, without premium or penalty, and we have an option to request an increase of $250 million in certain circumstances.

The 2024 Credit Facility replaced our prior credit facility entered into in October 2020, 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 matures in August 2029.

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

Refer to Note 10, “ Debt, ” to our condensed consolidated financial statements for additional information.

Share Repurchase Programs

Share Repurchase Program

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

In September 2024, the Board of Directors authorized a new program under which we may repurchase up to an additional $1.5 billion of our 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 Share Repurchase Programs do not have a fixed expiration date, may be suspended or discontinued at any time, and do not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares.

During the three and nine months ended March 31, 2025, we repurchased and subsequently retired approximately 0.6 million and 2.1 million shares of our 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.

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

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

During the three months ended September 30, 2025, we repurchased and subsequently retired approximately 1.4 million shares of our 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, we were 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.

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

Contractual Obligations

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Other Future Obligations

On October 20, 2025, we 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, we acquired BCNY for approximately $610 million.

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

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

Under the terms of the agreement, we 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 our Class A Common Stock, which are subject to continued vesting provisions.

We expect to fund the cash consideration through existing cash balances.

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

We believe that our existing cash and cash equivalents, together with cash generated from operations, and borrowing capacity from the 2024 Credit Facility will be sufficient to meet our anticipated cash needs for at least the next 12 months.

Our other future cash requirements will depend on many factors including our growth rate, the timing and extent of spend on research and development efforts, employee headcount, marketing and sales activities, payments to tax authorities, acquisitions of additional businesses and technologies, the introduction of new software and services offerings, enhancements to our existing software and services offerings and the continued market acceptance of our products.

As of March 31, 2025, we are not party to any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources.

As of September 30, 2025, we are not party to any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources.

Non-GAAP Financial Measures

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• Non-GAAP gross profit and non-GAAP gross margin .

Excludes expenses related to stock-based compensation and amortization of acquired intangible assets.

Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, and restructuring charges.

• Non-GAAP operating income and non-GAAP operating margin .

Excludes expenses related to stock-based compensation and amortization of acquired intangible assets.

Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, and restructuring charges.

• Non-GAAP net income and non-GAAP net income per diluted share .

Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, gain on a non-cash sale of a controlling interest of a subsidiary and the related income tax adjustments.

Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, restructuring charges, and the related income tax effects of these items.

• Free cash flow .

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We compensate for such limitations by reconciling these Non-GAAP Financial Measures to the most comparable GAAP financial measures.

The following table presents a reconciliation of our Non-GAAP Financial Measures to the most comparable GAAP financial measure for the three and nine months ended March 31, 2025 and 2024 (in thousands, except percentage and per share data):

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

2025 2024 2025 2024

The following table presents a reconciliation of our Non-GAAP Financial Measures to the most comparable GAAP financial measure for the three months ended September 30, 2025 and 2024 (in thousands, except percentage and per share data):

Three Months Ended September 30,

GAAP gross profit $ 1,174,629 $ 970,157

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Amortization of acquired intangible assets 9,957 10,116

Restructuring charges (3) 31,592 —

Non-GAAP gross profit $ 1,234,677 $ 998,487

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Amortization of acquired intangible assets 1 1

Restructuring charges (3) 2 —

Non-GAAP gross margin 86% 84%

Operating income

GAAP operating income (loss) $ (12,456) $ 17,804 $ (101,913) $ (50,127)

GAAP operating loss $ (96,337) $ (31,978)

Stock-based compensation 349,695 286,146

Amortization of acquired intangible assets 13,650 13,882

Restructuring charges (3) 55,678 —

Non-GAAP operating income $ 322,686 $ 268,050

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Amortization of acquired intangible assets 1 1

Restructuring charges (3) 4 —

Non-GAAP operating margin 23% 23%

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

GAAP net loss $ (51,870) $ (123,769)

Stock-based compensation 349,695 286,146

Amortization of acquired intangible assets 13,650 13,882

Gain on a non-cash sale of a controlling interest of a subsidiary — — — (1,378)

Restructuring charges (3) 55,678 —

Adjustment for:

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Net income per share

GAAP net income (loss) per share - diluted $ (0.27) $ 0.05 $ (0.89) $ (0.40)

GAAP net loss per share - diluted $ (0.20) $ (0.48)

Stock-based compensation 1.33 1.11

Amortization of acquired intangible assets 0.05 0.05

Gain on a non-cash sale of a controlling interest of a subsidiary — — — (0.01)

Restructuring charges (3) 0.21 —

Adjustment for:

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Weighted-average diluted shares outstanding

Weighted-average shares used in computing diluted GAAP net income (loss) per share 262,671 261,778 261,423 258,738

Weighted-average shares used in computing diluted GAAP net loss per share 262,991 260,477

Dilution from dilutive securities (2) 1,323 298

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The rate could be subject to change for a variety of reasons, for example, significant changes in the geographic earnings mix or fundamental tax law changes in major jurisdictions where we operate.

(2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three and nine months ended March 31, 2025 and nine months ended March 31, 2024 because the effect would have been anti-dilutive.

(2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three months ended September 30, 2025 and September 30, 2024 because the effect would have been anti-dilutive.

(3) Restructuring charges include stock-based compensation expense related to the rebalancing of resources for the three months ended September 30, 2025.

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

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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 2. Management’s Discussion and Analysis