What changed in this filing

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Item 1. Financial Statements

2026-02-06 compared with 2025-10-31 · 223 added, 120 removed, 570 unchanged (38% of the section changed)

3 unchanged sentences

(in thousands, except par value and share data)

September 30, 2025 June 30, 2025

December 31, 2025 June 30, 2025

Current assets:

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Class A Common Stock, $ 0.00001 par value;

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

750,000,000 shares authorized, 170,436,795 and 165,949,196 issued and outstanding at December 31, 2025 and June 30, 2025, respectively

Class B Common Stock, 0.00001 par value;

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

230,000,000 shares authorized, 95,068,747 and 97,030,987 issued and outstanding at December 31, 2025 and June 30, 2025, respectively

Additional paid-in capital 6,378,041 5,574,290

7 unchanged sentences

(in thousands, except per share data)

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Subscription $ 1,507,656 $ 1,213,248 $ 2,882,158 $ 2,345,196

38 unchanged sentences

(in thousands)

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Net loss $ ( 42,645 ) $ ( 38,208 ) $ ( 94,515 ) $ ( 161,977 )

1 unchanged sentence

Foreign currency translation adjustment 1,791 ( 13,499 ) ( 3,955 ) ( 7,839 )

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

Net change in unrealized gain (loss) on marketable and privately held debt securities ( 36 ) ( 741 ) 358 613

Net gain (loss) on cash flow hedging derivative instruments 594 ( 67,197 ) ( 10,094 ) ( 56,691 )

7 unchanged sentences

(in thousands)

Three Months Ended September 30, 2025

Three Months Ended December 31, 2025

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

1 unchanged sentence

Shares Amount Shares Amount

Balance at June 30, 2025 165,860 $ 2 97,031 $ 1 $ 5,574,290 $ 13,226 $ ( 4,241,865 ) $ 1,345,654

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

Common stock issued 2,155 — — — — — — —

4 unchanged sentences

Net loss — — — — — — ( 42,645 ) ( 42,645 )

Balance at December 31, 2025 169,032 $ 2 95,069 $ 1 $ 6,378,041 $ ( 465 ) $ ( 4,786,730 ) $ 1,590,849

Three Months Ended December 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 September 30, 2024 160,558 $ 2 99,995 $ 1 $ 4,498,214 $ 42,820 $ ( 3,512,203 ) $ 1,028,834

Three Months Ended September 30, 2024

Common stock issued 1,770 — — — — — — —

Conversion from Class B Common Stock to Class A Common Stock 1,018 — ( 1,018 ) — — — — —

Stock-based compensation — — — — 378,730 — — 378,730

Repurchases of Class A Common Stock ( 368 ) — — — — — ( 68,364 ) ( 68,364 )

Other comprehensive income (loss), net of tax — — — — — ( 81,437 ) — ( 81,437 )

Net loss — — — — — — ( 38,208 ) ( 38,208 )

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

ATLASSIAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (CONTINUED)

(in thousands)

Six Months Ended December 31, 2025

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

8 unchanged sentences

Net loss — — — — — — ( 94,515 ) ( 94,515 )

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

Balance at December 31, 2025 169,032 $ 2 95,069 $ 1 $ 6,378,041 $ ( 465 ) $ ( 4,786,730 ) $ 1,590,849

Six Months Ended December 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 June 30, 2024 159,388 $ 2 101,012 $ 1 $ 4,212,064 $ 25,300 $ ( 3,204,516 ) $ 1,032,851

Common stock issued 3,054 — — — 4 — — 4

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

Stock-based compensation — — — — 664,876 — — 664,876

Repurchases of Class A Common Stock ( 1,499 ) — — — — — ( 252,282 ) ( 252,282 )

Other comprehensive income (loss), net of tax — — — — — ( 63,917 ) — ( 63,917 )

Net loss — — — — — — ( 161,977 ) ( 161,977 )

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

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

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(in thousands)

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Cash flows from operating activities:

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Net loss (gain) on strategic investments 2,555 2,611 ( 23,971 ) 17,903

Net foreign currency loss 1,831 3,040

Net foreign currency loss (gain) ( 504 ) ( 5,621 ) 1,327 ( 2,581 )

Other ( 88 ) ( 968 ) 80 23

19 unchanged sentences

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash ( 823 ) ( 9,056 ) ( 6,752 ) ( 5,492 )

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

Net increase (decrease) in cash, cash equivalents, and restricted cash ( 1,164,358 ) 161,904 ( 1,355,065 ) 40,517

Cash, cash equivalents, and restricted cash at beginning of period 2,323,055 2,056,735 2,513,762 2,178,122

14 unchanged sentences

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.

Atlassian puts AI at the center of the Company’s portfolio to enhance teamwork for users across 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.

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

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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.

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

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• the standalone selling price of performance obligations for revenue contracts with multiple performance obligations;

• the fair value of assets acquired and liabilities assumed for business combinations;

• the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions.

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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.

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

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

New Accounting Standards Not Yet Adopted in Fiscal Year 2026

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Improvements to Income Tax Disclosures.” This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

This ASU is effective for fiscal years beginning after December 15, 2024.

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.

This ASU is effective for annual reporting periods beginning after December 15, 2024.

The Company is currently evaluating the impact of the new guidance and expects to adopt ASU 2023-09 in its consolidated financial statements for the year ended June 30, 2026.

The adoption will require certain additional disclosure in the notes to the Company's consolidated financial statements.

In November 2024, the FASB issued ASU No.

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This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

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

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

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

1 unchanged sentence

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.

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

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

In November 2025, the FASB issued ASU 2025-11 “Interim Reporting, (Topic 270), ” which clarifies interim reporting guidance and centralizes condensed interim disclosure requirements.

This ASU is effective for interim periods within 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 and disclosures.

In December 2025, the FASB issued ASU 2025-12, “Codification Improvements,” which clarifies guidance and makes minor improvements across various topics, including earnings per share, receivables, revenue, income taxes, and equity.

This ASU is effective for annual periods beginning after December 15, 2026, and interim periods within those annual periods, with early adoption permitted.

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

Fair Value Measurements

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):

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

Level 1 Level 2 Total

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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.

The Company’s privately held debt and equity securities amounted to $ 156.1 million and $ 168.8 million as of December 31, 2025, and June 30, 2025, respectively.

Marketable Securities

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

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

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

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

September 30, 2025 June 30, 2025

December 31, 2025 June 30, 2025

Due in one year or less $ 310,866 $ 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 September 30, 2025, and June 30, 2025, unrealized losses and the related risk of expected credit losses were not material.

As of December 31, 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 September 30, 2025, consisted of the following (in thousands):

The Company’s investments of privately held debt securities as of December 31, 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 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.

Carrying value of privately held equity securities

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 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

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

Privately held equity securities

Initial total cost $ 142,302

1 unchanged sentence

Carrying value $ 151,906

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’ cumulative net losses are composed of downward adjustments and impairment charges of $ 5.4 million and upward adjustments of $ 15.0 million as of December 31, 2025.

During the three months ended December 31, 2025, the Company sold its holdings of its publicly traded equity securities.

As such, the Company did not have any publicly traded equity securities as of December 31, 2025.

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

Privately held equity securities

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

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

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

1 unchanged sentence

Unrealized losses recognized on privately held equity securities including impairment ( 749 ) — $ ( 1,249 ) $ —

Unrealized losses on privately held debt securities ( 250 ) — ( 250 ) —

Unrealized gains, net $ 6,550 $ — $ 33,076 $ —

Realized losses recognized on sales of publicly traded equity securities ( 10,070 ) — ( 10,070 ) —

Realized losses recognized on privately held equity securities — ( 2,611 ) — ( 2,645 )

Realized gains recognized on privately held equity securities 965 — 965 —

Gains (losses) on strategic investments, net $ ( 2,555 ) $ ( 2,611 ) $ 23,971 $ ( 2,645 )

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

$ 6,800 $ — $ 8,597 $ —

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.

Realized gains and losses recognized on sales of publicly traded equity securities reflect the difference between the sale proceeds and the carrying value of the security at the beginning of the period.

Equity Method Investment

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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 2025 and the three months ended September 30, 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 six months ended December 31, 2025 (in thousands):

Equity Method Investment

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Effect of change in exchange rates 774

Balance as of September 30, 2025

Balance as of December 31, 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 September 30, 2025 (in thousands):

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

Notional Amounts of Derivative Instruments

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

Balance Sheet Location September 30, 2025 June 30, 2025

Balance Sheet Location December 31, 2025 June 30, 2025

Derivative assets

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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 September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Beginning balance of accumulated gains in accumulated other comprehensive income (loss) $ 13,991 $ 51,930 $ 24,679 $ 41,424

9 unchanged sentences

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

September 30, 2025 June 30, 2025

December 31, 2025 June 30, 2025

Equipment $ 19,458 $ 15,008

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Property and equipment, net $ 97,952 $ 105,118

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.

Depreciation expense was $ 10.3 million and $ 9.3 million for the three months ended December 31, 2025, and 2024, respectively, and $ 21.0 million and $ 18.2 million for the six months ended December 31, 2025 and 2024, respectively.

During the six months ended December 31, 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.

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(“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.

The total purchase price was $ 488.3 million, composed of $ 481.5 million in cash and $ 6.8 million in non-cash settlement of existing BCNY shares included in our strategic investments.

The acquisition of BCNY further expands offerings to Atlassian customers by providing a browser for enterprises designed for knowledge workers using SaaS applications in the AI-era.

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):

Cash and cash equivalents $ 22,160

Prepaid expenses and other current assets 1,235

Intangible assets, net 91,000

Goodwill 376,885

Accrued expenses and other current liabilities ( 2,102 )

Deferred tax liabilities ( 832 )

Net assets acquired $ 488,346

The excess of purchase price over the fair value of assets acquired and liabilities assumed was recorded as goodwill.

The resulting goodwill is primarily attributed to the assembled workforce and expanded market opportunities, including providing the BCNY browsers to customers as an additional product along with existing Company offerings.

The goodwill is not deductible in the U.S.

for income tax purposes.

The fair values assigned to assets acquired and liabilities assumed are preliminary and based on management’s estimates and assumptions which may be subject to change as additional information is received.

The primary areas that remain preliminary relate to the fair values of certain intangible assets acquired, certain tangible assets and liabilities acquired, contingencies as of the acquisition date, income tax, including deferred taxes, and residual goodwill.

The Company expects to finalize the valuation no later than one year from the acquisition date.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for useful life):

Fair Value Useful Life

Developed Technology $ 80,000 3

Trade Name 11,000 3

Developed technology represents the estimated fair value of BCNY’s AI-enabled browser technology.

Trade name represents the estimated fair value of the BCNY trade name.

In connection with the transaction, the Company granted $ 8.2 million worth of replacement awards in the form of restricted stock unit (“RSU”) awards to BCNY employees and $ 97.0 million worth of RSU awards to certain key BCNY employees.

The fair value of the RSU awards was based on the stock price of the Company on the grant date.

The RSU awards are subject to future vesting provisions based on service conditions, and the related expense is accounted for as stock-based compensation and classified in the condensed consolidated statement of operations according to the activities that the employees perform.

A Software Company

On November 10, 2025, the Company acquired 100 % of the outstanding equity of A Software Company (“DX”), which specializes in engineering intelligence.

The acquisition of DX further expands the offerings to Atlassian customers and enhances our Collections.

The total purchase price was composed of $ 720.4 million in cash.

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):

Cash and cash equivalents $ 27,910

Accounts Receivable 6,529

Other non-current assets 9,929

Intangible assets, net 182,800

Goodwill 557,439

Accrued expenses and other current liabilities ( 1,706 )

Deferred revenue, current ( 25,482 )

Deferred tax liabilities ( 26,865 )

Other non-current liabilities ( 10,192 )

Net assets acquired $ 720,362

The excess of purchase price over the fair value of assets acquired and liabilities assumed was recorded as goodwill.

The resulting goodwill is primarily attributed to the assembled workforce and expanded market opportunities, including integrating the DX engineering intelligence platform with existing Company offerings.

The goodwill is not deductible in the U.S.

for income tax purposes.

The Company expects to finalize the valuation no later than one year from the acquisition date.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for useful life):

Fair Value Useful Life

Developed Technology $ 138,000 5

Trade Name 37,000 5

Customer Relationships 4,800 5

Backlog 3,000 3

Developed technology represents the estimated fair value of DX’s engineering intelligence technology.

Trade name represents the estimated fair value of the DX trade name.

In connection with the transaction, the Company granted $ 201.8 million in restricted stock and provided $ 38.9 million in deferred cash compensation to certain key DX employees.

The fair value of the restricted stock was based on the Company’s stock price on the grant date.

Both the restricted stock and cash compensation are subject to future vesting provisions based on service conditions.

The related expense for the restricted stock and cash compensation is accounted for as employee compensation expense, specifically stock-based compensation related to the restricted stock, and is classified in the condensed consolidated statement of operations according to the activities that the employees perform.

Other Fiscal Year 2026 Business Combinations

During the six months ended December 31, 2025, the Company completed two additional acquisitions to expand its offerings.

The transactions were accounted for as business combinations and were not material individually or in the aggregate to the condensed consolidated financial statements.

Total transaction costs incurred related to the Company’s fiscal year 2026 business combinations were not material.

The Company has included the financial results of each business combination in its condensed consolidated financial statements from the date of acquisition, which were not material for the three months ended December 31, 2025.

Pro forma results of operations have not been presented for the three and six months ended December 31, 2025 and 2024 because the effect of the acquisitions individually and in the aggregate would not be material to our condensed consolidated financial statements.

Goodwill and Intangible Assets

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Effect of change in exchange rates 1,444

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

Balance as of December 31, 2025 $ 2,305,132

Intangible Assets

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

Intangible assets consisted of the following as of December 31, 2025 (in thousands):

Gross Carrying Amount Accumulated Amortization Net

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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:

The weighted-average remaining useful lives of the Company’s acquired intangible assets as of December 31, 2025 were as follows:

Weighted-Average Remaining Useful Lives (Years)

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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):

Amortization expense for intangible assets was approximately $ 25.4 million and $ 13.9 million for the three months ended December 31, 2025, and 2024, respectively and $ 39.0 million and $ 27.8 million for the six months ended December 31, 2025 and 2024, respectively.

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

Fiscal Years:

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Accrued Expenses and Other Current Liabilities

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

September 30, 2025 June 30, 2025

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

December 31, 2025 June 30, 2025

Accrued expenses $ 216,138 $ 180,197

2 unchanged sentences

Customer deposits 19,153 16,396

Restructuring provision 18,269 —

Other payables 39,167 25,296

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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.

As of December 31, 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.

1 unchanged sentence

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

As of December 31, 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”).

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

As of December 31, 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.

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

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

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

2029 Notes 3.4 5.250 % 5.55 % $ 500,000 $ 500,000

2 unchanged sentences

Long-term debt $ 988,609 $ 987,684

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 total estimated fair value of the Notes was approximately $ 1.04 billion and $ 1.03 billion as of December 31, 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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Operating Leases

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.

During the six months ended December 31, 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,

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

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Operating lease costs

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

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.

As of December 31, 2025, approximately $ 3.8 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 71 % of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.

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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,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

United States $ 648,343 $ 537,396 $ 1,261,360 $ 1,043,623

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

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Cloud $ 1,067,027 $ 846,962 $ 2,064,735 $ 1,639,268

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

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Balance, beginning of period $ 2,281,156 $ 2,012,820 $ 2,481,254 $ 2,114,736

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Balance, end of period $ 2,431,509 $ 2,196,245 $ 2,431,509 $ 2,196,245

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.

For the three months ended December 31, 2025 and 2024, approximately 40 % and 41 % of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

For the six months ended December 31, 2025 and 2024, approximately 50 % and 51 % of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

Deferred Contract Acquisition Costs

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

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Balance, beginning of period $ 140,598 $ 83,444 $ 136,340 $ 79,711

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

September 30, 2025 June 30, 2025

December 31, 2025 June 30, 2025

United States $ 129,828 $ 168,841

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Restructuring

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

During the first quarter of fiscal year 2026, 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.

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 six months ended December 31, 2025.

In addition, during the first quarter of fiscal year 2026, 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 six months ended December 31, 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):

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

A summary of the Company’s restructuring charges for the six months ended December 31, 2025, by major activity type was as follows (in thousands):

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

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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):

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 December 31, 2025, related to the restructuring charges (in thousands):

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

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

Liability as of September 30, 2025

Liability as of December 31, 2025

$ 5,228 $ — $ — $ 5,228

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Stock-based Compensation

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):

A summary of RSU activity for the six months ended December 31, 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 ( 1,598,962 ) 179.38 —

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.

Balance as of December 31, 2025 $ 24,265,671 $ 177.56 $ 3,934,436

As of December 31, 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 six months ended December 31, 2025, the Company granted 1,353,312 shares of restricted stock awards (“RSA”) in connection with business combinations.

During the six months ended December 31, 2024, the Company did not grant any shares of RSA.

As of December 31, 2025 and June 30, 2025, there were 1,405,418 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 $ 11.6 million and $ 18.3 million as of September 30, 2025 and June 30, 2025, respectively.

The total aggregate intrinsic value of outstanding shares of RSA was $ 227.9 million and $ 18.3 million as of December 31, 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”).

The 2023 Repurchase Program was completed in fiscal year 2025.

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”).

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.

In September 2024, the Board of Directors authorized a program to repurchase up to $ 1.5 billion of the Company’s outstanding Class A Common Stock (the “2024 Repurchase Program”).

The 2024 Repurchase Program commenced in April 2025 following completion of the previous repurchase program.

In October 2025, the Board of Directors authorized a new program under which the Company may repurchase up to an additional $ 2.5 billion of the Company’s outstanding Class A Common Stock (the “2025 Repurchase Program” and, together with the 2024 Repurchase Program, the “Repurchase Programs”).

The 2025 Repurchase Program will commence following completion of the 2024 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 (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 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 .

During the three and six months ended December 31, 2025, the Company repurchased and subsequently retired approximately 1.3 million and 2.7 million shares of its Class A Common Stock for approximately $ 200.4 million and $ 450.3 million at an average price per share of $ 156.74 and $ 169.21 , respectively.

All repurchases were made in open market transactions.

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.

As of December 31, 2025, the Company was authorized to purchase a remaining $ 720.9 million and $ 2.5 billion of its Class A Common Stock under the 2024 Share Repurchase Program and 2025 Share Repurchase Program, respectively.

Net Loss Per Share

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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

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

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

Net loss $ ( 26,961 ) $ ( 15,684 ) $ ( 23,725 ) $ ( 14,483 ) $ ( 59,171 ) $ ( 35,344 ) $ ( 100,188 ) $ ( 61,789 )

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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,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Class A Common Stock restricted stock units 16,762 6,805 12,666 8,598

1 unchanged sentence

Total 16,831 6,853 12,702 8,631

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.

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 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.

The Company reported an income tax benefit of $ 13.1 million and $ 17.6 million for the three and six months ended December 31, 2025, respectively, as compared to an income tax benefit of $ 9.0 million and an income tax provision of $ 84.6 million for the three and six months ended December 31, 2024, respectively.

The income tax benefit for the three and six months ended December 31, 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.

The income tax benefit for the three months ended December 31, 2024 was primarily attributable to the mix of earnings and losses at various jurisdictions.

The income tax provision for the six months ended December 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.

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

On July 4, 2025, the U.S.

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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 changes had an immaterial impact on the Company’s benefit from income taxes for the three and six months ended December 31, 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 September 30, 2025, the Company will continue to maintain a valuation allowance against U.S.

Based on available evidence as of December 31, 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