What changed in this filing

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Item 1. Financial Statements

2026-05-01 compared with 2026-02-06 · 132 added, 118 removed, 675 unchanged (27% of the section changed)

3 unchanged sentences

(in thousands, except par value and share data)

December 31, 2025 June 30, 2025

March 31, 2026 June 30, 2025

Current assets:

30 unchanged sentences

Class A Common Stock, $ 0.00001 par value;

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

750,000,000 shares authorized, 161,730,398 and 165,949,196 issued and outstanding at March 31, 2026 and June 30, 2025, respectively

Class B Common Stock, 0.00001 par value;

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

230,000,000 shares authorized, 94,133,617 and 97,030,987 issued and outstanding at March 31, 2026 and June 30, 2025, respectively

Additional paid-in capital 6,786,376 5,574,290

7 unchanged sentences

(in thousands, except per share data)

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

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

2026 2025 2026 2025

18 unchanged sentences

Loss before income taxes ( 62,794 ) ( 7,354 ) ( 174,875 ) ( 84,701 )

Provision for (benefit from) income taxes ( 13,112 ) ( 8,975 ) ( 17,566 ) 84,630

Provision for income taxes

( 35,595 ) ( 63,453 ) ( 18,029 ) ( 148,083 )

Net loss $ ( 98,389 ) $ ( 70,807 ) $ ( 192,904 ) $ ( 232,784 )

18 unchanged sentences

(in thousands)

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

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

2026 2025 2026 2025

12 unchanged sentences

(in thousands)

Three Months Ended December 31, 2025

Three Months Ended March 31, 2026

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

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

Common stock issued 2,188 — — — — — — —

2 unchanged sentences

Repurchases of Class A Common Stock ( 11,816 ) — — — — — ( 1,009,947 ) ( 1,009,947 )

Other comprehensive income (loss), net of tax — — — — — 2,349 — 2,349

Other comprehensive loss, net of tax — — — — — ( 11,820 ) — ( 11,820 )

Net loss — — — — — — ( 98,389 ) ( 98,389 )

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

Balance at March 31, 2026 160,339 $ 2 94,134 $ 1 $ 6,786,376 $ ( 12,285 ) $ ( 5,895,066 ) $ 879,028

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

Balance at December 31, 2024

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

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

4 unchanged sentences

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

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

Balance at March 31, 2025

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

ATLASSIAN CORPORATION

1 unchanged sentence

(in thousands)

Six Months Ended December 31, 2025

Nine Months Ended March 31, 2026

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

8 unchanged sentences

Net loss — — — — — — ( 192,904 ) ( 192,904 )

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

Balance at March 31, 2026

160,339 $ 2 94,134 $ 1 $ 6,786,376 $ ( 12,285 ) $ ( 5,895,066 ) $ 879,028

Nine Months Ended March 31, 2025

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

8 unchanged sentences

Net loss — — — — — — ( 232,784 ) ( 232,784 )

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

Balance at March 31, 2025

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

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

2 unchanged sentences

(in thousands)

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

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

2026 2025 2026 2025

9 unchanged sentences

Net foreign currency loss (gain)

5,322 ( 5,169 ) 6,649 ( 7,750 )

Other ( 160 ) ( 264 ) ( 80 ) ( 241 )

12 unchanged sentences

Proceeds from maturities of marketable securities 59,016 53,584 144,125 125,212

Proceeds from sales of marketable securities 352,093 1,998 352,093 1,998

Proceeds from sales of strategic investments 1,493 624 36,333 4,937

Net cash used in investing activities ( 1,143,900 ) ( 111,704 ) ( 1,204,586 ) ( 130,394 )

Net cash provided by (used in) investing activities 404,141 ( 76,970 ) ( 800,445 ) ( 207,364 )

Cash flows from financing activities:

4 unchanged sentences

Net increase (decrease) in cash, cash equivalents, and restricted cash

( 21,878 ) 443,189 ( 1,376,943 ) 483,706

Cash, cash equivalents, and restricted cash at beginning of period 1,158,697 2,218,639 2,513,762 2,178,122

6 unchanged sentences

Purchase of property and equipment included in accrued expenses and other current liabilities 3,967 5,645 3,967 5,645

Repurchases of Class A Common Stock included in accrued expenses and other current liabilities 4,270 2,375 4,270 2,375

Repurchases of Class A Common Stock and related excise tax liability included in accrued expenses and other current liabilities

23,272 7,000 23,272 7,000

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

15 unchanged sentences

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 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.

The accompanying condensed consolidated financial statements contain all normal recurring adjustments which are necessary to fairly present the condensed consolidated balance sheets as of March 31, 2026 and June 30, 2025, the statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the three and nine months ended March 31, 2026 and 2025.

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.

36 unchanged sentences

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 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.

As of March 31, 2026, and June 30, 2025, no customer represented more than 10% of the total accounts receivable balance.

For the three and nine months ended March 31, 2026, and 2025, no customer represented more than 10% of total revenues.

New Accounting Standards Not Yet Adopted in Fiscal Year 2026

26 unchanged sentences

Fair Value Measurements

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):

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2026, by level within the fair value hierarchy (in thousands):

Level 1 Level 2 Total

2 unchanged sentences

Money market funds $ 581,818 $ — $ 581,818

Marketable securities:

treasury securities — 197,753 197,753

Agency securities — 3,210 3,210

Certificates of deposit and time deposits — 10,000 10,000

Commercial paper — 12,433 12,433

Corporate debt securities — 184,536 184,536

Derivative financial instruments — 24,129 24,129

28 unchanged sentences

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 $ 156.1 million and $ 168.8 million as of December 31, 2025, and June 30, 2025, respectively.

The Company’s privately held debt and equity securities amounted to $ 155.5 million and $ 168.8 million as of March 31, 2026, and June 30, 2025, respectively.

Marketable Securities

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

treasury securities $ 197,135 $ 618 $ — $ 197,753

Agency securities 3,199 11 — 3,210

Certificates of deposit and time deposits 10,000 — — 10,000

Commercial paper 12,433 — — 12,433

Corporate debt securities 183,962 574 — 184,536

Total marketable securities $ 406,729 $ 1,203 $ — $ 407,932

The Company did not have any investments of marketable securities as of March 31, 2026.

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

6 unchanged sentences

Total marketable securities $ 423,422 $ 934 $ ( 88 ) $ 424,268

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

December 31, 2025 June 30, 2025

The table below summarizes the Company’s marketable securities by remaining contractual maturity as of June 30, 2025 (in thousands):

Marketable Securities

Due in one year or less $ 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 December 31, 2025, and June 30, 2025, unrealized losses and the related risk of expected credit losses were not material.

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

The Company’s investments of privately held debt securities as of March 31, 2026, consisted of the following (in thousands):

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

6 unchanged sentences

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

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

The carrying values for privately held equity securities as of March 31, 2026 are summarized below (in thousands):

Privately held equity securities

Initial total cost $ 143,802

Cumulative net gains (losses) 9,604

Cumulative net gains

Carrying value $ 151,086

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.

Privately held equity securities’ cumulative net gains are composed of upward adjustments of $ 14.9 million and downward adjustments and impairment charges of $ 7.7 million as of March 31, 2026.

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

6 unchanged sentences

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

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

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

2026 2025 2026 2025

3 unchanged sentences

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

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

Unrealized gains (losses), net

$ ( 2,321 ) $ ( 967 ) $ 30,756 $ ( 967 )

Realized losses recognized on sales of publicly traded equity securities — — ( 10,071 ) —

1 unchanged sentence

Realized gains recognized on privately held equity securities 402 — 1,367 —

Realized gains on debt securities

$ 228 $ — $ 228 $ —

Gains (losses) on strategic investments, net $ ( 1,691 ) $ ( 1,467 ) $ 22,280 $ ( 4,112 )

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

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

$ ( 2,321 ) $ ( 967 ) $ 6,277 $ ( 967 )

8 unchanged sentences

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

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

The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal year 2025 and the nine months ended March 31, 2026 (in thousands):

Equity Method Investment

3 unchanged sentences

Balance as of June 30, 2025

Share of losses

Effect of change in exchange rates 2,273

Balance as of December 31, 2025

Balance as of March 31, 2026

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 December 31, 2025 (in thousands):

The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of March 31, 2026 (in thousands):

Notional Amounts of Derivative Instruments

8 unchanged sentences

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

Balance Sheet Location December 31, 2025 June 30, 2025

Balance Sheet Location March 31, 2026 June 30, 2025

Derivative assets

13 unchanged sentences

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

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

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

2026 2025 2026 2025

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

Beginning balance of accumulated gains (losses) in accumulated other comprehensive income (loss) $ 14,585 $ ( 15,267 ) $ 24,679 $ 41,424

Gross unrealized gains (losses) recognized in other comprehensive income (loss) 1,299 5,676 ( 2,194 ) ( 34,176 )

5 unchanged sentences

Recognized in interest expense — ( 6,337 ) ( 7,163 ) ( 20,357 )

Ending balance of accumulated gains in accumulated other comprehensive income (loss) $ 14,585 $ ( 15,267 ) $ 14,585 $ ( 15,267 )

Ending balance of accumulated gains (losses) in accumulated other comprehensive income (loss) $ 8,470 $ ( 7,030 ) $ 8,470 $ ( 7,030 )

Property and Equipment

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

December 31, 2025 June 30, 2025

March 31, 2026 June 30, 2025

Equipment $ 16,343 $ 15,008

5 unchanged sentences

Property and equipment, net $ 75,612 $ 105,118

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.

Depreciation expense was $ 9.9 million and $ 9.3 million for the three months ended March 31, 2026, and 2025, respectively, and $ 30.9 million and $ 27.5 million for the nine months ended March 31, 2026 and 2025, respectively.

During the three and nine months ended March 31, 2026, the Company recorded a $ 17.6 million and $ 18.7 million impairment charge for leasehold improvements and other as a result of its facilities consolidation restructuring efforts, respectively.

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

64 unchanged sentences

Other Fiscal Year 2026 Business Combinations

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

During the nine months ended March 31, 2026, 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.

Pro forma results of operations have not been presented for the nine months ended March 31, 2026 and 2025 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

5 unchanged sentences

Effect of change in exchange rates 31

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

Balance as of March 31, 2026 $ 2,303,393

Intangible Assets

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

Intangible assets consisted of the following as of March 31, 2026 (in thousands):

Gross Carrying Amount Accumulated Amortization Net

9 unchanged sentences

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

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

The weighted-average remaining useful lives of the Company’s acquired intangible assets as of March 31, 2026 were as follows:

Weighted-Average Remaining Useful Lives (Years)

2 unchanged sentences

Customer relationships 3

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):

Amortization expense for intangible assets was approximately $ 31.3 million and $ 13.9 million for the three months ended March 31, 2026, and 2025, respectively and $ 70.3 million and $ 41.7 million for the nine months ended March 31, 2026 and 2025, respectively.

The following table presents the estimated future amortization expense related to intangible assets held as of March 31, 2026 (in thousands):

Fiscal Years:

4 unchanged sentences

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

December 31, 2025 June 30, 2025

March 31, 2026 June 30, 2025

Accrued expenses $ 250,250 $ 180,197

Employee benefits 383,260 422,986

Restructuring provision 75,960 —

Derivative Liabilities 20,921 2,445

Tax liabilities 20,570 36,726

10 unchanged sentences

The 2024 Credit Facility matures in August 2029.

As of December 31, 2025 there were no borrowings under the 2024 Credit Facility.

As of March 31, 2026 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 December 31, 2025, the Company was in compliance with all covenants associated with the 2024 Credit Facility.

As of March 31, 2026, 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”).

7 unchanged sentences

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 December 31, 2025, the Company was in compliance with all covenants associated with the Notes.

As of March 31, 2026, 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.

3 unchanged sentences

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

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

Instrument Expected Remaining Term (years) Contractual Interest Rate Effective Interest Rate March 31, 2026 June 30, 2025

2029 Notes 3.1 5.250 % 5.55 % $ 500,000 $ 500,000

2 unchanged sentences

Long-term debt $ 989,081 $ 987,684

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 total estimated fair value of the Notes was approximately $ 1.01 billion and $ 1.03 billion as of March 31, 2026, 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.

3 unchanged sentences

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

During the three and nine months ended March 31, 2026, the Company entered into additional non-cancelable purchase commitments of approximately $ 3.0 billion with contractual terms ranging from two to six years .

Operating Leases

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.

During the three and nine months ended March 31, 2026, the Company recorded a $ 36.0 million and $ 61.2 million impairment charge for operating lease right-of-use assets as a result of its facilities consolidation restructuring efforts, respectively.

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

1 unchanged sentence

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

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

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

2026 2025 2026 2025

15 unchanged sentences

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

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.

As of March 31, 2026, approximately $ 4.0 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 69 % of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.

1 unchanged sentence

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 December 31, Six Months Ended December 31,

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

2026 2025 2026 2025

8 unchanged sentences

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

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

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

2026 2025 2026 2025

9 unchanged sentences

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

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

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

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

2 unchanged sentences

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

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

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

2026 2025 2026 2025

3 unchanged sentences

Balance, end of period $ 2,411,644 $ 2,368,203 $ 2,411,644 $ 2,368,203

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.

For the three months ended March 31, 2026 and 2025, approximately 23 % and 25 % of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

For the nine months ended March 31, 2026 and 2025, approximately 40 % and 42 % 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 December 31, Six Months Ended December 31,

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

2026 2025 2026 2025

10 unchanged sentences

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

December 31, 2025 June 30, 2025

March 31, 2026 June 30, 2025

United States $ 108,995 $ 168,841

5 unchanged sentences

Restructuring

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 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.

During the first quarter of fiscal year 2026, the Company initiated a restructuring plan (“July 2025 Plan”) to reduce additional capacity no longer necessary due to the increased ability, accessibility, performance, stability, and supportability of its products.

The July 2025 Plan is substantially completed as of March 31, 2026.

During the third quarter of fiscal year 2026, the Company initiated a restructuring plan (“March 2026 Plan”) to accelerate building the future of teamwork in the AI era.

This includes self-funding further investment in key strategic priorities, such as AI and enterprise sales, reorganizing its teams to move with more focus and speed across the

Atlassian System of Work, and optimizing for long-term operational efficiency and sustainability.

The March 2026 Plan includes a reduction in force that resulted in the elimination of certain roles, which impacted approximately 10 % of the Company’s workforce, including the roles subject to formal consultation processes in certain jurisdictions.

The execution of these actions, including cash payment of the severance and other termination benefits related liabilities, is expected to be substantially completed by the end of fiscal year 2026.

As a result, the Company recorded total severance and other termination benefits of $ 198.1 million, and stock-based compensation of $ 1.4 million for the affected employees for the nine months ended March 31, 2026.

In addition, during the nine months ended March 31, 2026, the Company exited certain leased properties, which it plans to sublease, in order to optimize its real estate footprint.

As a result, the Company recorded total impairment charges of $ 80.0 million associated with the optimization of its leased facilities, primarily for operating lease right-of-use assets and leasehold improvements for the nine months ended March 31, 2026.

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 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):

A summary of the Company’s restructuring charges for the three months ended March 31, 2026, by major activity type was as follows (in thousands):

Severance and Other Termination Benefits Lease Consolidation Total

Cost of revenue $ 16,747 $ 4,281 $ 21,028

Research and development 104,972 23,548 128,520

Marketing and sales 24,423 18,267 42,690

General and administrative 24,025 7,568 31,593

Total $ 170,167 $ 53,664 $ 223,831

A summary of the Company’s restructuring charges for the nine months ended March 31, 2026, 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 $ 198,056 $ 1,432 $ 80,021 $ 279,509

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):

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 March 31, 2026, 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 ) ( 79,951 ) ( 81,829 )

Liability as of December 31, 2025

Effect of change in exchange rates ( 2,272 ) — — ( 2,272 )

Restructuring provision as of March 31, 2026

$ 75,940 $ — $ 20 $ 75,960

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Stock-based Compensation

A summary of RSU activity for the six months ended December 31, 2025 was as follows (in thousands except share and per share data):

A summary of RSU activity for the nine months ended March 31, 2026 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 ( 4,414,950 ) 176.78 —

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.

Balance as of March 31, 2026 21,242,285 $ 165.47 $ 1,449,786

As of March 31, 2026, total compensation cost not yet recognized in the condensed consolidated financial statements related to employee and director RSU awards was $ 2.7 billion.

During the nine months ended March 31, 2026, the Company granted 1,353,312 shares of restricted stock awards (“RSA”) in connection with business combinations.

During the nine months ended March 31, 2025, the Company did not grant any shares of RSA.

As of March 31, 2026 and June 30, 2025, there were 1,392,394 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 was $ 227.9 million and $ 18.3 million as of December 31, 2025 and June 30, 2025, respectively.

The total aggregate intrinsic value of outstanding shares of RSA was $ 95.0 million and $ 18.3 million as of March 31, 2026 and June 30, 2025, respectively.

Share Repurchase Program

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

The 2024 Repurchase Program was completed in March 2026.

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 2025 Repurchase Program commenced in March 2026 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.

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

During the three and 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.

During the three and nine months ended March 31, 2026, the Company repurchased and subsequently retired approximately 11.8 million and 14.5 million shares of its Class A Common Stock for approximately $ 1.0 billion and $ 1.5 billion at an average price per share of $ 85.04 and $ 100.51 , respectively.

The 1% excise tax on net share repurchase as a result of the Inflation Reduction Act is excluded in the total repurchase cost and average price.

All repurchases were made in open market transactions.

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.

As of March 31, 2026, the Company was authorized to purchase a remaining $ 2.2 billion of its Class A Common Stock under the 2025 Share Repurchase Program.

Net Loss Per Share

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

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

for the period.

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

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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 December 31, Six Months Ended December 31,

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

2026 2025 2026 2025

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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 December 31, Six Months Ended December 31,

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

2026 2025 2026 2025

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Total 23,377 6,554 16,260 7,939

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.

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

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

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

The Company reported an income tax 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.

The Company reported an income tax provision of $ 35.6 million and $ 18.0 million for the three and nine months ended March 31, 2026, respectively, as compared to an income tax provision of $ 63.5 million and $ 148.1 million for the three and nine months ended March 31, 2025, respectively.

The income tax provision for the three and nine months ended March 31, 2026 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 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.

The income tax provision for the three months ended March 31, 2025 was primarily attributable to the mix of earnings and losses at various jurisdictions.

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

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

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

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

corporate income tax system such as allowing the immediate expensing of qualifying domestic research and development expenses and permanent extensions of certain

provisions within the Tax Cuts and Jobs Act.

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

The changes had an immaterial impact on the Company’s benefit from income taxes for the three and six months ended December 31, 2025.

The changes had an immaterial impact on the Company’s provision for income taxes for the three and nine months ended March 31, 2026.

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 December 31, 2025, the Company will continue to maintain a valuation allowance against U.S.

Based on available evidence as of March 31, 2026, the Company will continue to maintain a valuation allowance against U.S.

federal, U.S.

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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 1. Financial Statements