# Atlassian Corp (TEAM)

Informational only - not investment advice.

CIK: 0001650372
SIC: 7372 Services-Prepackaged Software
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7372 Services-Prepackaged Software](/industry/7372/)
Latest 10-K filed: 2026-08-14
SEC page: https://www.sec.gov/edgar/browse/?CIK=1650372
Filing source: https://www.sec.gov/Archives/edgar/data/1650372/000165037226000036/team-20260630.htm

## At a glance

FY2026 · period end 2026-06-30 · filed 2026-08-14 · accession 0001650372-26-000036 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001650372.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 6,572,308,000 USD | 2026 | verified |
| Net income | -53,828,000 USD | 2026 | verified |
| Assets | 6,103,529,000 USD | 2026 | verified |
| Free cash flow | 1,319,075,000 USD | 2026 | computed |
| Net margin | -0.82% | 2026 | computed |
| Operating margin | 0.16% | 2026 | computed |
| Revenue YoY | +26.02% | 2026 | computed |
| ROE | -5.09% | 2026 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | TEAM | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -0.8% | 1.5% | 42 | 122 |
| Operating margin | 0.2% | 1.3% | 45 | 121 |
| Revenue growth | 26.0% | 13.5% | 85 | 124 |
| FCF margin | 20.1% | 19.3% | 54 | 120 |
| ROE | -5.1% | 2.0% | 34 | 112 |
| ROA | -0.9% | 0.9% | 42 | 124 |
| Liabilities / equity | 4.77 | 0.91 | 89 | 113 |
| Current ratio | 0.78 | 1.57 | 10 | 124 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7372 Services-Prepackaged Software, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 6572308000 | USD | 2026 | 2026-08-14 |
| Net income | -53828000 | USD | 2026 | 2026-08-14 |
| Assets | 6103529000 | USD | 2026 | 2026-08-14 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-14. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001650372.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 2,089,132,000 | 2,802,882,000 | 3,534,647,000 | 4,358,603,000 | 5,215,304,000 | 6,572,308,000 |
| Net income |  | -578,979,000 | -519,510,000 | -486,761,000 | -300,519,000 | -256,687,000 | -53,828,000 |
| Operating income |  | 141,406,000 | 70,083,000 | -345,222,000 | -117,077,000 | -130,392,000 | 10,355,000 |
| Gross profit |  | 1,757,282,000 | 2,349,968,000 | 2,900,882,000 | 3,555,108,000 | 4,320,453,000 | 5,575,478,000 |
| Diluted EPS |  | -2.32 | -2.05 | -1.90 | -1.16 | -0.98 | -0.21 |
| Operating cash flow |  | 789,960,000 | 821,044,000 | 868,111,000 | 1,448,159,000 | 1,460,393,000 | 1,353,135,000 |
| Capital expenditures |  | 31,520,000 | 70,583,000 | 25,812,000 | 33,112,000 | 44,850,000 | 34,060,000 |
| Share buybacks |  | 0.00 | 0.00 | 150,006,000 | 395,256,000 | 779,439,000 | 1,800,485,000 |
| Assets |  |  | 3,326,830,000 | 4,106,779,000 | 5,212,133,000 | 6,041,970,000 | 6,103,529,000 |
| Liabilities |  |  | 2,999,458,000 | 3,452,107,000 | 4,179,282,000 | 4,696,316,000 | 5,045,087,000 |
| Stockholders' equity | 566,643,000 | 313,262,000 | 327,372,000 | 654,672,000 | 1,032,851,000 | 1,345,654,000 | 1,058,442,000 |
| Cash and cash equivalents |  | 919,227,000 | 1,385,265,000 | 2,102,550,000 | 2,176,930,000 | 2,512,874,000 | 1,239,512,000 |
| Free cash flow |  | 758,440,000 | 750,461,000 | 842,299,000 | 1,415,047,000 | 1,415,543,000 | 1,319,075,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | -27.71% | -18.53% | -13.77% | -6.89% | -4.92% | -0.82% |
| Operating margin |  | 6.77% | 2.50% | -9.77% | -2.69% | -2.50% | 0.16% |
| Return on equity |  | -184.82% | -158.69% | -74.35% | -29.10% | -19.08% | -5.09% |
| Return on assets |  |  | -15.62% | -11.85% | -5.77% | -4.25% | -0.88% |
| Liabilities / equity |  |  | 9.16 | 5.27 | 4.05 | 3.49 | 4.77 |
| Current ratio |  |  | 1.19 | 1.35 | 1.18 | 1.22 | 0.78 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-14. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001650372.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-09-30 |  |  | -0.05 | reported discrete quarter |
| 2023-Q2 | 2022-12-31 |  |  | -0.80 | reported discrete quarter |
| 2023-Q3 | 2023-03-31 |  |  | -0.81 | reported discrete quarter |
| 2024-Q1 | 2023-09-30 | 977,775,000 | -31,883,000 | -0.12 | reported discrete quarter |
| 2024-Q2 | 2023-12-31 | 1,060,110,000 | -84,469,000 | -0.33 | reported discrete quarter |
| 2024-Q3 | 2024-03-31 | 1,189,128,000 | 12,752,000 | 0.05 | reported discrete quarter |
| 2024-Q4 | 2024-06-30 | 1,131,590,000 | -196,919,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-09-30 | 1,187,781,000 | -123,769,000 | -0.48 | reported discrete quarter |
| 2025-Q2 | 2024-12-31 | 1,286,463,000 | -38,208,000 | -0.15 | reported discrete quarter |
| 2025-Q3 | 2025-03-31 | 1,356,716,000 | -70,807,000 | -0.27 | reported discrete quarter |
| 2025-Q4 | 2025-06-30 | 1,384,344,000 | -23,903,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-09-30 | 1,432,553,000 | -51,870,000 | -0.20 | reported discrete quarter |
| 2026-Q2 | 2025-12-31 | 1,586,315,000 | -42,645,000 | -0.16 | reported discrete quarter |
| 2026-Q3 | 2026-03-31 | 1,786,971,000 | -98,389,000 | -0.38 | reported discrete quarter |
| 2026-Q4 | 2026-06-30 | 1,766,469,000 | 139,076,000 |  | derived Q4 = FY annual - nine-month YTD |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from TEAM's latest 10-K: [/company/TEAM/business/](/company/TEAM/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from TEAM's latest 10-K: [/company/TEAM/risk-factors/](/company/TEAM/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1650372/000165037226000027/team-20260331.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-01
Report date: 2026-03-31

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto and the information contained in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for the year ended June 30, 2025, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on August 15, 2025.

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “plan,” “should,” “estimate,” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results and timing expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q. The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Quarterly Report on Form 10-Q. Except as may be required by law, we assume no obligation to update these forward-looking statements or the reasons that results could differ from these forward-looking statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q.

Overview

Our mission is to unleash the potential of every team.

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

Our deeply interconnected portfolio of apps, AI agents, and products, each with discrete value propositions, delivers solutions for software teams, IT operations and support teams, leadership, and business teams. We’ve put AI at the center of our portfolio to enhance teamwork for users across our apps and Collections, a carefully curated set of apps and agents designed to solve complex tasks. These apps, agents, and Collections are all built on the Atlassian Cloud Platform and data model: a common technology foundation that seamlessly connects teams, information, and workflows throughout an organization.

We generate revenues primarily in the form of subscription fees. Subscription revenues consist primarily of fees earned from subscription-based arrangements for providing customers the right to use our software apps in a cloud-based-infrastructure that we provide (“Cloud offerings”). We also sell on-premises term license agreements for our Data Center products (“Data Center offerings”), consisting of software licensed for a specified period and support and maintenance services that are bundled with the license for the term of the license period. Subscription revenues also include subscription-based agreements for our premier support services. From time to time, we make changes to our apps and product offerings, prices, and pricing plans for our offerings, which may impact the growth rate of our revenue, and our deferred revenue balances, remaining performance obligations, and customer retention. Subscription revenue, through our Cloud and Data Center offerings, results in a large recurring revenue base.

In September 2025, we announced plans to end-of-life our Data Center deployment offering. As of March 2026, we no longer sell term licenses to new customers, and we will stop selling term licenses and expansions to existing customers in March 2028. Subject to limited exceptions, we also plan to end maintenance and support for on-premises versions of our products in March 2029. In order to support customers who face unique requirements or challenges, we will offer an approximately three-year extended maintenance period for certain customers.

In the second quarter of fiscal 2026, we completed the acquisitions of The Browser Company of New York Inc. (“BCNY”) and A Software Company (“DX”). We believe integrating these technologies into our offerings will enhance customer value. BCNY has built a browser for enterprises optimized for SaaS applications in the AI-era. DX offers market-leading engineering intelligence that provides leaders with data-driven insights to understand how their

28

investments are helping teams accelerate and improve their work and enhances the value of the offerings in our Collections.

Economic Conditions

Our results of operations may vary based on the impact of changes in the global economy on us or our customers. Our business depends on demand for business software applications generally and for collaboration software solutions in particular. We are subject to risks and exposures from the evolving macroeconomic environment, inflationary pressures, interest rate policy, changes in trade policies, political instability, and geopolitical tensions. We monitor the direct and indirect impacts of these circumstances on our business and financial results. The extent to which these risks ultimately impact our business, results of operations, and financial position will depend on future developments, which are uncertain and cannot be predicted at this time.

Restructuring

During the first quarter of fiscal year 2026, we 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 our products. The July 2025 Plan is substantially completed as of March 31, 2026.

During the third quarter of fiscal year 2026, we 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 our teams to move with more focus and speed across the Atlassian System of Work, and optimizing for long-term operational efficiency and sustainability. The execution of the March 2026 Plan, including cash payment of severance and other termination benefits related liabilities, is expected to be substantially completed by the end of fiscal year 2026.

As a result, we 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, we exited certain leased properties, which we plan to sublease, in order to optimize our real estate footprint. As a result, we recorded total impairment charges for the related operating lease right-of-use assets and leasehold improvements of $80.0 million for the nine months ended March 31, 2026.

A summary of restructuring charges for the nine months ended March 31, 2026 by major activity type is as follows (in thousands):

[[GREPCENT_TABLE]]
[["","Severance and Other Termination Benefits","","Stock-based Compensation","","Lease Consolidation","","Total"],["Cost of revenue","$","44,541","","","$","1,432","","","$","6,647","","","$","52,620"],["Research and development","104,972","","","\u2014","","","35,650","","","140,622"],["Marketing and sales","24,423","","","\u2014","","","26,421","","","50,844"],["General and administrative","24,120","","","\u2014","","","11,303","","","35,423"],["Total","$","198,056","","","$","1,432","","","$","80,021","","","$","279,509"]]
[[/GREPCENT_TABLE]]

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

Key Business Metrics

We utilize the following key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

29

Customer Base

We have a history of successfully growing both our total customer base and the spend per customer through growth in users, higher average price per user, and adoption of new apps or products. We believe our ability to attract new customers is critical, and expanding within the existing customer base is the primary driver of our success as a business. Typically, new customers begin their journey with Atlassian with a small footprint by either adopting our free editions or purchasing a single app or product for a limited number of users. We are focused on continuing to grow our total customer base, specifically the number of customers with more than $10,000 in annualized recurring revenue from our Cloud offerings (“Cloud ARR”), as it measures our ability to successfully expand within our existing customer base.

We define the number of total customers at the end of any particular period as the number of organizations with unique domains with an active subscription for two or more seats. We define the number of customers with Cloud ARR greater than $10,000 using the same definition as total customers, with the distinction of having an active Cloud subscription and greater than $10,000 in Cloud ARR. We define Cloud ARR as the annualized recurring revenue run-rate of Cloud subscription agreements at a point in time. We calculate Cloud ARR by taking the Cloud monthly recurring revenue (“Cloud MRR”) run-rate and multiplying it by 12. Cloud MRR for each month is calculated by aggregating monthly recurring revenue from committed contractual amounts at a point in time. Cloud ARR and Cloud MRR should be viewed independently of revenue and do not represent our revenue under GAAP, as they are operational metrics that can be affected by contract start and end dates and renewal rates. While a single customer may have distinct departments, operating segments, or subsidiaries with multiple active licenses or subscriptions of our apps, if the app deployments share a unique domain name, we only include the customer once for purposes of calculating a customer.

As of March 31, 2026, we had more than 350,000 customers. If we include single-user accounts and organizations that have only adopted our free or starter offerings, the active use of our offerings extends well beyond our total customer base. Through the extensive use of our software, we are able to reach a vast number of users, gather insights to refine our offerings, and generate growing revenue by expanding within our total customer base. Customers with greater than $10,000 in Cloud ARR represent the majority of our Cloud revenue.

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

[[GREPCENT_TABLE]]
[["","As of"],["","March 31, 2025","","June 30, 2025","","September 30, 2025","","December 31, 2025","","March 31, 2026"],["Number of customers with greater than $10,000 in Cloud ARR","50,715","","","51,978","","","53,017","","","55,369","","","55,913"]]
[[/GREPCENT_TABLE]]

Free Cash Flow

Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less net cash used in investing activities for capital expenditures. Management considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash genera

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1650372/000165037226000036/team-20260630.htm
Complete FY 2026 MD&A: /company/TEAM/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-14
Report date: 2026-06-30

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This section of our Annual Report on Form 10-K discusses our financial condition and results of operations for fiscal years 2026 and 2025, and year-to-year comparisons between fiscal years 2026 and 2025, in accordance with U.S. generally accepted accounting principles (“GAAP”). A discussion of our financial condition and results of operations for the fiscal year 2024 and year-to-year comparisons between fiscal years 2025 and 2024 that is not included in this Annual Report on Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended 2025, filed on August 15, 2025.

You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes appearing under “Financial Statements and Supplementary Data” in Item 8 in this Annual Report on Form 10-K. As discussed in the section titled “Forward-Looking Statements,” the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” under Part I, Item 1A in this Annual Report on Form 10-K.

Overview

Our mission is to unleash the potential of every team.

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

Our deeply interconnected portfolio of apps, AI agents, and Collections, each with discrete value propositions, delivers solutions for software teams, IT operations and support teams, leadership and business teams. As an AI-first company, we have embedded AI capabilities across every surface of our platform, enabling organizations to orchestrate work effectively across both human and AI teammates. 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, context, and workflows throughout an organization.

We generate revenues primarily in the form of subscription fees. Subscription revenues consist primarily of fees earned from subscription-based arrangements for providing customers the right to use our software apps in a cloud-based infrastructure that we provide (“Cloud offerings”). We also sell on-premises term license agreements for our Data Center products (“Data Center offerings”), consisting of software licensed for a specified period and support and maintenance services that are bundled with the license for the term of the license period. Subscription revenues also include subscription-based agreements for our premier support services. From time to time, we make changes to our apps and product offerings, prices, and pricing plans for our offerings, which may impact the growth rate of our revenue, and our deferred revenue balances, remaining performance obligations, and customer retention. Subscription revenue, through our Cloud and Data Center offerings, results in a large recurring revenue base.

In September 2025, we announced plans to end-of-life our Data Center offering. As of March 2026, we no longer sell term licenses to new customers, and we will stop selling term licenses and expansions to existing customers in March 2028. Subject to limited exceptions, we also plan to end maintenance and support for on-premises versions of our products in March 2029. In order to support customers who face unique requirements or challenges, we will offer an approximately three-year extended maintenance period for certain customers.

In the second quarter of fiscal year 2026, we completed the acquisitions of The Browser Company of New York Inc. (“BCNY”) and A Software Company (“DX”). We believe integrating these technologies into our offerings will enhance customer value. BCNY has built a browser for enterprises optimized for SaaS applications in the AI-era. DX offers market-leading engineering intelligence that provides leaders with data-driven insights to understand how their investments are helping teams accelerate and improve their work and enhances the value of the offerings in our Collections.

50

Economic Conditions

Our results of operations may vary based on the impact of changes in the global economy on us or our customers. Our business depends on demand for business software applications generally and for collaboration software solutions in particular. We are subject to risks and exposures from the evolving macroeconomic environment, inflationary pressures, interest rate policy, changes in trade policies, political instability, and geopolitical tensions. We monitor the direct and indirect impacts of these circumstances on our business and financial results. The extent to which these risks ultimately impact our business, results of operations, and financial position will depend on future developments, which are uncertain and cannot be predicted at this time.

Restructuring

During the first quarter of fiscal year 2026, we initiated a restructuring plan to reduce capacity that was no longer necessary due to the increased ability, accessibility, performance, stability, and supportability of our products.

During the third quarter of fiscal year 2026, we initiated another restructuring 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 our teams to move with more focus and speed across the Atlassian System of Work, and optimizing for long-term operational efficiency and sustainability. This initiative resulted in the elimination of certain roles, which impacted approximately 10% of our workforce.

The execution of these actions, including cash payment of the severance and other termination benefits related liabilities, have been substantially satisfied as of June 30, 2026.

As a result, we recorded total severance and other termination benefits of $203.9 million, and additional stock-based compensation of $1.4 million for the affected employees during fiscal year 2026.

In addition, we exited certain leased properties to optimize our real estate footprint and have entered, or plan to enter, into sublease agreements for these locations. As a result, we recorded total impairment charges for the related operating lease right-of-use assets and leasehold improvements of $80.0 million for the fiscal year ended 2026.

A summary of our restructuring charges for fiscal year 2026, by major activity type was as follows (in thousands):

[[GREPCENT_TABLE]]
[["","Severance and Other Termination Benefits","","Stock-based Compensation","","Lease Consolidation","","Total"],["Cost of revenue","$","45,185","","","$","1,432","","","$","6,647","","","$","53,264"],["Research and development","108,844","","","\u2014","","","35,650","","","144,494"],["Marketing and sales","25,110","","","\u2014","","","26,421","","","51,531"],["General and administrative","24,778","","","\u2014","","","11,303","","","36,081"],["Total","$","203,917","","","$","1,432","","","$","80,021","","","$","285,370"]]
[[/GREPCENT_TABLE]]

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

Key Business Metrics

We utilize the following key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

Customer Base

We have a history of successfully growing both our total customer base and the spend per customer through growth in users, higher average price per user, and adoption of new apps or products. We believe our ability to attract new customers is critical, and expanding within the existing customer base is the primary driver of our success as a business. Typically, new customers begin their journey with Atlassian with a small footprint by either adopting our free editions or purchasing a single app or product for a limited number of users. We are focused on continuing to grow our total customer base, specifically the number of customers with more than $10,000 in annualized recurring revenue from our Cloud offerings (“Cloud ARR”), as it measures our ability to successfully expand within our existing customer base.

51

We define the number of total customers at the end of any particular period as the number of organizations with unique domains with an active subscription for two or more seats. We define the number of customers with Cloud ARR greater than $10,000 using the same definition as total customers with the distinction of having an active Cloud subscription and greater than $10,000 in Cloud ARR. We define Cloud ARR as the annualized recurring revenue run-rate of Cloud subscription agreements at a point in time. We calculate Cloud ARR by taking the Cloud monthly recurring revenue (“Cloud MRR”) run-rate and multiplying it by 12. Cloud MRR for each month is calculated by aggregating monthly recurring revenue from committed contractual amounts at a point in time. Cloud ARR and Cloud MRR should be viewed independently of revenue and do not represent our revenue under GAAP, as they are operational metrics that can be affected by contract start and end dates and renewal rates. While a single customer may have distinct departments, operating segments, or subsidiaries with multiple active licenses or subscriptions of our apps, if the app deployments share a unique domain name, we only include the customer once for purposes of calculating a customer.

As of June 30, 2026, we had more than 350,000 customers. If we include single-user accounts and organizations that have only adopted our free or starter offerings, the active use of our offerings extends well beyond our total customer base. Through the extensive use of our software, we are able to reach a vast number of users, gather insights to refine our offerings, and generate growing revenue by expanding within our total customer base. Customers with greater than $10,000 in Cloud ARR represent the majority of our Cloud revenue. No single customer contributed more than 5% of our total revenues during fiscal year 2026.

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

[[GREPCENT_TABLE]]
[["","As of"],["","June 30, 2024","","June 30, 2025","","June 30, 2026"],["Number of customers with greater than $10,000 in Cloud ARR","45,842","","","51,978","","","57,334"]]
[[/GREPCENT_TABLE]]

Subscription ARR

Subscription ARR is the annual recurring revenue from subscription agreements to our Cloud and Data Center offerings at a point in time. It reflects the annualized value of active subscriptions, including recurring revenue from upgrades and add-ons, but excludes one-time fees. For monthly subscriptions, ARR is calculated by multiplying monthly recurring revenue by 12. ARR should be viewed independently of revenue and does not represent our revenue under GAAP, as it is an operational metric that can be affected by contract start and end dates, renewal rates, and the timing of invoices. Subscription ARR as of June 30, 2026 and 2025 were $6,606 million and $5,382 million, respectively.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less net cash used in investing activities for capital expenditures. Management considers free cash flow to be a liquidity measu

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/TEAM/mda/fy2026/
All MD&A years: /company/TEAM/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/TEAM/mda/fy2025/): filed 2025-08-15; accession 0001650372-25-000036 (https://www.sec.gov/Archives/edgar/data/1650372/000165037225000036/team-20250630.htm)
- [FY 2024 MD&A](/company/TEAM/mda/fy2024/): filed 2024-08-16; accession 0001650372-24-000036 (https://www.sec.gov/Archives/edgar/data/1650372/000165037224000036/team-20240630.htm)
- [FY 2023 MD&A](/company/TEAM/mda/fy2023/): filed 2023-08-18; accession 0001650372-23-000040 (https://www.sec.gov/Archives/edgar/data/1650372/000165037223000040/team-20230630.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7372 Services-Prepackaged Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/TEAM.md · JSON record: /company/TEAM.json · verified financials: /company/TEAM/financials.json / /company/TEAM/financials.csv · machine TOC for the whole site: /llms.txt