01—Abstract
Summary
Summary of the 10-K filed August 15, 2025. Cited figures are marked; the original filing is the authoritative source.
Atlassian Corporation's fiscal 2025 Form 10-K (fiscal year ended June 30, 2025) reports total revenues of $5.22 billiona, up 20% from $4.36 billion in fiscal 2024.
Subscription revenues rose 26% to $4.93 billionb, driven primarily by paid seat expansion from existing customers and price increases, while other revenues fell 34% to $284.7 million after the end of Server support. Cloud revenues grew 28% to $3.45 billion and Data Center revenues grew 21% to $1.47 billion. Gross margin was 83% versus 82% a year earlier, but the company still posted a GAAP operating loss of $130.4 million and a net loss of $256.7 million, compared with a net loss of $300.5 million in fiscal 2024.
Management's non-GAAP operating income was $1.29 billionc, a 25% non-GAAP operating margin, and free cash flow was $1.42 billion, roughly flat year over year. Stock-based compensation rose to $1.36 billion and is the main reason GAAP results remain negative. The balance sheet shows cash and cash equivalents of $2.51 billion, marketable securities of $424.3 million, and $985.6 million of senior notes, with an undrawn $750 million revolving credit facility.
Operating cash flow was $1.46 billiond. The company repurchased about 4.0 million Class A shares for $780.7 million during the year, and $1.2 billion remained under the 2024 Repurchase Program as of June 30, 2025.
Founders' Class B shares carry ten votes per share and held about 85% of voting power, so Co-Founders Michael Cannon-Brookes and Scott Farquhar control most stockholder votes. The filing also discloses that the company is investing heavily in AI, including making Rovo available to premium and enterprise customers at no additional cost, with management expecting these investments to weigh on operating margins in the near term.
02—Key points
Key Highlights
- Total revenues grew 20% to $5.22 billion, led by subscription revenue growth of 26% to $4.93 billion.
- Cloud revenues rose 28% to $3.45 billion, while Data Center revenues rose 21% to $1.47 billion.
- GAAP operating loss narrowed slightly to $130.4 million and net loss improved to $256.7 million from $300.5 million, but stock-based compensation of $1.36 billion remains a major factor.
- Non-GAAP operating income was $1.29 billion (25% non-GAAP operating margin) versus $1.01 billion (23%) in fiscal 2024.
- Free cash flow was $1.42 billion, approximately flat year over year, with operating cash flow of $1.46 billion.
- The company repurchased about 4.0 million Class A shares for $780.7 million, with $1.2 billion remaining under the 2024 Repurchase Program.
- Class B shares held about 85% of voting power, concentrating control with Co-Founders Michael Cannon-Brookes and Scott Farquhar.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2025, Atlassian lost $0.05.
- Revenue$5.22B100.0%
- Cost of revenue−$894.9M17.2%
- Gross profit$4.32B82.8%
- Operating costs−$4.45B85.3%
- Operating income−$130.4M2.5%
- Interest, other & tax−$126.3M2.4%
- Net income−$256.7M4.9%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed August 15, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $5.22B$4.36B | +19.7% |
| Cost of Revenue | $894.85M$803.50M | +11.4% |
| Gross Profit | $4.32B$3.56B | +21.5% |
| R&D Expenses | $2.67B$2.18B | +22.2% |
| Operating Expenses | $4.45B$3.67B | +21.2% |
| Operating Income | -$130.39M-$117.08M | −11.4% |
| Net Income | -$256.70M-$300.50M | +14.6% |
| EPS (Basic) | $-0.98$-1.16 | +15.5% |
| EPS (Diluted) | $-0.98$-1.16 | +15.5% |
| Shares Outstanding (Basic) | 261.79M259.13M | +1.0% |
| Shares Outstanding (Diluted) | 261.79M259.13M | +1.0% |
05—Questions
Frequently Asked Questions
Is Atlassian profitable?
On a GAAP basis, no. The company reported a net loss of $256.7 million for fiscal 2025, compared with $300.5 million in fiscal 2024. On a non-GAAP basis, which excludes stock-based compensation and amortization of acquired intangibles, non-GAAP operating income was $1.29 billion and non-GAAP net income was $975.9 million.
How is the business shifting toward Cloud?
Cloud revenue rose 28% to $3.45 billion, while Data Center grew 21% to $1.47 billion and Server revenue fell to zero after end of support in fiscal 2024. The filing notes that Cloud offerings typically generate lower revenue in the initial year than Data Center and carry higher hosting costs, which may pressure margins during the transition.
What are the main risks around AI investments?
The company states that its AI investments will continue to weigh on operating margins in the near term and that it may not effectively monetize AI. It made Rovo available to premium and enterprise Jira, Confluence, and Jira Service Management customers at no additional cost and expects to do so for standard edition customers, which could fail to offset development costs.
How does the dual-class structure affect shareholders?
Class B shares carry ten votes per share versus one for Class A. As of June 30, 2025, Class B holders had about 85% of voting power, and the Co-Founders' affiliates hold substantially all Class B shares. This allows them to control most matters submitted to stockholders, including director elections and change-of-control transactions.
What is the company's liquidity position?
As of June 30, 2025, Atlassian had $2.51 billion in cash and cash equivalents and $424.3 million in short-term marketable securities. It had $985.6 million of senior notes outstanding, due 2029 and 2034, and an undrawn $750 million revolving credit facility. Management believes these resources are sufficient for at least the next 12 months.
06—Continue