01—Abstract
Summary
Summary of the 10-K filed August 14, 2026. Cited figures are marked; the original filing is the authoritative source.
Atlassian Corporation (Nasdaq: TEAM) reported fiscal year 2026 (ended June 30, 2026) total revenues of $6.57 billiona, up 26% from $5.22 billion in fiscal 2025, with subscription revenue of $6.26 billion (up 27%) and Cloud revenue of $4.41 billion (up 28%).
Gross margin rose to 85% from 83%, and operating income turned positive at $10.4 millionb compared with an operating loss of $130.4 million in fiscal 2025. Net loss narrowed to $53.8 million, or $0.21 per share, from $256.7 million, or $0.98 per share, though the provision for income taxes was $75.9 million. Non-GAAP operating income was $1.99 billion (30% margin), and free cash flow was $1.32 billion, down from $1.42 billion.
Management attributes the results partly to two restructuring plans that recorded $285.4 millionc in charges, including severance of $203.9 million and lease-related impairments of $80.0 million, and cites a shift toward Cloud and AI-driven offerings. Capital allocation was a major theme. Atlassian acquired The Browser Company of New York and A Software Company (DX) during the second quarter of fiscal 2026, with cash consideration of roughly $1.2 billion for business combinations, and goodwill rose to $2.30 billion from $1.30 billion.
The company repurchased about 19.1 million Class A shares for approximately $1.8 billiond, and $1.9 billion remained available under the 2025 Repurchase Program as of June 30, 2026. Cash and cash equivalents fell to $1.24 billion from $2.51 billion, and the company had $985.6 million of senior notes outstanding with no borrowings under its $750 million revolving credit facility. The filing also highlights structural considerations for investors.
Data Center products are being end-of-lifed, with no new term licenses sold to new customers since March 2026, sales to existing customers ending in March 2028, and maintenance ending in March 2029. Class B shares carry ten votes each and represented about 86% of voting power as of June 30, 2026, so the Co-Founders control most votes. Ernst & Young issued an unqualified opinion on both the financial statements and internal control over financial reporting.
02—Key points
Key Highlights
- Total revenues of $6.57 billion in fiscal 2026, up 26% from $5.22 billion, led by subscription revenue growth of 27% to $6.26 billion.
- Cloud revenue rose 28% to $4.41 billion, while Data Center revenue rose 25% to $1.83 billion.
- Operating income of $10.4 million versus an operating loss of $130.4 million in fiscal 2025; GAAP net loss narrowed to $53.8 million ($0.21 per share) from $256.7 million ($0.98 per share).
- Non-GAAP operating income of $1.99 billion (30% margin) and non-GAAP net income per diluted share of $5.85, compared with $3.68 in fiscal 2025.
- Restructuring charges totaled $285.4 million, including $203.9 million of severance and other termination benefits (roughly 10% of workforce eliminated in the third-quarter plan) and $80.0 million of lease-related impairments.
- Acquisitions of The Browser Company and DX, with goodwill rising to $2.30 billion, and free cash flow of $1.32 billion, down from $1.42 billion.
- Repurchased about $1.8 billion of Class A stock in fiscal 2026, with $1.9 billion remaining under the 2025 Repurchase Program; Class B holders control about 86% of voting power.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2026, Atlassian lost $0.01.
- Revenue$6.57B100.0%
- Cost of revenue−$996.8M15.2%
- Gross profit$5.58B84.8%
- Operating costs−$5.57B84.7%
- Operating income$10.4M0.2%
- Interest, other & tax−$64.2M1.0%
- Net income−$53.8M0.8%
Where FY2026 revenue went
$6.57B- R&D: $3.27B, 50% of revenue
- Other operating costs: $2.30B, 35% of revenue
- Cost of revenue: $996.8M, 15% of revenue
- Operating income: $10.4M, 0.2% of revenue
Kept 0.2% as operating incomeOperating income $10.4M · 0.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed August 14, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $6.57B$5.22B | +26.0% |
| Cost of Revenue | $996.83M$894.85M | +11.4% |
| Gross Profit | $5.58B$4.32B | +29.0% |
| R&D Expenses | $3.27B$2.67B | +22.5% |
| Operating Expenses | $5.57B$4.45B | +25.0% |
| Operating Income | $10.36M-$130.39M | +107.9% |
| Net Income | -$53.80M-$256.70M | +79.0% |
| EPS (Basic) | $-0.21$-0.98 | +78.6% |
| EPS (Diluted) | $-0.21$-0.98 | +78.6% |
| Shares Outstanding (Basic) | 260.16M261.79M | −0.6% |
| Shares Outstanding (Diluted) | 260.16M261.79M | −0.6% |
05—Questions
Frequently Asked Questions
How did Atlassian's profitability change in fiscal 2026?
Operating income was $10.4 million in fiscal 2026 compared with an operating loss of $130.4 million in fiscal 2025, and the GAAP net loss narrowed to $53.8 million from $256.7 million. Gross margin improved to 85% from 83%, though fiscal 2026 results include $285.4 million of restructuring charges and $1.61 billion of stock-based compensation.
What is driving revenue growth?
Subscription revenue increased $1.3 billion, or 27%, primarily due to paid seat expansion from existing customers and price increases. Cloud revenue grew 28% to $4.41 billion, and the company states that over 90% of fiscal 2026 revenue came from customer accounts existing on or before June 30, 2025.
What is the impact of the Data Center end-of-life plan?
Atlassian stopped selling Data Center term licenses to new customers in March 2026, will stop selling term licenses and expansions to existing customers in March 2028, and plans to end maintenance and support in March 2029. The filing notes that migration to Cloud may cause lower initial-year revenue and margins, and that purchasing patterns could create quarterly fluctuations.
How much cash did Atlassian return to shareholders and what remains?
Atlassian repurchased about 19.1 million Class A shares for approximately $1.8 billion in fiscal 2026 at an average price of $94.31. As of June 30, 2026, $1.9 billion remained available under the 2025 Repurchase Program, which has no fixed expiration date. The company does not expect to declare dividends in the foreseeable future.
Who controls voting power at Atlassian?
Class B Common Stock carries ten votes per share, and holders of Class B collectively held about 86% of voting power as of June 30, 2026. Co-Founders Michael Cannon-Brookes and Scott Farquhar, through affiliated entities, hold substantially all Class B shares, which allows them to control most matters submitted to stockholders, including potential change-of-control transactions.
06—Continue