01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Atlassian Corporation's Form 10-Q for the quarter ended March 31, 2026 shows total revenues of $1.79 billiona for the three months, up 32% from $1.36 billion a year earlier, with subscription revenues of $1.70 billion (up 33%).
The growth was attributed mainly to paid seat expansion from existing customers and price increases, and Data Center revenue rose 44% to $560.7 millionb. Profitability weakened: the company reported an operating loss of $56.3 million and a net loss of $98.4 million, or $0.38 per share, for the quarter, compared with a net loss of $70.8 million a year earlier. The loss reflects $223.8 million of restructuring charges in the quarter tied to the March 2026 Plan, which included a reduction in force affecting about 10% of the workforce, along with stock-based compensation of $408.3 million.
Non-GAAP net income for the quarter was $456.5 millionc, and free cash flow was $561.3 million. The balance sheet and capital allocation changed materially during the nine months. Cash and cash equivalents fell to $1.14 billion from $2.51 billion at June 30, 2025, and marketable securities went to zero from $424.3 million.
Goodwill rose to $2.30 billiond from $1.30 billion after the acquisitions of The Browser Company of New York and A Software Company, which together carried purchase prices of $488.3 million and $720.4 million. The company repurchased approximately 14.5 million Class A shares for about $1.5 billion in the nine months, and $2.2 billion remained authorized under the 2025 Share Repurchase Program. Total stockholders' equity declined to $879.0 million from $1.35 billion.
Long-term debt of $989.1 million consists of $500 million of 5.250% notes due 2029 and $500 million of 5.500% notes due 2034, and the $750 million revolving credit facility had no borrowings outstanding. The filing also discloses an end-of-life plan for the Data Center offering, with term licenses ending for new customers as of March 2026, for existing customers in March 2028, and maintenance ending in March 2029. Remaining performance obligations were approximately $4.0 billion, with about 69% expected to be recognized over the next 12 months.
02—Key points
Key Highlights
- Total revenues were $1.79 billion for the three months ended March 31, 2026, up 32% year over year; subscription revenues rose 33% to $1.70 billion.
- Operating loss was $56.3 million for the quarter, including $223.8 million of restructuring charges; net loss was $98.4 million, or $0.38 per share.
- Non-GAAP net income was $456.5 million for the quarter and free cash flow was $561.3 million, per the company's reconciliation in the filing.
- Cash and cash equivalents declined to $1.14 billion from $2.51 billion at June 30, 2025, after about $1.2 billion of acquisition cash outflows and $1.44 billion of financing outflows for share repurchases in the nine months.
- Goodwill increased to $2.30 billion from $1.30 billion following the BCNY and DX acquisitions, which had total purchase prices of $488.3 million and $720.4 million.
- The March 2026 restructuring plan included a reduction in force affecting approximately 10% of the workforce, with $198.1 million of severance recorded in the nine months.
- The company is ending its Data Center offering: term licenses stop for new customers as of March 2026, for existing customers in March 2028, and maintenance ends in March 2029.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2026, Atlassian lost $0.06.
- Revenue$1.79B100.0%
- Cost of revenue−$262.8M14.7%
- Gross profit$1.52B85.3%
- Operating costs−$1.58B88.4%
- Operating income−$56.3M3.1%
- Interest, other & tax−$42.1M2.4%
- Net income−$98.4M5.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed May 1, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.79B$1.36B | +31.7% |
| Cost of Revenue | $262.76M$219.68M | +19.6% |
| Gross Profit | $1.52B$1.14B | +34.1% |
| R&D Expenses | $926.95M$685.32M | +35.3% |
| Operating Expenses | $1.58B$1.15B | +37.5% |
| Operating Income | -$56.28M-$12.46M | −351.9% |
| Net Income | -$98.39M-$70.81M | −39.0% |
| EPS (Basic) | $-0.38$-0.27 | −40.7% |
| EPS (Diluted) | $-0.38$-0.27 | −40.7% |
| Shares Outstanding (Basic) | 260.96M262.67M | −0.6% |
| Shares Outstanding (Diluted) | 260.96M262.67M | −0.6% |
05—Questions
Frequently Asked Questions
How did Atlassian's revenue perform in the quarter ended March 31, 2026?
Total revenues were $1,786,971 thousand, up $430,255 thousand or 32% from $1,356,716 thousand in the prior-year quarter. Subscription revenues increased 33%, primarily from paid seat expansion among existing customers and price increases. Data Center revenue increased 44% and Cloud revenue increased 29%.
Why did Atlassian report a net loss despite strong revenue growth?
Operating expenses rose to $1.58 billion in the quarter from $1.15 billion, and the filing attributes part of the increase to $223.8 million of restructuring charges and $408.3 million of stock-based compensation. Research and development expense rose 35%, and marketing and sales expense rose 48%. The company reported a net loss of $98.4 million for the quarter.
How much did Atlassian spend on share repurchases and acquisitions?
In the nine months ended March 31, 2026, the company repurchased and retired approximately 14.5 million Class A shares for about $1.5 billion at an average price of $100.51 per share, and business combinations used $1.23 billion of cash net of cash acquired. The company had $2.2 billion remaining under its 2025 Share Repurchase Program as of March 31, 2026.
What is Atlassian's debt position and liquidity?
Long-term debt was $989.1 million, consisting of $500 million of 5.250% senior notes due 2029 and $500 million of 5.500% senior notes due 2034. The $750 million revolving credit facility had no borrowings as of March 31, 2026, and the company stated it was in compliance with all covenants. Cash and cash equivalents were $1.14 billion, and management believes existing cash, operating cash flow, and the credit facility are sufficient for at least the next 12 months.
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