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Atlassian Announces Second Quarter Fiscal Year 2026 Results
Revenue of $1,586 million, up 23% year-over-year
Cloud revenue of $1,067 million, up 26% year-over-year
Remaining performance obligations of $3,814 million, up 44% year-over-year
GAAP operating margin of (3)% and non-GAAP operating margin of 27%
TEAM Anywhere/San Francisco (February 5, 2026) — Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its second quarter ended December 31, 2025. A shareholder letter was posted on the Investor Relations section of Atlassian’s website at https://investors.atlassian.com.
“We closed out Q2 with incredible momentum across the Atlassian platform and achieved some impressive milestones along the way. We delivered our first-ever $1 billion Cloud revenue quarter, which grew 26% year-over-year, crossed 350,000 customers, and Rovo surpassed 5 million monthly active users,” said Mike Cannon-Brookes, Atlassian’s CEO and co-Founder. “Companies from the largest enterprises in the world, to the most innovative startups, rely on the Atlassian platform every day to power workflows across their organizations and unleash teamwork and knowledge at scale.”
“We delivered another strong quarter of enterprise sales and partner execution, which drove total revenue up 23% year-over-year to $1.6 billion, surpassing $6 billion in annual run-rate revenue,” said Joe Binz, Atlassian’s CFO. “With RPO up 44% year-over-year to $3.8 billion, our investments across enterprise, AI and system of work are yielding results and deeper, long-term customer commitments to the Atlassian platform.”
Second Quarter Fiscal Year 2026 Financial Highlights:
On a GAAP basis, Atlassian reported: 
•Revenue: Total revenue was $1,586.3 million for the second quarter of fiscal year 2026, up 23% from $1,286.5 million for the second quarter of fiscal year 2025.
•Operating Loss and Operating Margin: Operating loss was $47.7 million for the second quarter of fiscal year 2026, compared with operating loss of $57.5 million for the second quarter of fiscal year 2025. Operating margin was (3%) for the second quarter of fiscal year 2026, compared with (4%) for the second quarter of fiscal year 2025.
•Net Loss and Net Loss Per Diluted Share: Net loss was $42.6 million for the second quarter of fiscal year 2026, compared with net loss of $38.2 million for the second quarter of fiscal year 2025. Net loss per diluted share was $0.16 for the second quarter of fiscal year 2026, compared with net loss per diluted share of $0.15 for the second quarter of fiscal year 2025.
•Balance Sheet: Cash and cash equivalents plus marketable securities at the end of the second quarter of fiscal year 2026 totaled $1.6 billion.
On a non-GAAP basis, Atlassian reported: 
•Operating Income and Operating Margin: Operating income was $430.2 million for the second quarter of fiscal year 2026, compared with operating income of $335.1 million for the second quarter of fiscal year 2025. Operating margin was 27% for the second quarter of fiscal year 2026, compared with 26% for the second quarter of fiscal year 2025.
•Net Income and Net Income Per Diluted Share: Net income was $320.9 million for the second quarter of fiscal year 2026, compared with net income of $255.6 million for the second quarter of fiscal year 2025. Net income per diluted share was $1.22 for the second quarter of fiscal year 2026, compared with net income per diluted share of $0.96 for the second quarter of fiscal year 2025.
•Free Cash Flow: Cash flow from operations was $177.8 million and free cash flow was $168.5 million for the second quarter of fiscal year 2026. Free cash flow margin for the second quarter of fiscal year 2026 was 11%.

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A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading “About Non-GAAP Financial Measures.”
Recent Business Highlights:
•A Leader in the 2025 Gartner® Magic Quadrant™ for Marketing Work Management Platforms: Atlassian was recognized as a Leader in the 2025 Gartner Magic Quadrant for Marketing Work Management Platforms1 for the second consecutive year, and received the highest placement in Completeness of Vision. Atlassian’s Marketing Work Management solution is delivered through its Teamwork Collection, which includes Jira, Confluence, Loom, and Rovo, allowing marketing teams to collaborate seamlessly, unleash creativity, and partner with AI agents to power workflows.
•A Leader in the 2025 Gartner® Magic Quadrant™ for Collaborative Work Management: Atlassian was recognized as a Leader in the 2025 Gartner Magic Quadrant for Collaborative Work Management2. Atlassian’s AI-powered system of work, delivered through its Teamwork Collection, connects work, knowledge, and goals—bringing together technical and business teams to standardize execution, strengthen productivity, and drive continuous improvement across the enterprise. Leading global organizations trust Teamwork Collection to execute faster, align teams, and deliver better outcomes at scale—while preparing for the future of work.
•A Leader in The Forrester Wave™: Enterprise Service Management Platforms, Q4 2025: Atlassian was recognized as a Leader in The Forrester Wave: Enterprise Service Management Platforms3. Atlassian’s AI-powered Service Collection, consisting of Jira Service Management, Customer Service Management, Assets, and Rovo, connects development, IT, and business teams across the enterprise to deliver exceptional service experiences. Today, more than 65,000 organizations, including more than half of the Fortune 500, rely on Jira Service Management to enable faster collaboration and resolution for their teams and customers.
•Customers with >$10,000 in Cloud ARR: Atlassian ended its second quarter of fiscal year 2026 with 55,369 customers with greater than $10,000 in Cloud annualized recurring revenue (Cloud ARR), an increase of 12% year-over-year.
•Recognized on the Forbes World’s Best Employers 2025 List: Atlassian was recognized on the Forbes World’s Best Employers 2025 - Top Companies To Work For list. This achievement highlights Atlassian’s commitment to fostering an innovative and collaborative culture that drives technological advancement and delivers outstanding value to customers, partners, and employees.
•Board of Directors Update: Atlassian appointed Anil Sabharwal to its Board of Directors. Anil is Vice President of Product at Google and has held various senior leadership roles at the company for 17 years. Anil is a seasoned technology entrepreneur and innovator with a deep understanding of both technology and its long-term value creation. He brings significant experience building beloved products such as Google Photos, Google Chrome, Google Drive, and more. Anil’s extensive technology experience will be invaluable as Atlassian continues to power human-AI collaboration for millions of users worldwide.
1 Gartner® Magic Quadrant™ for Marketing Work Management Platforms, Michael McCune, Rachel Dooley, Lacretia Marsh, Amy Jenkins, Kate Fridley, Anja Naski, 1 December 2025
2 Gartner® Magic Quadrant™ for Collaborative Work Management, Nikos Drakos, Joe Mariano, Lacy Lei, Hironori Hayashi, 28 October 2025
Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Press Release), and the opinions expressed in the Gartner Content are subject to change without notice. GARTNER and MAGIC QUADRANT are trademarks of Gartner, Inc. and its affiliates.
3 Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity at http://www.forrester.com/about-us/objectivity/.

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Financial Targets:
Atlassian is providing its financial targets as follows:
Third Quarter Fiscal Year 2026: 
•Total revenue is expected to be in the range of $1,689 million to $1,697 million.
•Cloud revenue growth year-over-year is expected to be approximately 23.0%.
•Data Center revenue growth year-over-year is expected to be approximately 33.5%.
•Marketplace and other revenue growth year-over-year is expected to be approximately 5.0%.
•Gross margin is expected to be approximately 85.5% on a GAAP basis and approximately 88.0% on a non-GAAP basis. 
•Operating margin is expected to be approximately 0.0% on a GAAP basis and approximately 27.5% on a non-GAAP basis.
Fiscal Year 2026:
•Total revenue growth year-over-year is expected to be approximately 22.0%.
•Cloud revenue growth year-over-year is expected to be approximately 24.3%.
•Data Center revenue growth year-over-year is expected to be approximately 20.0%.
•Marketplace and other revenue growth year-over-year is expected to be approximately 6.0%.
•Gross margin is expected to be approximately 84.0% on a GAAP basis and approximately 87.0% on a non-GAAP basis.
•Operating margin is expected to be approximately (3.0%) on a GAAP basis and approximately 25.5% on a non-GAAP basis. 
For additional commentary regarding financial targets, please see Atlassian’s second quarter fiscal year 2026 shareholder letter dated February 5, 2026.
With respect to Atlassian’s expectations under “Financial Targets” above, a reconciliation of GAAP to non-GAAP gross margin and operating margin has been provided in the financial statement tables included in this press release.
Shareholder Letter and Webcast Details:
A detailed shareholder letter is available on the Investor Relations section of Atlassian’s website at https://investors.atlassian.com. Atlassian will host a webcast to answer questions today:
•When: Thursday, February 5, 2026 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
•Webcast: A live webcast of the call can be accessed from the Investor Relations section of Atlassian’s website at https://investors.atlassian.com. Following the call, a replay will be available on the same website.
Atlassian has used, and will continue to use, its Investor Relations website at https://investors.atlassian.com as a means of making material information public and for complying with its disclosure obligations.
About Atlassian
Atlassian unleashes the potential of every team. A recognized leader in software development, work management, and enterprise service management software, Atlassian enables enterprises to connect their business and technology teams with an AI-powered system of work that unlocks productivity at scale. Atlassian’s collaboration software powers over 80% of the Fortune 500 and 350,000+ customers worldwide - including NASA, Rivian, Deutsche Bank, United Airlines, and Bosch - who rely on our solutions to drive work forward.
Investor Relations Contact
Martin Lam
IR@atlassian.com
Media Contact
Marie-Claire Maple
press@atlassian.com

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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “should,” “estimate,” “further,” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements. All statements other than statements of historical fact could be deemed forward looking, including but not limited to risks and uncertainties related to statements about our platform, offerings and capabilities and planned offerings and capabilities, investments, System of Work, AI solutions and innovation, customers, company culture, strategic priorities, leadership transitions, anticipated growth, outlook and results, and our financial targets such as total revenue, Cloud, Data Center, and Marketplace and other revenue, and GAAP and non-GAAP financial measures including gross margin and operating margin.
We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made. Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission (the “SEC”) from time to time, including the section titled “Risk Factors” in our most recently filed Forms 10-K and 10-Q, as well as those that may be updated in our future filings with the SEC. These documents are available on the SEC Filings section of the Investor Relations section of our website at https://investors.atlassian.com.
About Non-GAAP Financial Measures
In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and free cash flow (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures, which may be different from similarly titled non-GAAP measures used by other companies, provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations. Management believes that tracking and presenting these Non-GAAP Financial Measures provides management, our board of directors, investors and the analyst community with the ability to better evaluate matters such as: our ongoing core operations, including comparisons between periods and against other companies in our industry; our ability to generate cash to service our debt and fund our operations; and the underlying business trends that are affecting our performance.
Our Non-GAAP Financial Measures include:
•Non-GAAP gross profit and non-GAAP gross margin. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, and restructuring charges.
•Non-GAAP operating income and non-GAAP operating margin. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, and restructuring charges.
•Non-GAAP net income and non-GAAP net income per diluted share. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, restructuring charges, and the related income tax adjustments of these items.
•Free cash flow. Free cash flow is defined as net cash provided by operating activities less capital expenditures, which consists of purchases of property and equipment.
We understand that although these Non-GAAP Financial Measures are frequently used by investors and the analyst community in their evaluation of our financial performance, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. We compensate for such limitations by reconciling these Non-GAAP Financial Measures to the most comparable GAAP financial measures. We encourage you to review the tables in this press release titled “Reconciliation of GAAP to Non-GAAP Results” and “Reconciliation of GAAP to Non-GAAP Financial Targets” that present such reconciliations.

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Customers with >$10,000 in Cloud ARR
We define the number of customers with Cloud ARR greater than $10,000 at the end of any particular period as the number of organizations with unique domains with an active Cloud subscription for two or more seats 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.

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Atlassian Corporation
Condensed Consolidated Statements of Operations
(U.S. $ and shares in thousands, except per share data)
(unaudited)
 Three Months Ended December 31,Six Months Ended December 31,
 2025202420252024
Revenues:
Subscription$1,507,656 $1,213,248 $2,882,158 $2,345,196 
Other78,659 73,215 136,710 129,048 
Total revenues1,586,315 1,286,463 3,018,868 2,474,244 
Cost of revenues (1) (2)237,691 223,127 495,615 440,751 
Gross profit1,348,624 1,063,336 2,523,253 2,033,493 
Operating expenses:
Research and development (1) (2)826,489 680,213 1,582,483 1,283,314 
Marketing and sales (1) (2)376,434 271,894 712,861 524,287 
General and administrative (1)193,448 168,708 371,993 315,349 
Total operating expenses1,396,371 1,120,815 2,667,337 2,122,950 
Operating loss(47,747)(57,479)(144,084)(89,457)
Other income (expense), net(13,550)(7,999)5,254 (27,431)
Interest income18,065 25,586 47,910 54,150 
Interest expense(12,525)(7,291)(21,161)(14,609)
Loss before income taxes(55,757)(47,183)(112,081)(77,347)
Provision for (benefit from) income taxes(13,112)(8,975)(17,566)84,630 
Net loss$(42,645)$(38,208)$(94,515)$(161,977)
Net loss per share attributable to Class A and Class B common stockholders:
Basic$(0.16)$(0.15)$(0.36)$(0.62)
Diluted$(0.16)$(0.15)$(0.36)$(0.62)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders:
Basic263,828 261,147 263,409 260,812 
Diluted263,828 261,147 263,409 260,812 
(1)Amounts include stock-based compensation as follows:
 Three Months Ended December 31,Six Months Ended December 31,
 2025202420252024
Cost of revenues$20,121 $23,031 $40,052 $41,245 
Research and development324,865 260,278 571,359 453,723 
Marketing and sales55,505 43,260 99,489 79,252 
General and administrative52,133 52,161 92,851 90,656 
(2)Amounts include amortization of acquired intangible assets, as follows:
 Three Months Ended December 31,Six Months Ended December 31,
 2025202420252024
Cost of revenues$19,753 $10,130 $29,710 $20,246 
Research and development93 93 187 187 
Marketing and sales5,507 3,673 9,106 7,345 


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Atlassian Corporation
Condensed Consolidated Balance Sheets
(U.S. $ in thousands)
(unaudited)
December 31, 2025June 30, 2025
Assets
Current assets:
Cash and cash equivalents$1,158,122 $2,512,874 
Marketable securities407,932 424,268 
Accounts receivable, net911,915 778,302 
Prepaid expenses and other current assets297,437 175,793 
Total current assets2,775,406 3,891,237 
Non-current assets:
Property and equipment, net97,952 105,118 
Operating lease right-of-use assets126,475 169,127 
Strategic investments209,979 221,942 
Intangible assets, net494,959 244,840 
Goodwill2,305,132 1,304,445 
Deferred tax assets25,433 3,762 
Other non-current assets125,045 101,499 
Total assets$6,160,381 $6,041,970 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$231,654 $222,092 
Accrued expenses and other current liabilities603,850 681,601 
Deferred revenue, current portion2,230,427 2,227,002 
Operating lease liabilities, current portion50,696 50,164 
Total current liabilities3,116,627 3,180,859 
Non-current liabilities:
Deferred revenue, net of current portion201,082 254,252 
Operating lease liabilities, net of current portion175,774 201,483 
Long-term debt988,609 987,684 
Deferred tax liabilities23,993 23,881 
Other non-current liabilities63,447 48,157 
Total liabilities4,569,532 4,696,316 
Stockholders’ equity
Common stock3 3 
Additional paid-in capital6,378,041 5,574,290 
Accumulated other comprehensive income (loss)(465)13,226 
Accumulated deficit(4,786,730)(4,241,865)
Total stockholders’ equity1,590,849 1,345,654 
Total liabilities and stockholders’ equity$6,160,381 $6,041,970 


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Atlassian Corporation
Condensed Consolidated Statements of Cash Flows
(U.S. $ in thousands)
(unaudited)
Three Months Ended December 31,Six Months Ended December 31,
2025202420252024
Cash flows from operating activities:
Net loss$(42,645)$(38,208)$(94,515)$(161,977)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization35,621 23,149 59,954 45,976 
Stock-based compensation452,624 378,730 803,751 664,876 
Impairment charges for leases and leasehold improvements— — 26,673 — 
Deferred income taxes(48,628)(2,161)(48,708)(2,929)
Amortization of interest rate swap contracts(1,611)(6,865)(7,163)(14,020)
Net loss (gain) on strategic investments2,555 2,611 (23,971)17,903 
Net foreign currency loss (gain)(504)(5,621)1,327 (2,581)
Other(88)(968)80 23 
Changes in operating assets and liabilities, net of business combinations:
Accounts receivable, net(367,390)(211,755)(126,029)(67,725)
Prepaid expenses and other assets(43,578)(25,759)(136,259)(65,673)
Accounts payable35,315 24,863 10,358 14,719 
Accrued expenses and other liabilities32,956 30,464 (82,060)(77,704)
Deferred revenue123,178 183,425 (76,919)81,509 
Net cash provided by operating activities177,805 351,905 306,519 432,397 
Cash flows from investing activities:
Business combinations, net of cash acquired(1,213,177)— (1,228,875)(4,975)
Purchases of property and equipment(9,289)(9,336)(23,401)(15,487)
Purchases of strategic investments(5,000)(11,500)(5,000)(25,550)
Purchases of marketable securities(4,496)(116,619)(67,259)(160,323)
Proceeds from maturities of marketable securities53,222 25,480 85,109 71,628 
Proceeds from sales of strategic investments34,840 271 34,840 4,313 
Net cash used in investing activities(1,143,900)(111,704)(1,204,586)(130,394)
Cash flows from financing activities:
Repurchases of Class A Common Stock(197,440)(69,241)(450,246)(252,851)
Other— — — (3,143)
Net cash used in financing activities(197,440)(69,241)(450,246)(255,994)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash(823)(9,056)(6,752)(5,492)
Net increase (decrease) in cash, cash equivalents, and restricted cash(1,164,358)161,904 (1,355,065)40,517 
Cash, cash equivalents, and restricted cash at beginning of period2,323,055 2,056,735 2,513,762 2,178,122 
Cash, cash equivalents, and restricted cash at end of period$1,158,697 $2,218,639 $1,158,697 $2,218,639 
                                    

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Atlassian Corporation
Revenues by Deployment Options
(U.S. $ in thousands)
(unaudited)
 Three Months Ended December 31,Six Months Ended December 31,
 2025202420252024
Cloud$1,067,027 $846,962 $2,064,735 $1,639,268 
Data Center435,616 362,281 808,264 697,875 
Marketplace and other (1)83,672 77,220 145,869 137,101 
Total revenues$1,586,315 $1,286,463 $3,018,868 $2,474,244 
(1) Included in Marketplace and other is premier support revenue. Premier support consists of subscription-based arrangements for a higher level of support across different deployment options. Premier support is recognized as Subscription revenue on the condensed consolidated statements of operations as the services are delivered over the term of the arrangement.




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Atlassian Corporation
Reconciliation of GAAP to Non-GAAP Results
(U.S. $ and shares in thousands, except percentage and per share data)
(unaudited)
 Three Months Ended December 31,Six Months Ended December 31,
 2025202420252024
Gross profit
GAAP gross profit$1,348,624 $1,063,336 $2,523,253 $2,033,493 
Plus: Stock-based compensation20,121 23,031 38,620 41,245 
Plus: Amortization of acquired intangible assets19,753 10,130 29,710 20,246 
Plus: Restructuring charges (3)— — 31,592 — 
Non-GAAP gross profit$1,388,498 $1,096,497 $2,623,175 $2,094,984 
Gross margin
GAAP gross margin85%83%84%82%
Plus: Stock-based compensation2112
Plus: Amortization of acquired intangible assets1111
Plus: Restructuring charges (3)——1—
Non-GAAP gross margin88%85%87%85%
Operating income
GAAP operating loss$(47,747)$(57,479)$(144,084)$(89,457)
Plus: Stock-based compensation452,624 378,730 802,319 664,876 
Plus: Amortization of acquired intangible assets25,353 13,896 39,003 27,778 
Plus: Restructuring charges (3)— — 55,678 — 
Non-GAAP operating income$430,230 $335,147 $752,916 $603,197 
Operating margin
GAAP operating margin(3%)(4%)(5%)(4%)
Plus: Stock-based compensation29292727
Plus: Amortization of acquired intangible assets1111
Plus: Restructuring charges (3)——2—
Non-GAAP operating margin27%26%25%24%
Net income
GAAP net loss$(42,645)$(38,208)$(94,515)$(161,977)
Plus: Stock-based compensation452,624 378,730 802,319 664,876 
Plus: Amortization of acquired intangible assets25,353 13,896 39,003 27,778 
Plus: Restructuring charges (3)— — 55,678 — 
Less: Income tax adjustments (1)(114,445)(98,791)(205,947)(75,350)
Non-GAAP net income$320,887 $255,627 $596,538 $455,327 
Net income per share
GAAP net loss per share - diluted$(0.16)$(0.15)$(0.36)$(0.62)
Plus: Stock-based compensation1.71 1.43 3.04 2.53 
Plus: Amortization of acquired intangible assets0.10 0.05 0.15 0.11 
Plus: Restructuring charges (3)— — 0.21 — 
Less: Income tax adjustments (1)(0.43)(0.37)(0.78)(0.29)
Non-GAAP net income per share - diluted$1.22 $0.96 $2.26 $1.73 
Weighted-average diluted shares outstanding
Weighted-average shares used in computing diluted GAAP net loss per share263,828 261,147 263,409 260,812 
Plus: Dilution from dilutive securities (2)364 4,546 843 2,422 
Weighted-average shares used in computing diluted non-GAAP net income per share264,192 265,693 264,252 263,234 
Free cash flow
GAAP net cash provided by operating activities$177,805 $351,905 $306,519 $432,397 
Less: Capital expenditures(9,289)(9,336)(23,401)(15,487)
Free cash flow$168,516 $342,569 $283,118 $416,910 

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(1) We utilize a fixed long-term projected non-GAAP tax rate in our computation of the non-GAAP income tax adjustments in order to provide better consistency across interim reporting periods. In projecting this long-term non-GAAP tax rate, we utilized a three-year financial projection that excludes the direct and indirect income tax effects of the other non-GAAP adjustments reflected above. Additionally, we considered our current operating structure and other factors such as our existing tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. For fiscal years 2026 and 2025, we determined the projected non-GAAP tax rate to be 24% and 26%, respectively. This fixed long-term projected non-GAAP tax rate eliminates the effects of non-recurring and period specific items which can vary in size and frequency. Examples of the non-recurring and period-specific items include, but are not limited to, changes in the valuation allowance related to deferred tax assets, effects resulting from acquisitions, and unusual or infrequently occurring items. We will periodically re-evaluate this long-term rate, as necessary, for significant events. The rate could be subject to change for a variety of reasons, for example, significant changes in the geographic earnings mix or fundamental tax law changes in major jurisdictions where we operate.
(2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three and six months ended December 31, 2025 and 2024, because the effect would have been anti-dilutive.
(3) Restructuring charges include stock-based compensation expense related to the rebalancing of resources for the six months ended December 31, 2025.

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Atlassian Corporation
Reconciliation of GAAP to Non-GAAP Financial Targets
 Three Months Ending
March 31, 2026
GAAP gross margin85.5%
Plus: Stock-based compensation1.0
Plus: Amortization of acquired intangible assets1.5
Non-GAAP gross margin88.0%
GAAP operating margin0.0%
Plus: Stock-based compensation25.5
Plus: Amortization of acquired intangible assets2.0
Non-GAAP operating margin27.5%


 Fiscal Year Ending
June 30, 2026
GAAP gross margin84.0%
Plus: Stock-based compensation1.2
Plus: Amortization of acquired intangible assets1.3
Plus: Restructuring Charges0.5
Non-GAAP gross margin87.0%
GAAP operating margin(3.0%)
Plus: Stock-based compensation26.0
Plus: Amortization of acquired intangible assets1.5
Plus: Restructuring Charges1.0
Non-GAAP operating margin25.5%


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