Atlassian (TEAM) - 2025 Q4 - Annual Results

Financial Highlights Atlassian reported strong financial performance for both the fourth quarter and the full fiscal year 2025, with total revenue reaching $1.38 billion for the quarter (up 22% YoY) and $5.2 billion for the full year (up 20% YoY), demonstrating improved non-GAAP profitability and generating over $1.4 billion in free cash flow Fourth Quarter Fiscal Year 2025 Financial Highlights Q4 FY2025 Key Financial Metrics | Metric | Q4 FY2025 | Q4 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,384.3M | $1,131.6M | +22% | | Subscription Revenue | $1,312.5M | $1,068.9M | +23% | | GAAP Operating Margin | (2%) | (6%) | +4 p.p. | | Non-GAAP Operating Margin | 24% | 20% | +4 p.p. | | GAAP Net Loss per Share | $(0.09) | $(0.76) | Improved | | Non-GAAP Net Income per Share | $0.98 | $0.66 | +48% | | Free Cash Flow | $360.3M | $413.2M | -13% | Fiscal Year 2025 Financial Highlights Full Year FY2025 Key Financial Metrics | Metric | FY2025 | FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $5.2B | $4.4B | +20% | | GAAP Operating Margin | (3%) | (3%) | Flat | | Non-GAAP Operating Margin | 25% | 23% | +2 p.p. | | GAAP Net Loss per Share | $(0.98) | $(1.16) | Improved | | Non-GAAP Net Income per Share | $3.68 | $2.93 | +26% | | Free Cash Flow | $1,415.5M | $1,415.6M | Flat | Business and Operational Highlights Atlassian achieved significant operational milestones, including expanding its strategic partnership with Google Cloud to enhance AI capabilities and cloud transformation, receiving leadership recognition from Forrester, and introducing new AI-powered tools like 'Talent' and 'Rovo Dev Agent', while growing customers with over $10,000 in Cloud ARR by 13% year-over-year - Expanded strategic partnership with Google Cloud to integrate Atlassian's AI-powered platform with Google's AI-optimized infrastructure, advancing its multi-cloud strategy[6] - Recognized as a Leader in 'The Forrester Wave™' for both Value Stream Management Solutions and DevOps Platforms in Q2 2025[6] - Introduced new AI-powered tools, including the general availability of the 'Talent' workforce planning app and 'Rovo Dev Agent' in the Command Line Interface (CLI) to accelerate developer workflows[6] - The number of customers with over $10,000 in Cloud Annualized Recurring Revenue (ARR) grew to 51,978, a 13% increase year-over-year[6] Management Changes Atlassian announced the departure of President Anu Bharadwaj, effective December 31, 2025, after nearly 12 years of instrumental leadership in the company's cloud and platform strategy - President Anu Bharadwaj will be departing Atlassian on December 31, 2025, after a nearly 12-year tenure where she held key leadership positions including Head of Product and COO[8] Financial Outlook (Fiscal Year 2026) Atlassian projects a positive fiscal year 2026 outlook with total revenue growth of approximately 18.0% and Cloud revenue growth of around 21.0%, anticipating a non-GAAP operating margin of 24.0% First Quarter Fiscal Year 2026 Targets Q1 FY2026 Guidance | Metric | Guidance Range / Value | | :--- | :--- | | Total Revenue | $1,395M - $1,403M | | Cloud Revenue Growth (YoY) | ~22.5% | | Data Center Revenue Growth (YoY) | ~8.0% | | GAAP Gross Margin | ~82.5% | | Non-GAAP Gross Margin | ~84.5% | | GAAP Operating Margin | ~(5.5%) | | Non-GAAP Operating Margin | ~20.5% | Full Fiscal Year 2026 Targets Full Year FY2026 Guidance | Metric | Guidance Value | | :--- | :--- | | Total Revenue Growth (YoY) | ~18.0% | | Cloud Revenue Growth (YoY) | ~21.0% | | Data Center Revenue Growth (YoY) | ~12.5% | | GAAP Gross Margin | ~83.5% | | Non-GAAP Gross Margin | ~85.5% | | GAAP Operating Margin | ~(2.5%) | | Non-GAAP Operating Margin | ~24.0% | Consolidated Financial Statements This section presents Atlassian's detailed unaudited consolidated financial statements, including Statements of Operations, Balance Sheets, and Cash Flows for the fourth quarter and full fiscal year ended June 30, 2025, along with comparative data and revenue breakdown by deployment option Consolidated Statements of Operations FY2025 vs. FY2024 Statement of Operations Summary (GAAP) | Metric (in thousands) | Fiscal Year 2025 | Fiscal Year 2024 | | :--- | :--- | :--- | | Total Revenues | $5,215,304 | $4,358,603 | | Gross Profit | $4,320,453 | $3,555,108 | | Operating Loss | $(130,392) | $(117,077) | | Net Loss | $(256,687) | $(300,519) | Consolidated Balance Sheets Balance Sheet Summary (as of June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Cash and Marketable Securities | $2,937,142 | $2,338,903 | | Total Assets | $6,041,970 | $5,212,133 | | Total Liabilities | $4,696,316 | $4,179,282 | | Total Stockholders' Equity | $1,345,654 | $1,032,851 | Consolidated Statements of Cash Flows FY2025 vs. FY2024 Cash Flow Summary | Metric (in thousands) | Fiscal Year 2025 | Fiscal Year 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,460,393 | $1,448,159 | | Net cash used in investing activities | $(342,322) | $(963,746) | | Net cash used in financing activities | $(782,582) | $(408,217) | | Net increase in cash | $335,640 | $74,207 | Revenues by Deployment Options FY2025 Revenue by Deployment Option (in thousands) | Deployment Option | Fiscal Year 2025 | Fiscal Year 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Cloud | $3,447,427 | $2,698,899 | +27.7% | | Data Center | $1,467,167 | $1,208,498 | +21.4% | | Marketplace and other | $300,710 | $273,561 | +9.9% | | Server | $0 | $177,645 | -100% | | Total Revenues | $5,215,304 | $4,358,603 | +19.7% | Reconciliation of GAAP to Non-GAAP Measures This section details reconciliations of GAAP to non-GAAP financial measures, highlighting adjustments for stock-based compensation and amortization of acquired intangible assets, to clarify performance evaluation metrics for both historical results and future targets Reconciliation of Historical GAAP to Non-GAAP Results FY2025 GAAP to Non-GAAP Reconciliation Summary | Metric (in thousands) | GAAP | Non-GAAP | Key Adjustments (Stock-Based Comp, Amortization) | | :--- | :--- | :--- | :--- | | Gross Profit | $4,320,453 | $4,443,978 | +$123,525 | | Operating (Loss)/Income | $(130,392) | $1,287,347 | +$1,417,739 | | Net (Loss)/Income | $(256,687) | $975,945 | +$1,232,632 (net of tax adjustments) | Reconciliation of GAAP to Non-GAAP Financial Targets Q1 FY2026 Margin Guidance Reconciliation | Metric | GAAP Target | Adjustments | Non-GAAP Target | | :--- | :--- | :--- | :--- | | Gross Margin | 82.5% | +2.0% | 84.5% | | Operating Margin | (5.5%) | +26.0% | 20.5% | Full Year FY2026 Margin Guidance Reconciliation | Metric | GAAP Target | Adjustments | Non-GAAP Target | | :--- | :--- | :--- | :--- | | Gross Margin | 83.5% | +2.0% | 85.5% | | Operating Margin | (2.5%) | +26.5% | 24.0% |