Atlassian Corporation (TEAM) — Company Research

Last Updated: 8 July 2026

Atlassian Corporation (NASDAQ: TEAM) makes team collaboration and productivity software — Jira, Confluence, Jira Service Management, Loom, Trello, Bitbucket and the Rovo AI platform — used by more than 350,000 customers, including over 85% of the Fortune 500. The business is growing fast (Q3 FY2026 revenue rose 32% year-over-year to $1.79 billion) and generates well over a billion dollars of annual free cash flow, yet the shares have collapsed to around $85 from a 52-week high of $222.59, as the market debates whether AI agents will disrupt seat-based software pricing. Fiscal 2026 has brought a $1.2 billion quarter of acquisitions, a new CFO, a 10% workforce reduction to self-fund AI investment, and a heavy restructuring charge. This report sets out the facts from primary sources — company press releases and SEC filings — with no analyst opinions.

1. Company Snapshot

Field	Value
Company	Atlassian Corporation
Ticker / Exchange	TEAM / NASDAQ
Headquarters	San Francisco, USA ("TEAM Anywhere" distributed-first workforce); founded in Sydney, Australia
Founded	2002 (by Mike Cannon-Brookes and Scott Farquhar)
CEO	Mike Cannon-Brookes (co-founder)
CFO	James Chuong (since 30 Mar 2026; formerly CFO of LinkedIn)
Employees	≈14,000+ after the March 2026 restructuring, which cut roughly 10% of the workforce (~1,600 roles)
Market cap	≈$21.3bn (early Jul 2026; shares ≈$84.72 on 2 Jul 2026)
Revenue (FY2025, ended 30 Jun 2025)	$5,215.3m (+19.7% YoY)
Net income (FY2025, GAAP)	Net loss of $256.7m (−$0.98 per diluted share); non-GAAP net income $975.9m ($3.68/share)
Fiscal year end	30 June
Sector	Technology — collaboration, work management and enterprise service management software
Customers	350,000+; 55,913 customers with >$10,000 Cloud ARR (+10% YoY at 31 Mar 2026)

2. Bull & Bear Case

Bull Case

• Growth is accelerating, not slowing: Q3 FY2026 revenue rose 32% year-over-year to $1,787m with Cloud revenue accelerating to +29%, and remaining performance obligations up 37% to $3,996m as customers sign bigger, longer-term commitments.
• AI is being monetised on the platform: Rovo passed 5 million monthly active users in Q2 FY2026; agent orchestration in Jira, Rovo Dev, Rovo Service (GA) and the MCP partner gallery embed paid AI agents directly into customer workflows, and Service Collection ARR passed $1bn growing 30%+.
• Strong cash economics under the GAAP losses: Trailing-twelve-month free cash flow is ≈$1.2bn (Q3 FY2026 FCF alone was $561m, a 31% margin), funding $1.44bn of buybacks in the first nine months of FY2026 with only ~$0.99bn of debt.
• Enterprise land-and-expand is working: 55,913 customers now spend over $10,000 a year on Cloud (+10% YoY), Jira Service Management is used by more than half of the Fortune 500, and non-GAAP operating margin hit 34% in Q3 FY2026 (vs 26% a year earlier).
• Valuation has reset hard: At ≈$84.72 the stock is ~62% below its 52-week high, trading at roughly 3.4x trailing sales and ~17x trailing non-GAAP EPS — multiples far below its own history — while revenue still compounds at 20%+.

Bear Case

• AI could disrupt seat-based pricing: The share-price collapse reflects a market fear that AI agents will reduce the number of human seats that products like Jira and Confluence are priced on; if agents substitute for users faster than Atlassian monetises them, the growth model erodes.
• Persistent GAAP losses and heavy dilution: Atlassian has never reported an annual GAAP profit as a US-domiciled company — FY2025's net loss was $256.7m — and stock-based compensation ran at $1.21bn in just nine months of FY2026, an enormous recurring transfer to employees.
• Restructuring and leadership churn: In FY2026 the company cut ~10% of staff (a $223.8m Q3 charge, guided to $225–236m plus $62m+ of lease costs), changed CFO (Binz to Chuong), and lost President Anu Bharadwaj — execution risk while pivoting to AI is real.
• Guidance implies deceleration: Q4 FY2026 revenue is guided to $1,653–1,661m with Cloud growth of ~25.5% (vs 29% in Q3) and Data Center growth slowing to ~8.5% as the migration tailwind fades; full-year GAAP operating margin is guided at (2.0)%.
• Deep-pocketed competition: Microsoft (GitHub, Azure DevOps, Teams/Planner), ServiceNow in service management, and fast-moving AI-native startups all target Atlassian's core workflows.

3. Business Segments

Atlassian reports one operating segment but discloses revenue by deployment option. Figures below are the first nine months of FY2026 (ended 31 Mar 2026).

Segment	% of revenue	What it is
Cloud	66.5% ($3,197.2m, 9M FY2026; +26.9% YoY)	SaaS subscriptions to Jira, Confluence, Jira Service Management, Loom, Rovo and the Teamwork/Service/Strategy Collections, hosted on Atlassian's cloud platform. The strategic growth engine and the delivery vehicle for AI features.
Data Center	28.5% ($1,369.0m, 9M FY2026; +26.0% YoY)	Self-managed, subscription-licensed versions of the core products for large customers not yet on cloud; Q3 FY2026 growth was boosted by bigger, longer-term commitments, but Q4 growth is guided to ~8.5% as migration to Cloud continues.
Marketplace and other	5.0% ($239.7m, 9M FY2026)	Atlassian's cut of third-party app sales on the Atlassian Marketplace, plus premier support and services.

4. Business Model & Strategy

How Atlassian makes money. Almost all revenue (95%+) is subscription: per-seat SaaS plans in Cloud and annual term licences in Data Center, sold at low cost through a famously efficient flywheel — self-serve online sales, a partner channel and an expanding enterprise sales force. Subscription revenue was $4,581.0m in the first nine months of FY2026, up 27% year-over-year. Customers land on one product and expand across the "Atlassian System of Work"; the company now packages products into Collections (Teamwork, Service, Strategy) to raise average spend.

Unit economics. Non-GAAP gross margin runs at ~88% and Q3 FY2026 non-GAAP operating margin was 34%, while GAAP margins remain negative because of stock-based compensation (~25 points of margin) and, in FY2026, restructuring. Free cash flow margin was 31% in Q3 FY2026. The March 2026 restructuring is explicitly designed, in the company's words, to accelerate the path to GAAP profitability and self-fund AI and enterprise sales investment; FY2026 Q4 GAAP operating margin is guided positive at ~4.5%.

Moat and strategy. Atlassian's moat is workflow lock-in and its Teamwork Graph — two decades of structured data about how organisations plan, build and support work — now feeding Rovo AI agents. The three stated strategic priorities are Enterprise, AI and the System of Work. The $610m acquisition of The Browser Company (Oct 2025) added the AI-powered Dia browser as a front-end bet on how knowledge work will be done, and the expanded Google Cloud partnership brings Gemini models into Rovo at enterprise scale.

5. Financial Health

Figures from Atlassian press releases and SEC filings. FY2021–FY2022 were reported under IFRS while Atlassian was a UK-domiciled plc; from FY2023 the company reports under US GAAP following its US re-domiciliation¹. Atlassian has never paid a dividend. Fiscal years end 30 June.

Fiscal Year	Revenue	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021¹	$2.1bn	+29%	$(2.79)	$1.40	Nil	—
FY2022¹	$2,802.9m	+34%	$(2.42)	$1.69	Nil	—
FY2023	$3,534.6m	+26.1%	$(1.90)	$1.92	Nil	—
FY2024	$4,358.6m	+23.3%	$(1.16)	$2.93	Nil	$985.9m
FY2025	$5,215.3m	+19.7%	$(0.98)	$3.68	Nil	$987.7m

¹ FY2021–FY2022 figures are as reported under IFRS (Adjusted EPS = non-IFRS diluted EPS); GAAP EPS shown for those years is the IFRS diluted loss per share. The recurring GAAP/IFRS losses are driven overwhelmingly by stock-based compensation ($1,362.2m expensed in FY2025 alone), not by cash burn — FY2025 operating cash flow was $1,460.4m.

Quarterly detail (most recent first; FY2026 is in progress — the FY2025 total is shown in bold):

Quarter	Revenue	Adjusted EPS	GAAP EPS
Q3 FY2026 (ended 31 Mar 2026)	$1,787.0m	$1.75	$(0.38)
Q2 FY2026 (ended 31 Dec 2025)	$1,586.3m	$1.22	$(0.16)
Q1 FY2026 (ended 30 Sep 2025)	$1,432.6m	$1.04	$(0.20)
Q4 FY2025 (ended 30 Jun 2025)	$1,384.3m	$0.98	$(0.09)
FY2025 total	$5,215.3m	$3.68	$(0.98)

Q3 FY2026 GAAP EPS includes an $0.85/share hit from the $223.8m restructuring charge. Balance sheet (31 Mar 2026): cash and cash equivalents $1,136.3m (marketable securities nil after funding acquisitions and buybacks); long-term debt $989.1m (senior notes); total stockholders' equity $879.0m. Nine-month FY2026 cash flows: operating cash flow $874.0m, capex $29.6m, free cash flow $844.4m, depreciation and amortisation $101.2m, $1,228.9m spent on acquisitions and $1,441.2m on share repurchases.

6. Valuation

Raw metrics, July 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	≈$21.3bn (early Jul 2026; shares ≈$84.72 on 2 Jul 2026)
Enterprise value	≈$21.2bn (market cap ≈$21.3bn + long-term debt ≈$0.99bn − cash ≈$1.14bn, per 31 Mar 2026 balance sheet; marketable securities were nil)
Trailing P/E (GAAP)	n/m — loss-making (TTM GAAP net loss ≈$217m: Q4 FY2025 −$23.9m plus 9M FY2026 −$192.9m, the latter including $279.5m of restructuring charges); TTM non-GAAP EPS of $4.98 implies ≈17x
P/E (forward)	n/a — Atlassian guides revenue and margins, not EPS; the trailing non-GAAP figure of $4.98/share is the nearest published earnings anchor (≈17x at $84.72)
P/S (TTM)	≈3.4x (market cap ≈$21.3bn / TTM revenue ≈$6.19bn = Q4 FY2025 $1,384.3m + 9M FY2026 $4,805.8m)
EV/EBITDA (TTM)	n/m on a GAAP basis — TTM GAAP EBITDA is ≈−$105m (TTM operating loss ≈−$229m + TTM D&A ≈$124m per cash flow statements), depressed by ~$1.6bn of SBC and $279.5m restructuring; on company-adjusted (non-GAAP) operating income plus D&A, adjusted EBITDA is ≈$1.82bn, putting EV/adjusted EBITDA at ≈12x
P/FCF	≈18x (market cap ≈$21.3bn / TTM FCF ≈$1.20bn; FCF = TTM operating CF ≈$1.25bn − TTM capex ≈$45m: Q4 FY2025 OCF $375.3m − capex $15.0m, plus 9M FY2026 OCF $874.0m − capex $29.6m)
52-week high	$222.59
52-week low	$56.01
Short interest (% of float)	≈6.7% of shares outstanding sold short (17.05m shares, mid-Jun 2026 settlement data)
Days to cover	≈1.7 (average daily volume ≈5.8m shares)

7. What Are They Building?

Atlassian is rebuilding its platform around AI agents working alongside humans. Recent product announcements (all from FY2026 company releases): agent orchestration in Jira, letting teams assign work directly to Rovo and third-party AI agents with full permissions, audit trails and admin governance; Rovo Dev in Jira, a context-aware coding agent that takes on security fixes, migrations and feature-flag clean-ups with human approval before anything ships; Rovo Service (now generally available), a human-supervised support agent that routes, answers and acts on employee tickets; Remix in Confluence, converting pages into charts, infographics and presentations; and an expanded MCP gallery connecting Rovo agents to Amplitude, Box, Canva, Figma, GitHub, Intercom, New Relic and more.

Underlying all of it is the Teamwork Graph — Atlassian's proprietary map of an organisation's work, knowledge and goals — which management positions as the durable data advantage feeding every agent. The expanded Google Cloud partnership adds Gemini 3 Flash to Atlassian's open, multi-model AI strategy, and the $610m acquisition of The Browser Company (Dia and Arc browsers, completed 21 Oct 2025) is a bet on owning an AI-native front door to knowledge work. Rovo passed 5 million monthly active users in the December 2025 quarter, and Service Collection — the AI-heavy ITSM/ESM bundle — crossed $1bn of ARR growing more than 30% year-over-year.

8. Competitive Landscape

Atlassian competes across several software categories: work management, DevOps, enterprise service management and, increasingly, AI agents for knowledge work. Market caps below were checked against live sources in early July 2026 — note how brutally the work-management cohort has de-rated.

Peer	Market cap (Jul 2026)	Key 2025 metric
ServiceNow (NYSE: NOW)	≈$102.4bn	FY2025 subscription revenue $12.883bn, +21% YoY — the enterprise service-management heavyweight Atlassian undercuts with Jira Service Management
monday.com (NASDAQ: MNDY)	≈$4.2bn	FY2025 revenue $1,232.0m, +27% YoY; GAAP net income $119m — closest pure-play work-management rival, also sharply de-rated
GitLab (NASDAQ: GTLB)	≈$5.4bn	FY2026 (ended 31 Jan 2026) revenue $955.2m, +26% YoY — DevOps platform competing with Jira/Bitbucket/Compass

Microsoft is the largest indirect competitor (GitHub, Azure DevOps, Planner and Copilot bundled into enterprise agreements) but is not separable as a peer line. Atlassian's relative advantages are its 350,000-customer installed base, the Teamwork Graph data asset and a distribution cost structure that supports ~88% non-GAAP gross margins.

9. Leadership & Ownership

Co-founder Mike Cannon-Brookes is CEO and Atlassian's largest shareholder; he and co-founder Scott Farquhar (who stepped back from the co-CEO role in 2024 and remains a board member and major holder) together control the company through supervoting Class B shares. James Chuong became CFO on 30 Mar 2026, joining from LinkedIn, after Joe Binz announced his retirement; President Anu Bharadwaj departed 31 Dec 2025. Google VP of Product Anil Sabharwal joined the board in the December 2025 quarter.

On insider dealings: the co-founders sell stock regularly under pre-arranged Rule 10b5-1 trading plans — for example, Cannon-Brookes reported multiple plan sales on 16 Dec 2025 at weighted-average prices around $159.88–$162.69 under a plan adopted 20 Feb 2025, and aggregate co-founder plan selling over the six months to February 2026 ran to roughly $134m each. These are routine, pre-scheduled diversification programmes; no material insider open-market buying and no unusual discretionary selling outside 10b5-1 plans were identified in recent Form 4 filings. The chief executive's economic alignment remains overwhelming via his multi-billion-dollar equity stake.

10. Risks

• AI seat-disruption (Structural): Atlassian charges per human seat; if AI agents shrink knowledge-work headcount or workflows migrate to AI-native tools, seat expansion — the core growth mechanism — could stall faster than agent-based monetisation (Rovo, Collections pricing) replaces it.
• Stock-based compensation and dilution (Financial): SBC ran at $1,362m in FY2025 and $1,211m in just nine months of FY2026 (~25% of revenue); buybacks currently offset dilution but consume most free cash flow.
• Persistent GAAP losses (Financial): The company has an accumulated deficit of $5.9bn and guides FY2026 GAAP operating margin at (2.0)%; a de-rated market now demands GAAP profitability that has yet to be demonstrated.
• Execution and leadership churn (Operational): A 10% workforce cut, a CFO change and the President's departure all landed within five months while the company re-architects its platform around AI — a heavy simultaneous change load.
• Competition (Competitive): Microsoft bundles rival tools into enterprise agreements at marginal cost; ServiceNow pushes down-market into service management; well-funded AI-native startups attack individual workflows.
• Data Center transition (Market): Data Center revenue growth is guided to slow to ~8.5% in Q4 FY2026 as the licence base migrates to Cloud; any pause in cloud migration or discounting pressure during conversion would hit reported growth.

11. Recent Developments

• 21 Oct 2025 — Completed $610m acquisition of The Browser Company. Atlassian closed its all-cash purchase of the maker of the Dia and Arc browsers, an AI-native browser bet announced on 4 Sep 2025.
• 5 Feb 2026 — Q2 FY2026: first $1bn Cloud quarter. Revenue rose 23% to $1,586.3m, Cloud revenue crossed $1bn (+26%), RPO jumped 44% to $3.8bn, the customer base passed 350,000 and Rovo surpassed 5 million monthly active users.
• 18 Feb 2026 — James Chuong appointed CFO. The LinkedIn CFO joined Atlassian effective 30 Mar 2026, succeeding the retiring Joe Binz.
• 11 Mar 2026 — Workforce reduced by ~10% (~1,600 roles). Atlassian announced a restructuring to rebalance resources, consolidate leases, accelerate the path to GAAP profitability and self-fund AI and enterprise-sales investment; over 900 of the cut roles were in R&D. Total charges guided at $225–236m plus $62m+ of lease costs.
• 30 Apr 2026 — Q3 FY2026 results: growth accelerated, stock still dipped. Revenue rose 32% to $1,787.0m, Cloud accelerated to +29%, RPO grew 37% to $3,996m and non-GAAP operating margin reached 34%; GAAP results absorbed the $223.8m restructuring charge, and the shares fell despite the beat as the AI-disruption debate dominated.

12. Key Dates

• Expected August 2026 — Q4 and full-year FY2026 results (consensus calendars estimate 6 Aug 2026, after market close; date to be confirmed by the company)
• Expected August 2026 — FY2027 initial financial targets, provided with the Q4 shareholder letter as in prior years
• Expected September 2026 — annual report (Form 10-K) filing for fiscal 2026
• Expected October 2026 — Q1 FY2027 results

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