Atlassian Corporation Plc Revenue & Financials

Atlassian reported total revenues of $5.2 billion for fiscal year 2025, a 19% increase over the $4.36 billion recorded in fiscal year 2024, demonstrating sustained high growth even at scale. Subscription revenue of $4.93 billion represented 94.5% of total revenue and grew 25.6% year-over-year, reflecting the successful transition from perpetual licenses to recurring cloud subscriptions. Cloud revenue reached $928 million in Q4 FY2025, growing 26% year-over-year and representing 67% of total GAAP revenue in that quarter, confirming the cloud transition as the primary growth driver. Operating loss on a GAAP basis was $130.4 million for the full year, yielding a GAAP operating margin of negative 2.5%, though this improved from negative 2.7% in FY2024. Net loss was $256.7 million, producing a negative profit margin of 4.9%, though this also improved from negative 6.9% in FY2024. The gap between GAAP losses and operational performance is driven primarily by stock-based compensation, which totaled approximately $1.2 billion, representing roughly 23% of revenue. On a non-GAAP basis, operating income was $1.24 billion with a 24% margin, and net income was approximately $900 million, demonstrating the underlying profitability of the business model when excluding equity compensation. Gross profit reached $4.3 billion in FY2025, yielding an 82.8% GAAP gross margin, up from 81.6% in FY2024. Operating expenses were dominated by research and development at approximately $2.3-2.5 billion (45-50% of revenue) and sales and marketing at approximately $780 million-1.0 billion (15-20% of revenue), with general and administrative expenses at approximately $400-500 million. The balance sheet showed total assets of $6.0 billion, stockholders' equity of $1.3 billion, and total cash and marketable securities of $2.9 billion as of June 30, 2025. The company generated $1.46 billion in cash flow from operations and over $1.4 billion in free cash flow during FY2025, demonstrating strong cash conversion despite GAAP losses. Capital expenditures were modest, reflecting the asset-light nature of the SaaS business model. The company's capital allocation prioritizes R&D investment, strategic acquisitions, and share repurchases to manage dilution from stock-based compensation. Fourth quarter FY2025 revenues of $1.384 billion increased 22% year-over-year, with subscription revenue of $1.313 billion growing 23%. Q4 GAAP operating margin was negative 2% and non-GAAP operating margin was 24%, with cash flow from operations of $375 million and free cash flow of $360 million. The company's FY2026 guidance projects total revenue growth of approximately 22%, with continued cloud migration and AI monetization as key growth drivers. The stock trades at a forward price-to-earnings ratio of 15.53 and a price-to-sales ratio of 4.31, valuation metrics that reflect the discount applied to GAAP losses despite strong revenue growth and free cash flow generation.