Atlassian Corporation

• FY2025 revenue was $5.215B, up 19.7% YoY versus FY2024 revenue of $4.359B.
• FY2025 gross profit was $4.320B, implying an 82.8% gross margin.
• FY2025 operating income was -$130.4M, implying a -2.5% operating margin.
• Q3 FY2026 revenue was $1.787B, up 32% YoY.
• Q3 FY2026 cloud revenue was $1.132B, up 29% YoY.
• Q3 FY2026 remaining performance obligations were $3.996B, up 37% YoY.
• Q3 FY2026 GAAP operating margin was (3)% and non-GAAP operating margin was 34%.
• Q3 FY2026 free cash flow was $561.3M, with a 31% free cash flow margin.

Atlassian sells team collaboration and productivity software: Jira for work tracking, Confluence for knowledge, Jira Service Management for service ops, Trello for lightweight planning, Loom for async video, and Rovo/Collections for AI-assisted workflow automation. The company’s strategy is to connect those products through the Atlassian Cloud Platform and Teamwork Graph so customers can standardize work across teams and third-party tools.

Atlassian sells team collaboration and workflow software that connects planning, documentation, service, and AI-assisted execution across Jira, Confluence, Jira Service Management, Trello, Loom, and Rovo. The moat is the enterprise context graph, not any one app.

Atlassian sells AI-powered collaboration and workflow software across Jira, Confluence, Jira Service Management, Trello, Loom, and Rovo. The moat is the organization-level context graph that links work items, knowledge, service workflows, permissions, and AI actions.

Atlassian sells AI-powered teamwork and workflow software (Jira, Confluence, Jira Service Management, Trello, Loom, Rovo). This refresh is driven by the audited FY2026 10-K filed 2026-08-14 — primary-source material the prior 08-08 block (built on the 08-06 earnings release) did not contain.

Atlassian sells AI-powered collaboration and workflow software (Jira, Confluence, Jira Service Management, Trello, Loom, Rovo). The moat is organizational context — the Teamwork Graph links people, work, permissions, integrations, and now AI agents. This refresh supersedes the 09-02 block, which was a corrupted draft (leaked drafting notes, no research output), and captures two fresh September 2026 catalysts the note did not contain.

• monetization model: Subscription/SaaS (Cloud, Data Center term), plus legacy maintenance, perpetual license, and other services. Source: Atlassian FY2025 10-K, Item 1; sec.gov (accession UNKNOWN).
• revenue mix: Subscription ≈92% of FY2025 revenue; maintenance ≈5%, perpetual license ≈2%, other <1% (10-K revenue note). Source: FY2025 10-K, Note 2; same URL.
• who pays: Engineering, IT, and team leaders; often team-level credit card initially, then enterprise procurement (CIO/CTO, IT service management, engineering leaders). Source: FY2025 10-K, Item 1.
• margin_value_capture: Gross margin ~82%; GAAP operating margin UNKNOWN in model memory—see 10-K. Value accrues via high-margin subscriptions, cloud migration, and expansion. Source: FY2025 10-K, Item 7/Note 2.

• customer classes: Platform & Developer Teams, IT service management leaders, engineering/DevOps leaders, business team leaders, enterprise IT buyers. Source: FY2025 10-K, Item 1; latest 10-Q for updates: sec.gov (accession UNKNOWN).

FY2025 revenue was $5.215B, up 19.7% YoY; gross margin was 82.8%; operating margin was -2.5%. In the most recent quarter, Q3 FY2026 revenue was $1.787B, up 32% YoY, with cloud revenue up 29% YoY and RPO up 37% YoY.

FY2025 revenue was $5.215B (+19.7% YoY). Q3 FY2026 revenue was $1.787B (+32% YoY), cloud revenue was $1.132B (+29% YoY), and remaining performance obligations were $3.996B (+37% YoY).

FY2026 revenue was $6.572B (+26% YoY). Q4 FY2026 revenue was $1.766B (+28% YoY), cloud revenue was $1.213B (+31% YoY), subscription ARR was $6.606B (+23% YoY), remaining performance obligations were $4.817B (+44% YoY), GAAP operating margin was 12%, non-GAAP operating margin was 36%, and free cash flow was $475M (27% margin). Atlassian said it has >700 customers with $1M+ in ARR and >80% of the Fortune 500 use Rovo.

Total revenue $6.572B (+26% YoY); subscription $6.262B (95% of revenue, +27% YoY); gross profit $5.575B → 84.8% gross margin (up from 82.8% in FY2025); GAAP operating income $10.4M = 0.16% margin; GAAP net loss -$53.8M; operating cash flow $1.353B; capex $34.1M → FCF $1.319B (20.1% margin); cash $1.24B; long-term debt $989.6M ($1B senior notes: $500M 5.250% due 2029 + $500M 5.500% due 2034; $750M undrawn revolver).

FY2026 revenue $6.572B (+26% YoY); gross margin 84.8%; GAAP operating income $10.4M (0.16%); GAAP net loss -$53.8M; R&D $3.269B (49.7% of revenue); FCF $1.319B (20.1% margin); >350,000 customers, >85% of the Fortune 500, >700 customers at $1M+ ARR. Source: FY2026 10-K (filed 2026-08-14). No Q1 FY2027 results yet — next earnings ~late Oct 2026.

Atlassian monetizes the workflow bottleneck that sits between planning and execution. The more teams use Jira, Confluence, Service Collection, and Rovo together, the more the platform owns the organization’s working context, permissions, and automation logic. That makes Atlassian harder to rip out than a point tool and gives it a durable attach-rate and expansion path.

Atlassian controls the organization’s working context: tasks, docs, service tickets, automations, permissions, and now AI agents. The more work standardizes inside Jira + Confluence + Service Collection + Rovo, the harder it becomes to unwind the stack without re-building integrations, controls, and user habits.

The latest quarter shows the workflow graph is monetizing through bigger deals, higher ARPU, and deeper AI usage. Teamwork Collection customers use >2x more AI credits per user and deploy 2x more active agents than standalone customers, while Rovo adopters continue to grow ARR more than 2x faster than non-adopters.

Atlassian owns the workflow layer where teams plan, document, route, and automate work. The moat is organizational context — the Teamwork Graph links people, projects, goals, and knowledge — and that context is now learned AI context, not just data.

The moat is the cost of rebuilding an organization's working context. The September 2026 evidence moves this from narrative to quantified: the Teamwork Graph is now cited as delivering 48% more efficient token usage and 44% better results for AI, and Atlassian is monetizing the gap between "94% of engineering leaders use AI" and "only 6% can scale it across the SDLC."

This is a software switching-cost moat, so the constraint is context rebuild cost rather than physics. Public data gives a measurable floor:

• FY2025 revenue: $5.215B.
• Atlassian says it powers >350,000 customers and has >600 customers with $1M+ ARR.
• Minimum annual ARR in that $1M+ cohort is therefore at least $600M, or 11.5% of FY2025 revenue.
• Average FY2025 revenue per customer is about $14.9k/year ($5.215B / 350k).
• A $1M+ ARR customer is therefore at least ~67x the average customer revenue floor.

That floor is conservative because $1M is only the minimum for the cohort. The actual switching burden is higher because every added integration and action expands the Teamwork Graph; the Q3 FY2026 release says Rovo customers are growing ARR at ~2x the rate of non-Rovo customers and AI credit usage is growing >20% month-over-month.

• FY2025 10-K: software powers >300,000 customers; serves >80% of the Fortune 500; open and interoperable with Microsoft, Zoom, Salesforce, Workday, and Dropbox.
• FY2025 10-K: Teamwork Graph unifies and standardizes data across Atlassian apps, third-party tools, and teams.
• Q3 FY2026 EX-99.1: revenue $1.787B (+32% YoY); cloud revenue $1.132B (+29% YoY); RPO $3.996B (+37% YoY).
• Q3 FY2026 shareholder letter: Service Collection >$1B ARR; Rovo customers grow ARR at ~2x non-Rovo; AI credit usage >20% MoM.
• Q3 FY2026 shareholder letter: >600 customers with $1M+ ARR and >350,000 customers overall.

• FY2025 10-K says Atlassian powers more than 300,000 customers worldwide and serves over 80% of the Fortune 500 across almost every industry and more than 200 countries and territories.
• The same 10-K says the Atlassian Marketplace has thousands of apps and that the Teamwork Graph unifies and standardizes data across Atlassian apps, third-party tools, and teams.
• Q3 FY2026 shareholder letter says Service Collection scaled past $1B in ARR, Rovo customers are growing ARR at roughly 2x the rate of non-Rovo customers, and AI credit usage is growing more than 20% month-over-month.
• The shareholder letter also says Teamwork Collection customers use ~2x more AI credits per paid user and have 2x more agents versus equivalent standalone customers, signaling deeper embed as AI usage rises.
• Public data implies a switching-cost floor: 600+ customers with $1M+ ARR means at least $600M of ARR sits in the top cohort, or 11.5% of FY2025 revenue on a minimum basis.

Average FY2025 revenue per customer is about $14.9k/year ($5.215B / 350k). The minimum $1M+ ARR cohort floor is therefore at least ~67x the average customer revenue floor, and the new AI usage metrics suggest the highest-value customers are becoming more embedded, not less.

• Q4 FY2026 revenue was $1.766B (+28% YoY), cloud revenue was $1.213B (+31% YoY), and RPO was $4.817B (+44% YoY) in the 2026-08-06 EX-99.1 release.
• FY2026 revenue was $6.572B (+26% YoY); GAAP operating income was $10M and GAAP operating margin was 12%.
• Free cash flow was $475M in Q4 FY2026, with a 27% FCF margin; full-year free cash flow was supported by strong collections and operating leverage.
• Atlassian said over 80% of Fortune 500 companies now use Rovo, and Rovo assisted actions grew over 50% quarter-over-quarter.
• The shareholder letter said Teamwork Collection customers use >2x AI credits per user and deploy 2x more active agents than standalone customers.

• Material correction to prior note: the 08-08 block stated "GAAP operating margin was 12%" for FY2026. The audited 10-K shows that 12% was Q4-only; full-year GAAP operating margin is 0.16% ($10.4M / $6.572B) and GAAP net income is -$53.8M. The margin is thin because R&D is $3.269B = 49.7% of revenue — the "cost of the moat."
• Gross margin expanded ~2pp to 84.8% (subscription COGS fell to 15% of revenue from 17%), signaling pricing power, not commodity status.
• Powers >350,000 customers and serves >85% of the Fortune 500 (up from >80% in the FY2025 10-K); no single customer is >5% of revenue.
• Data Center end-of-life: "On September 8, 2025, we announced plans to end-of-life our Data Center products through a phased approach over a multi-year period" — a forced multi-year migration of on-prem customers to Cloud (revenue tailwind with churn risk).
• Rovo is free for premium/enterprise/standard tiers across Jira, Confluence, JSM, and Teamwork Collection — an adoption-first AI wedge ("made Rovo available at no additional cost"). AI is "provider-agnostic," routed through an AI Gateway to optimize cost/latency.
• Rovo = four capabilities (Search, Chat, Agents, Automate) grounded in the Teamwork Graph; Q4 FY26 shareholder letter: >700 customers with $1M+ ARR, Rovo assisted actions +50% QoQ.