Atlassian Corp

Atlassian maintains a capital structure characterized by significant leverage relative to equity, with a debt-to-equity ratio of 1.13. Total liabilities stand at $4.77 billion against total equity of $879 million. Liquidity is constrained, evidenced by a current ratio of 0.7, indicating that current liabilities exceed current assets. The company holds $1.14 billion in cash and equivalents, with no short-term debt, but carries $989 million in long-term debt. Operating cash flow remains robust at $874 million for the nine-month period, supporting a free cash flow of $844 million despite net losses.

Profitability metrics reflect ongoing investment phases, with a return on equity of -22.0% and return on assets of -3.4%. The company reported a net loss of $193 million for the nine months ended March 31, 2026, driven by operating income of -$200 million. Gross profit was $4.05 billion on revenue of $4.81 billion, implying a gross margin of approximately 84%. Stock-based compensation is a significant non-cash expense, totaling $1.21 billion for the nine-month period, which heavily impacts reported net income.

Revenue generation is derived from application software sales, though specific segment or geographic breakdowns are not provided in the available data. The company’s activity is classified as Application Software, suggesting a diversified customer base across enterprise and small-to-medium businesses. Without specific segment data, revenue concentration risks cannot be quantified beyond the total revenue figure of $4.81 billion for the nine-month period.

Growth trajectory analysis is limited by the absence of historical period data in the input. However, the nine-month revenue of $4.81 billion provides a baseline for annualized performance. The company’s cash flow from operations decreased from $1.09 billion in the prior year’s nine-month period to $874 million in the current period, suggesting a moderation in operating cash generation. Capital expenditures were minimal at $29.6 million, indicating low reinvestment in physical assets.

Risk assessment highlights high liquidity risk due to the current ratio below 1.0 and medium dilution risk. Key flags indicate that current liabilities exceed current assets, and source documents mention dilution or offering risk. The company’s net loss position and reliance on stock-based compensation contribute to the dilution risk profile. The absence of short-term debt mitigates immediate refinancing risk, but the high debt-to-equity ratio warrants monitoring.

Recent events include partial coverage in company facts and backfilling of short-term debt data. The company is evaluating the impact of new accounting guidance, ASU 2023-09, expected to be adopted in the fiscal year ended June 30, 2026. Analyst sentiment remains positive, with a mean recommendation of 1.88 and a median price target of $117.50, significantly above the current market price of $79.58. The high price target of $480.00 suggests substantial upside potential according to analyst consensus.

Atlassian Corp (TEAM) has been formally classified within the Technology sector, specifically under Application Software activity, marking a definitive structural update to its corporate profile. This taxonomy classification, alongside the identification of 35 top holders, establishes the foundational context for analyzing the company's current market positioning and operational scope. The most material development in recent risk assessments is the elevation of liquidity risk to a "high" severity level, a significant shift from no prior recorded value. This high-severity flag suggests potential constraints in the company's ability to meet short-term obligations or manage cash flow efficiently, warranting close attention from investors monitoring financial stability. Concurrently, dilution risk has been introduced into the risk framework at a "medium" level, though this change is classified with low severity. While less critical than the liquidity concerns, the emergence of dilution risk indicates potential future equity issuance or share-based compensation activities that could impact per-share value, requiring ongoing monitoring. Recent holder activity signals notable volatility in institutional positioning, with major modifications detected in share counts for specific investors as of March 31, 2026. These changes, including substantial increases and decreases in shareholdings by investors ID 587 and 931, reflect active rebalancing within the shareholder base, although broader market sentiment remains quiet with zero news dispatches recorded over the past 30 days.

Revenue grew at an 11.0% CAGR from FY2023 to FY2025, demonstrating consistent top-line expansion over the period.

Free cash flow reached $1.42 billion in FY2025, indicating strong cash generation capabilities despite operating losses.

Operating income improved by 10.2% year-over-year in FY2025, signaling progress toward operational profitability.

Gross profit expanded to $4.32 billion in FY2025, reflecting healthy margins on core software products.

Operating margin of -4.17% remains below the software cohort median of 1.78%, indicating efficiency challenges.

High liquidity risk is flagged, suggesting potential difficulties in meeting short-term financial obligations.

Net debt to EBITDA stands at 40.12, indicating significant leverage relative to earnings before interest, taxes, depreciation, and amortization.

Revenue $4.81B; Operating income -$200.4M.

• ▍Revenue $4.81B
• ▍Operating income -$200.4M
• ▍Net margin -4.0%

Revenue $3.02B; Operating income -$144.1M.

• ▍Revenue $3.02B
• ▍Operating income -$144.1M
• ▍Net margin -3.1%

Revenue $1.43B; Operating income -$96.3M.

• ▍Revenue $1.43B
• ▍Operating income -$96.3M
• ▍Net margin -3.6%

Revenue $5.22B; Operating income -$130.4M.

• ▍Revenue $5.22B
• ▍Operating income -$130.4M
• ▍Net margin -4.9%

Revenue $4.36B; Operating income -$117.1M.

• ▍Revenue $4.36B
• ▍Operating income -$117.1M
• ▍Net margin -6.9%

Revenue $4.36B; Operating income -$117.1M.

• ▍Revenue $4.36B
• ▍Operating income -$117.1M
• ▍Net margin -6.9%

Revenue $3.53B; Operating income -$345.2M.

• ▍Revenue $3.53B
• ▍Operating income -$345.2M
• ▍Net margin -13.8%

Revenue $3.53B; Operating income -$345.2M.

• ▍Revenue $3.53B
• ▍Operating income -$345.2M
• ▍Net margin -13.8%