Atlassian reports $51.87 million net loss for fiscal Q1 2026

Cover page 15 changes

2 unchanged paragraphs

For the fiscal year ended June 30 , 2025

☑ ANNUAL QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

10 unchanged paragraphs

Title of each class Trading Symbol(s) Symbol Name of each exchange on which registered

2 unchanged paragraphs

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☑

2 unchanged paragraphs

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

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Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

1 unchanged paragraph

The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant as of December 31, 2024, the last business day of the registrant's most recently completed second fiscal quarter, was $ 39.6 billion based upon the closing price reported for such date on the Nasdaq Global Select Market.

As of August 8, 2025, there were 166,284,669 shares of the registrant's Class A Common Stock and 96,049,867 shares of the registrant's Class B Common Stock outstanding .

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's definitive proxy statement relating to its 2025 Annual Meeting of Stockholders (the "Proxy Statement"), to be filed within 120 days of the registrant's fiscal year ended June 30, 2025, are incorporated by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, the Proxy Statement is not deemed to be filed as part of this Annual Report on Form 10-K.

As of October 24, 2025, there were 168,042,351 shares of the registrant's Class A Common Stock, $0.00001 par value per share, and 95,068,747 shares of the registrant's Class B Common Stock, $0.00001 par value per share, outstanding .

Financial statements 158 changes

ATLASSIAN CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value and share data)

September 30, 2025 June 30, 2025

Cash and cash equivalents $ 2,322,360 $ 2,512,874

Marketable securities 456,040 424,268

Accounts receivable, net 536,863 778,302

Prepaid expenses and other current assets 311,857 175,793

Total current assets 3,627,120 3,891,237

Property and equipment, net 99,711 105,118

Operating lease right-of-use assets 134,610 169,127

Strategic investments 204,066 221,942

Intangible assets, net 235,890 244,840

Goodwill 1,318,028 1,304,445

Deferred tax assets 3,632 3,762

Other non-current assets 97,443 101,499

Total assets $ 5,720,500 $ 6,041,970

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 195,313 $ 222,092

Accrued expenses and other current liabilities 562,329 681,601

Deferred revenue, current portion 2,064,083 2,227,002

Operating lease liabilities, current portion 49,050 50,164

Total current liabilities 2,870,775 3,180,859

Non-current liabilities:

Deferred revenue, net of current portion 217,073 254,252

Operating lease liabilities, net of current portion 188,573 201,483

Long-term debt 988,143 987,684

Deferred tax liabilities 23,726 23,881

Other non-current liabilities 53,274 48,157

Total liabilities 4,341,564 4,696,316

Commitments and contingencies (Note 11)

Stockholders' equity

Class A Common Stock, $ 0.00001 par value; 750,000,000 shares authorized, 167,247,629 and 165,949,196 issued and outstanding at September 30, 2025 and June 30, 2025, respectively

Class B Common Stock, 0.00001 par value; 230,000,000 shares authorized, 96,049,867 and 97,030,987 issued and outstanding at September 30, 2025 and June 30, 2025, respectively

Additional paid-in capital 5,925,417 5,574,290

Accumulated other comprehensive income (loss) ( 2,814 ) 13,226

Accumulated deficit ( 4,543,670 ) ( 4,241,865 )

Total stockholders' equity 1,378,936 1,345,654

Total liabilities and stockholders' equity $ 5,720,500 $ 6,041,970

The above condensed consolidated financial statements should be read in conjunction with the accompanying notes.

ATLASSIAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

Three Months Ended September 30,

Subscription $ 1,374,502 $ 1,131,948

Total revenues 1,432,553 1,187,781

Cost of revenues (1) (2)

Gross profit 1,174,629 970,157

Research and development (1) (2)

Marketing and sales (1) (2)

General and administrative (1)

Total operating expenses 1,270,966 1,002,135

Operating loss ( 96,337 ) ( 31,978 )

Other income (expense), net 18,804 ( 19,432 )

Interest income 29,845 28,564

Interest expense ( 8,636 ) ( 7,318 )

Loss before income taxes ( 56,324 ) ( 30,164 )

Provision for (benefit from) income taxes ( 4,454 ) 93,605

Net loss $ ( 51,870 ) $ ( 123,769 )

Net loss per share attributable to Class A and Class B common stockholders:

Basic $ ( 0.20 ) $ ( 0.48 )

Diluted $ ( 0.20 ) $ ( 0.48 )

Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders:

Basic 262,991 260,477

Diluted 262,991 260,477

(1) Amounts include stock-based compensation, as follows:

Cost of revenues $ 19,931 $ 18,214

Research and development 246,494 193,445

Marketing and sales 43,984 35,992

General and administrative 40,718 38,495

(2) Amounts include amortization of acquired intangible assets, as follows:

Cost of revenues $ 9,957 $ 10,116

Research and development 94 94

Marketing and sales 3,599 3,672

The above condensed consolidated financial statements should be read in conjunction with the accompanying notes.

ATLASSIAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended September 30,

Net loss $ ( 51,870 ) $ ( 123,769 )

and 78 more changes in the filing

Notes to the financial statements 201 changes

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Atlassian Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Atlassian Corporation (the Company) as of June 30, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss) , stockholders' equity and cash flows for each of the three years in the period ended June 30, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated August 15, 2025 expressed an unqualified opinion thereon.

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Description of the Matter As described in Note 2 to the consolidated financial statements, the Company reports revenues in two categories: (i) subscriptions and (ii) other. The Company's contracts often include promises to transfer multiple products and services to a customer. The Company allocates the transaction price for each contract to each performance obligation based on the relative standalone selling price ("SSP") for each performance obligation.

Auditing the Company's revenue recognition was challenging due to the effort required to analyze the accounting treatment for contracts with multiple performance obligations. This involved assessing the impact of terms and conditions of contracts and the determination of SSP for the identified performance obligations.

How We Addressed the Matter in Our Audit We obtained an understanding of the process for revenue recognition by performing a walkthrough. We also evaluated the design and tested the operating effectiveness of the Company's internal controls over the assessment of terms and conditions of contracts, which included the internal controls over the determination of SSP for the identified performance obligations.

To evaluate management's assessment of terms and conditions of contracts, we performed audit procedures that included, among others, testing a sample of contracts to understand the terms and conditions and evaluating SSP for the identified performance obligations. To evaluate management's determination of SSP for the identified performance obligations, we performed audit procedures that included, among others, assessing the appropriateness of the methodologies used in the Company's SSP analyses, testing the completeness and accuracy of the underlying data used, and testing the mathematical accuracy. Finally, we assessed the related disclosures in the consolidated financial statements.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 2012.

San Francisco, California

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Atlassian Corporation

Opinion on Internal Control Over Financial Reporting

We have audited Atlassian Corporation's internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Atlassian Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of June 30, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2025 consolidated financial statements of the Company and our report dated August 15, 2025 expressed an unqualified opinion thereon.

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Annual Report on internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

San Francisco, California

ATLASSIAN CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value and share data)

Cash and cash equivalents $ 2,512,874 $ 2,176,930

Marketable securities 424,268 161,973

Accounts receivable, net 778,302 628,049

Prepaid expenses and other current assets 175,793 109,312

Total current assets 3,891,237 3,076,264

Property and equipment, net 105,118 86,315

Operating lease right-of-use assets 169,127 172,468

Strategic investments 221,942 223,221

Intangible assets, net 244,840 299,057

Goodwill 1,304,445 1,288,756

Deferred tax assets 3,762 3,934

Other non-current assets 101,499 62,118

Total assets $ 6,041,970 $ 5,212,133

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 222,092 $ 177,545

Accrued expenses and other current liabilities 681,601 577,359

Deferred revenue, current portion 2,227,002 1,806,269

Operating lease liabilities, current portion 50,164 48,953

Total current liabilities 3,180,859 2,610,126

Non-current liabilities:

Deferred revenue, net of current portion 254,252 308,467

Operating lease liabilities, net of current portion 201,483 214,474

Long-term debt 987,684 985,911

Deferred tax liabilities 23,881 20,387

Other non-current liabilities 48,157 39,917

Total liabilities 4,696,316 4,179,282

Commitments and contingencies (Note 11)

Stockholders' equity

Class A Common Stock, $ 0.00001 par value; 750,000,000 shares authorized, 165,949,196 and 159,544,123 issued and outstanding at June 30, 2025 and 2024, respectively

Class B Common Stock, 0.00001 par value; 230,000,000 shares authorized, 97,030,987 and 101,012,393 issued and outstanding at June 30, 2025 and 2024, respectively

Additional paid-in capital 5,574,290 4,212,064

Accumulated other comprehensive income (loss) 13,226 25,300

Accumulated deficit ( 4,241,865 ) ( 3,204,516 )

Total stockholders' equity 1,345,654 1,032,851

Total liabilities and stockholders' equity $ 6,041,970 $ 5,212,133

The above consolidated financial statements should be read in conjunction with the accompanying notes.

ATLASSIAN CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

Fiscal Year Ended June 30,

Subscription $ 4,930,604 $ 3,924,389 $ 2,922,576

Other 284,700 434,214 612,071

Total revenues 5,215,304 4,358,603 3,534,647

Cost of revenues (1) (2)

Gross profit 4,320,453 3,555,108 2,900,882

Research and development (1) (2)

Marketing and sales (1) (2)

and 121 more changes in the filing

Note 2: Summary of Significant Accounting Policies 29 changes

Certain reclassifications have been made to prior period balances to conform to the current period presentation. "Maintenance" revenues have been reclassified to "Other" revenues on the Company's Consolidated Statements of Operations. This reclassification had no impact on previously reported total revenues.

Basis of Preparation Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), These principles which are established primarily by the Financial Accounting Standards Board ("FASB").

The accompanying condensed consolidated financial statements contain all normal recurring adjustments which are necessary to fairly present the condensed consolidated balance sheets as of September 30, 2025 and June 30, 2025, the statements of operations, comprehensive income (loss), stockholders' equity, and cash flows for the three months ended September 30, 2025 and 2024.

These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures made are sufficient to make the information not misleading . Results of operations for interim periods are not necessarily indicative of results for the entire year or of the results to be expected in future periods.

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The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions in the Company's condensed consolidated financial statements. These estimates are based on information available as of the date of the condensed consolidated financial statements. Such management estimates and assumptions include, but are not limited to, the determination of:

• the standalone selling price ("SSP") of performance obligations for revenue contracts with multiple performance obligations;

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The Company's consolidated financial statements are presented using the U.S. dollar, which is its reporting currency. The functional currency for certain of the Company's foreign subsidiaries is the U.S. dollar, while others use local currencies. The Company translates the foreign functional currency financial statements to U.S. dollars for those entities that do not have the U.S. dollar as their functional currency using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenues and expenses, and the historical exchange rates for equity transactions. The effects of foreign currency translation adjustments are recorded in accumulated other comprehensive income in the Consolidated Statements of Comprehensive Income (Loss). Foreign currency transaction gains and losses are included in other income (expense), net on the Consolidated Statements of Operations.

Revenue from Contracts with Customers

Policies, Estimates and Judgments

Revenues are generally recognized upon the transfer of control of promised products or services provided to customers, reflecting the amount of consideration the Company expects to receive for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales and other similar taxes collected from customers, which are subsequently remitted to governmental authorities.

Revenues are recognized upon the application of the following steps:

1. Identification of the contract or contracts with a customer;

2. Identification of the performance obligations in the contract;

3. Determination of the transaction price;

The Company operates as a single operating segment and derives revenue primarily from fees earned from subscription-based arrangements for providing customers with software in a cloud-based-infrastructure that the Company provides, and from the sale of on-premises term license agreements.

An operating segment is defined as a component of an entity for which discrete financial information is available and whose results of operations are regularly reviewed by the chief operating decision maker ("CODM"). Effective August 31, 2024. Scott Farquhar stepped down from his role as Co-CEO, at that time, Mike Cannon-Brookes became The sole Company has identified the CEO, and in conjunction with that change, became Mike Cannon-Brookes, as the sole CODM. The CODM manages the Company using consolidated financial information. Further, the Company offers a connected portfolio of apps that are built on a single Atlassian platform and data model. Accordingly, the Company has determined it operates as a single operating and reportable segment.

The CODM uses consolidated net loss to allocate resources, including headcount, and make business investment decisions during the Company's budgeting process. The CODM also uses consolidated net loss to assess performance by comparing the consolidated results to forecasts. Significant segment expenses are organized by function and are presented on the condensed consolidated statements of operations. Other segment items included in consolidated net loss are: other income and expense, net, interest income, interest expense, and the provision for income taxes, which are reflected in the condensed consolidated statements of operations.

Significant Accounting Policies

There were no significant changes to the Company's significant accounting policies disclosed in Note 2, " Summary of Significant Accounting Policies, " of its Annual Report on Form 10-K for fiscal year 2025, which was filed with the SEC on August 15, 2025.

Concentration of Credit Risk and Significant Customers

Financial instruments potentially exposing the Company to credit risk consist primarily of cash, cash equivalents, accounts receivable, derivative contracts, and investments. The Company holds cash at financial institutions that management believes are high credit, quality financial institutions and invests in investment grade securities rated A- and above. The Company's derivative contracts expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. The Company enters into master netting agreements with select financial institutions to reduce its credit risk and trades with several counterparties to reduce its concentration risk with any single counterparty. The Company does not have significant exposure to counterparty credit risk at this time. In addition, the Company does not require nor is required to post collateral of any kind related to any foreign currency derivatives.

Credit risk arising from accounts receivable is mitigated to a certain extent due to the Company's large number of customers and their dispersion across various industries and geographies. The Company's customer base is highly diversified, thereby limiting credit risk. The Company manages credit risk with customers by closely monitoring its receivables and contract assets. The Company continuously monitors outstanding receivables locally to assess whether there is objective evidence that outstanding accounts receivable and contract assets are credit-impaired. As of September 30, 2025, and June 30, 2025, no customer represented more than 10% of the total accounts receivable balance. For the three months ended September 30, 2025, and 2024, no customer represented more than 10% of total revenues.

New Accounting Standards Not Yet Adopted in Fiscal Year 2026

In December 2023, the FASB issued ASU No. 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This ASU requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance and does not expect it to have a material impact on its consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03 "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures." This ASU requires disaggregated disclosure of income statement expenses for public entities. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05 " Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets for Private Companies and Certain Not-for-Profit Entities," which amends ASC 326-20 to provide a practical expedient and an accounting policy election (for all entities, other than public business entities that elect the practical expedient) related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. This ASU is effective for fiscal years beginning after December 15, 2025, and early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06 "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software." This ASU makes targeted improvements to the accounting for internally developed software subject to ASC 350-40. This ASU is effective for fiscal years beginning after December 15, 2027, and early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

Note 3: Fair Value Measurements 34 changes

The following table presents the Company's financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2025, by level within the fair value hierarchy (in thousands):

Level 1 Level 2 Total

Assets measured at fair value

Cash and cash equivalents:

Money market funds $ 1,599,347 $ — $ 1,599,347

Marketable securities:

U.S. treasury securities — 215,676 215,676

Agency securities — 3,216 3,216

Certificates of deposit and time deposits — 10,000 10,000

Commercial paper — 24,623 24,623

Corporate debt securities — 202,525 202,525

Derivative financial instruments — 18,454 18,454

Total assets measured at fair value $ 1,599,347 $ 474,494 $ 2,073,841

Liabilities measured at fair value

Derivative financial instruments $ — $ 5,389 $ 5,389

Total liabilities measured at fair value $ — $ 5,389 $ 5,389

17 unchanged paragraphs

The following table presents the Company's financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2024, by level within the fair value hierarchy (in thousands):

Level 1 Level 2 Total

Assets measured at fair value

Cash and cash equivalents:

Money market funds $ 1,563,234 $ — $ 1,563,234

Marketable securities:

U.S. treasury securities — 52,517 52,517

Agency securities — 3,199 3,199

Certificates of deposit and time deposits — 10,000 10,000

Commercial paper — 20,010 20,010

Corporate debt securities — 76,247 76,247

Derivative financial instruments — 9,292 9,292

Total assets measured at fair value $ 1,563,234 $ 171,265 $ 1,734,499

Liabilities measured at fair value

Derivative financial instruments $ — $ 1,701 $ 1,701

Total liabilities measured at fair value $ — $ 1,701 $ 1,701

Due to the short-term nature of accounts receivables, receivable, net, contract assets, accounts payable, accrued expenses, and other current liabilities, their carrying amount is assumed to approximate their fair value.

3 unchanged paragraphs

The Company's investments in privately held companies are not included in the tables above and are discussed in Note 4, "Investments." The carrying value of the Company's privately held equity securities are adjusted on a non-recurring basis upon observable price changes in orderly transactions for identical or similar investments of the same issuer, or impairment (referred to as the measurement alternative). Privately held equity securities that have been remeasured during the period based on observable price changes in orderly transactions are classified within Level 2 or Level 3 in the fair value hierarchy because the Company estimates the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights and preferences of the investments, and obligations of the securities the Company holds. The fair value of privately held equity securities that have been remeasured due to impairment are is classified within Level 3. The Company's privately held debt and equity securities amounted to $ 168.8 150.6 million and $ 148.7 168.8 million as of June September 30, 2025, and June 30, 2024, 2025, respectively.

Note 4: Investments 73 changes

1 unchanged paragraph

The Company's investments of marketable securities as of September 30, 2025, consisted of the following (in thousands):

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

U.S. treasury securities $ 215,159 $ 530 $ ( 13 ) $ 215,676

Agency securities 3,198 18 — 3,216

Certificates of deposit and time deposits 10,000 — — 10,000

Commercial paper 24,623 — — 24,623

Corporate debt securities 201,821 704 — 202,525

Total marketable securities $ 454,801 $ 1,252 $ ( 13 ) $ 456,040

2 unchanged paragraphs

Marketable securities

6 unchanged paragraphs

The Company's investments of marketable securities as of June 30, 2024, consisted of the following (in thousands):

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

Marketable debt securities

U.S. treasury securities $ 52,570 $ 30 $ ( 83 ) $ 52,517

Agency securities 3,194 5 — 3,199

Certificates of deposit and time deposits 10,000 — — 10,000

Commercial paper 20,010 — — 20,010

Corporate debt securities 76,386 7 ( 146 ) 76,247

Total marketable securities $ 162,160 $ 42 $ ( 229 ) $ 161,973

1 unchanged paragraph

Total marketable debt investments $ 424,268 $ 161,973

June September 30, 2025 June 30, 2024 2025

Due in one year or less $ 271,923 319,559 $ 101,543 271,923

Due in one year through five years 136,481 152,345 60,430

Total marketable securities $ 456,040 $ 424,268

The Company regularly reviews the changes to the rating of its marketable securities by rating agencies and monitors the surrounding economic conditions to assess the risk of expected credit losses. As of June September 30, 2025, and 2024, June 30, 2025, unrealized losses and the related risk of expected credit losses were not material.

2 unchanged paragraphs

The Company's investments of privately held debt securities as of September 30, 2025, consisted of the following (in thousands):

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

Privately held debt securities $ 7,430 $ — $ ( 3,000 ) $ 4,430

3 unchanged paragraphs

The Company's investments of privately held debt securities as of June 30, 2024, consisted of the following (in thousands):

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

Privately held debt securities $ 6,800 $ — $ ( 3,350 ) $ 3,450

Carrying value of publicly traded and privately held equity securities

Publicly traded equity securities are recorded at fair value, and privately held equity securities are measured using the measurement alternative. The carrying value is measured as the total initial cost plus the cumulative net gain (loss).

The carrying values of for publicly traded and privately held equity securities as of June September 30, 2025 are summarized below (in thousands):

Publicly traded equity securities Privately held equity securities Total

Initial total cost $ 20,000 $ 146,302 $ 166,302

Cumulative net gains (losses) 24,729 ( 112 ) 24,617

Carrying value $ 44,729 $ 146,190 $ 190,919

Privately held equity securities' cumulative net losses are composed of downward adjustments and impairment charges of $ 9.0 million and upward adjustments of $ 8.9 million as of September 30, 2025. During the period ended September 30, 2025, one of the Company's privately held equity investments completed an initial public offering. This publicly traded equity security was reclassified from strategic investments to prepaid expenses and other current assets on the condensed consolidated balance sheets as the Company intends to sell this investment within 12 months from the balance sheet date.

The Company did not have any publicly traded equity securities as of June 30, 2025 and the carrying values for privately held equity securities as of June 30, 2025 are summarized below (in thousands):

4 unchanged paragraphs

The carrying values of privately held equity securities as of June 30, 2024 are summarized below (in thousands):

Privately held equity securities

Initial total cost $ 147,752

Cumulative net losses ( 2,491 )

Carrying value $ 145,261

Privately held equity securities' cumulative net losses were comprised of downward adjustments and impairment of $ 7.5 million and upward adjustments of $ 5.0 million as of June 30, 2024.

Privately held equity securities' cumulative net losses were comprised are composed of downward adjustments and impairment charges of $ 8.5 million and upward adjustments of $ 6.6 million as of June 30, 2025. .

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Fiscal Year Ended June 30,

Unrealized losses recognized on publicly traded equity securities $ — $ — $ ( 11,437 )

Unrealized losses on privately held debt securities — ( 500 ) ( 350 )

Unrealized gains (losses), net $ 582 $ ( 44 ) $ ( 19,122 )

Realized losses on privately held debt securities — — ( 285 )

Losses on strategic investments, net $ ( 2,560 ) $ ( 2,075 ) $ ( 19,407 )

Three Months Ended September 30,

Realized Unrealized gains recognized on publicly traded equity securities — 515 $ 24,729 $ —

Unrealized gains recognized on privately held equity securities 1,549 2,084 307 2,297 —

Unrealized losses recognized on privately held equity securities including impairment ( 967 ) ( 1,628 ) 500 ) 7,642 —

Unrealized gains, net $ 26,526 $ —

Realized losses recognized on privately held equity securities — 3,142 ( ( 2,546 ) 34 )

Gains (losses) on strategic investments, net $ 26,526 $ ( 34 )

Unrealized gains (losses) recognized during the reporting period on privately held equity securities still held at the reporting date $ 582 $ 456 $ ( 6,986 )

Unrealized gains recognized on privately held equity securities include upward adjustments from equity securities accounted for under the measurement alternative, while unrealized losses recognized on privately held equity securities includes include downward adjustments and impairment.

Realized gains on sales of privately held securities, net, reflect the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

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Vertical First Trust ("VFT") was established for the construction project associated with the Company's new global headquarters in Sydney, Australia (the "Australian HQ Property"). In fiscal year 2023, the Company completed a non-cash sale of the controlling interest of VFT to a third-party buyer as part of the contemplated transactions for the buyer to invest in and develop the Australian HQ Property. As of the date of sale, the Company used a discounted cash flow model to calculate the fair value of its retained equity interest. The fair value of the retained interest at the date of sale was $ 88.9 million, and is classified as a Level 3 investment in the fair value hierarchy. The inputs to the valuation included observable inputs, including capitalization rate, discount rate, and other management inputs, including the underlying building's practical completion date. The maximum exposure to loss related to the Company's investment in VFT equals the Company's capital investment.

Vertical First Trust ("VFT") was established for the construction project associated with the Company's new global headquarters in Sydney, Australia (the "Australian HQ Property"). In fiscal year 2023, the Company completed a non-cash sale of the controlling interest of VFT to a third-party buyer as part of the contemplated transactions for the buyer to invest in and develop the Australian HQ Property. The Company retained a minority equity interest of 13 % in the form of ordinary units in VFT and has significant influence in VFT. The Company's interest in VFT is accounted for using the equity method in the condensed consolidated financial statements. Under the equity method, the Company records its proportionate share of VFT's earnings or losses.

The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal years 2024 year 2025 and the three months ended September 30, 2025 (in thousands):

1 unchanged paragraph

Balance as of June 30, 2023 $ 85,436

Effect of change in exchange rates 336

Balance as of June 30, 2024 $ 74,510

Share of losses ( 11,262 20,433 )

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Balance as of June 30, 2025 $ 53,119

Effect of change in exchange rates 327

Balance as of September 30, 2025

The carrying amount of the Company's investment in VFT was reported within strategic investments in the Company's condensed consolidated balance sheets.

Note 5: Derivative Contracts 30 changes

1 unchanged paragraph

The following table sets forth the notional amounts of the Company's hedging derivative instruments as of June September 30, 2025 (in thousands):

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Forward contracts $ 1,064,280 $ 79,858 $ 1,144,138 $ 765,613 $ 378,525 $ 1,144,138

Forward contracts $ 936,656 $ 65,922 $ 1,002,578 $ 739,524 $ 263,054 $ 1,002,578

The following table sets forth the notional amounts of the Company's hedging derivative instruments as of June 30, 2024 2025 (in thousands):

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Forward contracts $ 837,182 $ 71,701 $ 908,883 $ 651,303 $ 257,580 $ 908,883

During fiscal year 2024, the Company settled its then existing interest rate swap contracts prior to their stated termination dates as a result of the repayment of the Term Loan (defined in Note 10, " Debt." ) and received cash proceeds of $ 37.7 million from the counterparties. The cash proceeds are reported within net cash provided by operating activities in the Company's Consolidated Statements of Cash Flows in fiscal year 2024. Gains resulting from the early termination of interest rate swap contracts were deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap contracts.

Balance Sheet Location 2025 2024

Forward contracts $ 1,064,280 $ 79,858 $ 1,144,138 $ 765,613 $ 378,525 $ 1,144,138

The fair value values of the Company's derivative instruments were as follows (in thousands):

Balance Sheet Location September 30, 2025 June 30, 2025

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Foreign exchange forward contracts Prepaid expenses and other current assets $ 16,210 17,080 $ 8,255 16,210

Foreign exchange forward contracts Other non-current assets 288 3,715 867

1 unchanged paragraph

Foreign exchange forward contracts Prepaid expenses and other current assets 1,086 3,309 170

Total derivative assets $ 23,234 18,454 $ 9,292 23,234

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Foreign exchange forward contracts Accrued expenses and other current liabilities $ 2,409 4,794 $ 1,197 2,409

Foreign exchange forward contracts Other non-current liabilities 432 — 7

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Fiscal Year Ended June 30,

Foreign exchange forward contracts Accrued expenses and other current liabilities 163 36 497

Total derivative liabilities $ 2,445 5,389 $ 1,701 2,445

The pre-tax effects of derivatives designated as cash flow hedging instruments on the condensed consolidated financial statements were as follows (in thousands):

Three Months Ended September 30,

Beginning balance of accumulated gains (losses) in accumulated other comprehensive income $ 41,424 (loss) $ 48,170 24,679 $ 24,502 41,424

Gross unrealized gains (losses) recognized in other comprehensive income (loss) ( 1,897 6,709 ) 10,826 17,952 18,015

1 unchanged paragraph

Recognized in interest ( 26,344 ) ( 29,946 ) ( 19,905 )

Recognized in cost of revenues 1,447 1,072 1,831 180 ( 43 )

Recognized in research and development 7,194 7,718 16,890 1,083 ( 440 )

Recognized in marketing and sales 1,027 1,264 1,337 47 57

Recognized in general and administrative 1,828 2,320 5,563 263 72

Recognized in interest expense ( 5,552 ) ( 7,155 )

Ending balance of accumulated gains in accumulated other comprehensive income (loss) $ 24,679 $ 41,424 13,991 $ 48,170 51,930

Note 6: Property and Equipment 11 changes

1 unchanged paragraph

Depreciation expense was $ 36.9 million, $ 29.0 million, and $ 27.8 million for fiscal years 2025, 2024, and 2023, respectively. During fiscal year 2023, the Company recorded an $ 8.4 million impairment charge to leasehold improvements as a result of the Company's restructuring efforts, this charge is shown as a reduction of the gross cost.

September 30, 2025 June 30, 2025

Equipment $ 15,008 15,949 $ 11,200 15,008

Computer hardware and software 60,081 58,559 40,824

Furniture and fittings 25,322 25,217 25,172

Leasehold improvements and other 152,444 154,113 129,575

Property and equipment, gross 253,796 252,897 206,771

Less: accumulated depreciation ( 147,779 154,085 ) ( 120,456 147,779 )

Property and equipment, net $ 105,118 99,711 $ 86,315 105,118

Depreciation expense was $ 10.7 million and $ 8.9 million for the three months ended September 30, 2025, and 2024, respectively.

During the three months ended September 30, 2025, the Company recorded a $ 1.1 million impairment charge, which is recorded in leasehold improvements and other, as a result of its facilities consolidation restructuring efforts. Refer to Note 14, " Restructuring ," for additional information.

Note 8: Goodwill and Intangible Assets 25 changes

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Balance as of June 30, 2023 $ 727,211

Effect of change in exchange rates 173

Balance as of June 30, 2024 1,288,756

Effect of change in exchange rates 1,667

1 unchanged paragraph

During fiscal year 2025, the Company completed two acquisitions to expand the Company's product and service offerings. These transactions were accounted for as business combinations and were not material individually or collectively to the consolidated financial statements.

Effect of change in exchange rates ( 252 )

Balance as of September 30, 2025 $ 1,318,028

Intangible assets consisted of the following as of September 30, 2025 (in thousands):

Gross Carrying Amount Accumulated Amortization Net

Acquired developed technology $ 471,632 $ ( 288,482 ) $ 183,150

Patents, trade names, and other rights 70,928 ( 38,815 ) 32,113

Customer relationships 135,687 ( 115,060 ) 20,627

Total Intangible Assets $ 678,247 $ ( 442,357 ) $ 235,890

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Intangible assets consisted of the following as of June 30, 2024 (in thousands):

Gross Carrying Amount Accumulated Amortization Net

Acquired developed technology $ 469,752 $ ( 242,137 ) $ 227,615

Patents, trade names, and other rights 70,928 ( 31,427 ) 39,501

Customer relationships 135,687 ( 103,746 ) 31,941

Total Intangible Assets $ 676,367 $ ( 377,310 ) $ 299,057

The weighted-average remaining useful lives of the Company's acquired intangible assets as of June September 30, 2025 are were as follows:

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Amortization expense for intangible assets was approximately $ 55.5 million, $ 49.7 million, and $ 33.1 million for fiscal years 2025, 2024, and 2023, respectively.

Amortization expense for intangible assets was approximately $ 13.6 million and $ 13.9 million for the three months ended September 30, 2025, and 2024, respectively.

The following table presents the estimated future amortization expense related to intangible assets held as of June September 30, 2025 (in thousands):

Remainder of 2026 $ 40,395

Total future amortization expense $ 244,840 235,890

Note 9: Accrued Expenses and Other Current Liabilities 13 changes

1 unchanged paragraph

Accrued expenses $ 180,197 $ 149,046

Employee benefits 422,986 332,518

Tax liabilities 36,726 55,203

Customer deposits 16,396 19,279

Other payables 25,296 21,313

September 30, 2025 June 30, 2025

Accrued expenses $ 208,105 $ 180,197

Employee benefits 288,536 422,986

Tax liabilities 3,856 36,726

Customer deposits 19,188 16,396

Restructuring provision 18,269 —

Other payables 24,375 25,296

Total accrued expenses and other current liabilities $ 681,601 562,329 $ 577,359 681,601

Note 10: Debt 12 changes

1 unchanged paragraph

The 2024 Credit Facility bears interest, at the Company's option, at a base rate or the Secured Overnight Financing Rate, plus, in each case, a spread of 0.875 % to 1.50 % per annum. In each case, the applicable margin will be determined by the consolidated leverage ratio of the Company and its subsidiaries, or, following the Company's one time one-time option, the Company's credit rating. The Company may repay outstanding loans under the 2024 Credit Facility at any time, without premium or penalty, and the Company has the option to request an increase of $ 250 million in certain circumstances. The 2024 Credit Facility matures in August 2029. As of June September 30, 2025 there were no borrowings under the 2024 Credit Facility.

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The 2024 Credit Facility requires compliance with various financial and non-financial covenants, including affirmative and negative covenants. The financial covenants include a maximum consolidated leverage ratio of 3.5 x, which increases to 4.5 x during the period of four fiscal quarters immediately following a material acquisition. As of June September 30, 2025, the Company was in compliance with all covenants associated with the 2024 Credit Facility.

On May 15, 2024, the Company issued $ 500.0 million aggregate principal amount of 5.250 % senior notes due 2029 (the "2029 Notes") and $ 500.0 million aggregate principal amount of 5.500 % senior notes due 2034 (the "2034 Notes," and together with the 2029 Notes, the "Notes"). The 2029 Notes and the 2034 Notes will mature on May 15, 2029, and May 15, 2034, respectively. The 2029 Notes bear interest at a rate of 5.250 % per year. The 2034 Notes bear interest at a rate of 5.500 % per year. Interest on the Notes is paid semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2024.

The Notes are senior unsecured obligations of the Company. The Company may redeem either series of the Notes, in whole or in part, at any time or from time to time at the applicable redemption price. Upon the occurrence of a change of control event, the Company will be required to make an offer to repurchase all outstanding Notes from their holders at a price equal to 101 % of their principal amount thereof, plus accrued and unpaid interest to, but not including, the date of repurchase. The indenture governing the Notes also includes covenants (including certain limited covenants restricting the Company's ability to incur certain liens and enter into certain sale and leaseback transactions), events of default, and other customary provisions. As of June September 30, 2025, the Company was in compliance with all covenants associated with the Notes.

The Company incurred debt discount and issuance costs of approximately $ 14.3 million in connection with the Notes offering, which were allocated on a pro rata basis to the 2029 Notes and 2034 Notes. The debt discount and issuance costs are amortized on an effective interest rate method to interest expense over the contractual term of the Notes. The proceeds from this offering, net of debt discounts and issuance costs, was were $ 985.7 million. The net proceeds were used primarily to repay the Term Loan.

The carrying values components of the Notes were as follows (in thousands, except percentage data):

Instrument Expected Remaining Term (years) Contractual Interest Rate Effective Interest Rate June September 30, 2025 June 30, 2024 2025

2029 Notes 3.9 5.25 3.6 5.250 % 5.55 % $ 500,000 $ 500,000

2034 Notes 8.9 5.50 8.6 5.500 % 5.71 % 500,000 500,000

Unamortized debt discount and issuance costs ( 12,316 11,857 ) ( 14,089 12,316 )

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Note 11: Commitments and Contingencies 17 changes

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and 17 more changes in the filing

Legal proceedings 211 changes

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MD&A 252 changes

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and 252 more changes in the filing

Market risk 11 changes

and 11 more changes in the filing

Controls and procedures 4 changes

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Risk factors 54 changes

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and 54 more changes in the filing

Other information 1 change

and 1 more change in the filing

Exhibits 34 changes

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and 34 more changes in the filing