Atlassian Corporation

Worth knowing

• Stock pay outran buybacks. Stock-based pay expense $4.1B vs $3.0B spent repurchasing shares over the 3 fiscal years to FY Jun 2026.

  Over three fiscal years Atlassian recorded $4.1B of stock-based pay expense and spent $3.0B repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Atlassian recorded $4.1B of stock-based pay expense and spent $3.0B repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

• Stock-based pay is a large cost. Stock pay was 24% of revenue in FY Jun 2026.

  Atlassian paid employees $1.6B in stock in FY Jun 2026, 24% of its $6.6B revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.

• Valuation signals disagree. Cheaper than 50% of peers on free cash flow, but only 0% on earnings.

  Relative to its free cash flow, Atlassian looks cheaper than 50% of peers; relative to its earnings, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.

• Loss over 12 months, profit last quarter. Lost money in the 12 months to June 2026, but made a $139M profit in the quarter to June 2026.

  Atlassian reported a net loss over the last twelve months, but its most recent quarter was profitable ($139M). One quarter isn't a trend, but it's closer to profitability than the 12-month figure suggests.