Atlassian shares climbed 6.9% to $165.81 at the latest close. The company's new annual filing shows why the headline read is easy: revenue rose 26% to $6.6 billion, gross margin reached 84.8%, and operating income moved from a $130.4 million loss to $10.4 million of profit.
The less tidy detail is cash. Operating cash flow fell 7.3% to $1.4 billion over the twelve months ended June 30, even as sales grew by more than a quarter. Free-cash-flow margin fell 7.1 percentage points, and accounts receivable rose 63.2% to $1.3 billion.
That creates the filing's central trade-off: Atlassian is showing higher operating income from a larger, higher-margin business, but less operating cash from each dollar of revenue. The company does not say why receivables grew so much faster than sales, so the next report has a clean comparison to make.
Atlassian attributes the cash-flow decline to employee and vendor payments, restructuring payments, and lower interest received. Customer collections increased, but not enough to offset those uses.
"The decrease in net cash provided by operating activities was primarily driven by an increase in cash paid to employees, including 52 payments made under restructuring plans, vendors, and a decrease in interest received, partially offset by an increase in cash received from customers."
Atlassian, 10-K filed 2026-08-14
In plain English, the business collected more from customers while sending more cash out elsewhere. The 52 restructuring-plan payments make the year's cash result less of a pure demand read.
The balance sheet also carries a second explanation for the cash decline. Cash fell from $2.5 billion to $1.2 billion, and Atlassian says acquisitions absorbed about $1.2 billion, partly offset by inflows from marketable securities and strategic investments.
"The net increase was primarily attributable to an increase in cash consideration paid for acquisitions, net of cash acquired, of approximately $1.2 billion, partially offset by an increase in net inflows of $689.8 million related to marketable securities activity, and an increase in net inflows of $49.4 million related to strategic investment activity."
Atlassian, 10-K filed 2026-08-14
That separates cash allocation from operating performance. It also means the year's lower cash balance cannot be read from the income statement alone.
The margin improvement had costs underneath it. Gross profit rose 29%, faster than revenue, while research and development spending rose 22.5% to $3.3 billion. Stock compensation rose 17.9% to $1.6 billion, even though diluted shares fell 0.6%.
Management says growth came primarily from existing customers, with subscription revenue helped by paid-seat expansion and price increases. Those are reported operating drivers, but they sit alongside a working-capital line that moved sharply in the other direction.
Atlassian's next quarterly report will add the next comparable readings on accounts receivable and operating cash flow. For now, the annual filing shows a familiar software tension: the income statement looks cleaner, while the cash story still has invoices in the mail.
Source: Atlassian's 2026 Form 10-K for the twelve months ended June 30, 2026.