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Atlassian Corporation

Data period: Annual Quarterly Graham uses annual
NASDAQ · Technology
Atlassian Corporation
TEAM · Software - Application
$82.72
▼ -1.67 (-1.98%)
Cached · 10 min
Overall Grade
F
Defensive
F
Enterprising
Profitability
F
Gross Profit Margin 85.3%
Operating Margin -3.1%
Net Income Margin -5.5%
Fin. Health
F
Years to Pay Off Debt -12.6 yrs
Working Capital vs Long-Term Debt -$2.0B
Working Capital -$989M
Valuation
F
Price-to-Book 15.02x
Cash Flow
C
Free Cash Flow $561M
Owner Earnings -$51M
About Atlassian Corporation
Atlassian Corporation provides a collaboration software that enables organizations to connect all teams through a system of work that unlocks productivity at scale worldwide. Its product portfolio includes Jira, a project management platform for planning, tracking, and managing work; Confluence, a connected workspace to create, organize, and share team knowledge, documents, and collaboration content; Loom, an asynchronous video communication tool to record and share videos; Jira Service Management, an intuitive service management solution for IT, HR, and other teams; and Rovo, an AI offering that assists teams with its Search, Chat and Agent capabilities. The company also offers Bitbucket, a git-based source code management platform for professional development teams; Compass, a developer portal that provides a unified view of engineering components; Jira Product Discovery, a tool to capture, prioritize, and roadmap product ideas; Jira Align, an enterprise agility solution that connects business and technology teams to align strategy with execution; Focus, a strategy hub for leadership teams; and Talent, a workforce planning app. In addition, it provides Trello, an AI-powered personal productivity tool; and Guard, an app for detecting and responding to security threats. The company has a strategic collaboration with Mattermost, Inc. for the development of Mattermost Docs, a sovereign, self-hosted successor to Confluence for defense, intelligence, and critical infrastructure organizations. The company was founded in 2002 and is headquartered in Sydney, Australia.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Cap $21.0B
Enterprise Value $22.4B
P/E (TTM) 13.29
Dividend Yield N/A
Exchange NASDAQ
Gross Profit 85.3%
Operating Margin -3.1%
Net Margin -5.5%
Sector Technology
Industry Software - Application
Employees 13813
Country Australia
Showing Key Metrics
Income Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Gross Profit % 85.3% 85.0% N/A
Operating Margin % -3.1% -3.0% N/A
Net Income % -5.5% -2.7% N/A
Diluted EPS -0.38 -0.16 N/A
Balance Sheet Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Total Assets $5.7B $6.2B N/A
Total Debt $1.2B $1.2B N/A
Working Capital -$989M -$341M N/A
Years to Pay Debt -12.63 -28.49 N/A
Cash Flow Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Free Cash Flow $561M $169M N/A
Owner Earnings -$51M $2M N/A
CapEx % of Net Income N/A N/A N/A
📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $1.4B ▲ $1.8B +31.7%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 83.8% ▲ 85.3% +1.5pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -4.1% ▼ -3.1% +1.0pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -5.2% ▼ -5.5% -0.3pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$1.8B/qtr (≈$7.1B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.70x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$561M
vs Positive
Operating Cash Flow
$567M
Latest quarter · Buffett's cash reality check
ROIC
-1.9%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
15.0x
Net Assets: $879M
Asset Context — Software - Application
Software companies store most of their value in code, IP, recurring revenue, and customer relationships — none of which appear on the balance sheet under GAAP. Book value and Net Assets are poor proxies for intrinsic value here. Focus on ROIC, gross margin trajectory, and free cash flow instead.
Peers & Industry
No auto-detected peers for Software - Application. You can manually compare TEAM against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.95%
Low — management has little skin in the game
Return on Equity (ROE)
-11.2%
Weak — poor returns on equity
Return on Assets (ROA)
-1.7%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$779M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+2.3% YoY
Debt is roughly stable
Leadership Team
Michael Cannon-Brookes
Co-Founder, CEO & Director
Age 46
Pay: $54,240
Scott Farquhar
Co-Founder, Advisor & Director
Age 45
Pay: $73,527
James Chuong
CFO & Principal Financial Officer
Age 45
Top Institutional Holders
Institution % Owned Shares
Blackrock Inc. 7.23% 11,544,115
BAILLIE GIFFORD & CO 6.24% 9,963,439
Vanguard Portfolio Management LLC 6.20% 9,894,363
DnB Asset Management AS 5.06% 8,077,726
Vanguard Capital Management LLC 4.76% 7,603,722
Pictet Asset Management Holding SA 3.15% 5,031,413
Two Sigma Investments, LP 2.91% 4,647,650
Morgan Stanley 2.65% 4,233,422
⚠️ Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
1.07
Moderate volatility — moves slightly more than market
Short Interest
12.3% of float
Moderate short interest
Debt-to-Equity
1.41x
Moderate leverage
Current Ratio
0.70x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $56.01 Current: $82.72 High: $222.59
Currently at 16% of 52-week range

Atlassian Corporation (TEAM) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's Fair Value: N/A (negative EPS). Gross profit margin: 85.3%. Operating margin: -3.1%. Net margin: -5.5%. Market cap: $21.0B. Sector: Technology. Industry: Software - Application. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

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