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Mar 31, 2025
Atlassian Q3 2025 Earnings Report
Atlassian reported Q3 results with strong Cloud growth but posted a GAAP net loss.
Key Takeaways
Atlassian saw total revenue rise to $1.36B in Q3 FY2025 and continued strong free cash flow, but recorded a GAAP net loss of $70.8M primarily due to high operating expenses.
Revenue reached $1.36B, driven by a 25% YoY growth in Cloud revenue.
GAAP net loss was $70.8M, while non-GAAP net income came in at $261.5M.
Free cash flow was strong at $638.3M, with a 47% margin.
Rovo AI was made available across premium and enterprise tiers of core products, signaling deep AI integration.
Revenue by Segment
Forward Guidance
Atlassian expects stable revenue in Q4 with continued Cloud momentum but slightly lower GAAP operating margins.
Positive Outlook
- Q4 revenue expected between $1.349B and $1.359B
- Cloud revenue growth forecasted at 23% YoY
- Data Center revenue growth expected at 16.5% YoY
- Non-GAAP gross margin projected at 84.5%
- Non-GAAP operating margin expected to be 22%
Challenges Ahead
- GAAP operating margin forecasted at -5%
- Marketplace and other revenue expected to be flat YoY
- High stock-based compensation continues to impact GAAP profitability
- Server revenue eliminated, reducing diversified revenue sources
- Strategic investments still generating net losses
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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