One-glance verdict
Undervalued
$288.21 our estimate vs market $189.58
Wall Street consensus: $194.13 (-32.6% lower than our fair-value estimate)
34% below our estimate, below the bear case
Fundamentals snapshot
Atlassian Corporation
TEAM · NMS · Technology · Software - Application
Current price
$189.58
52-week range
$56.01 - $198.60
Market cap
$47.99B
Balance sheet
Healthy
0.21x Concerning
Net cash $6.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 26.0% last year.
- Reward Free cash flow was positive in 6/10 years.
- Risk Return on equity was -4.5% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 0.9% (peer median: 3.7%).
What this company does
Atlassian Corporation
Atlassian sells popular software tools like Jira and Confluence that help teams, especially software developers, manage projects and share information. The company makes its money from subscriptions, creating predictable recurring revenue (ongoing income that works like a Netflix or gym membership). This matters because once these tools become central to how a company operates, it is very difficult for that company to switch to a competitor, giving Atlassian a stable customer base.
How the company got here
Atlassian was started in 2002 by two Australian university friends, Mike Cannon-Brookes and Scott Farquhar, with $10,000 on a credit card. They couldn't afford a sales team, so they made their first product, a bug and issue tracker for software developers called Jira, available to buy directly from their website. This early focus on making products that were easy to try and buy online became a core part of their strategy. The company grew by creating more tools that helped teams work together, like Confluence for sharing knowledge, and by acquiring other popular tools like Trello, a project management app.
What it actually does
Atlassian creates software that helps teams of all kinds plan, manage, and track their work. Think of it as a digital toolkit for collaboration, used for everything from building software and managing IT help desks to coordinating marketing campaigns. Their products provide shared spaces for teams to organize tasks, share documents, and communicate about projects. Many of their tools are offered with a free plan, allowing small teams to get started easily and then pay for more features as they grow.
Cloud
This is Atlassian's main and fastest-growing business, where customers pay a recurring subscription fee to use the software online, hosted by Atlassian. This is similar to how you might pay for a streaming service like Netflix. The Cloud segment generates the majority of the company's revenue (the money it brings in from sales). Customers choose this option for convenience, as Atlassian handles all the technical maintenance and updates.
Data Center
This segment is for larger companies that want more control and prefer to run Atlassian's software on their own computers and servers (the powerful computers that run websites and services). Instead of a monthly subscription, these customers typically pay a recurring license fee. This is a smaller part of the business compared to the Cloud, and the company expects this segment to decline as more customers move to their Cloud products.
Marketplace and other
Atlassian operates a marketplace, similar to an app store, where other developers can sell apps and add-ons that work with Atlassian's main products. This allows customers to customize the software for their specific needs. Atlassian takes a percentage of the sales from this marketplace. This part of the business is smaller than their Cloud and Data Center segments but helps make their main products more valuable to users.
What management is betting on now
Atlassian's main focus is on growing its Cloud business by encouraging more customers to move from its Data Center products and by attracting new users. They are also investing heavily in artificial intelligence (AI) to make their tools smarter and more helpful, for example, by automatically summarizing long documents or conversations. Finally, the company is focused on selling more products to its existing large enterprise customers and has made several acquisitions (buying other companies) to add new capabilities, especially around AI and developer productivity.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$74.34M
FY2025 Q2
$342.57M
FY2025 Q3
$638.32M
FY2025 Q4
$360.32M
FY2026 Q1
$114.60M
FY2026 Q2
$168.52M
FY2026 Q3
$561.26M
FY2026 Q4
$474.69M
Revenue
$1.77B
Net income
$139.08M
Diluted EPS
0.53
Operating cash flow
$479.14M
Free cash flow
$474.69M
Fetching…
Sources
Revenue
$1.79B
Net income
$-98.39M
Diluted EPS
-0.38
Operating cash flow
$567.48M
Free cash flow
$561.26M
Fetching…
Sources
Revenue
$1.59B
Net income
$-42.65M
Diluted EPS
-0.16
Operating cash flow
$177.81M
Free cash flow
$168.52M
Fetching…
Sources
Revenue
$1.43B
Net income
$-51.87M
Diluted EPS
-0.20
Operating cash flow
$128.72M
Free cash flow
$114.60M
Fetching…
Sources
Revenue
$1.38B
Net income
$-23.90M
Diluted EPS
-0.08
Operating cash flow
$375.31M
Free cash flow
$360.32M
Fetching…
Sources
Revenue
$1.36B
Net income
$-70.81M
Diluted EPS
-0.27
Operating cash flow
$652.68M
Free cash flow
$638.32M
Fetching…
Sources
Revenue
$1.29B
Net income
$-38.21M
Diluted EPS
-0.15
Operating cash flow
$351.90M
Free cash flow
$342.57M
Fetching…
Sources
Revenue
$1.19B
Net income
$-123.77M
Diluted EPS
-0.48
Operating cash flow
$80.49M
Free cash flow
$74.34M
Fetching…
Sources
Is it cheap or expensive?
Fair value $288.21 vs current price $189.58
Wall Street consensus is the average analyst price target: $194.13 (-32.6% lower than our fair-value estimate).
Our most-likely fair value is $288.21 a share — about 52.0% above today's price of $189.58, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $6.6M - more cash than debt. Interest coverage 0.2x.
Net debt
$-6.60M
Interest coverage
0.21x
Atlassian Corporation's profit covers its interest bill about 0.2 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
TEAM
BASELINE
Atlassian Corporation
Total debt $1.23B Interest coverage 0.21x This is the baseline the peer rows are being compared against.
Total debt $8.45B Interest coverage 79.30x +37,772% vs TEAM Carries about 378.7x more debt cushion than TEAM.
Total debt $1.28B Interest coverage -4.01x -100% vs TEAM This peer has almost no interest-payment cushion compared with TEAM.
Total debt $236.91M Interest coverage 13.03x +6,123% vs TEAM Carries about 62.2x more debt cushion than TEAM.
Total debt $258.33M Interest coverage -62.68x -100% vs TEAM This peer has almost no interest-payment cushion compared with TEAM.
What you should know
The case for and against TEAM
2 Rewards
2 Risks
Rewards
-
Revenue grew 26.0% last year.
-
Free cash flow was positive in 6/10 years.
Risks
-
Return on equity was -4.5% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 0.9% (peer median: 3.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
28.11x
P/B
45.39x
P/S
7.30x
EV/EBITDA
109.95x
PEG ratio
1.94x
Profitability
How much profit each dollar creates
Gross margin
85.6%
Operating margin
12.3%
Net margin
-0.8%
ROE
-4.5%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.16x
Current ratio
0.78x
Quick ratio
0.74x
Total debt
$1.23B
Total cash
$1.24B
Growth
How the business has been compounding
Revenue TTM
$6.57B
Revenue 5Y CAGR
23.7%
EPS TTM
-0.21
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.35B
Free CF TTM
$1.32B
FCF margin
20.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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