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Atlassian (TEAM) Q3 FY25 earnings results (third quarter fiscal 2025)

10-Q filed May 2, 2025

Atlassian (TEAM) reported revenue of $1.4B for the third quarter fiscal 2025 (Q3 FY25), +14% from a year earlier and +5% from the quarter before. Operating margin was -0.9%, net loss $70.8M (5.2% of revenue).

Revenue$1.4B
Year over year+14%
Quarter over quarter+5%
Operating margin-0.9%
Net earnings−$70.8M

Atlassian, Q3 FY25: revenue $1.4B (+14% year over year), operating margin -0.9%, net loss $70.8M, operating cash flow $653M. The chart follows the revenue to costs, profit and cash.

Q3 FY25AmountQ/QY/Y
Revenue$1.4B+5%+14%
Operating profit−$12.5M——
Net earnings−$70.8M——
Operating cash flow$653M+85%+15%
Free cash flow$638M+86%+15%

What changed

Revenue was $1.4B in Q3 FY25, up 14% year over year and up 5% from the previous quarter. Cloud was the largest line at 65% of revenue. Cloud added $0.18B year over year (up 25%), 106% of the total change. Marketplace and other declined 5%.

Gross margin was 83.8%, up 1.8 points from a year earlier. Operating costs exceeded revenue by $0.01B, an operating margin of -0.9%. Operating expenses grew 20% against revenue growth of 14%. The fastest-growing cost line was Sales & marketing (+32%). The quarter ended with a net loss of $0.07B, wider than the previous quarter's $0.04B loss. Non-operating items added $0.01B, -69% of pre-tax earnings, so the bottom line overstates operating performance.

Operating cash flow was $0.65B (up 15% year over year). Non-cash charges added back $0.02B of depreciation and amortization and $0.35B of share-based compensation. Working capital and other items added $0.35B. Capital expenditures of $0.01B left free cash flow of $0.64B.

Questions

What was Atlassian's revenue in the third quarter fiscal 2025?

Atlassian (TEAM) reported revenue of $1.4B for the third quarter fiscal 2025 (Q3 FY25), +14% from a year earlier and +5% from the quarter before.

Was Atlassian profitable in the third quarter fiscal 2025?

Operating loss was $12.5M (-0.9% of revenue) and net loss $70.8M.

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Source: Atlassian 10-Q on SEC EDGAR.