Company: TEAM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001650372-25-000068
Chunk: 338

Company: Atlassian Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 338
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Restructuring

During the three months ended September 30, 2025, we initiated a rebalancing of resources resulting in the elimination of certain roles. These actions were part of our initiatives to reduce additional capacity no longer necessary due to the increased ability, accessibility, performance, stability, and supportability of our products. As a result, we recorded severance and other termination benefits of $27.9 million and stock-based compensation of $1.4 million for the affected employees for the three months ended September 30, 2025.

In addition, during the three months ended September 30, 2025, we exited certain floors of a leased property, which we plan to sublease, in order to optimize our real estate footprint. As a result, we recorded impairment charges for the related operating lease right-of-use assets and leasehold improvements of $26.3 million for the three months ended September 30, 2025.

A summary of restructuring charges for the three months ended September 30, 2025 by major activity type is as follows (in thousands):

Severance and Other Termination BenefitsStock-based CompensationLease ConsolidationTotalCost of revenue$27,794 $1,432 $2,366 $31,592 Research and development— — 12,102 12,102 Marketing and sales— — 8,154 8,154 General and administrative95 — 3,735 3,830 Total$27,889 $1,432 $26,357 $55,678 

The execution of these actions, including cash payment of the severance and other termination benefits related liabilities, is expected to be substantially completed as of December 31, 2025. Refer to Note 14, “Restructuring,” in the notes of our condensed consolidated financial statements for additional information.

Key Business Metrics

We utilize the following key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

Customer Base

We have a history of successfully growing both our total customer base and the spend per customer through growth in users, higher average price per user, and adoption of new apps or products. We believe our ability to attract new customers is critical, and expanding within the existing customer base is the primary driver of our success as a business. Typically, new customers begin their journey with Atlassian with a small footprint by either adopting our free editions or purchasing