Company: TEAM
Filing Date: 2025-08-15
Form Type: 10-K
Source: 0001650372-25-000036
Chunk: 99

Company: Atlassian Corp
Filing Date: 2025-08-15
Form: 10-K
Item: Item 7
Chunk 99
---
30,(in thousands, except percentage data)20252024$ Change% ChangeCost of revenues$894,851 $803,495 $91,356 11 %Gross margin83 %82 %  

Cost of revenues increased $91.4 million, or 11%, in fiscal year 2025 compared to fiscal year 2024. The overall increase was primarily attributable to an increase of $32.5 million in hosting fees paid to third-party providers, an increase of $25.7 million in compensation expense for employees (which includes an increase of $11.3 million in stock-based compensation), and an increase of $18.2 million in software subscription costs.

Operating Expenses

Research and development Fiscal Year Ended June 30,  (in thousands, except percentage data)20252024$ Change% ChangeResearch and development$2,669,312 $2,184,111 $485,201 22 %

Research and development expenses increased $485.2 million, or 22%, in fiscal year 2025 compared to fiscal year 2024. The overall increase was primarily attributable to an increase of $462.7 million in compensation expenses for employees (which includes an increase of $225.0 million in stock-based compensation).

Marketing and sales Fiscal Year Ended June 30,  (in thousands, except percentage data)20252024$ Change% ChangeMarketing and sales$1,134,535 $877,497 $257,038 29 %

Marketing and sales expenses increased $257.0 million, or 29%, for fiscal year 2025 compared to fiscal year 2024. The overall increase was primarily attributable to an increase of $163.0 million in compensation expenses for employees (which includes an increase of $30.9 million in stock-based compensation), and an increase of $74.9 million in advertising and marketing program expenses.

General and administrative Fiscal Year Ended June 30,  (in thousands, except percentage data)20252024$ Change% ChangeGeneral and administrative$646,998 $610,577 $36,421 6 %

 55 

General and administrative expenses increased $36.4 million, or 6%, in fiscal year 2025 compared to fiscal year 2024. The overall increase was primarily attributable to an increase of $40.6 million in compensation expenses for employees (which includes an increase of $13.5 million in stock-based compensation