Company: TEAM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001650372-25-000068
Chunk: 273

Company: Atlassian Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 273
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,651 $199,700 Net income per shareGAAP net loss per share - diluted$(0.20)$(0.48)Plus: Stock-based compensation1.33 1.11 Plus: Amortization of acquired intangible assets0.05 0.05 Plus: Restructuring charges (3)0.21 — Adjustment for: Income tax (1)(0.35)0.09 Non-GAAP net income per share - diluted$1.04 $0.77 Weighted-average diluted shares outstandingWeighted-average shares used in computing diluted GAAP net loss per share262,991 260,477 Plus: Dilution from dilutive securities (2)1,323 298 Weighted-average shares used in computing diluted non-GAAP net income per share264,314 260,775 Free cash flowGAAP net cash provided by operating activities$128,715 $80,492 Less: Capital expenditures(14,112)(6,151)Free cash flow$114,603 $74,341 

37

(1) We utilize a fixed long-term projected non-GAAP tax rate in our computation of the non-GAAP income tax adjustments in order to provide better consistency across interim reporting periods. In projecting this long-term non-GAAP tax rate, we utilized a three-year financial projection that excludes the direct and indirect income tax effects of the other non-GAAP adjustments reflected above. Additionally, we considered our current operating structure and other factors such as our existing tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. For fiscal year 2026 and 2025, we determined the projected non-GAAP tax rate to be 24% and 26%, respectively. This fixed long-term projected non-GAAP tax rate eliminates the effects of non-recurring and period-specific items which can vary in size and frequency. Examples of the non-recurring and period specific items include, but are not limited to, changes in the valuation allowance related to deferred tax assets, effects resulting from acquisitions, and unusual or infrequently occurring items. We will periodically re-evaluate this long-term rate, as necessary, for significant events. The rate could be subject to change for a variety of reasons, for example, significant changes in the geographic earnings mix or fundamental tax law changes in major jurisdictions where we operate.

(2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per