Company: TEAM
Filing Date: 2025-08-15
Form Type: 10-K
Source: 0001650372-25-000036
Chunk: 100

Company: Atlassian Corp
Filing Date: 2025-08-15
Form: 10-K
Item: Item 7
Chunk 100
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).

Other expense, net Fiscal Year Ended June 30,  (in thousands, except percentage data)20252024$ Change% ChangeOther expense, net$(50,277)$(30,916)$(19,361)63 %

Other expense, net increased $19.4 million, or 63% in fiscal year 2025 compared to fiscal year 2024. The overall increase was primarily attributable to an increase of $9.2 million in expense related to our share of loss from an equity method investment and an increase of $7.0 million in contributions to the Atlassian Foundation.

Interest income

Fiscal Year Ended June 30,(in thousands, except percentage data)20252024$ Change% ChangeInterest Income$112,324 $96,663 $15,661 16 %

Interest income increased $15.7 million, or 16% in fiscal year 2025 compared to fiscal year 2024. The increase was primarily attributable to an increase in investment income as a result of increased investment balances. Fiscal Year Ended June 30,(in thousands, except percentage data)20252024$ Change% ChangeInterest expense$(30,550)$(34,077)$3,527 (10)%

Interest expense decreased $3.5 million, or 10%, in fiscal year 2025 compared to fiscal year 2024. The decrease was primarily attributable to a decrease in interest expense on our outstanding debt as a result of the issuance of the Notes (as defined below) and repayment of the Term Loan (as defined below) in the fourth quarter of fiscal year 2024.

Provision for income taxes Fiscal Year Ended June 30,  (in thousands, except percentage data)20252024$ Change% ChangeProvision for income taxes$(157,792)$(215,112)$57,320 (27)%Effective tax rate**  

*    Not meaningful

The provision for income taxes decreased by $57.3 million in fiscal year 2025 compared to fiscal year 2024. This decrease was primarily driven by a reduction in income tax expense in Australia, which resulted from a decrease in valuation allowance expense, partially offset by an increase in non-deductible stock-based compensation expense.

Our future effective tax rate may be materially impacted by the expense or benefit from tax amounts associated with our foreign earnings that are taxed at rates different from the U.S. federal statutory rate, level of profit before tax, accounting