Company: TEAM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001650372-25-000068
Chunk: 36

Company: Atlassian Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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6 million, which were composed of $29.2 million of severance and other termination benefits, and $2.4 million related to impairment charges for a lease and leasehold improvements, as well as an increase of $14.4 million in hosting fees. 

Operating Expenses

Research and Development Three Months Ended September 30,  (in thousands, except percentage data)20252024$ Change% ChangeResearch and development$755,994 $603,101 $152,893 25 %

Research and development expenses increased $152.9 million, or 25%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The overall increase was primarily attributable to an increase of $136.5 million in compensation expenses for employees (which includes an increase of $53.0 million in stock-based compensation). In addition, we recorded restructuring charges of $12.1 million in the three months ended September 30, 2025 related to impairment charges for a lease and leasehold improvements.

Marketing and Sales Three Months Ended September 30,  (in thousands, except percentage data)20252024$ Change% ChangeMarketing and sales$336,427 252,393 $84,034 33 %

Marketing and sales expenses increased $84.0 million, or 33%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The overall increase was primarily attributable to an increase of $45.8 million in compensation expenses for employees (which includes an increase of $8.0 million in stock-based compensation), and an increase of $21.2 million in advertising and marketing program expenses. In addition, we recorded restructuring charges of $8.2 million in the three months ended September 30, 2025 related to impairment charges for a lease and leasehold improvements.

32

General and Administrative Three Months Ended September 30,  (in thousands, except percentage data)20252024$ Change% ChangeGeneral and administrative$178,545 146,641 $31,904 22 %

General and administrative expenses increased $31.9 million, or 22%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The overall increase was primarily attributable to an increase of $19.6 million in compensation expense for employees (which includes an increase of