Aureus
FRed Flag

Atlassian Corporation(TEAM)

F

Financial data as of Jun 30, 2025Declining · Technology

FCF Margin1.0%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$1.4B
Revenue$5.2B
Net Cash$1.3BCash exceeds debt
Debt / FCF23.2xElevated debt burden
Current Ratio1.22Adequate short-term liquidity
YoY FCF Growth-200.0%2 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Extreme debt-to-FCF ratio (23.2x)
→
-1Significant YoY FCF decline (-200.0%)
→
-1Only 2 positive quarters recently
→
-0.5Highly volatile FCF (consistency: 4.01)
→
+0.25Solid revenue growth (23.3% YoY)
→
FinalF

Analysis Summary

Strengths

  • Net cash position ($1.3B)
  • Strong revenue growth (23.3% YoY)

Concerns

  • Low FCF margin (1.0%)
  • High debt-to-FCF ratio (23.2x)
  • Only 2 positive FCF quarters recently
  • Significant YoY FCF decline (-200.0%)
  • Highly volatile quarterly FCF
Heavy CapEx — Operating cash flow is strong (28% margin) but most is reinvestedCash conversion ratio unavailable or not meaningfulSBC-adjusted FCF used — $1.4B stock-based compensation (96% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin1.0%
Net Margin-4.9%
Operating CF Margin28.0%
CapEx Ratio0.9%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$1.3BCash exceeds debt
Debt / FCF23.2xElevated debt burden
Current Ratio1.22Adequate liquidity
Debt / Equity0.92Low leverage

Quarterly FCF Trend

-200.0% YoYDeclining (-200.0%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAtlassian Corporation
SectorTechnology
Free Cash Flow$1.4B
Revenue$5.2B
Net Income-$256.7M
Operating Cash Flow$1.5B
Capital Expenditure$44.9M
FCF Margin1.0%
Cash Conversion Rate—
Net Margin-4.9%
Total Debt$1.2B
Total Cash$2.5B
Net Cash$1.3B
Current Ratio1.22
Debt / Equity0.92
Debt / FCF23.2x
YoY FCF Growth-200.0%
Positive Quarters2 of 5
Trend DirectionDeclining
Report DateJun 30, 2025
GradeF
Data SourceYahoo Finance

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