Atlassian Corp

Previous wording

In September 2025, we announced plans to end-of-life our Data Center deployment offering. Beginning in March 2026, we will no longer sell term licenses to new customers, and we will stop selling term licenses and expansions to existing customers in March 2028. Subject to limited exceptions, we also plan to end maintenance and support for on-premises versions of our products in March 2029. In order to support customers who face unique requirements or challenges, we will offer an approximately three-year extended maintenance period for certain customers.

Current wording

In September 2025, we announced plans to end-of-life our Data Center deployment offering. As of March 2026, we no longer sell term licenses to new customers, and we will stop selling term licenses and expansions to existing customers in March 2028. Subject to limited exceptions, we also plan to end maintenance and support for on-premises versions of our products in March 2029. In order to support customers who face unique requirements or challenges, we will offer an approximately three-year extended maintenance period for certain customers.

Previous wording

During the first quarter of fiscal 2026, we initiated a rebalancing of resources, resulting in the elimination of certain roles. These actions were part of our initiatives to reduce additional capacity no longer necessary due to the increased ability, accessibility, performance, stability, and supportability of our products. As a result, we recorded severance and other termination benefits of $27.9 million and stock-based compensation of $1.4 million for the affected employees for the six months ended December 31, 2025.

Current wording

During the first quarter of fiscal year 2026, we initiated a restructuring plan (“July 2025 Plan”) to reduce additional capacity no longer necessary due to the increased ability, accessibility, performance, stability, and supportability of our products. The July 2025 Plan is substantially completed as of March 31, 2026.

Previous wording

In addition, during the first quarter of fiscal 2026, we exited certain floors of a leased property, which we plan to sublease, in order to optimize our real estate footprint. As a result, we recorded impairment charges for the related operating lease right-of-use assets and leasehold improvements of $26.3 million for the six months ended December 31, 2025.

Current wording

In addition, we exited certain leased properties, which we plan to sublease, in order to optimize our real estate footprint. As a result, we recorded total impairment charges for the related operating lease right-of-use assets and leasehold improvements of $80.0 million for the nine months ended March 31, 2026.

Previous wording

A summary of restructuring charges for the six months ended December 31, 2025 by major activity type is as follows (in thousands):

Current wording

A summary of restructuring charges for the nine months ended March 31, 2026 by major activity type is as follows (in thousands):

Previous wording

The execution of these actions, including cash payment of the severance and other termination benefits related liabilities, was substantially completed as of December 31, 2025. Refer to Note 14, “Restructuring,” in the notes of our condensed consolidated financial statements for additional information.

Current wording

Refer to Note 14, “Restructuring,” in the notes of our condensed consolidated financial statements for additional information.

Previous wording

Free cash flow decreased by $174.1 million during the three months ended December 31, 2025, as compared to the three months ended December 31, 2024. The decrease in free cash flow was primarily attributable to a decrease in net cash provided by operating activities. The decrease in net cash provided by operating activities was primarily attributable to an increase in cash paid to employees, vendors, and cash paid for income taxes, partially offset by an increase in cash received from customers.

Current wording

Free cash flow decreased by $77.1 million and $210.8 million during the three and nine months ended March 31, 2026, respectively, as compared to the three and nine months ended March 31, 2025. The decrease in free cash flow was primarily attributable to a decrease in net cash provided by operating activities. The decrease in net cash provided by operating activities was primarily attributable to an increase in cash paid to employees, including payments made under restructuring plans, vendors, and cash paid for income taxes, partially offset by an increase in cash received from customers.

Previous wording

In September 2025, we announced plans to end-of-life our Data Center deployment offering. Beginning in March 2026, we will no longer sell term licenses to new customers, and we will stop selling term licenses and expansions to existing customers in March 2028. Subject to limited exceptions, we plan to end maintenance and support for these on-premises versions of our products in March 2029.

Current wording

In September 2025, we announced plans to end-of-life our Data Center deployment offering. As of March 2026, we no longer sell term licenses to new customers, and we will stop selling term licenses and expansions to existing customers in March 2028. Subject to limited exceptions, we plan to end maintenance and support for these on-premises versions of our products in March 2029.

Previous wording

We expect cost of revenues to increase as we continue to invest in our cloud-based infrastructure to support our Cloud customers.

Current wording

We expect cost of revenues to increase as we continue to invest in our cloud-based infrastructure and AI to support our Cloud customers and their increased usage of Rovo.

Previous wording

We expect gross margin to increase modestly, driven by optimization of our Cloud infrastructure and support costs, partially offset by the revenue mix shift from Data Center offerings to Cloud offerings.

Current wording

We expect gross margin to be approximately flat, driven by the revenue mix shift from Data Center offerings to Cloud offerings and increases in cost of revenues to support our increasing number of Cloud customers and their related AI usage, offset by the continued optimization of our Cloud infrastructure and support costs.

Previous wording

Provision for (benefit from) income taxes consists primarily of income taxes related to federal, state, and foreign jurisdictions where we conduct business.

Current wording

Provision for income taxes consists primarily of income taxes related to federal, state, and foreign jurisdictions where we conduct business.

Previous wording

The allocation of the purchase price in a business combination requires management to make significant estimates in determining the fair value of acquired assets and assumed liabilities, especially with respect to intangible assets. The excess of the purchase price in a business combination over the fair value of these tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. Critical assumptions used to estimate the fair value of intangible assets include projected revenue growth, discount rate, and technology migration curves. These assumptions are inhere ntly uncertain and unpredictable and, as a result, actual results may differ from estimates. We evaluate these estimates and assumptions as new information is obtained and may record adjustments to the fair value of the tangible and intangible assets acquired and liabilities assumed, but not later than one year from the acquisition date.

Current wording

The allocation of the purchase price in a business combination requires management to make significant estimates in determining the fair value of acquired assets and assumed liabilities, especially with respect to intangible assets. The excess of the purchase price in a business combination over the fair value of these tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. Critical assumptions used to estimate the fair value of intangible assets include projected revenue, revenue growth, and discount rate. These assumptions are inhere ntly uncertain and unpredictable and, as a result, actual results may differ from estimates. We evaluate these estimates and assumptions as new information is obtained and may record adjustments to the fair value of the tangible and intangible assets acquired and liabilities assumed, but not later than one year from the acquisition date.

Previous wording

There have been no other significant changes to our critical accounting policies and estimates during the three and six months ended December 31, 2025, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Results of Operations included in our Annual Report on Form 10-K for fiscal year 2025.

Current wording

There have been no other significant changes to our critical accounting policies and estimates during the three and nine months ended March 31, 2026, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Results of Operations included in our Annual Report on Form 10-K for fiscal year 2025.

Previous wording

Total revenues increased $299.9 million, or 23%, in the three months ended December 31, 2025 compared to the three months ended December 31, 2024. Growth in total revenues was primarily attributable to increased demand for our offerings from existing customers. Of total revenues recognized in the three months ended December 31, 2025, over 90% was attributable to sales to customer accounts existing on or before September 30, 2025.

Current wording

Total revenues increased $430.3 million, or 32%, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Growth in total revenues was primarily attributable to increased demand for our offerings from existing customers. Of total revenues recognized in the three months ended March 31, 2026, over 90% was attributable to sales to customer accounts existing on or before December 31, 2025.

Previous wording

Subscription revenues increased $294.4 million, or 24%, in the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers and price increases.

Current wording

Subscription revenues increased $426.0 million, or 33%, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers and price increases.

Previous wording

Other revenues increased $5.4 million, or 7%, in the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The increase in other revenues was primarily attributable to an increase of $4.9 million in marketplace revenue.

Current wording

Other revenues increased $4.2 million, or 5%, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase in other revenues was primarily attributable to an increase of $3.1 million in marketplace revenue.

Previous wording

Cost of revenues increased $54.9 million, or 12%, in the six months ended December 31, 2025 compared to the six months ended December 31, 2024. The overall increase was primarily attributable to an increase of $37.4 million in hosting fees paid to third-party providers. In addition, we recorded restructuring charges of $31.6 million in the six months ended December 31, 2025, which were composed of $29.2 million of severance and other termination benefits, and $2.4 million of impairment charges for a lease and leasehold improvements. The increase was partially offset by a decrease of $6.8 million in fees paid for consulting and other professional services.

Current wording

Cost of revenues increased $43.1 million, or 20%, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The overall increase was primarily attributable to an increase of $28.1 million in hosting fees and an increase of $14.6 million in amortization expense, partially offset by a decrease of $15.9 million in compensation expense for employees, and a decrease of $4.3 million in fees paid for consulting and other professional services. In addition, we recorded restructuring charges of $21.0 million in the three months ended March 31, 2026, which were comprised of $16.7 million of severance and other termination benefits, and $4.3 million of impairment charges for lease and leasehold improvements.

Previous wording

Marketing and sales expenses increased $188.6 million, or 36%, for thesix months ended December 31, 2025, compared to thesix months ended December 31, 2024. The overall increase was primarily attributable to an increase of$109.8 million in compensation expenses for employees(which includes anincrease of $20.2 million in stock-based compensation), and anincrease of $50.9 million in advertising and marketing program expenses. In addition, we recorded restructuring charges of$8.2 million in thesix months ended December 31, 2025, related to impairment charges for a lease and leasehold improvements.

Current wording

Marketing and sales expenses increased $143.2 million, or 48%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The overall increase was primarily attributable to an increase of $68.5 million in compensation expenses for employees (which includes an increase of $10.1 million in stock-based compensation), and an increase of $12.7 million in advertising and marketing program expenses. In addition, we recorded restructuring charges of $42.6 million in the three months ended March 31, 2026, which were comprised of $24.4 million of severance and other termination benefits, and $18.2 million of impairment charges for lease and leasehold improvements.

Previous wording

Other expense, net increased $5.6 million, or 69%, in the three months ended December 31, 2025, compared to the three months ended December 31, 2024. The overall increase in other expense was primarily attributable to an increase of $6.5 million in realized loss on strategic investments.

Current wording

Other expense, net decreased $9.9 million, or 67%, in the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The overall decrease in other expense was primarily attributable to a decrease of $5.2 million in expense related to our share of loss from an equity method investment, and an increase in net foreign currency transaction gains.

Previous wording

Interest income decreased $7.5 million, or (29)% in the three months ended December 31, 2025, compared to the three months ended December 31, 2024. The decrease was primarily attributable to a decrease in investment income as a result of decreased invested cash balances.

Current wording

Interest income decreased $15.2 million, or 55% in the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily attributable to a decrease in investment income as a result of decreased invested cash balances and declining interest rates.

Previous wording

Interest expense increased $5.2 million, or 72% in the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The increase was primarily attributable to the amortization of interest rate swap contracts.

Current wording

Interest expense increased $6.3 million, or 81% in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily attributable to the amortization of interest rate swap contracts.

Previous wording

Benefit from income taxes increased $4.1 million for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024. The increase was primarily attributable to the partial release of valuation allowance on certain U.S. deferred tax assets resulting from the recognition of additional deferred tax liabilities in connection with the business combinations and the change in the mix of earnings and losses in foreign jurisdictions. See Note 7,“Business Combinations,” and Note 17, “Income Taxes,” of the notes to our condensed consolidated financial statements for additional information.

Current wording

Provision for income taxes decreased $27.9 million for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The decrease was primarily attributable to the change in valuation allowance on Australian deferred tax assets related to deferred revenue recognition and the change in the mix of earnings and losses in foreign jurisdictions. See Note 17, “Income Taxes,” of the notes to our condensed consolidated financial statements for additional information.

Previous wording

On July 4, 2025, the U.S. government enacted The One Big Beautiful Bill Act (“OBBBA”), which includes, among other provisions, changes to the U.S. corporate income tax system such as allowing the immediate expensing of qualifying domestic research and development costs and permanent extensions of certain provisions within the Tax Cuts and Jobs Act. Certain provisions are effective for us beginning in fiscal year 2026. The changes had an immaterial impact on our income tax benefit for the three and six months ended December 31, 2025 and we currently do not anticipate these changes to have a material impact on our results for fiscal year 2026. We will continue to monitor any developments and guidance related to OBBBA.

Current wording

On July 4, 2025, the U.S. government enacted The One Big Beautiful Bill Act (“OBBBA”), which includes, among other provisions, changes to the U.S. corporate income tax system such as allowing the immediate expensing of qualifying domestic research and development costs and permanent extensions of certain provisions within the Tax Cuts and Jobs Act. Certain provisions are effective for us beginning in fiscal year 2026. The changes had an immaterial impact on our provision for income taxes for the three and nine months ended March 31, 2026 and we currently do not anticipate these changes to have a material impact on our results for fiscal year 2026. We will continue to monitor any developments and guidance related to OBBBA.

Previous wording

Total revenues increased $544.6 million, or 22%, in the six months ended December 31, 2025 compared to the six months ended December 31, 2024. Growth in total revenues was primarily attributable to increased demand for our products from existing customers. Of total revenues recognized in the six months ended December 31, 2025, over 90% was attributable to sales to customer accounts existing on or before June 30, 2025.

Current wording

Total revenues increased $974.9 million, or 25%, in the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025. Growth in total revenues was primarily attributable to increased demand for our products from existing customers. Of total revenues recognized in the nine months ended March 31, 2026, over 90% was attributable to sales to customer accounts existing on or before June 30, 2025.

Previous wording

Subscription revenues increased $537.0 million, or 23%, in the six months ended December 31, 2025 compared to the six months ended December 31, 2024. The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers and price increases.

Current wording

Subscription revenues increased $963.0 million, or 27%, in the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025. The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers and price increases.

Previous wording

Other revenues increased $7.7 million, or 6%, in the six months ended December 31, 2025 compared to the six months ended December 31, 2024. The increase in other revenues was primarily attributable to an increase of $7.9 million in marketplace revenue.

Current wording

Other revenues increased $11.9 million, or 6%, in the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025. The increase in other revenues was primarily attributable to an increase of $11.0 million in marketplace revenue.

Previous wording

Cost of revenues increased $14.6 million, or 7%, in the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The overall increase was primarily attributable to an increase of $23.0 million in hosting fees and an increase of $9.6 million in amortization expense, partially offset by a decrease of $13.6 million in compensation expense for employees (which includes a decrease of $2.9 million in stock-based compensation) and a decrease of $4.0 million in consulting and other professional fees.

Current wording

Cost of revenues increased $98.0 million, or 15%, in the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025. The overall increase was primarily attributable to an increase of $65.5 million in hosting fees paid to third-party providers, and an increase of $24.0 million in amortization expense, partially offset by a decrease of $33.1 million in compensation expense for employees (which includes a decrease of $5.9 million in stock-based compensation), and a decrease of $11.1 million in fees paid for consulting and other professional services. In addition, we recorded restructuring charges of $52.6 million in the nine months ended March 31, 2026, which were comprised of $46.0 million of severance and other termination benefits, and $6.6 million of impairment charges for lease and leasehold improvements.

Previous wording

Marketing and sales expenses increased $104.5 million, or 38%, for thethree months ended December 31, 2025 compared to thethree months ended December 31, 2024. The overall increase was primarily attributable to an increase of $64.0 million in compensation expenses for employees (which includes an increase of $12.2 million in stock-based compensation), and anincrease of$29.7 million in advertising and marketing program expenses.

Current wording

Marketing and sales expenses increased $331.8 million, or 40%, for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025. The overall increase was primarily attributable to an increase of $178.3 million in compensation expenses for employees (which includes an increase of $30.3 million in stock-based compensation), and an increase of $63.6 million in advertising and marketing program expenses. In addition, we recorded restructuring charges of $50.8 million in the nine months ended March 31, 2026, which were comprised of $26.4 million of impairment charges for lease and leasehold improvements, and $24.4 million of severance and other termination benefits.

Previous wording

Other income (expense), net increased $32.7 million, or 119% in the six months ended December 31, 2025 compared to the six months ended December 31, 2024. The overall increase in other income was primarily attributable to an increase of $24.7 million in unrealized gains on public equity investments and a decrease of $15.3 million in expenses related to our share of loss from an equity method investment.

Current wording

Other income (expense), net increased $42.6 million, or 101% in the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025. The overall increase in other income was primarily attributable to an increase of $24.7 million in unrealized gains on public equity investments and a decrease of $20.4 million in expenses related to our share of loss from an equity method investment.

Previous wording

Interest expense increased$6.6 million, or 45%, in the six months ended December 31, 2025 compared to the six months ended December 31, 2024. The increasewas primarily attributable to the amortization of interest rate swap contracts.

Current wording

Interest expense increased $12.9 million, or 58%, in the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025. The increase was primarily attributable to the amortization of interest rate swap contracts.

Previous wording

Provision for (benefit from) income taxes decreased $102.2 million for the six months ended December 31, 2025, as compared to the six months ended December 31, 2024. The decrease was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions and the partial release of valuation allowance on certain U.S. deferred tax assets resulting from the recognition of additional deferred tax liabilities in connection with the business combinations. See Note 7,“Business Combinations,”and Note 17, “Income Taxes,” of the notes to our condensed consolidated financial statements for additional information.

Current wording

Provision for income taxes decreased $130.1 million for the nine months ended March 31, 2026, as compared to the nine months ended March 31, 2025. The decrease was primarily attributable to the the change in valuation allowance on Australian deferred tax assets related to deferred revenue recognition, the change in the mix of earnings and losses in foreign jurisdictions, and the partial release of valuation allowance on certain U.S. deferred tax assets resulting from the recognition of additional deferred tax liabilities in connection with the business combinations. See Note 7,“Business Combinations,”and Note 17, “Income Taxes,” of the notes to our condensed consolidated financial statements for additional information.

Previous wording

On July 4, 2025, the U.S. government enacted OBBBA, which includes, among other provisions, changes to the U.S. corporate income tax system such as allowing the immediate expensing of qualifying domestic research and development costs and permanent extensions of certain provisions within the Tax Cuts and Jobs Act. Certain provisions are effective for us beginning in fiscal year 2026. The changes had an immaterial impact on our income tax benefit for the three and six months ended December 31, 2025 and we currently do not anticipate these changes to have a material impact on our results for fiscal year 2026. We will continue to monitor any developments and guidance related to OBBBA.

Current wording

On July 4, 2025, the U.S. government enacted OBBBA, which includes, among other provisions, changes to the U.S. corporate income tax system such as allowing the immediate expensing of qualifying domestic research and development costs and permanent extensions of certain provisions within the Tax Cuts and Jobs Act. Certain provisions are effective for us beginning in fiscal year 2026. The changes had an immaterial impact on our provision for income taxes for the three and nine months ended March 31, 2026 and we currently do not anticipate these changes to have a material impact on our results for fiscal year 2026. We will continue to monitor any developments and guidance related to OBBBA.

Previous wording

As of December 31, 2025, we had cash and cash equivalents totaling $1.2 billion, marketable securities totaling $407.9 million, andaccounts receivable totaling $911.9 million. Since our inception, we have primarily financed our operations through cash flows generated by operationsand corporate debt.

Current wording

As of March 31, 2026, we had cash and cash equivalents totaling$1.1 billion andaccounts receivable totaling$907.4 million. Since our inception, we have primarily financed our operations through cash flows generated by operationsand corporate debt.

Previous wording

Net cash provided by operating activities decreased by $125.9 million for the six months ended December 31, 2025, compared to the six months ended December 31, 2024. The net decrease was primarily attributable to an increase in cash paid to employees, vendors, and cash paid for income taxes, partially offset by an increase in cash received from customers.

Current wording

Net cash provided by operating activities decreased by $211.1 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025. The net decrease was primarily attributable to an increase in cash paid to employees, vendors, and cash paid for income taxes, partially offset by an increase in cash received from customers.

Previous wording

Net cash used in investing activities increased by $1,074.2 million during the six months ended December 31, 2025, compared to the six months ended December 31, 2024. The net increase was primarily attributable to an increase in cash consideration paid for acquisitions, net of cash acquired of approximately $1,223.9 million.

Current wording

Net cash used in investing activities increased by $593.1 million during the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025. The net increase was primarily attributable to an increase in cash consideration paid for acquisitions, net of cash acquired of approximately $1.2 billion, partially offset by an increase in net inflows of $578.8 million related to marketable securities activity, and an increase in net inflows of $50.8 million related to strategic investment activity.

Previous wording

Net cash used in financing activities increased by $194.3 million for the six months ended December 31, 2025, compared to the six months ended December 31, 2024. The net increase was primarily attributable to an increase in repurchases of Class A Common Stock of $197.4 million.

Current wording

Net cash used in financing activities increased by $1.1 billion for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025. The net increase was primarily attributable to an increase in repurchases of Class A Common Stock of $1.1 billion.

Previous wording

As of December 31, 2025, we had $500.0 million aggregate principal amount of 5.250% senior notes due 2029 (the “2029 Notes”) and $500.0 million aggregate principal amount of 5.500% senior notes due 2034 (the “2034 Notes,” and together with the 2029 Notes, the “Notes”). The 2029 Notes and the 2034 Notes will mature on May 15, 2029, and May 15, 2034, respectively. Interest on the Notes will be paid semi-annually in arrears on May 15 and November 15 of each year, starting from November 15, 2024.

Current wording

As of March 31, 2026, we had $500.0 million aggregate principal amount of 5.250% senior notes due 2029 (the “2029 Notes”) and $500.0 million aggregate principal amount of 5.500% senior notes due 2034 (the “2034 Notes,” and together with the 2029 Notes, the “Notes”). The 2029 Notes and the 2034 Notes will mature on May 15, 2029, and May 15, 2034, respectively. Interest on the Notes is paid semi-annually in arrears on May 15 and November 15 of each year, starting from November 15, 2024.

Previous wording

On August 12, 2024, Atlassian US, Inc.’s prior credit facility was amended and restated to provide for a $750 million senior unsecured revolving credit facility (the “2024 Credit Facility”). We may repay outstanding loans under the 2024 Credit Facility at any time, without premium or penalty, and we have an option to request an increase of $250 million in certain circumstances. The 2024 Credit Facility replaced our prior credit facility entered into in October 2020, which provided for a $1 billion senior unsecured delayed-draw term loan facility (the “Term Loan”) and a $500 million senior unsecured revolving credit facility. The 2024 Credit Facility matures in August 2029. As of December 31, 2025, there were no borrowings under the 2024 Credit Facility. Refer to Note 10, “Debt,” to our condensed consolidated financial statements for additional information.

Current wording

On August 12, 2024, Atlassian US, Inc.’s prior credit facility was amended and restated to provide for a $750 million senior unsecured revolving credit facility (the “2024 Credit Facility”). We may repay outstanding loans under the 2024 Credit Facility at any time, without premium or penalty, and we have an option to request an increase of $250 million in certain circumstances. The 2024 Credit Facility replaced our prior credit facility entered into in October 2020, which provided for a $1.0 billion senior unsecured delayed-draw term loan facility (the “Term Loan”) and a $500.0 million senior unsecured revolving credit facility. The 2024 Credit Facility matures in August 2029. As of March 31, 2026, there were no borrowings under the 2024 Credit Facility. Refer to Note 10, “Debt,” to our condensed consolidated financial statements for additional information.

Previous wording

In September 2024, the Board of Directors authorized a program to repurchase up to $1.5 billion of our outstanding Class A Common Stock (the “2024 Repurchase Program”). The 2024 Repurchase Program commenced in April 2025 following completion of the prior repurchase program. In October 2025, the Board of Directors authorized a new program under which we may repurchase up to an additional $2.5 billion of the Company’s outstanding Class A Common Stock (the “2025 Repurchase Program” and, together with the 2024 Repurchase Program, the “Repurchase Programs”). The 2025 Repurchase Program will commence following completion of the 2024 Repurchase Program. The Repurchase Programs do not have a fixed expiration date, may be suspended or discontinued at any time, and do not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares.

Current wording

In September 2024, the Board of Directors authorized a program to repurchase up to $1.5 billion of our outstanding Class A Common Stock (the “2024 Repurchase Program”). The 2024 Repurchase Program commenced in April 2025 following completion of the prior repurchase program. The 2024 Repurchase Program was completed in March 2026. In October 2025, the Board of Directors authorized a new program under which we may repurchase up to an additional $2.5 billion of the Company’s outstanding Class A Common Stock (the “2025 Repurchase Program” and, together with the 2024 Repurchase Program, the “Repurchase Programs”). The 2025 Repurchase Program commenced in March 2026 following completion of the 2024 Repurchase Program. The Repurchase Programs do not have a fixed expiration date, may be suspended or discontinued at any time, and do not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares.

Previous wording

During the three and six months ended December 31, 2025, we repurchased and subsequently retired approximately 1.3 million and 2.7 million shares of Class A Common Stock for approximately $200.4 million and $450.3 million at an average price per share of $156.74 and $169.21, respectively. All repurchases were made in open market transactions. As of December 31, 2025, $720.9 million and $2.5 billion of Class A Common Stock remained available for repurchase under the 2024 Share Repurchase Program and 2025 Share Repurchase Program, respectively.

Current wording

During the three and nine months ended March 31, 2026, we repurchased and subsequently retired approximately 11.8 million and 14.5 million shares of Class A Common Stock for approximately $1.0 billion and $1.5 billion at an average price per share of $85.04 and $100.51, respectively. The 1% excise tax as a result of the Inflation Reduction Act is excluded in the total repurchase cost and average price paid. All repurchases were made in open market transactions. As of March 31, 2026, $2.2 billion of Class A Common Stock remained available for repurchase under the 2025 Share Repurchase Program.

Previous wording

We believe that our existing cash and cash equivalents, together with cash generated from operations, and borrowing capacity from the 2024 Credit Facility will be sufficient to meet our anticipated cash needs for at least the next 12 months. Our other future cash requirements will depend on many factors including our growth rate, the timing and extent of spend on research and development efforts, employee headcount, marketing and sales activities, payments to tax authorities, acquisitions of additional businesses and technologies, the introduction of new software and services offerings, enhancements to our existing software and services offerings and the continued market acceptance of our offerings.

Current wording

We believe that our existing cash and cash equivalents, together with cash generated from operations, and borrowing capacity from the 2024 Credit Facility will be sufficient to meet our anticipated cash needs for at least the next 12 months. Our other future cash requirements will depend on many factors including our growth rate, the timing and extent of spend on research and development efforts, investment in AI, employee headcount, marketing and sales activities, investment in enterprise sales, payments to tax authorities, acquisitions of additional businesses and technologies, the introduction of new software and services offerings, enhancements to our existing software and services offerings and the continued market acceptance of our offerings.