Atlassian Corporation: 10-K Risk Factor Changes

2025 vs 2024  ·  SEC EDGAR  ·  2026-05-22
Other years: 2024 vs 2023
⚠ AI-Generated

The summary below was generated by an AI language model and may contain errors or omissions. All other content on this page is deterministically extracted from the original SEC EDGAR filing.

Atlassian's risk disclosure shifted focus from generative AI implementation challenges to broader concerns about AI investment success and associated operational and regulatory risks, reflecting a maturation from technology adoption to business strategy validation. The company elevated government contracting risks through a new FedRAMP-specific disclosure and introduced seasonality and litigation risk factors, while retiring disclosures about public company compliance burdens and ERP system implementation. These 5 additions, 4 removals, and 17 substantive modifications across 62 total risk factors indicate Atlassian is recalibrating its risk narrative around AI commercialization, government market expansion, and financial performance volatility.

✓ Deterministic extraction — no AI-generated data

Classification is based on semantic text similarity scoring and may include approximations. “No match” means no high-confidence textual match was found — not necessarily that a section was removed.

5
New Risks
4
Removed
17
Modified
36
Unchanged
🟢 New in Current Filing

Our AI offerings and investments may not be successful, which could adversely affect our business or financial results.

We are investing in AI across the company and increasingly building out our AI-powered offerings, including apps, agents, and features like our Rovo platform apps. We expect AI apps, agents and features, both those we develop and those developed by third parties, to continue to…

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We are investing in AI across the company and increasingly building out our AI-powered offerings, including apps, agents, and features like our Rovo platform apps. We expect AI apps, agents and features, both those we develop and those developed by third parties, to continue to be important to our offerings and our operations over time, but there can be no assurances that we will effectively develop, implement or market AI agents and features or that we will realize the desired or anticipated benefits from AI. We bear significant development and operational costs in building and supporting our AI tools and offerings, and expect these investments to continue to negatively impact our operating margins in the near term. Developing, maintaining, and deploying these technologies involves substantial risks, and we cannot guarantee that they will improve our offerings or provide benefits to our customers or business. As our business and offerings evolve to incorporate additional AI capabilities, we may be unable to effectively monetize our AI offerings or determine new methods for capitalizing on these opportunities. For example, we have made Rovo available to our premium and enterprise edition Jira, Confluence, and Jira Service Management customers at no additional cost to them and expect to do so for our standard edition customers in the near future. If strategies like this are not successful in helping us win new customers and retain and expand within existing customers, we may not be able to offset the investments we have made in these technologies, which would adversely impact our results of operations and financial condition. Additionally, AI technology and services is a highly competitive and rapidly evolving market. Our competitors or other third parties may incorporate AI into their products and offerings more quickly or more successfully than we 16 16 16 can. Our ability to compete in this space will also depend in part on our ability to attract and retain employees with AI expertise. We also rely on certain third-party AI models, products, and integration providers. Such providers may be prohibited from offering certain models or technologies in jurisdictions in which we operate, may terminate their relationships with us, or otherwise cease to make certain models or technologies available to us, or may make certain models or technologies more expensive for us to use. Additionally, it is possible that an increased prevalence of AI may impact the work practices of software teams, IT operations and support teams, leadership, and business teams, and therefore our market opportunity. Any of the foregoing could adversely affect our business, reputation, or financial results.

🟢 New in Current Filing Seasonality may cause fluctuations in our revenue. 🔒
🟢 New in Current Filing Our development and use of AI technologies may expose us to operational, legal, regulatory, reputational and other risks that may adversely affect our business. 🔒
🟢 New in Current Filing Our sales to U.S. government entities and contractors are subject to additional challenges and risks, including those related to FedRAMP compliance. 🔒
🟢 New in Current Filing Adverse litigation results could have a material adverse impact on our business. 🔒
🔴 No Match in Current Filing Our use of generative AI and machine learning in our platform and our business, as well as our potential failure to effectively implement, use, and market these technologies, may result in reputational harm or liability, or could otherwise adversely affect our business. 🔒
🔴 No Match in Current Filing If our marketing model is not effective in attracting new customers or we are unable to realize the benefits of our free trial strategy, our business and results of operations could be harmed. 🔒
🔴 No Match in Current Filing We may encounter difficulties in operating our upgraded enterprise resource planning system, which could materially adversely affect us. 🔒
🔴 No Match in Current Filing The requirements of being a public company may strain our resources, divert management’s attention, and affect our ability to attract and retain executive officers and qualified board members. 🔒
🟡 Modified Climate change may have a long-term impact on our business. 🔒
🟡 Modified Real or perceived errors, failures, vulnerabilities, or bugs in our offerings or in the apps on Atlassian Marketplace could harm our business and results of operations. 🔒
🟡 Modified Our quarterly results have fluctuated in the past and may fluctuate significantly in the future and may not fully reflect the underlying performance of our business. 🔒
🟡 Modified Risk Factor Summary 🔒
🟡 Modified Our historical rapid growth makes it difficult to evaluate our future prospects, and we may not be able to sustain our revenue growth rate or achieve profitability in the future. 🔒
🟡 Modified Interruptions or performance problems associated with our technology and infrastructure could harm our business and results of operations. 🔒
🟡 Modified The markets in which we participate are intensely competitive, and if we do not compete effectively, our business, results of operations, and financial condition could be harmed. 🔒
🟡 Modified If we fail to integrate our apps, agents, and products with a variety of operating systems, software applications, platforms and hardware that are developed by others, our products may become less marketable, less competitive, or obsolete and our results of operations could be harmed. 🔒
🟡 Modified Regulators, investors’ and others’ expectations and scrutiny of our performance relating to environmental, social and governance efforts may impose additional costs and expose us to new risks. 🔒
🟡 Modified If we are not able to maintain and enhance our brand, our business, results of operations, and financial condition could be harmed. 🔒
🟡 Modified We may encounter challenges as we develop our sales force and sales strategy. 🔒
🟡 Modified If we are not able to develop or package new apps, agents and enhancements to our existing offerings that achieve market acceptance and that keep pace with technological developments, our business and results of operations could be harmed. 🔒
🟡 Modified We may encounter challenges as we continue to transition our business to focus on Cloud offerings. 🔒
🟡 Modified The continuing global economic and geopolitical volatility, and measures taken in response, could harm our business and results of operations. 🔒
🟡 Modified We derive a majority of our revenue from Jira, Confluence, and Jira Service Management. 🔒
🟡 Modified The market price of our Class A Common Stock is volatile, has fluctuated significantly in the past, and could continue to fluctuate significantly regardless of our operating performance resulting in substantial losses for the holders of our Class A Common Stock. 🔒
🟡 Modified Our business model for our low-touch customers is based in part on a high volume of transactions and organic expansion. If this model is not effective, our business and results of operations could be harmed. 🔒
25 more changes in this filing

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