Goodwill and Intangible Assets

6 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

8. Goodwill and Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually during the fourth quarter, or when indicators of impairment exist.

Goodwill consisted of the following (in thousands):


	Goodwill
Balance as of June 30, 2025	$	1,304,445
Additions	999,243
Effect of change in exchange rates	1,444
Balance as of December 31, 2025	$	2,305,132

Intangible Assets

Intangible assets consisted of the following as of December 31, 2025 (in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net
Acquired developed technology	$	700,262	$	(308,005)	$	392,257
Patents, trade names, and other rights	118,928		(42,066)		76,862
Customer relationships	143,487		(117,647)		25,840
Total Intangible Assets	$	962,677	$	(467,718)	$	494,959

Intangible assets consisted of the following as of June 30, 2025 (in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net
Acquired developed technology	$	466,932	$	(278,525)	$	188,407
Patents, trade names, and other rights	70,928		(37,337)		33,591
Customer relationships	135,687		(112,845)		22,842
Total Intangible Assets	$	673,547	$	(428,707)	$	244,840

The weighted-average remaining useful lives of the Company’s acquired intangible assets as of December 31, 2025 were as follows:


						Weighted-Average Remaining Useful Lives (Years)
Acquired developed technology						4
Patents, trade names, and other rights						5
Customer relationships						3

Amortization expense for intangible assets was approximately $25.4 million and $13.9 million for the three months ended December 31, 2025, and 2024, respectively and $39.0 million and $27.8 million for the six months ended December 31, 2025 and 2024, respectively.

The following table presents the estimated future amortization expense related to intangible assets held as of December 31, 2025 (in thousands):


Fiscal Years:
Remainder of 2026	$	62,518
2027	120,083
2028	117,321
2029	87,843
2030	73,839
Thereafter	33,355
Total future amortization expense	$	494,959

Atlassian Corp 10-Q