Form 4: Atlassian Co-Founder Converts Shares for Planned Sale

Atlassian Co-Founder Michael Cannon-Brookes converted 490,560 Class B shares to Class A shares on October 1, 2025, for a pre-arranged trading plan.

Summary

• Michael Cannon-Brookes, Co-Founder and CEO of Atlassian Corp, reported the conversion of 490,560 shares of Class B Common Stock into Class A Common Stock.
• The conversion occurred on October 1, 2025, and is in connection with sales to be effected pursuant to a Rule 10b5-1 trading plan.
• The Rule 10b5-1 trading plan was adopted by Mr. Cannon-Brookes on February 20, 2025.
• Each share of Class B Common Stock is convertible into Class A Common Stock on a one-to-one basis at the reporting person's election and has no expiration date.
• Following the conversion, 490,560 Class A Common Stock shares are beneficially owned indirectly, and 47,534,373 Class B Common Stock shares remain beneficially owned indirectly.
• The shares are held by CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust.

Sentiment

Score: 5

Explanation: The filing reports a routine insider transaction involving the conversion of Class B shares to Class A shares for a pre-arranged sale under a 10b5-1 plan. This is a standard practice for executives managing their equity and does not inherently signal positive or negative operational performance.

Positives

• The transaction is part of a Rule 10b5-1 trading plan, indicating a pre-scheduled and transparent approach to share sales, which can reduce concerns about insider trading.

Negatives

• The conversion facilitates future sales of Class A Common Stock by a significant insider, which could potentially increase market supply.

Risks

• Potential for increased selling pressure on Atlassian's Class A Common Stock due to the planned sales by a significant insider.

Future Outlook

The reporting person intends to effect sales of Class A Common Stock pursuant to a Rule 10b5-1 trading plan adopted on February 20, 2025.

Management Comments

• Michael Cannon-Brookes, Co-Founder and CEO, is executing a pre-arranged trading plan for the sale of equity securities.

Industry Context

This type of transaction, involving the conversion of high-vote Class B shares to publicly traded Class A shares for sale under a Rule 10b5-1 plan, is a common practice among founders and executives of dual-class stock companies to manage personal liquidity and diversification in a pre-scheduled, compliant manner.

Comparison to Industry Standards

• NA

Related Party Transactions

• Shares are held indirectly by CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust.

Stakeholder Impact

• Shareholders: Potential for increased supply of Class A shares in the market due to planned sales by a significant insider.

Next Steps

• Future sales of Class A Common Stock by Michael Cannon-Brookes pursuant to the Rule 10b5-1 trading plan.

Key Dates

Recommendation

The filing details a routine insider transaction where a co-founder converts shares for a pre-arranged sale under a 10b5-1 plan. This is a common practice for executives managing personal wealth and does not reflect new operational performance or strategic shifts for Atlassian. Therefore, it does not warrant a change in investment recommendation based solely on this filing.

Keywords

Atlassian, TEAM, Michael Cannon-Brookes, Form 4, insider trading, stock conversion, 10b5-1 plan, Class A Common Stock, Class B Common Stock