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

Atlassian co-founder Scott Farquhar converted 467,565 Class B Common Stock shares into Class A Common Stock on January 2, 2026, in preparation for sales under a pre-arranged 10b5-1 trading plan.

Summary

• Scott Farquhar, a Director and 10% Owner of Atlassian Corp, reported a change in beneficial ownership.
• On January 2, 2026, Farquhar converted 467,565 shares of Class B Common Stock into Class A Common Stock.
• This conversion was made in connection with sales to be executed under a Rule 10b5-1 trading plan adopted on February 12, 2025.
• Each Class B share is convertible into one Class A share at any time at the reporting person's election, with no expiration date.
• Following this transaction, Farquhar indirectly beneficially owns 467,565 Class A Common Stock shares (from this conversion) and 47,066,808 Class B Common Stock shares.
• The shares are held by Farquhar Investment Partnership No. 2.

Sentiment

Score: 5

Explanation: The filing reports a pre-planned, procedural conversion of shares for a future sale under a 10b5-1 plan. While insider selling can sometimes be viewed negatively, the pre-planned nature mitigates immediate concerns, leading to a neutral sentiment.

Negatives

• The conversion is a precursor to an insider sale, which can sometimes be perceived negatively by the market, even if pre-planned.

Risks

• Potential negative market perception due to insider selling, despite the existence of a 10b5-1 plan.
• Impact on stock price if the volume of sales is significant.

Future Outlook

The conversion of Class B Common Stock to Class A Common Stock is a preparatory step for future sales to be executed under a pre-arranged Rule 10b5-1 trading plan.

Industry Context

Insider transactions, particularly those involving significant shareholdings by co-founders, are closely watched by investors for signals regarding management's confidence and liquidity needs. The use of a Rule 10b5-1 plan indicates a pre-scheduled sale designed to avoid accusations of trading on material non-public information.

Corporate Governance

Related Party Transactions

• Shares are indirectly held by Farquhar Investment Partnership No. 2, indicating a related entity involved in the beneficial ownership.

Stakeholder Impact

• Shareholders: May react to the news of a co-founder's planned sale, potentially leading to short-term stock price volatility. The 10b5-1 plan provides transparency.
• Management: Demonstrates a planned liquidity event for a key executive, which is a common practice.

Next Steps

• Execution of sales of Class A Common Stock by Scott Farquhar under the Rule 10b5-1 trading plan.

Key Dates

Keywords

Atlassian, TEAM, Scott Farquhar, Form 4, insider trading, stock conversion, 10b5-1 plan, beneficial ownership, Class A Common Stock, Class B Common Stock