EPS of $0.19 increased by 126.5% from previous year
Gross margin of 72.8%
Net income of 15.83M
""AI is transforming software from a static tool into a dynamic decision-making partner."" - Dev Ittycheria
MongoDB Inc (MDB) Q4 2025 Results Analysis: Atlas Stabilizes, Voyage AI Accelerates AI-First Strategy, Strong Liquidity and Upmarket Momentum
Executive Summary
MongoDB delivered a solid Q4 2025 with revenue of $548.4 million, up 19.7% year over year, and Atlas accounting for 71% of revenue after a 24% YoY expansion. The quarterly non-GAAP operating income was $112.5 million, representing a 21% non-GAAP operating margin, even as GAAP operating income remained negative due to accounting and amortization effects. The quarter culminated in a resilient total customer base of 54,500+ and over 320 customers with $1 million+ ARR, underscoring a move upmarket and broad-based adoption. Cash, cash equivalents, and short-term investments stood at roughly $2.34 billion, and MongoDB redeemed its 2026 convertible notes, delivering a debt-free balance sheet. Management signaled a transition year in fiscal 2026, balancing steady Atlas consumption with investments in AI and modernization capabilities, notably the Voyage AI acquisition for $220 million (of which $200 million was authorized for a stock buyback). Guidance reflects a measured path: FY26 revenue of $2.24–$2.28 billion; non-GAAP operating income of $210–$230 million; non-GAAP EPS of $2.44–$2.62, with an implicit ~20% non-GAAP tax rate. Management stressed the long-term opportunity of AI-enabled workloads and the ongoing shift to AI-assisted modernization, while acknowledging about a $50 million multiyear headwind in non-Atlas ARR for FY26. This combination supports a constructive, but carefully monitored, investment thesis for MDB stock, anchored by a scalable platform, AI-enhanced product roadmap, and a disciplined capital allocation strategy.
Key Performance Indicators
Revenue
548.40M
QoQ: 3.59% | YoY:19.74%
Gross Profit
399.38M
72.83% margin
QoQ: 1.35% | YoY:16.32%
Operating Income
-18.56M
QoQ: 33.41% | YoY:73.84%
Net Income
15.83M
QoQ: 261.89% | YoY:128.54%
EPS
0.20
QoQ: 256.82% | YoY:126.48%
Revenue Trend
Margin Analysis
Key Insights
Q4 2025 revenue: $548.4M, up 19.74% YoY (Q4 2024 revenue: $458.0M). QoQ growth from Q3 2025 ($529.4M) to Q4 2025 is approximately 3.6%. Gross profit: $399.383M, gross margin 73.83% (reported 75% in the period; down 2.0pp YoY as Atlas mix increased). Non-GAAP operating income: $112.5M, non-GAAP operating margin 21.0% (GAAP operating income: -$18.56M). Net income: $15.83M; GAAP EPS ≈ $0.20 per share (diluted ≈ $0.19); Non-GAAP diluted EPS guidance for Q1 and FY26 is provided (see guidance).
YoY and QoQ momentum reflect Atlas growth and a higher mix of Atlas contributions with stronger retention, offset by non-Atlas headwinds and higher R&D/marketing investments.
Atlas revenue represented 71% of total revenue in Q4 2025, up from 68% in Q4 FY2024 and 68% last quarter, with Atlas growth 24% YoY.
Total customers: ~54,500; >$100k ARR customers: 2,396; >$1M ARR customers: 320 (up from 259 year ago); direct sales customers: ~7,500 (vs ~7,000 prior year).
Net ARR expansion rate: ~118%, reflecting a shift of incremental workloads onto Atlas and the stickiness of the platform.
Financial Highlights
Revenue and profitability:
- Q4 2025 revenue: $548.4M, up 19.74% YoY (Q4 2024 revenue: $458.0M). QoQ growth from Q3 2025 ($529.4M) to Q4 2025 is approximately 3.6%. Gross profit: $399.383M, gross margin 73.83% (reported 75% in the period; down 2.0pp YoY as Atlas mix increased). Non-GAAP operating income: $112.5M, non-GAAP operating margin 21.0% (GAAP operating income: -$18.56M). Net income: $15.83M; GAAP EPS ≈ $0.20 per share (diluted ≈ $0.19); Non-GAAP diluted EPS guidance for Q1 and FY26 is provided (see guidance).
- YoY and QoQ momentum reflect Atlas growth and a higher mix of Atlas contributions with stronger retention, offset by non-Atlas headwinds and higher R&D/marketing investments.
Platform mix and customers:
- Atlas revenue represented 71% of total revenue in Q4 2025, up from 68% in Q4 FY2024 and 68% last quarter, with Atlas growth 24% YoY.
- Total customers: ~54,500; >$100k ARR customers: 2,396; >$1M ARR customers: 320 (up from 259 year ago); direct sales customers: ~7,500 (vs ~7,000 prior year).
- Net ARR expansion rate: ~118%, reflecting a shift of incremental workloads onto Atlas and the stickiness of the platform.
Cash flow and balance sheet:
- Operating cash flow: $50.5M; capex: $25.98M; free cash flow: $24.56M in Q4 2025.
- End of period liquidity: cash and equivalents + short-term investments ~$2.34B; balance sheet debt-free after redemption of 2026 convertible notes.
- Net cash position reported as negative net debt (net cash: -$453.6M) after adjustments, indicative of substantial liquidity to fund AI investments and buybacks.
Guidance and margin dynamics:
- Q1 2026 revenue guidance: $524–$529M; non-GAAP OI: $54–$58M; non-GAAP EPS: $0.63–$0.67 (assuming 86M diluted shares).
- FY26 guidance: revenue $2.24–$2.28B; non-GAAP OI: $210–$230M; non-GAAP EPS: $2.44–$2.62 (assuming 87.3M diluted shares).
- Assumptions highlight the following: Atlas consumption expected to be roughly flat to up slightly; non-Atlas subscription revenue down high-single digits due to an estimated $50M multiyear license headwind; operating margin target of ~10% at the midpoint, reflecting higher R&D and marketing investments to capitalize on AI opportunities. Voyage AI impact is expected to be modest in 2026 but dilution is anticipated as investment scales.
Management tone and strategic posture:
- Management emphasized AI-driven opportunity as a once-in-a-generation shift, with Voyage AI enabling higher-quality AI applications via embedding and reranking models and native vector search within MongoDB.
- The firm intends to maintain a go-to-market upmarket push, reinforce land-and-expand motions, and invest in AI modernization and application monetization (including Java apps on Oracle).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
548.40M
19.74%
3.59%
Gross Profit
399.38M
16.32%
1.35%
Operating Income
-18.56M
73.84%
33.41%
Net Income
15.83M
128.54%
261.89%
EPS
0.20
126.48%
256.82%
Key Financial Ratios
currentRatio
5.2
grossProfitMargin
72.8%
operatingProfitMargin
-3.38%
netProfitMargin
2.89%
returnOnAssets
0.46%
returnOnEquity
0.57%
debtEquityRatio
0.01
operatingCashFlowPerShare
$0.65
freeCashFlowPerShare
$0.32
priceToBookRatio
7.63
priceEarningsRatio
335.18
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Key insights from management across themes:
- Strategy and AI leadership: Dev Ittycheria stressed that AI is transforming software and highlighted MongoDB's architecture as a foundation for AI-enabled workloads: 'AI is transforming software from a static tool into a dynamic decision-making partner.' He also emphasized Voyage AI as a core element to power trusted AI applications with embedding and retrieval models.
- Execution and market conditions: Serge Tanjga noted that Atlas consumption grew steadily, with Atlas representing 71% of revenue in Q4 and stable usage versus the prior year, while non-Atlas ARR growth was mid-single digits YoY in Q4 FY25, highlighting a shift of workloads toward Atlas.
- Capital allocation and investment stance: Serge underscored a plan to invest beyond reallocations: 'We are investing over and above what we're reallocating and that was the plan all along' to capitalize on AI opportunities, and Dev reinforced a long-term AI roadmap including app modernization and AI-assisted modernization of legacy apps.
- Customer adoption and AI adoption trajectory: Dev pointed to broad-based customer engagement across both high-end and lower-end markets, with new workloads and AI pilots moving toward production in due course, supported by a strong developer experience through embedded vector search and Voyage AI capabilities.
- Competitive positioning: Dev argued that MongoDB offers a more integrated solution (Postgres plus Elastic plus embedding) and highlighted strong competitive positioning vs Postgres and hyperscalers, with high win rates and positive hyperscaler relationships when joint with customers.
"AI is transforming software from a static tool into a dynamic decision-making partner."
— Dev Ittycheria
"We are investing over and above what we're reallocating and that was the plan all along."
— Serge Tanjga
Forward Guidance
Outlook and assessment:
- Near-term: Q1 2026 revenue guidance of $524–$529M implies a modest sequential increase in Atlas revenue (flat to up slightly) with a meaningful sequential decline in EA (non-Atlas) revenue, consistent with seasonality and a lower renewal base in the EA segment post-Q4 peak.
- FY26: Revenue guidance of $2.24–$2.28B with a mid-teens to low-20s% growth trajectory remains achievable if Atlas consumption remains stable and incremental Atlas workloads offset non-Atlas declines. The company anticipates a roughly flat Atlas base with contributions from FY25 workloads and continued upmarket expansion.
- Margin and investment: Operating margin is guided to ~10% at the midpoint, reflecting accelerated investment in R&D (including Voyage AI integration) and marketing to drive awareness and adoption, while maintaining a track record of margin discipline during periods of investment. Investors should monitor the following: (1) Atlas consumption trajectory and upsell within existing EA cohorts; (2) the rate of non-Atlas ARR deterioration versus renewal headwinds; (3) the integration progress and commercial traction of Voyage AI; (4) the impact of AI-driven app modernization on new workloads; and (5) sales productivity and upmarket traction as the firm scales.
- Key risk factors: Non-Atlas headwinds, potential churn in multiyear deals, macro demand variability, integration risk of Voyage AI, and competitive pressures from hyperscalers that could compress prices or limit share gains. Overall, the management tone remains constructive on MongoDB's long-term AI-enabled growth, albeit with a deliberate transition year in FY26.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
MDB Focus
72.83%
-3.38%
0.57%
335.18%
CRWD
74.10%
-8.06%
-2.81%
-266.29%
OKTA
76.80%
1.17%
0.36%
176.09%
NET
76.40%
-7.55%
-1.23%
-720.78%
PANW
73.80%
10.90%
6.92%
80.32%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
MDB offers a compelling long-term thesis: capitalize on a durable data platform designed for AI, with Voyage AI enhancing trust and quality of AI-driven outputs; a structured upmarket go-to-market strategy supports accelerating workload acquisition. The near-term cannibalization of non-Atlas ARR and margin compression from AI investment present risks that are mitigated by a strong balance sheet, ongoing Atlas expansion, and a clear path to higher AI-driven monetization in subsequent years. Investors should monitor Atlas consumption stability, the cadence of AI-driven workload adoption, Voyage AI integration milestones, and the evolution of non-Atlas ARR as drivers of the longer-term growth trajectory.
Key Investment Factors
Growth Potential
MDB's multi-year trajectory centers on Atlas-driven growth, accelerated AI demand, and the monetization of AI-enabled modernization via Voyage AI and related tools. The combination of a flexible document model, native vector search, and embedded AI capabilities positions MDB to capture incremental workloads across both new and existing customers, potentially driving higher ARR and larger enterprise footprints over the next 3–5 years.
Profitability Risk
Key risks include the $50 million FY26 headwind from multiyear non-Atlas licenses, potential delays in AI adoption and production deployments, integration risk for Voyage AI, and competitive pressure from hyperscalers or cloned offerings. GAAP margins remain pressured in the near term due to higher R&D/marketing spend; reliance on non-Atlas revenue composition could introduce volatility in revenue recognition (ASC 606 effects).
Financial Position
Strong liquidity with roughly $2.34B in cash and short-term investments; debt-free post-convertible note redemption; net cash position supports continued investment in AI, potential buybacks, and strategic acquisitions. The balance sheet remains robust to support ongoing R&D investments and the deployment of AI-driven modernization initiatives.
SWOT Analysis
Strengths
Atlas now represents 71% of revenue with 24% YoY growth, signaling strong platform stickiness and cross-sell potential.
Healthy cash position and debt-free balance sheet after convertible note redemption; robust liquidity for AI investments.
Large installed base with 54,500+ customers and 320 customers with $1M+ ARR; evidence of upmarket expansion and pricing power.
Voyage AI acquisition enhances capability for embedding, retrieval, and trust in AI applications; native vector search improves product differentiation.
Strong gross margins and non-GAAP profitability in Q4, supported by a scalable platform and improved sales productivity.
Weaknesses
GAAP operating income turned negative in the quarter, highlighting near-term margin headwinds from heavy investment in AI and go-to-market efforts.