"AI is transforming software from a static tool into a dynamic decision-making partner."
— Dev Ittycheria
03Detailed Report
MDB
Company MDB
Period
Q4 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 12, 2026
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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
Increasing
548.40M
QoQ: 3.59% | YoY: 19.74%
Gross Profit
Increasing
399.38M
72.83% margin
QoQ: 1.35% | YoY: 16.32%
Operating Income
Increasing
-18.56M
QoQ: 33.41% | YoY: 73.84%
Net Income
Increasing
15.83M
QoQ: 261.89% | YoY: 128.54%
EPS
Increasing
0.20
QoQ: 256.82% | YoY: 126.48%
Revenue Trend
Margin Analysis
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
Gross Profit Margin
Excellent
72.80%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.03%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.89%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.46%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.57%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
5.20
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.01
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
335.18x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
High Premium
7.63x
Very high premium suggests asset-light business model or lofty expectations
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