MongoDB delivered solid top-line growth in QQ3 2025, with revenue of $529.4 million, up 22.3% year-over-year and 10.7% quarter-over-quarter, supported by continued Atlas adoption and multi-cloud deployment. Gross profit reached $394.0 million, yielding a robust gross margin of 74.4%, up modestly year-over-year and sequentially. However, the quarter remained unprofitable on a net basis, with net income of -$9.78 million and an operating loss of -$27.88 million, reflecting ongoing investment in R&D and go-to-market expansion to accelerate Atlas and new product capabilities. EBITDA was $1.80 million, with an EBITDA margin near zero, indicating heavy investment activity despite revenue momentum.
From a cash-flow perspective, MongoDB generated positive operating cash flow of $37.4 million and free cash flow of $35.5 million, while investing activities consumed $653.4 million largely due to investments in marketable securities and other long-dated assets. The company finished the period with cash and short-term investments of about $2.30 billion and net debt of roughly $490 million, underscoring a strong liquidity position to fund product development and go-to-market initiatives. While the balance sheet remains solid, the market should note the substantial investment path required to convert revenue growth into sustained profitability and free cash flow expansion. Management’s commentary (where available) emphasizes Atlas expansion, multi-cloud scalability, and long runway for enterprise adoption, pointing to a constructive longer-term revenue and margin trajectory if operating efficiencies and scale improvements materialize.
Overall investment thesis: favorable growth potential anchored by Atlas-driven data platform adoption in the cloud era, balanced against near-term profitability challenges. The stock’s valuation remains elevated relative to traditional software peers, reflecting high-growth expectations and a durable multi-cloud platform moat. Investors should monitor Atlas revenue growth pace, gross margin progression, operating expense discipline, and the trajectory toward sustained positive free cash flow.