Sign in
MI

MongoDB, Inc. (MDB)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 revenue was $548.4M, up 20% YoY and above the company’s guidance range; Atlas grew 24% YoY and was 71% of revenue; non-GAAP operating margin reached 21% and non-GAAP EPS was $1.28 .
  • Management guided FY2026 revenue to $2.24–$2.28B and Q1 FY2026 revenue to $524–$529M; expects “stable” Atlas consumption growth but a high single-digit YoY decline in non-Atlas revenue and an approximately $50M headwind from multiyear license revenue not repeating .
  • FY2026 non-GAAP operating margin is guided to ~10% at midpoint (vs. 15% in FY2025), driven by the $50M non-Atlas headwind, incremental R&D tied to the Voyage AI acquisition, and increased marketing investment .
  • Catalysts: stabilization in Atlas consumption, integration of Voyage AI to improve trustworthy AI retrieval, debt redemption (now debt-free), and a $200M buyback to offset acquisition dilution .

What Went Well and What Went Wrong

What Went Well

  • Atlas consumption “better than expected” with stable growth vs. prior year; Atlas grew 24% YoY and accounted for 71% of Q4 revenue; retention remained strong .
  • New workload acquisition was healthy and multiyear non-Atlas deals contributed >$10M above guidance in Q4, boosting results above the high end of guidance .
  • Margin expansion: Q4 non-GAAP operating margin rose to 21% (vs. 15% in the year-ago period); free cash flow positive; ended quarter with $2.3B cash and investments and redeemed 2026 converts (debt-free) .

Quote: “We expect to see stable consumption growth for Atlas in fiscal '26 compared to fiscal '25.” — Dev Ittycheria, CEO .

What Went Wrong

  • GAAP gross margin down YoY (73% vs. 75%) and non-GAAP gross margin down to 75% (vs. 77%), with mix shift toward Atlas cited as a driver .
  • FY2026 guide points to margin compression (10% non-GAAP op margin midpoint vs. 15% in FY2025) due to non-Atlas revenue headwind and higher R&D/marketing investments .
  • Free cash flow declined YoY in Q4 ($22.9M vs. $50.5M), partly due to ~$24M IPv4 address purchase hitting CapEx .

Financial Results

Headline and Margin Comparison

MetricQ2 2025Q3 2025Q4 2025
Revenue ($USD Millions)$478.1 $529.4 $548.4
GAAP Diluted EPS ($)-$0.74 -$0.13 $0.19
Non-GAAP Diluted EPS ($)$0.70 $1.16 $1.28
GAAP Gross Margin (%)73% 74% 73%
Non-GAAP Gross Margin (%)75% 77% 75%
GAAP Operating Margin (%)-15% -5% -3%
Non-GAAP Operating Margin (%)11% 19% 21%

Segment and Mix

MetricQ2 2025Q3 2025Q4 2025
Subscription Revenue ($M)$463.8 $512.2 $531.0
Services Revenue ($M)$14.3 $17.2 $17.4
Atlas % of Total Revenue71% 68% 71%
Atlas Revenue Growth YoY (%)27% 26% 24%

KPIs

KPIQ2 2025Q3 2025Q4 2025
Total Customers50,700+ 52,600+ 54,500+
Direct Sales Customers7,300+ 7,400+ 7,500+
Atlas Customers49,200+ 51,100+ 53,100+
Customers ≥$100K ARR/MRR2,189 2,314 2,396
Net ARR Expansion Rate (%)——~118%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Revenue ($M)Q4 FY2025$515–$519 $548.4 actual Above guidance
Non-GAAP Op Income ($M)Q4 FY2025$55–$58 $112.5 actual Above guidance
Non-GAAP EPS ($)Q4 FY2025$0.62–$0.65 $1.28 actual Above guidance
Revenue ($B)FY2025$1.973–$1.977 $2.006 actual Above guidance
Revenue ($M)Q1 FY2026—$524–$529 New
Non-GAAP Op Income ($M)Q1 FY2026—$54–$58 New
Non-GAAP EPS ($)Q1 FY2026—$0.63–$0.67 New
Revenue ($B)FY2026—$2.240–$2.280 New
Non-GAAP Op Income ($M)FY2026—$210–$230 New
Non-GAAP EPS ($)FY2026—$2.44–$2.62 New
AssumptionsFY2026—Non-Atlas down high single digits; ~$50M multiyear license headwind New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
Atlas consumptionQ2: “better-than-expected” Atlas consumption; Q3: Atlas +26% YoY; 68% mix Stable YoY growth; better than expected; Atlas +24% YoY; 71% mix Stabilizing; positive mix
Non-Atlas multiyear variabilityQ3 ahead of expectations on EA; ASC 606 variability noted >$10M multiyear license revenue above Q4 guidance; FY26 ~$50M headwind expected Near-term tailwind; FY26 headwind
Go-to-market upmarketProductivity improving; move upmarket in Q3 Continued productivity gains; 320 customers ≥$1M ARR (+24% YoY) Strengthening
AI initiativesQ2 MAAP launch; Q3 MongoDB 8.0 vector quantization Voyage AI acquisition to improve retrieval; trustworthy AI emphasis Expanding capabilities
Margin outlookQ3 non-GAAP op margin 19% Q4 non-GAAP op margin 21%; FY26 guided ~10% midpoint due to mix, R&D, marketing Near-term compression guided
Hyperscaler partnershipsRecognitions with AWS/Microsoft (Q3) Relationships “constructive” across AWS/Azure/GCP Stable/positive

Management Commentary

  • “We expect to see stable consumption growth for Atlas in fiscal '26 compared to fiscal '25.” — Dev Ittycheria (prepared remarks) .
  • “Non-Atlas came in ahead of our expectations... multiyear license revenue benefit was over $10 million more than was contemplated in our Q4 guidance.” — Serge Tanjga .
  • “We are very excited about our long-term opportunity in AI… With the Voyage AI acquisition, MongoDB makes AI applications more trustworthy by pairing real-time data and sophisticated embedding and retrieval models.” — Dev Ittycheria .
  • “We redeemed our 2026 convertible notes… our balance sheet is debt free… Board has authorized a $200 million stock buyback.” — Serge Tanjga .

Q&A Highlights

  • Non-Atlas trajectory: FY2026 expects high single-digit decline driven by ~$50M multiyear license headwind; renewal base lower after two strong years; variability from ASC 606 explained .
  • Atlas dynamics: Stable YoY consumption; seasonal Q1 sequential headwind (fewer days, holiday seasonality); Atlas expected flat to slightly up sequentially in Q1 .
  • Voyage AI integration: Will remain available broadly; to be integrated natively (e.g., auto embeddings), aiming to reduce hallucinations via leading embeddings/reranking .
  • Go-to-market and margins: Upmarket pivot reflected in guidance; reallocations from mid-market; margin compression in FY26 due to R&D (Voyage integration) and marketing investments .
  • Competitive stance: High win rates vs. Postgres and hyperscaler “clones”; MongoDB positioned as unified platform vs. cobbled components (OLTP + search + vector + embeddings) .

Estimates Context

  • S&P Global consensus data for Q4 FY2025 and prior periods was unavailable due to access limits at the time of retrieval. As a result, we cannot quantify Street beats/misses versus consensus in this recap. Values would normally be retrieved from S&P Global (Capital IQ).
  • Company-reported performance was above company guidance for Q4 and FY2025; FY2026 guidance introduces a lower margin profile with explicit non-Atlas headwinds and elevated investment levels .

Key Takeaways for Investors

  • Q4 delivered strong execution above company guidance, with stabilizing Atlas consumption, robust new workloads, and margin expansion; however, FY2026 guides to lower operating margins due to known headwinds and investment priorities .
  • Near-term revenue mix will shift more toward Atlas as non-Atlas ARR growth moderates and multiyear license revenue normalizes; FY2026 non-Atlas down high single digits is embedded in the outlook .
  • Voyage AI acquisition strengthens MDB’s AI stack around high-quality retrieval, aiming to reduce hallucinations and improve trustworthiness—differentiating MDB versus legacy and point-solution architectures .
  • Capital allocation supportive: redemption of converts (debt-free) and $200M buyback to offset acquisition dilution; ample liquidity with ~$2.3B cash and investments .
  • Watch Q1 sequential dynamics: fewer days and holiday seasonality will weigh on sequential growth; Atlas expected flat to slightly up sequentially; EA revenue seasonally lower .
  • Medium-term thesis: Upmarket motion improving productivity and large customer penetration (320 ≥$1M ARR); app modernization plus AI workloads could be meaningful drivers beyond FY2026 .
  • Trading implications: Near-term sentiment may hinge on confidence in “stable” Atlas consumption and tolerance for FY2026 margin compression; narrative strength around trustworthy AI and integrated platform could be supportive on execution .

Additional Q4 Documents and Prior Quarter References

  • Q4 FY2025 8-K and press release: revenue/margins, guidance, buyback, customer metrics .
  • Q4 earnings call transcript: Atlas trends, non-Atlas variability, margin outlook, Voyage AI integration .
  • Voyage AI acquisition press release: strategic rationale and technology detail .
  • Prior quarters for trend analysis: Q3 FY2025 press release (529.4M revenue, Atlas 68% mix, 394.0M gross profit) and Q2 FY2025 press release (478.1M revenue, Atlas 71% mix) .