Q4 2025 Earnings Summary
- Strong Positioning in AI Market: MongoDB's platform is uniquely suited for AI applications due to its ability to handle different data types and support lexical and semantic search. With the acquisition of Voyage AI, MongoDB now offers the most accurate embedding and reranking models, providing a comprehensive and elegant developer experience that reduces friction and enables customers to move fast. This positions MongoDB well to redefine what it means to be a database in the age of AI.
- Successful Move Upmarket Leading to Increased Sales Productivity: MongoDB is seeing strength in new workload acquisitions across both high-end and low-end markets. The number of customers spending over $1 million is growing faster than the overall customer base, indicating successful execution of its strategy to move upmarket. This has resulted in increased sales productivity, and the company expects further gains in this area.
- Competitive Advantages Leading to High Win Rates: MongoDB offers a more comprehensive solution compared to databases like Postgres, integrating OLTP, search, and vector embeddings. Customers prefer MongoDB's elegant solution over assembling multiple tools, leading to high win rates against competitors. Additionally, MongoDB maintains positive relationships with hyperscalers, working collaboratively to win more business.
- Expected high single-digit decline in non-Atlas revenue in fiscal year 2026 due to a $50 million headwind from multiyear deals, resulting from a lower renewal base as many customers had already signed multiyear agreements in previous years. This reduces the opportunity for new multiyear deals in FY26 and could negatively impact overall growth.
- Decelerating growth in Atlas, with normalized growth after accounting for unused credits slowing to the low 20% range. Despite Atlas being a core product, the company expects consumption growth to be stable with fiscal year 2025, suggesting limited acceleration and potential challenges in driving higher growth rates.
- Key growth initiatives like AI and application modernization are expected to contribute minimally to FY26 revenue, with meaningful impact not expected until fiscal year 2027 and beyond. This delay in realizing benefits from these initiatives could lead to muted growth in the near term and raises concerns about the company's ability to generate significant revenue from new areas in the short term.
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | +20% | Total revenue grew to USD 548.35M in Q4 2025 from USD 458.0M in Q4 2024 driven by strong subscription performance and enhanced product consumption, building on previous quarters’ momentum where cloud (Atlas) and multiyear deal contributions set the stage for continued expansion. |
Subscription Revenue | +19% | Subscription revenue increased to USD 530.98M from USD 444.92M as robust demand for MongoDB’s platform—particularly through Atlas—continued to translate into higher direct sales, echoing the prior quarter’s higher growth rates and customer upgrades from self-serve to direct sales. |
Services Revenue | +33.7% | Services revenue rose markedly from USD 13.07M to USD 17.46M due to increased delivery of consulting and training services, supported by higher headcount and investments in professional services, continuing the trend observed in earlier periods where expanded capacity drove revenue growth. |
Americas Revenue | +20% | Americas revenue advanced to USD 331.1M from USD 274.77M as continued market demand and strong new business acquisition fueled growth, a result of sustained Atlas consumption and enterprise deals that had powered even steeper increases in previous quarters. |
EMEA Revenue | +16% | EMEA revenue increased to USD 152.23M from USD 131.18M reflecting improved adoption in a competitive market, aided by MongoDB’s overall strong performance and successful penetration tactics that, although robust, grew at a slightly lower rate relative to other key markets. |
Asia Pacific Revenue | +25% | Asia Pacific revenue jumped to USD 65.06M from USD 52.04M driven by deepening market penetration and rising demand in the region, suggesting a continued shift in customer preferences and reflecting accelerated growth compared to some mature markets. |
Net Income | Turnaround to +USD 15.83M | Net income turned positive (USD 15.83M vs. a loss of USD 55.46M) due to strong revenue growth, improved operating margins, and cost management, building on previous periods where operational leverage and efficiency gains laid the groundwork for profitability recovery. |
Gross Profit | +16% | Gross profit increased to USD 399.38M from USD 343.36M as the 20% boost in total revenue drove higher absolute profits, despite a slight compression in gross margin that may be linked to increased hosting costs for Atlas—a factor that previously spurred margin expansion when efficiencies were higher. |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Revenue (Quarterly) | Q1 2026 | $515M–$519M | $524M–$529M | raised |
Non‑GAAP Income from Operations (Quarterly) | Q1 2026 | $55M–$58M | $54M–$58M | lowered |
Non‑GAAP Net Income per Share (Quarterly) | Q1 2026 | $0.62–$0.65 | $0.63–$0.67 | raised |
Revenue (Annual) | FY 2026 | $1.973B–$1.977B | $2.24B–$2.28B | raised |
Non‑GAAP Income from Operations (Annual) | FY 2026 | $242M–$245M | $210M–$230M | lowered |
Non‑GAAP Net Income per Share (Annual) | FY 2026 | $3.01–$3.03 | $2.44–$2.62 | lowered |
Non‑GAAP Tax Provision (Annual) | FY 2026 | 20% | 20% | no change |
| Metric | Period | Guidance | Actual | Performance |
|---|---|---|---|---|
Revenue | Q4 2025 | $515 million to $519 million | $548.35 million | Beat |
Revenue | FY 2025 | $1.973 billion to $1.977 billion | $2,006.4 million (sum of Q1–Q4 2025 revenue) | Beat |
| Topic | Previous Mentions | Current Period | Trend |
|---|---|---|---|
AI and Generative AI Initiatives | In Q1–Q3, discussions focused on AI as a strategic growth driver, launching MAAP, and using generative AI for legacy modernization without detailing specific acquisitions or advanced models | Q4 emphasizes the Voyage AI acquisition and integration of advanced embedding models to improve trust and performance in mission-critical AI applications | Increased focus on technological integration and trust in AI, with new capabilities enhancing platform differentiation. |
Atlas Revenue and Consumption Growth Trends | Across Q1–Q3, Atlas revenue growth was strong initially but showed signs of deceleration; consumption growth was below expectations in Q1, modest improvements in Q2, and slight rebound in Q3 | Q4 shows stable Atlas consumption growth and improved performance from higher-quality earlier cohorts | A shift from earlier deceleration toward stabilization, with enhanced focus on workload performance driving future growth. |
Enterprise/Upmarket Strategy and Sales Productivity Improvements | Q1–Q3 emphasized shifting resources to large enterprise accounts, refining incentive structures, and driving productivity improvements through strategic account focus and developer education | Q4 highlights reallocation of sales resources from the mid-market to the upmarket, increased investments in strategic accounts, and continued improvements in sales productivity | Continued and deepening shift to upmarket focus with strategic reinforcement and improvement in sales efficiency. |
Legacy Application Modernization Efforts Leveraging AI | From Q1 to Q3, legacy modernization was a consistent theme with pilots and the use of AI (including GenAI-powered pilots) to cut costs and time, though without specific product mentions beyond the Relational Migrator and MAAP support | Q4 introduces a sharper focus on modernizing high-pain environments (e.g., Java apps on Oracle) and leverages the Voyage AI acquisition to address trust and accuracy, further emphasizing AI-driven modernization | Growing emphasis on legacy modernization using AI, now strengthened by strategic acquisitions to further lower migration costs and risks. |
Cloud Partnerships and Hyperscaler Integrations | Q1–Q3 consistently highlighted strong partnerships with AWS, Azure, and GCP, along with deep integrations and co-sell efforts (e.g., inclusion in MAAP and hyperscaler programs) | Q4 continues to stress a constructive and productive relationship with all major hyperscalers, notably a positive and collaborative approach with GCP while maintaining broad global availability | Stable and consistent focus, with an ongoing commitment to multi-hyperscaler integration and enhanced co-sell strategies. |
Sales Strategy and Workload Acquisition Quality | In Q1–Q3, workload acquisition quality was a concern with initial high volume but slower growth; adjustments were made (e.g., refining sales incentives and increasing enterprise focus) to shift towards higher quality workloads | Q4 reiterates the importance of acquiring high-quality, scalable workloads and improving Atlas consumption through enhanced sales tactics and focused workload strategies | A persistent focus on improving workload quality continues, with further refinements to sales incentive structures prioritizing long-term growth potential. |
Revenue Guidance Challenges and Multiyear Deal Headwinds | Q1–Q3 discussed the difficulty of year-over-year comparisons due to multiyear license revenue impacts and lower starting ARR, with challenges from legacy deals affecting non-Atlas revenue | Q4 reports a clear $50 million headwind from multiyear deals, anticipates sequential declines in non-Atlas revenue, and highlights the evolving challenge with revenue guidance amid accounting dynamics | Persistent revenue guidance challenges remain, with evolving multiyear deal dynamics putting continued pressure on non-Atlas revenue trends. |
Reduced Emphasis on Operating Margin and Operational Efficiency | Q1 and Q2 mentioned margin targets (e.g., 9–10%) and balanced investments, while Q3 focused on reallocating investments without explicitly reducing margin focus | Q4 explicitly states a reallocation and reinvestment approach—sacrificing some margin emphasis by investing in sales, marketing, and AI to capture long-term opportunities, even as margins remain healthy (e.g., 21% operating margin achieved) | A new emphasis emerges on prioritizing long-term growth over immediate margin expansion, reflecting a strategic trade-off to maximize future potential. |
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Multiyear Guidance Headwinds
Q: Is weaker guidance due to lower renewals or trend change?
A: The weaker guidance is not due to a change in trends but because the renewal base is lower in fiscal year '26 due to prior years' strong multiyear deals. We've done many more multiyear deals in fiscal years '24 and '25, so the renewal opportunity is much lower. Conversion rates remain the same; it's just a smaller opportunity set. -
Atlas Consumption Trends
Q: What drove Q4 Atlas consumption dynamics?
A: Q4 consumption was seasonally slower due to the holidays. We expect consumption growth in fiscal year '26 to be stable with fiscal year '25. This stability comes from a stable macro environment, increased usage from fiscal year '25 workloads, and our move upmarket, which offsets the larger base effect. -
Operating Expenses and Investments
Q: What changed in 90 days prompting more investments?
A: We're reallocating and reinvesting due to the unique opportunity AI presents. While we previously reallocated investments, we're now investing over and above that because we see AI as a once-in-a-lifetime opportunity. Our strong margins track record—reaching 21% operating margin in Q4—gives us confidence to invest now to maximize our long-term potential. -
Voyage AI Acquisition Impact
Q: Why acquire Voyage AI, and what's the integration plan?
A: We acquired Voyage AI to provide embedding and reranking models that increase the quality and trustworthiness of AI applications. We plan to integrate Voyage AI into MongoDB, offering features like auto embeddings to make developers' lives easier. This will be available to all customers, including those new to MongoDB, benefiting the business long term. -
Atlas Growth Deceleration
Q: Why is Atlas growth decelerating despite adjustments?
A: We expect Atlas consumption growth in fiscal year '26 to be stable with fiscal year '25. The apparent deceleration is due to the larger base and prior year's consumption patterns. What matters is the exit rate rather than the average throughout the year, as revenue slowed due to slower consumption growth in all quarters except Q4 last year. -
AI Workloads Going into Production
Q: When will AI workloads lift your business?
A: Customers' AI journey is gradual due to a lack of AI skills and rapid technological evolution. Use cases are currently simplistic, like chatbots and document summarization. However, we're well-positioned with our document model supporting all data types, embedded search and Vector Search, and now the most accurate embedding and reranking models through Voyage AI. We're excited but expect growth to take time as customers ramp up. -
Go-to-Market Shift Upmarket
Q: How is the move upmarket reflected in guidance?
A: We're pleased with progress; our $1 million customer count is growing faster than the rest of our customer base. Sales productivity gains from moving upmarket are included in our guidance. We reallocated investments from mid-market to upmarket without significantly increasing sales expenses. Investments focus more on R&D and educating customers about MongoDB's full capabilities. -
Competitive Position vs. Postgres and Hyperscalers
Q: How are you competing with Postgres and hyperscalers now?
A: Comparing MongoDB to Postgres is misleading; MongoDB offers a more comprehensive solution including OLTP, search, and AI capabilities. Our win rates against Postgres are very high. With hyperscalers, our relationships are positive; we often partner globally to win more business together. There's no structural issue, and these partnerships are mutually beneficial. -
Non-Atlas Business Trajectory
Q: What's the 5-year trend for the non-Atlas business?
A: We manage the business based on customer needs rather than by product. In Q4, non-Atlas ARR growth was in the mid-single digits year-over-year, a slowdown from double-digit growth the previous year. Customers historically using non-Atlas products are increasingly deploying incremental workloads on Atlas, contributing to growth in both areas. -
Fiscal '26 as a Transition Year
Q: What does fiscal '26 being a transition year mean?
A: Fiscal '26 is a transition year because major initiatives like application modernization and winning the AI stack will only incrementally benefit revenue this year. We expect these to become significant growth drivers in future years. We're bullish about the future, making the right investments now to position the company for accelerated growth. -
New Workloads Strength
Q: Where are you seeing new workload strength?
A: We're seeing strength across the board, both at the high end and low end of the market. Our new customer count this past quarter was strong, and our $1 million customer count is growing faster than the overall customer base. This indicates success in both attracting new customers and expanding within existing ones. -
Relational Migrator Momentum
Q: What's the momentum with relational migrator?
A: Our confidence is higher than ever. Migrating from legacy applications is challenging, but we're making progress and see significant customer interest due to technical debt burdens. Customers are motivated to modernize quickly to enable AI in their applications. We're focusing on Java apps running on Oracle, planning to scale this work in fiscal '26 and expecting it to impact our numbers in fiscal '27.
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