MongoDB Q2 2025 Earnings Analysis

Dive into $MDB MongoDB’s Q2 2025 earnings with review of financial performance, key metrics, operating expenses, dilution, customer growth, future outlook

Financial Results:

↗️$591M rev (+23.7% YoY, +7.7% QoQ) beat est by 7.3%

↘️GM* (73.8%, -1.7 PPs YoY)🟡

↗️Operating Margin* (14.7%, +3.7 PPs YoY)

↗️FCF Margin (11.8%, +12.7 PPs YoY)

↗️Net Margin (-8.0%, +3.5 PPs YoY)

↗️EPS* $1.00 beat est by 53.8%

*non-GAAP

Atlas

↗️$438M rev (+27.0% YoY, 74% of Rev)🟢

↗️Atlas Net New ARR $169M (+76.3% YoY)

Key Metrics

➡️Net AR Expansion 119% (119% LQ)

↗️Billings $581M (+26.0% YoY)🟢

Customers

➡️58,300 Atlas customers (+18.5% YoY, +2500)

↘️7,300 Direct Sales Customers ( YoY, -200)🔴

↗️59,900 customers (+18.1% YoY, +2800)🟢

➡️2,564 $100k+ customers (+17.1% YoY, +58)

Operating expenses

↘️S&M*/Revenue 34.1% (-3.7 PPs YoY)

↘️R&D*/Revenue 17.8% (-1.6 PPs YoY)

↘️G&A*/Revenue 7.2% (-0.1 PPs YoY)

Quarterly Performance Highlights

↗️Net New ARR $163M (+51.9% YoY)

↘️CAC* Payback Period 17.3 Months (-8.5 YoY)🟢

↗️R&D* Index (RDI) 1.29 (+0.59 YoY)🟢

Dilution

↘️SBC/rev 24%, -0.4 PPs QoQ

↘️Basic shares up 10.2% YoY, -0.8 PPs QoQ🔴

↘️Diluted shares up 10.2% YoY, -8.0 PPs QoQ🔴

Guidance

↗️Q3'25 $587.0 - $592.0M guide (+11.4% YoY) beat est by 1.7%

↗️$2,340.0 - $2,360.0M FY guide (+17.1% YoY) raised by 3.1% beat est by 3.1%

Key points from MongoDB’s Second Quarter 2025 Earnings Call:

Financial Performance

MongoDB delivered $591 million in revenue, up 24% year-over-year and above guidance. Non-GAAP operating income was $87 million, yielding a 15% margin, compared to 11% last year. Net income reached $87 million, or $1.00 per share, up from $59 million, or $0.70 last year. Gross profit was $436 million with a 74% margin, slightly lower due to Atlas comprising a larger share of revenue. The company ended the quarter with $2.3 billion in cash and investments, repurchased $200 million of stock, and generated $70 million in free cash flow, a turnaround from negative $4 million a year earlier.

Mike Berry, Chief Financial Officer
“The improvement in free cash flow demonstrates the scalability of our model as we continue to balance growth with increasing profitability.”

Atlas Growth

Atlas revenue grew 29% year-over-year, accelerating from 26% in Q1, and accounted for 74% of total revenue, up from 71% last year. Sequential dollar additions were among the strongest in years, with consumption growth consistent with 2025 but boosted by strong May activity. Atlas customers rose to 58,300, compared to 49,200 a year ago. Total customer count reached 59,900, an increase of 2,800 sequentially, including 300 from Voyage. Workloads added in the past year scaled faster and grew larger than earlier cohorts, with U.S. enterprise adoption driving much of the growth. Non-Atlas revenue is expected to decline mid-single digits in FY26, but Atlas momentum offsets this headwind.

Dev Ittycheria, President and Chief Executive Officer
“Atlas is now firmly established as the growth engine of our business, and its accelerating scale underscores our leadership in cloud data services.”

Atlas Flex

Atlas proved its ability to handle both structured and unstructured workloads. A global automaker adopted Atlas to manage 8.5 million vehicles, overcoming Postgres’ schema rigidity and scalability issues. The platform consolidated infrastructure and improved reliability. Deutsche Telekom deployed Atlas across 90 clusters, managing 60 million records for 30 million customers, enabling 15 times more concurrent logins than legacy systems. Customer wins highlight Atlas as a consolidation platform for mission-critical workloads, though convincing entrenched relational users to modernize remains a challenge.

Dev Ittycheria, President and Chief Executive Officer
“Atlas has proven time and again that it can run the workloads most critical to our customers’ operations—workloads where failure is simply not an option.”

Vector Search

Vector Search is becoming a differentiator in AI-native workloads. A leading EV company adopted it for autonomous driving, managing over one billion vectors and projecting 10x growth next year. DevRev built its AgentOS on Atlas, processing billions of monthly requests and enriching semantic search with Vector Search. Integrated capabilities reduce reliance on external vector databases. AI workloads remain early-stage in enterprises, contributing modestly to revenue, with adoption focused on lower-stakes use cases.

Dev Ittycheria, President and Chief Executive Officer
“Vector Search is not an add-on; it’s a core capability that customers are building entirely new classes of applications around.”

MongoDB 8.0

The release of MongoDB 8.0 was described as the company’s most performant version, with 8.1 expected to deliver further improvements. Investments in AI-driven tooling aim to automate migration from legacy relational systems, lowering cost and complexity. The release extends MongoDB’s role beyond a traditional database, though adoption must translate into material consumption growth.

Dev Ittycheria, President and Chief Executive Officer
“Every major release strengthens our platform and enhances the developer experience, ensuring MongoDB is not just keeping pace with change but driving it.”

Stream Processing

Native stream processing allows real-time event handling without external systems, reducing infrastructure complexity and cost. Agibank, with 2.7 million customers, migrated from Postgres to Atlas and achieved 5x better performance with 90% lower costs and zero outages. Embedding stream processing expands MongoDB’s reach into adjacent workloads, though differentiation from dedicated competitors remains essential.

Dev Ittycheria, President and Chief Executive Officer
“Stream processing inside the database changes the game—it means customers can act on data as it’s created, not hours later.”

Platform Differentiation

MongoDB positioned itself as more than a database, integrating search, vector search, embeddings, and stream processing natively. Postgres requires add-ons to achieve similar capabilities. The platform is trusted by over 70% of the Fortune 500, including 7 of the 10 largest global banks, 14 of the 15 largest healthcare companies, and 9 of the 10 largest manufacturers, reflecting strong enterprise-grade credentials.

Dev Ittycheria, President and Chief Executive Officer
“Our differentiation lies in the fact that we are not forcing developers to stitch together half a dozen technologies to build modern applications.”

Voyage AI

The Voyage AI acquisition embeds embedding models directly into the platform, strengthening MongoDB’s position as a gateway between private data and LLMs. This integration reduces hallucinations, improves accuracy, and simplifies hybrid search, advancing MongoDB’s role in the AI stack.

Dev Ittycheria, President and Chief Executive Officer
“Owning the embedding layer means we are directly at the intersection of enterprise data and AI, which is a position of enormous strategic value.”

Customer Growth

Total customers reached 59,900, up from 50,700 a year earlier. Sequential growth was 2,800, including 300 from Voyage. Atlas drove most of the expansion with 58,300 customers compared to 49,200 a year ago. Customers with at least $100,000 in ARR rose to 2,564, up 17% year-over-year. Direct sales customers remained at 7,300, reflecting focus on larger enterprises.

Dev Ittycheria, President and Chief Executive Officer
“We are not just adding accounts; we are adding customers whose workloads expand, scale, and deepen over time.”

Customer Wins

Automotive: A global automaker uses Atlas to manage connected vehicles at scale, replacing Postgres.
Telecommunications: Deutsche Telekom consolidated billing, contracts, and device management for 30 million customers using Atlas.
Financial Services: Agibank achieved major performance and cost gains by migrating its content system to Atlas.
AI Startups: DevRev built AgentOS entirely on Atlas to scale billions of requests globally.
EV Sector: A leading EV firm chose Atlas Vector Search over Postgres PG Vector for 1 billion vectors, with 10x growth expected.

Dev Ittycheria, President and Chief Executive Officer
“Every one of these wins shows our ability to displace legacy systems at the heart of industries that demand reliability at scale.”

Go-to-Market Strategy

MongoDB uses self-serve channels for SMBs and startups while focusing enterprise sales on large, complex workloads. Self-serve growth has been supported by targeted campaigns toward SQL developers and education programs. Enterprise efforts target workloads that expand faster and generate durable consumption.

Dev Ittycheria, President and Chief Executive Officer
“Our go-to-market strategy ensures we can win the developer in the startup garage and the CIO in a Fortune 100 boardroom.”

Global Expansion

Adoption is expanding internationally, with notable wins such as Agibank in Brazil, which reported performance and cost improvements after migrating to Atlas. Global traction reinforces MongoDB’s ability to displace relational incumbents across diverse markets.

Dev Ittycheria, President and Chief Executive Officer
“Global demand for our platform is accelerating, proving that the challenges we solve are universal across markets and industries.”

Challenges

Non-Atlas subscription revenue is forecast to decline mid-single digits due to multiyear license headwinds. AI adoption in enterprises is still limited to productivity and low-stakes applications, with hesitancy around scalability, reliability, and probabilistic outcomes. Postgres remains a common startup default until scaling issues emerge.

Dev Ittycheria, President and Chief Executive Officer
“The opportunity is clear, but education is critical—many startups only discover the limits of Postgres after it’s too late.”

Future Outlook

Revenue guidance for FY26 was raised to $2.34–$2.36 billion, up $70 million. Operating margin expectations were lifted to 14%, up from 12.5%. Atlas is expected to deliver mid-20% growth in the second half. Management emphasized long-term opportunities in AI, application modernization, and workload consolidation, positioning MongoDB as a foundation for the next wave of digital transformation.

Mike Berry, Chief Financial Officer
“Our raised outlook reflects not just short-term execution, but also our conviction in the durability of Atlas growth and the expanding margins of our business.”

Dev Ittycheria, President and Chief Executive Officer
“We are building not just for today’s transformation but for the next decade, where AI and real-time data will define competitive advantage.”

Thoughts on MongoDB Earnings Report $MDB:

🟢 Positive

• $591M revenue (+24% YoY, +8% QoQ) beat guidance and estimates.

• Atlas revenue $438M (+27% YoY), now 74% of total revenue; net new ARR $169M (+76% YoY).

• Operating margin 14.7% (+3.7 pps YoY); FCF margin 11.8% (+12.7 pps YoY).

• EPS $1.00 beat estimates by 53.8%.

• Billings $581M (+26% YoY).

• $2.34B–$2.36B FY26 guide raised by 3.1%; Q3 guide beat by 1.7%.

• Customers with $100k+ ARR 2,564 (+17% YoY).

• CAC payback 17.3 months (improved by 8.5 months YoY).

🟡 Neutral

• Total customers 59,900 (+18% YoY, +2,800 sequentially).

• Atlas customers 58,300 (+18.5% YoY, +2,500 sequentially).

• Net revenue expansion 119%, flat QoQ.

• Gross margin 73.8%, down 1.7 pps YoY due to Atlas mix.

• R&D, S&M, and G&A ratios declined modestly as % of revenue.

• AI workloads adoption still early; limited to lower-stakes use cases.

🔴 Negative

• Direct sales customers 7,300, down 200 YoY.

• SBC 24% of revenue, diluted shares up 10.2% YoY.

• Non-Atlas revenue expected to decline mid-single digits in FY26.

• Continued competitive pressure from Postgres at early-stage startups.

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Disclaimer: This earnings review is for informational purposes only and does not constitute financial, investment, or trading advice.