How MDB (MongoDB) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a cloud database technology provider like MDB Income Statement Overview makes money is essential for investors and anyone interested in the business of enterprise software and data management. In this post, we break down MDB's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick MDB Overview

MDB Income Statement Overview operates a cloud-based database platform, offering scalable solutions for developers and enterprises. Its main products include MongoDB Atlas (cloud database service), enterprise software licenses, and support services.
Revenue comes primarily from subscription fees for cloud database services and software licenses, with a smaller portion from professional services.
MDB’s business segments are: - Total Subscription Revenue (cloud and on-premise software) - Services Revenue (consulting, training, and support)

Revenue Breakdown

• Total Revenue (Q2 2025): $591.4M (+23.7% YoY)
  • Total Subscription Revenue: $572.4M (96.8% of total, +23.4% YoY)
  • Services Revenue: $19.0M (3.2% of total, +33.2% YoY)
• Growth is powered by expanding cloud adoption (MongoDB Atlas), strong enterprise demand, and upselling existing customers.

Gross Profit and Margins

• Gross Profit: $420.0M (71.0% gross margin)
  • Cost of Revenue: $171.4M (+33.7% YoY)
  • MDB maintains robust margins due to its scalable digital business model and efficient cloud infrastructure.
• Most costs come from:
  • Cloud infrastructure hosting
  • Support and maintenance
  • Professional services delivery

Operating Income and Expenses

• Operating Income: Not disclosed for Q2 2025 in provided data
• Operating Expenses: $485.3M (+15.2% YoY)
  • R&D: $181.7M (+22.0% YoY, 30.7% of revenue) — Focused on product innovation, cloud platform enhancements, and security features.
  • SG&A: $303.5M (+11.5% YoY, 51.3% of revenue) — Includes sales force expansion, marketing, and general corporate costs.
  • MDB continues to prioritize innovation and invest in growth while maintaining operational efficiency.

Net Income

• Pre-Tax Income: Not disclosed for Q2 2025 in provided data
• Income Tax: Not disclosed for Q2 2025 in provided data
• Net Income: $47.0M (-13.7% YoY, 8.0% net margin)
• MDB converts a moderate portion of sales into profit due to its scalable SaaS model and strong pricing power, despite heavy investment in R&D and sales.

What Drives MDB's Money Machine?

• Cloud Subscription Revenue: 96.8% of revenue comes from subscriptions, especially MongoDB Atlas.
• Customer Growth & Retention: Over 23% YoY revenue growth, driven by new customer acquisition and expansion within existing accounts.
• R&D Investment: $181.7M in Q2 2025, fueling product innovation and platform differentiation.
• Future Growth Areas: Expansion into analytics, AI integrations, and global enterprise markets, though these segments are not yet profitable.

Visualizing MDB's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A and R&D) taking the largest chunk.
• Even after heavy investments in innovation and sales, 8% of revenue drops to the bottom line.

Key Takeaways

• MDB's money comes overwhelmingly from cloud subscription revenue
• High gross and moderate net margins illustrate the power of MDB's scalable SaaS business model
• Heavy investment in R&D, balanced by efficiency in operating costs
• Ongoing growth is driven by cloud adoption, enterprise expansion, and product innovation

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FAQ About MDB's Income Statement

1. What is the main source of MDB's revenue in 2025?

MDB generates over 96% of its revenue from cloud and software subscription services. Professional services contribute a small but growing share.

2. How profitable is MDB in Q2 2025?

MDB reported net income of $47.0M in Q2 2025, with a net margin of approximately 8%, reflecting moderate profitability driven by strong gross margins and ongoing investment in growth.

3. What are the largest expense categories for MDB?

The biggest expenses on MDB's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached $181.7M in Q2 2025, as MDB prioritizes product innovation and platform enhancements.

4. Why does services segment operate at a loss?

Services, despite generating $19.0M in revenue, posted an operating loss due to MDB's aggressive investment in customer success and support, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does MDB's effective tax rate compare to previous years?

MDB's effective tax rate for Q2 2025 was not disclosed in the provided data. Historically, MDB’s tax rate has been moderate, influenced by international structuring and share-based compensation.

Note: All financial figures and percentages are sourced directly from MDB's Q2 2025 financial statements. For a visual breakdown, refer to the Sankey chart above, which illustrates the flow of revenue through costs and down to net income, helping investors understand where MDB creates value and where expenses weigh on profitability[1][4][5].