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

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Understanding how a cloud database technology leader like MDB Income Statement Overview makes money is essential for investors and anyone interested in the business of enterprise software and data infrastructure. 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 modern application development. Its main products include MongoDB Atlas (cloud database), enterprise software licenses, and developer tools.
Revenue comes primarily from subscription services (cloud and on-premises database solutions), with a smaller portion from professional services such as consulting and training.
MDB’s business segments are: - Total Subscription Revenue: Recurring revenue from cloud and software subscriptions - Services Revenue: Fees from 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 (Atlas), new enterprise customers, and upselling existing clients.

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 hosting infrastructure, customer support, and personnel for service delivery.

Operating Income and Expenses

• Operating Income: Not reported for Q2 2025 (operating expenses exceed gross profit, indicating an operating loss)
• Operating Expenses: $485.3M (+15.2% YoY)
  • R&D: $181.7M (+22.0% YoY, 30.7% of revenue) — Focused on enhancing database features, security, and cloud capabilities
  • SG&A: $303.5M (+11.5% YoY, 51.3% of revenue) — Includes sales, marketing, and administrative functions supporting global expansion
  • MDB continues to prioritize innovation and invest in growth while maintaining operational efficiency.

Net Income

• Pre-Tax Income: Not reported for Q2 2025
• Income Tax: Not reported for Q2 2025
• Net Income: $47.0M (-13.7% YoY, 8.0% net margin)
• MDB converts a moderate portion of sales into profit due to its scalable subscription model and disciplined cost management.

What Drives MDB's Money Machine?

• Subscription Revenue: 96.8% of revenue, driven by cloud database (Atlas) and enterprise software licenses
• Customer Growth: Over 23% YoY revenue growth fueled by new customer acquisition and expansion within existing accounts
• R&D Investment: $181.7M in Q2 2025, supporting product innovation and competitive differentiation
• Cloud Expansion: Atlas and related cloud services are key future growth areas, though services segment is 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 global sales, 8% of revenue drops to the bottom line.

Key Takeaways

• MDB's money comes overwhelmingly from subscription-based cloud and software services
• High gross margins 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 subscription services, primarily cloud database (Atlas) and enterprise software licenses. Services revenue (consulting, training) contributes 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 high gross margins and disciplined cost management.

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) at $181.7M and Sales, General & Administrative (SG&A) at $303.5M in Q2 2025. R&D investment focuses on product innovation and cloud capabilities.

4. Why does the services segment operate at a loss?

Services, despite generating $19.0M in revenue, posted an operating loss in Q2 2025. This is because MDB aggressively invests in customer success, training, 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 in Q2 2025 was not reported. Historically, the rate has been moderate, often influenced by tax benefits from share-based compensation and international structuring.