How MDB (MongoDB) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a cloud database like MongoDB makes money is essential for investors and anyone interested in the business of software. In this post, we break down MongoDB's quarterly income statement (Q4 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick MongoDB Overview

MongoDB operates as a leading modern database platform, offering MongoDB Atlas (a fully managed cloud database service), MongoDB Enterprise Advanced (for enterprise deployments), and MongoDB Community Server (open-source edition). Revenue comes primarily from subscription-based software licenses and cloud services, with a small portion from professional services. The company focuses on developer-friendly, scalable NoSQL databases that power applications in cloud environments across multiple segments including Atlas cloud services and on-premises/self-managed offerings.

Revenue Breakdown

• Total Revenue (Q4 2025): $0.628B (+18.7% YoY)
  • Total Subscription Revenue: $0.609B (96.9% of total)
  • Services Revenue: $0.019B (3.1% of total)
  • Growth is powered by strong demand for MongoDB Atlas cloud subscriptions, reflecting expanding adoption among developers and enterprises migrating to cloud-native databases.

Gross Profit and Margins

• Gross Profit: $0.449B (71.5% gross margin)
  • Cost of Revenue: $0.179B (+32.4% YoY)
  • MongoDB maintains robust margins due to scalable digital business model and cloud infrastructure efficiencies, where incremental customer growth incurs lower variable costs.
• Most costs come from hosting and support for cloud services (Atlas), data center expenses, and personnel for subscription fulfillment.

Operating Income and Expenses

• Operating Income: -$0.018B (N/A YoY, -2.9% margin, calculated as gross profit minus operating expenses)
• Operating Expenses: $0.468B (+10.8% YoY)
  • R&D: $0.177B (+16.6% YoY, 28.1% of revenue) — focused on enhancing Atlas features, AI integrations, and database performance innovations to support next-gen applications.
  • SG&A: $0.291B (+7.6% YoY, 46.3% of revenue) — covers sales, marketing efforts to acquire enterprise customers, and general administrative functions.
  • MongoDB continues to prioritize innovation while expanding operations to capture market share in the growing cloud database sector.

Net Income

• Pre-Tax Income: N/A (inferred negative from operating loss and other items)
• Income Tax: N/A (minimal impact given near-breakeven net)
• Net Income: $0.002B (-79.5% YoY, 0.3% net margin)
• MongoDB converts a moderate portion of sales into profit due to scalability offset by heavy growth investments, with razor-thin positivity from other income items.

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What Drives MongoDB's Money Machine?

• Atlas Subscription Revenue: 96.9%+ of revenue — core driver from cloud-hosted database services, growing 18.9% YoY as enterprises shift to managed, multi-cloud solutions.
• Customer Growth and Dollar-Based Net Expansion Rate: MongoDB benefits from high net retention (typically over 120% historically), where existing customers expand usage, fueling organic growth.
• R&D Investments: Heavy spending on AI-driven search, vector capabilities, and serverless offerings to differentiate in competitive NoSQL market.
• Future growth areas: Enterprise adoption and international expansion, though services revenue remains a small, low-margin contributor.

Visualizing MongoDB'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.[1][2]

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after large investments in R&D and sales, 0.3% of revenue drops to the bottom line.

Key Takeaways

• MongoDB's money comes overwhelmingly from subscription revenue, led by Atlas cloud services
• High gross and net margins illustrate the power of MongoDB's asset-light SaaS model
• Heavy investment in R&D, balanced by efficiency in operating costs
• Ongoing growth is driven by cloud migration trends and developer ecosystem expansion

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FAQ About MongoDB's Income Statement

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

MongoDB generates over 96.9% of its revenue from Total Subscription Revenue, primarily MongoDB Atlas cloud services. Services Revenue contributes a minor 3.1%.

2. How profitable is MongoDB in Q4 2025?

MongoDB reported net income of $0.002B in Q4 2025, with a net margin of approximately 0.3%, reflecting moderate profitability driven by high gross margins amid aggressive growth investments.

3. What are the largest expense categories for MongoDB?

The biggest expenses on MongoDB's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached $0.177B in Q4 2025, as MongoDB prioritizes cloud innovations and AI features.

4. Why does Services division operate at a loss?

Services, despite generating $19.2M in revenue, contributes minimally to overall profitability due to its low-margin nature. This is because MongoDB views it as a support to core subscriptions, investing in delivery while prioritizing high-growth Atlas—even if services remain unprofitable today.

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

MongoDB's effective tax rate in Q4 2025 was minimal (near 0% given small positive net income), consistent with previous years. This low rate is primarily due to tax benefits from stock-based compensation and net operating loss carryforwards.