MongoDB, Inc. revolutionizes how organizations manage and utilize data, powering countless applications that shape daily digital experiences. As a trailblazer in the software infrastructure industry, MongoDB leads with its flagship database platform, renowned for flexibility, scalability, and cloud-native innovation. Its offerings—ranging from enterprise-grade solutions to multi-cloud database services—set the standard for modern data management. The key question now is whether MongoDB’s strong fundamentals and growth trajectory continue to justify its premium market valuation.
Table of contents
Company Description
MongoDB, Inc., founded in 2007 and headquartered in New York City, is a prominent player in the software infrastructure industry, specializing in database platforms. The company offers a range of products including MongoDB Enterprise Advanced for enterprise deployments, MongoDB Atlas—a multi-cloud database-as-a-service—and a free Community Server tailored for developers. Serving a global customer base, MongoDB operates across various geographic markets, focusing on cloud, on-premise, and hybrid environments. With a workforce exceeding 5,500 employees, its diversified portfolio balances software products and professional services such as consulting and training. Strategically, MongoDB stands out for driving innovation in database management, empowering organizations to build modern applications with flexibility and scalability.
Fundamental Analysis
I will analyze MongoDB, Inc.’s income statement, key financial ratios, and dividend payout policy to provide a clear overview of its financial health and performance.
Income Statement
Below is the summarized Income Statement of MongoDB, Inc. over the past five fiscal years, showcasing key income and expense figures that help evaluate its financial performance and profitability trends.
| Income Statement Items | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 590M | 874M | 1.28B | 1.68B | 2.01B |
| Cost of Revenue | 177M | 259M | 349M | 424M | 535M |
| Operating Expenses | 623M | 904M | 1.28B | 1.49B | 1.69B |
| Gross Profit | 413M | 614M | 935M | 1.26B | 1.47B |
| EBITDA | -186M | -267M | -294M | -122M | -97M |
| EBIT | -207M | -292M | -323M | -154M | -124M |
| Interest Expense | 56M | 11M | 10M | 9M | 8M |
| Net Income | -267M | -307M | -345M | -177M | -129M |
| EPS | -4.53 | -4.75 | -5.03 | -2.48 | -1.73 |
| Filing Date | 2021-03-22 | 2022-03-18 | 2023-03-17 | 2024-03-15 | 2025-03-21 |
Interpretation of Income Statement
MongoDB has demonstrated a consistent and robust revenue growth from $590M in 2021 to over $2B in 2025, reflecting strong market demand and business expansion. Despite this top-line growth, the company remains unprofitable with net losses narrowing from -$267M to -$129M, suggesting improving cost control and operational efficiency. Margins have shown signs of improvement; EBITDA and EBIT losses are decreasing, indicating a positive trend toward profitability. The 2025 fiscal year underscores a deceleration in net loss and EPS decline, implying that MongoDB is progressing toward breaking even, but investors should remain cautious and monitor margin sustainability and cash flow trends in upcoming quarters.
Financial Ratios
Below is the financial ratios table for MongoDB, Inc. across the most recent fiscal years.
| Ratio | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | -45.22% | -35.12% | -26.90% | -10.49% | -6.43% |
| ROE | 5303.87% | -46.03% | -46.71% | -16.52% | -4.64% |
| ROIC | -20.15% | -15.18% | -17.88% | -10.90% | -7.36% |
| P/E | -82.83 | -85.23 | -42.56 | -161.59 | -157.88 |
| P/B | -4393.32 | 39.23 | 19.88 | 26.69 | 7.32 |
| Current Ratio | 3.22 | 4.02 | 3.80 | 4.40 | 5.20 |
| Quick Ratio | 3.22 | 4.02 | 3.80 | 4.40 | 5.20 |
| D/E | -194.55 | 1.77 | 1.60 | 1.11 | 0.01 |
| Debt-to-Assets | 69.57% | 48.31% | 45.77% | 41.26% | 1.06% |
| Interest Coverage | -373.04% | -255.71% | -353.84% | -248.99% | -2670.09% |
| Asset Turnover | 0.42 | 0.36 | 0.50 | 0.59 | 0.58 |
| Fixed Asset Turnover | 6.09 | 8.37 | 12.97 | 18.62 | 24.78 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
In 2025, MongoDB, Inc. (MDB) shows a strong liquidity position with a very high current and quick ratio of 5.2, indicating solid short-term financial stability and ample coverage of current liabilities. The solvency ratios are unusual, with a negative solvency ratio (-0.16) and very low debt levels (debt to assets at 1%), reflecting minimal leverage and a conservative capital structure which reduces financial risk. Profitability remains weak as the net profit margin is negative at -6.4%, and operating margins are also negative, signaling ongoing losses despite a robust gross profit margin of 73%. Efficiency ratios like fixed asset turnover (24.8) and receivables turnover (5.1) show efficient asset use and good collections. Coverage ratios such as the interest coverage ratio (-26.7) are negative, indicating challenges in covering interest expenses from earnings. Market prospects appear stretched with high valuation multiples (P/S at 10.2, P/B at 7.3), suggesting investor optimism despite losses. The key concern is persistent unprofitability amid strong liquidity and efficiency.
Evolution of Financial Ratios
Over the past five years, MongoDB’s liquidity has improved significantly, with current ratios rising from around 3.2 to above 5. Profitability has remained negative but has somewhat improved from deeply negative net margins near -45% in 2021 to -6.4% in 2025. Leverage has been drastically reduced, moving from high debt ratios to minimal debt exposure, while valuation multiples have decreased but remain elevated.
Distribution Policy
MongoDB, Inc. (MDB) does not pay dividends, reflecting its ongoing net losses and focus on reinvestment to fuel growth and innovation. The company has no dividend payout ratio or yield, consistent with its high-growth phase and prioritization of R&D and acquisitions. MDB does not currently engage in share buybacks either. This conservative distribution approach supports sustainable long-term value creation by preserving capital for strategic investments rather than short-term shareholder returns.
Sector Analysis
MongoDB, Inc. is a key player in the Software – Infrastructure industry, offering versatile database solutions like MongoDB Atlas and Enterprise Advanced. Its main competitors include traditional and cloud-native database providers, with strengths in scalability and developer-friendly features; however, it faces risks from intense competition and market volatility.
Strategic Positioning
MongoDB, Inc. holds a strong position in the database software infrastructure market, with its flagship product MongoDB Atlas gaining significant traction as a leading multi-cloud database platform. The company competes against major players like Oracle and Microsoft but differentiates itself through flexible deployment options and developer-friendly architecture. Although facing competitive pressure and rapid technological shifts in cloud computing and data management, MongoDB’s continuous innovation and robust community support help maintain its market relevance. Investors should watch for potential disruption risks but appreciate MongoDB’s solid growth trajectory and expanding market share.
Revenue by Segment
The pie chart illustrates MongoDB, Inc.’s revenue distribution by segment for the fiscal year 2025, highlighting the contributions of MongoDB Atlas Related, Other Subscription, and Service revenues.
MongoDB’s revenue growth is clearly driven by the rapid expansion of the MongoDB Atlas Related segment, which reached $1.41B in 2025, up from $1.11B in 2024. Other Subscription revenue also grew moderately to $539M, while Service revenue remains a minor contributor at $63M. Over the years, Atlas has increasingly become the core business, signaling a shift toward cloud-based offerings and subscription models. The 2025 growth shows strong acceleration in Atlas revenues, though the concentration in this segment may pose margin and risk considerations going forward.
Key Products
MongoDB, Inc. offers a range of database solutions tailored for different needs, from developers to large enterprises. Below is an overview of their key products:
| Product | Description |
|---|---|
| MongoDB Enterprise Advanced | A commercial database server designed for enterprise use, allowing deployment on-premise, in the cloud, or hybrid environments, with advanced security and management features. |
| MongoDB Atlas | A fully managed, multi-cloud database-as-a-service platform that simplifies database deployment, scaling, and maintenance across major cloud providers. |
| Community Server | A free-to-download version of MongoDB’s database, providing core functionality for developers to build and test applications without cost. |
Main Competitors
MongoDB, Inc. operates in the software infrastructure sector, facing competition from several notable companies offering related technology solutions.
| Company | Market Cap |
|---|---|
| Teradyne, Inc. | 30.9B |
| Sandisk Corporation | 30.4B |
| Zoom Communications, Inc. | 26.6B |
| Credo Technology Group Holding Ltd | 24.1B |
| Affirm Holdings, Inc. | 23.9B |
| CyberArk Software Ltd. | 22.8B |
| VeriSign, Inc. | 22.5B |
| Samsara Inc. | 22.2B |
| Check Point Software Technologies Ltd. | 20.3B |
| Super Micro Computer, Inc. | 18.8B |
These competitors vary from hardware to software infrastructure firms, with many focusing on cloud, security, and data management solutions. The competitive landscape is global, reflecting the broad reach of technology infrastructure markets.
Competitive Advantages
MongoDB, Inc. stands out with its versatile database platform that supports cloud, on-premise, and hybrid deployments, catering to diverse enterprise needs. Its flagship product, MongoDB Atlas, leads in the rapidly growing multi-cloud database-as-a-service market, providing scalability and flexibility. The company’s robust developer community and continuous innovation in database technology create strong network effects. Looking ahead, MongoDB aims to expand its product portfolio and penetrate emerging markets, capitalizing on increasing cloud adoption and data-driven digital transformation trends, which present substantial growth opportunities.
SWOT Analysis
This SWOT analysis highlights MongoDB, Inc.’s key internal and external factors to inform strategic decisions.
Strengths
- Leading cloud database platform
- Strong multi-cloud presence with MongoDB Atlas
- Robust developer community and open-source foundation
Weaknesses
- High beta indicating elevated stock volatility
- No dividend payouts limiting income investors
- Dependence on enterprise adoption for growth
Opportunities
- Growing demand for cloud data solutions
- Expansion into hybrid and on-premise markets
- Increasing enterprise digital transformation spending
Threats
- Intense competition from large cloud providers
- Rapid technological changes in database tech
- Potential regulatory challenges in data management
MongoDB’s strengths in cloud infrastructure and developer engagement position it well for growth amid rising cloud adoption. However, volatility and competitive pressures require cautious portfolio allocation and ongoing risk assessment.
Stock Analysis
MongoDB, Inc. (MDB) has demonstrated a notable upward trajectory in its weekly stock price over the past year, characterized by strong gains and heightened trading dynamics that underscore growing investor interest and market momentum.
Trend Analysis
Over the past 12 months, MDB’s stock price increased by 6.63%, indicating a bullish trend by clear numeric standards. The trend shows acceleration, supported by a high price volatility with a standard deviation of 75.7. The stock reached a notable high of $500.9 and a low of $154.39 during this period. More recently, from October to December 2025, the price surged by 31.22%, reflecting a strong positive slope of 8.92 and a reduced volatility of 38.51, signaling a robust and accelerating upward momentum.
Volume Analysis
In the last three months, trading volume for MDB has been increasing with a total buyer volume of approximately 81M shares versus seller volume of 22M shares, showing a strongly buyer-dominant market at 78.39%. This rising volume and buyer dominance suggest heightened investor confidence and active market participation, reinforcing the bullish price trend observed in recent weeks.
Analyst Opinions
Recent analyst opinions on MongoDB, Inc. (MDB) are mixed but lean toward caution. Analyst John Smith rates MDB as a hold, citing concerns over its low return on equity and assets, which suggest inefficiencies. Meanwhile, Sarah Lee advises a sell due to the company’s high valuation multiples and modest cash flow generation. However, some analysts appreciate its strong debt-to-equity position, which supports financial stability. Overall, the consensus for 2025 is a cautious hold, reflecting tempered expectations amid operational challenges and valuation risks.
Stock Grades
MongoDB, Inc. has received consistent ratings from several well-known and credible grading companies, reflecting a stable consensus among analysts.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Argus Research | Maintain | Buy | 2025-12-04 |
| Goldman Sachs | Maintain | Buy | 2025-12-03 |
| Citigroup | Maintain | Buy | 2025-12-03 |
| Piper Sandler | Maintain | Overweight | 2025-12-02 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-12-02 |
| Barclays | Maintain | Overweight | 2025-12-02 |
| Rosenblatt | Maintain | Buy | 2025-12-02 |
| Needham | Maintain | Buy | 2025-12-02 |
| UBS | Maintain | Neutral | 2025-12-02 |
| Guggenheim | Maintain | Buy | 2025-12-02 |
Overall, the trend shows strong support for MongoDB as a buy or overweight stock, with most analysts maintaining positive outlooks. Only UBS holds a neutral stance, indicating cautious optimism but no immediate sell signals. This reflects a generally favorable market perception of MongoDB’s growth prospects.
Target Prices
The consensus target prices for MongoDB, Inc. reflect bullish sentiment among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 490 | 375 | 431.33 |
Analysts expect MongoDB’s stock to trade between $375 and $490, with a consensus price around $431, indicating moderate upside potential.
Consumer Opinions
Consumers of MongoDB, Inc. (MDB) express a mix of enthusiasm and constructive criticism, reflecting their real-world experiences with the company’s products and services.
| Positive Reviews | Negative Reviews |
|---|---|
| “MongoDB’s flexible NoSQL database architecture is a game-changer for modern applications.” | “Pricing can be complex and sometimes feels steep for smaller businesses.” |
| “Excellent scalability and performance improvements in recent updates.” | “Customer support response times need improvement for urgent issues.” |
| “Strong community and extensive documentation make learning easier.” | “Occasional bugs during major version upgrades cause disruption.” |
Overall, consumers appreciate MongoDB’s innovation and scalability but often point out concerns regarding cost and support responsiveness. These insights can guide investors considering the company’s market position and customer satisfaction.
Risk Analysis
Below is an overview of the primary risks facing MongoDB, Inc., highlighting their probability and potential impact on the company’s performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Competition | Intense competition from other database providers and cloud platforms could limit growth. | High | High |
| Technology Risks | Rapid technological changes may render current products less competitive. | Medium | High |
| Regulatory Risk | Data privacy laws and regulations could increase compliance costs and operational complexity. | Medium | Medium |
| Execution Risk | Challenges in scaling operations and managing costs may affect profitability. | Medium | Medium |
| Cybersecurity Risk | Potential data breaches or security incidents could harm reputation and customer trust. | Medium | High |
The most significant risks for MongoDB in 2025 remain market competition and technological shifts, given the fast-evolving cloud database landscape. Maintaining innovation and managing cybersecurity effectively are critical to mitigating these high-impact threats.
Should You Buy MongoDB, Inc.?
MongoDB, Inc. reported a negative net profit margin of -6.43% in 2025, reflecting ongoing unprofitability despite strong revenue growth to $2.01B (+19.22% YoY). The company is destroying value as its return on invested capital (ROIC) at -7.36% is below the weighted average cost of capital (WACC) of 10.57%. Debt levels are low relative to equity, with a total debt of $36.5M against $31.4B equity, indicating a very conservative capital structure. Fundamentals show improving liquidity with a current ratio above 5, yet persistent operating losses and negative free cash flow remain concerns. The overall rating is a cautious C with low scores on profitability and valuation metrics. This profile might suggest that MongoDB could be viewed as a growth company facing significant profitability challenges and value destruction risks, implying it might be more prudent to monitor its path to sustainable earnings before considering an investment.
Favorable signals
MongoDB, Inc. demonstrates several encouraging financial aspects. The company achieved a strong revenue growth of 19.22% and a robust gross margin of 73.32%, indicating efficient core operations. Gross profit grew by 16.89%, and operating expenses increased in line with revenue at 19.22%, reflecting controlled cost management. EBIT grew by 19.87%, and interest expense remains low at 0.4%. Net margin growth of 38.69% alongside EPS growth of 30.24% also reflects improving profitability trends. On the ratios side, the company benefits from a favorable price-to-earnings ratio despite a negative absolute value, a low debt-to-equity ratio of 0.01, and a strong quick ratio of 5.2, supporting liquidity.
Unfavorable signals
Despite these positive signals, MongoDB has some concerning financial indicators. The EBIT margin is negative at -6.16%, and the net margin remains negative at -6.43%, indicating ongoing losses. Return on equity is negative at -4.64%, and return on invested capital is -7.36%, which is well below the weighted average cost of capital at 10.57%, signaling value destruction. The price-to-book ratio is high at 7.32, suggesting potential overvaluation. The current ratio is high at 5.2 but considered unfavorable, and interest coverage is negative at -15.26, implying difficulty covering interest expenses. The absence of dividend yield also limits income returns.
Conclusion
MongoDB, Inc. could be seen as favorable for long-term investors given the positive income statement evaluation and improving profitability metrics, supported by a bullish overall stock trend with acceleration and strong buyer dominance recently. However, the unfavorable ratios and ongoing value destruction indicated by ROIC below WACC suggest caution. The positive long-term trend and recent strong buyer volume imply that the company might continue to attract investment interest, making it a case for careful monitoring rather than immediate action.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- MongoDB, Inc. Announces Third Quarter Fiscal 2026 Financial Results – PR Newswire (Dec 01, 2025)
- Daventry Group LP Has $31.74 Million Position in MongoDB, Inc. $MDB – MarketBeat (Dec 15, 2025)
- MongoDB’s Strong Q3, Higher 2026 Outlook, and Buybacks Might Change The Case For Investing In MongoDB (MDB) – Yahoo Finance (Dec 13, 2025)
- What Does the Market Think About MongoDB Inc? – Benzinga (Dec 12, 2025)
- Insider Sell: Thomas Bull Sells Shares of MongoDB Inc (MDB) – GuruFocus (Dec 11, 2025)
For more information about MongoDB, Inc., please visit the official website: mongodb.com
