MongoDB (MDB) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue reached $478.1 million, up 13% year-over-year, with Atlas revenue growing 27% and representing 71% of total revenue.

• Customer count exceeded 50,700, with over 7,300 direct sales customers and 2,189 customers generating at least $100,000 in ARR.

• Non-GAAP net income was $59.0 million ($0.70 per share), while GAAP net loss widened to $54.5 million due to higher operating expenses.

• Launched MongoDB AI Applications Program (MAAP) with major cloud and AI partners, and received multiple industry recognitions.

• Retention rates remained strong, and the company sees significant long-term growth opportunities, especially in AI and legacy modernization.

Financial highlights

• Subscription revenue was $463.8 million (+13% YoY), representing 97% of total revenue; services revenue was $14.3 million (-1% YoY).

• Non-GAAP gross profit was $360.8 million (75% margin), down from 78% a year ago; GAAP gross profit was $349.9 million (73% margin).

• Free cash flow was negative $4 million, a significant improvement from negative $27.3 million a year ago.

• Stock-based compensation expense was $122.4 million in Q2, up from $113.3 million a year ago.

• Cash, equivalents, and investments totaled $2.3 billion at quarter end.

Outlook and guidance

• Q3 FY25 revenue guidance: $493–497 million; non-GAAP operating income: $57–60 million; non-GAAP EPS: $0.65–0.68.

• FY25 revenue guidance: $1.92–1.93 billion; non-GAAP operating income: $187–195 million; non-GAAP EPS: $2.33–2.47.

• Atlas revenue forecast raised due to higher starting ARR, but growth rate assumptions for Q3 and Q4 remain unchanged.

• Operating margin for FY2025 expected at 10% midpoint.

• Cash flow to be impacted by $20 million/quarter in cloud prepayments and $20–25 million CapEx for IPv4 addresses in Q3.