MongoDB (MDB) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue reached $529.4 million, up 22% year-over-year, with Atlas contributing 68% of total revenue and growing 26% year-over-year.

• Customer base expanded to over 52,600, with strong growth in direct sales and customers generating $100,000+ in ARR.

• Significant product and partnership developments, including MongoDB 8.0 launch, expanded AI and cloud collaborations, and new ecosystem partners.

• Strategic focus on enterprise channel, legacy app modernization, and AI-driven workloads.

• COO and CFO Michael Gordon to depart after fiscal year-end, with interim leadership plan in place.

Financial highlights

• Subscription revenue was $512.2 million, up 22% year-over-year; services revenue was $17.2 million, up 18%.

• Gross profit was $405.7 million (non-GAAP, 77% margin); GAAP gross margin was 74%.

• Non-GAAP operating income was $101.5 million (19% margin); net income was $98.1 million ($1.16 per share non-GAAP), up from $79.1 million ($0.96 per share) last year.

• Net loss narrowed to $9.8 million ($0.13 per share), improved from $29.3 million ($0.41 per share) year-over-year.

• Free cash flow was $34.6 million; cash and equivalents totaled $2.3 billion at quarter-end.

Outlook and guidance

• Q4 FY2025 revenue guidance: $515 million–$519 million; full-year revenue guidance raised to $1.973–$1.977 billion.

• Non-GAAP operating income for FY2025 expected at $241.8–$245 million; non-GAAP net income per share expected at $3.01–$3.03.

• Anticipates typical Q4 seasonal slowdown in Atlas consumption and sequential decline in non-Atlas revenue due to non-recurring multi-year deals in Q3.

• Customer count expected to be impacted by migration to Atlas Flex clusters, with ~4,000 low-spend serverless customers not transitioning.

• Management expects macroeconomic headwinds to continue impacting Atlas application growth rates in the short term.