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AI Analysis Summary
MongoDB, Inc. at a Glance: What the Business Does Founded in 2007 and headquartered in New York City, MongoDB, Inc. (MDB) has established itself as a leader in the software infrastructure sector, primarily through its innovative database solutions. The company offers a suite of products including MongoDB Enterprise Advanced, a robust commercial database server tailored for enterprise customers, and MongoDB Atlas, a multi-cloud database-as-a-service platform that simplifies data management for organizations. Additionally, MongoDB provides a free Community Server version, which attracts developers and startups, fostering a strong community and ecosystem around its platform. MongoDB's competitive advantages stem from its flexible schema design, scalability, and strong support for modern applications, making it a preferred choice for businesses transitioning to cloud-based infrastructures. As organizations increasingly prioritize data-driven decision-making, MongoDB's unique capabilities position it favorably within the rapidly evolving software landscape. Breaking Down MDB's Financials: Revenue, Margins & EPS In the latest fiscal year, MongoDB reported revenue of $2.46 billion, reflecting a significant increase of 22.8% from the prior year's revenue of $2.01 billion. This upward trend in revenue has been consistent over the past three years, with figures climbing from $1.68 billion in 2023 to the current level. Despite this growth, the company has faced challenges in profitability, posting a gross profit of $1.77 billion, which translates to a gross margin of 71.7%. However, MongoDB reported an operating loss of $136.97 million, yielding an operating margin of -5.6%, and a net loss of $71.15 million, resulting in a net margin of -2.9%. The earnings per share (EPS) stands at -$0.88, indicating that while revenue growth is robust, the company has yet to achieve profitability, which poses potential concerns for investors. MDB Balance Sheet Check: Debt, Cash & Liquidity MongoDB's balance sheet reflects a strong liquidity position, with total assets amounting to $3.76 billion against total liabilities of $806.49 million. The company has a substantial cash reserve of $1.08 billion, resulting in a net debt position of -$1.08 billion, indicating that MongoDB is effectively debt-free. The absence of total debt allows the company to maintain flexibility in its operations and investments. Furthermore, the current ratio stands at an impressive 4.65, suggesting that MongoDB is well-equipped to meet its short-term obligations. Overall, the balance sheet appears robust, providing a solid foundation for future growth and strategic initiatives. Where Does MDB's Cash Go? A Capital Allocation Review MongoDB has demonstrated strong operating cash flow generation, reporting $505.15 million in the latest fiscal year. This healthy cash flow has facilitated the generation of $500.19 million in free cash flow, which has surged by an impressive 314.6% year-over-year. The company has utilized a portion of its cash for stock buybacks, amounting to $400.33 million, highlighting a commitment to returning value to shareholders despite the lack of dividend payments. The focus on reinvesting cash into the business, alongside strategic buybacks, reflects MongoDB's growth-oriented approach. As free cash flow continues to grow, investors can expect the company to maintain its trajectory of capital allocation that prioritizes both shareholder returns and future investments. MDB Valuation: Expensive, Cheap, or Fairly Priced? MongoDB's valuation metrics suggest a premium positioning relative to the broader technology sector. Currently, the stock trades at a price-to-book (P/B) ratio of 10.53 and a price-to-sales (P/S) ratio of 12.62. Given the company's significant revenue growth and potential for future profitability, these valuations may reflect market expectations for continued expansion. However, the absence of traditional valuation metrics such as the P/E ratio and EV/EBITDA complicates a direct comparison with peers. Investors should consider that the current pricing implies a strong belief in MongoDB’s growth trajectory, which is crucial as the company strives for profitability in the coming years. Catalysts Ahead: MDB's Growth Outlook & Analyst Estimates While specific analyst estimates are currently unavailable, MongoDB's growth trajectory appears promising based on its historical performance and market trends. The company has consistently expanded its revenue base, and as enterprises increasingly adopt cloud solutions, MongoDB is well-positioned to capitalize on this shift. Growth drivers include the continued uptake of its MongoDB Atlas platform, which offers scalability and flexibility that align with modern IT infrastructures. As the database market grows, MongoDB's innovative solutions are likely to attract more enterprise customers, further enhancing its market share. Investors should monitor future earnings announcements for updates on growth indicators and potential surprises. MDB Investment Risks Worth Knowing About Investors considering MongoDB should be aware of specific risks that could impact the stock's performance. The company's ongoing operating losses, reflected in its negative profit margins, raise concerns about its path to profitability. Additionally, the competitive landscape in the database market is fierce, with numerous players vying for market share, which could exert pressure on margins. Regulatory risks related to data privacy and compliance also pose potential challenges, especially for a company operating in multiple jurisdictions. Furthermore, with a beta of 1.49, MongoDB exhibits higher volatility, suggesting that macroeconomic fluctuations could significantly impact the stock's performance. 2026 Outlook: Is MongoDB, Inc. Stock Worth Owning? In conclusion, MongoDB, Inc. presents a compelling case for growth-oriented investors, given its strong revenue growth and robust balance sheet. However, the company still faces hurdles in achieving profitability, which necessitates careful consideration. The stock may appeal to those willing to accept higher risks for the potential of substantial rewards, particularly as the demand for cloud-based database solutions continues to rise. Investors should keep a close eye on MongoDB's financial performance, market expansion efforts, and strategic initiatives as they assess the stock's suitability for their portfolios. Overall, while the outlook for 2026 appears promising, a balanced approach that considers both the potential and the inherent risks is essential for making informed investment decisions regarding MDB stock.
Financial figures come from MongoDB, Inc.'s latest annual SEC filing (fiscal year 2025), so they can lag recent quarters. Prices are delayed up to 15 minutes.
About MongoDB, Inc.
MongoDB, Inc. provides general purpose database platform worldwide. The company offers MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud, on-premise, or in a hybrid environment; MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB. It also provides professional services comprising consulting and training. The company was formerly known as 10gen, Inc. and changed its name to MongoDB, Inc. in August 2013. MongoDB, Inc. was incorporated in 2007 and is headquartered in New York, New York.
Frequently Asked Questions about MDB
MongoDB, Inc. (MDB): what does the company actually do?
MongoDB, Inc. specializes in providing a versatile database platform globally. Their offerings include MongoDB Enterprise Advanced for enterprise clients and MongoDB Atlas, a multi-cloud database-as-a-service that allows for flexibility in deployment.
Is MDB worth adding to a portfolio in 2026?
Considering its revenue growth of 22.8% year-over-year, MongoDB shows strong potential for future expansion. However, with a current EPS of -0.88 and a net income of -71.15 million, investors should weigh these growth prospects against the current financial challenges.
What are MongoDB, Inc.'s market cap and current trading price?
As of now, MongoDB's stock price stands at $385.93, contributing to a market capitalization of approximately $31.09 billion. This positions the stock significantly above its 52-week low of $215.68, although it remains below the 52-week high of $473.10.
Is MDB a dividend-paying stock?
MongoDB does not currently distribute dividends to its shareholders. Instead, the company appears to be reinvesting its earnings into growth initiatives, as evidenced by its substantial revenue increase.
How does MongoDB, Inc. stack up on profitability?
MongoDB has a net margin of -2.9% and a negative net income of $71.15 million, indicating current profitability challenges. Despite this, the company boasts a free cash flow of $500.19 million, which suggests it has liquidity to support operations and growth.
Is MDB trading at a reasonable P/E multiple?
MongoDB's P/E ratio is not available due to its negative earnings per share. In the context of the software infrastructure sector, this absence of a P/E ratio may suggest that the company is in a growth phase, prioritizing expansion over immediate profitability.
Is MongoDB, Inc. carrying a lot of debt?
MongoDB's debt-to-equity ratio is not applicable, indicating that the company may not be heavily leveraged at this time. Additionally, with a current ratio of 4.65, it appears to have a strong cash position to cover short-term liabilities.
What's the 52-week high and low for MDB?
The stock has experienced a 52-week high of $473.10 and a low of $215.68. Currently priced at $385.93, MongoDB is trading well above its low but significantly below its high, reflecting some volatility in the stock's performance.
Does MDB behave more like a growth stock or a value stock?
With a revenue growth rate of 22.8%, MongoDB aligns more closely with growth stock characteristics. However, its negative EPS of -0.88 suggests that it may not yet be appealing to value investors looking for immediate profitability.
What's the biggest risk factor for MDB investors?
One notable risk for investors in MongoDB is its beta of 1.49, which indicates that the stock may experience higher volatility compared to the market. Additionally, the company's current lack of profitability and reliance on continued revenue growth could pose further risks amid competitive pressures in the technology sector.