A maker of database software that stores data in flexible documents rather than rigid tables, used by developers building everything from apps to AI features. Founded in 2007 as 10gen by three veterans of the online-advertising firm DoubleClick, the company's Atlas service runs its database in the cloud across the major providers' networks. The name "MongoDB" comes from the word "humongous," a nod to handling huge data — though fans often joke it references the character Mongo from the 1974 film Blazing Saddles.
MongoDB swung to net income of $4.4M in Q1 FY2027 as free cash flow rose 84% to $199.3M.
MongoDB turned profitable. rose 25% to $687.6 million and the company reported of $4.4 million, driven by higher Atlas consumption from large existing customers that pushed the to 121%. The business is now generating cash at scale, but subscription slipped to 75% as cloud hosting costs continued to climb.
Key takeaways
reached $4.4 million, a swing from a $37.6 million net loss a year ago, aided by a $13.4 million gain on non-marketable securities in other income.
rose 25% to $687.6 million, with subscription revenue up 25% to $666.1 million, primarily from increased Atlas consumption by large existing customers.
Atlas reached 75% of total , up from 72% a year ago, and the rose to 121% as of April 30, 2026, indicating that existing customers are expanding their usage.
Section summaries
Management's Discussion and Analysis
MongoDB Q1 FY2027 revenue grew 25% to $687.6M, driven by Atlas consumption, and the company achieved net income of $4.4M.
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Total increased 25% to $687.6 million, with subscription revenue up 25% to $666.1 million, primarily due to higher Atlas consumption by large existing customers.
Subscription declined to 75% from 76% a year ago, as the growing Atlas mix increased third-party cloud infrastructure costs, though overall gross margin improved to 72% from 71% due to a smaller services loss.
rose 83% to $201.6 million, and reached $199.3 million, as the company generated cash well in excess of its .
The company repurchased $100.0 million of common stock during the quarter under its $1.0 billion authorization, and held $2.4 billion in cash, equivalents, and short-term investments at quarter-end.
What changed
The net loss that earlier filings tracked quarter by quarter has now flipped to of $4.4 million, the second consecutive quarter of profitability after Q4 FY2026's $15.5 million, confirming the trajectory toward sustained positive earnings.
Subscription , flagged repeatedly as a watch item, fell further to 75% from 76% a year ago and 76% in Q4 FY2026, showing that the mix shift toward Atlas continues to pressure profitability even as overall gross margin ticked up.
The , which had been a concern when it dipped to approximately 119% in FY2025, rose to 121%, suggesting the macroeconomic on existing application consumption that management cited for multiple quarters is easing.
The Baxter v. MongoDB securities class action, flagged in every recent filing, saw the court partially deny the motion to dismiss as to four specific statements, and the company filed for reconsideration on May 15, 2026, keeping the litigation active with no estimate of possible loss.
of $199.3 million in a single quarter now nearly matches the $120.6 million generated in all of FY2024, marking a step change in the company's cash generation profile.
What to watch
Subscription trajectory: whether the 75% level stabilizes or declines further as Atlas grows beyond 75% of and the new $300 million cloud infrastructure commitment ramps.
Baxter v. MongoDB reconsideration ruling: the court's decision on the motion for reconsideration will determine whether the securities class action proceeds to discovery or narrows, with potential implications for management attention and financial exposure.
sustainability: whether the 121% rate holds or improves, as it directly reflects the health of the land-and-expand model now that macroeconomic pressure appears to be easing.
pace under the $1.0 billion authorization: whether the company continues buying at the $100 million quarterly pace and how it affects the $2.4 billion cash position alongside the cloud commitment.
Atlas represented 75% of total revenue, up from 72% a year ago, and the was 121% as of April 30, 2026.
Overall improved to 72% from 71%, but subscription gross margin declined to 75% from 76% due to higher Atlas-related third-party cloud infrastructure costs.
Operating expenses rose 17% to $521.0 million, driven by increased personnel costs, travel for a sales kickoff event, and higher commissions, partially offset by lower in sales and marketing.
The company swung to of $4.4 million from a net loss of $37.6 million, aided by a $13.4 million increase in other income from gains on non-marketable securities.
Cash provided by operations was $201.6 million, and the company repurchased $100.0 million of common stock, with $2.4 billion in cash, equivalents, and short-term investments at quarter-end.
Quantitative and Qualitative Disclosures About Market Risk
MongoDB reports immaterial interest-rate and FX risk, with $2.4B in cash/investments and no hedging derivatives used.
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Cash, equivalents, restricted cash, and short-term investments totaled $2.4B as of April 30, 2026, held mainly in bank deposits, money market funds, and U.S. treasuries.
A hypothetical 10% change in interest rates would not materially impact the fair value of investments.
Sales contracts are primarily in USD, GBP, or EUR; a portion of opex is incurred in foreign currencies, mainly GBP and EUR.
A hypothetical 10% change in FX rates would not materially impact historical consolidated financials for the three months ended April 30, 2026 or 2025.
The company has not entered into derivative or hedging transactions for FX but may do so if exposure becomes more significant.
carried at $37.7M (April 30, 2026) are subject to partial or total loss of invested capital and could cause material volatility due to price changes or impairments.
MongoDB faces a securities class action and derivative suits over alleged misstatements; no loss can be estimated.
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A putative securities class action (Baxter v. MongoDB) alleges material misstatements about sales strategy, growth projections, and financial results for purchases between June 2023 and May 2024.
The court partially denied the as to four specific statements; defendants filed for reconsideration on May 15, 2026.
Two federal derivative suits (Roy and Silva) were consolidated in S.D.N.Y., and a Delaware derivative suit (Sansone) was filed, all alleging fiduciary breaches tied to the same alleged misstatements.
The derivative litigations are stayed pending the outcome of the reconsideration motion in the securities action.
The company states it cannot estimate any reasonably possible loss or range of loss and intends to defend itself vigorously.
MongoDB faces material risks from macroeconomic headwinds, Atlas revenue concentration, intense competition, and evolving data privacy/AI regulations.
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Unfavorable global economic conditions, including inflation, rising interest rates, and geopolitical conflicts, could reduce IT spending and limit MongoDB's growth.
The business is substantially dependent on Atlas, its usage-based offering, making future less predictable and highly sensitive to customer consumption patterns.
Intense competition from established legacy database providers (e.g., Oracle, Microsoft) and large cloud providers (e.g., AWS, Azure) could pressure pricing and market share.
Failure to retain and expand existing customer subscriptions, or to convert users of free offerings (Community Server, free Atlas tier), would materially harm financial results.
Evolving and stringent global data privacy and security laws (e.g., GDPR, CCPA) and new AI regulations (e.g., EU AI Act) create significant compliance costs and legal risks.
The company's use of the new Server Side Public License (SSPL) for Community Server may hinder its adoption due to legal uncertainty and lack of open-source approval.