MongoDB Inc. · 10-Q · Item 2 MD&A

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Unless the context otherwise indicates, references in this report to the terms “MongoDB,” “the Company,” “we,” “our” and “us” refer to MongoDB, Inc., its divisions and its subsidiaries. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with (1) our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and (2) the audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 (the “2026 Form 10-K”).

All information presented herein is based on our fiscal calendar year, which ends January 31. Unless otherwise stated, references to particular years, quarters, months or periods refer to our fiscal years ended January 31 and the associated quarters, months and periods of those fiscal years.

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are often identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” “would” or the negative or plural of these words or similar expressions or variations, including our expectations regarding our future growth opportunity, revenue and revenue growth, investments, strategy, operating expenses and the anticipated impact of the global economic uncertainty and financial market conditions, caused by the macroeconomic environment, on our business, results of operations and financial condition.

Such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified herein, and those discussed in the section titled “Risk Factors,” set forth in Part 2, Item 1A of this Quarterly Report on Form 10-Q. You should not rely upon forward-looking statements as predictions of future events. Furthermore, such forward-looking statements speak only as of the date of this report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Our corporate website is located at www.mongodb.com. We make available free of charge, on or through our corporate website, our annual, quarterly and current reports, and any amendments to those reports, as soon as reasonably practicable after electronically filing such reports with, or furnishing such reports to, the Securities and Exchange Commission (“SEC”). Information contained on our corporate website is not part of this Quarterly Report on Form 10-Q or any other report filed with or furnished to the SEC.

Overview

MongoDB is the developer data platform company whose mission is to empower developers to create, transform, and disrupt industries by unleashing the power of software and data. The foundation of our offering is the world’s leading, modern general purpose database. Organizations can deploy our database at scale in the cloud, on-premises, or in a hybrid environment. Built on our unique document-based architecture, our database is designed to handle unstructured data and meet the needs of organizations for performance, scalability, flexibility and reliability while maintaining the strengths of relational databases. In addition to the database, our developer data platform includes a set of, tightly integrated, capabilities such as search, time series, data lifecycle, application-driven analytics and stream processing that allow developers to address a broader range of application requirements. Our business model combines the developer mindshare and adoption benefits of open source with the economic benefits of a proprietary software subscription business model.

We generate revenue primarily from sales of subscriptions, which accounted for 97% of our total revenue during each of the three and six months ended July 31, 2026 and 2025.

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Atlas is our hosted multi-cloud database-as-a-service (“DBaaS”) offering, which we run and manage in the cloud, and includes comprehensive infrastructure and management, as well as a host of additional features, such as Atlas Search, Vector Search, time series, data lifecycle, application-driven analytics and stream processing. During the three and six months ended July 31, 2026, Atlas revenue represented 73% and 74%, respectively, as compared to 74% and 73% of our total revenue during the three and six months ended July 31, 2025, respectively, reflecting the continued growth of Atlas since its introduction in June 2016. We have experienced strong growth in self-serve customers of Atlas, which are charged monthly in arrears based on their usage.

We have also seen growth in Atlas customers sold by our sales force, which typically sign annual contracts and pay in advance or are invoiced monthly in arrears based on usage. Customers sold to by our sales force may also sign contracts that remain in effect until terminated and are invoiced monthly in arrears based on usage. We expect to continue to see a higher portion of our Atlas contracts to be billed monthly in arrears based on usage without requiring upfront commitments.

MongoDB Enterprise Advanced is our proprietary commercial database server offering for enterprise customers that can run in the cloud, on-premises or in a hybrid environment. MongoDB Enterprise Advanced revenue represented 21% of our subscription revenue during each of the three and six months ended July 31, 2026 and 2025. We sell subscriptions directly through our field and inside sales teams, as well as indirectly through channel partners. The majority of our subscription contracts are one year in duration and are invoiced upfront. When we enter into multi-year subscriptions, the customer is typically invoiced on an annual basis or, in certain cases, upfront for the full contract term.

Many of our enterprise customers initially get to know our software by using Community Server, which is our free-to-download version of our database that includes the core functionality developers need to get started with MongoDB without all the features of our commercial platform. Our platform has been downloaded from our website more than 800 million times since February 2009. We also offer a free tier of Atlas, which provides access to our hosted database solution with limited processing power and storage, as well as certain operational limitations. As a result, with the availability of both Community Server and Atlas free tier offerings, our direct sales prospects are often familiar with our platform and may have already built applications using our technology.

A core component of our growth strategy for Atlas and MongoDB Enterprise Advanced is to convert developers and their organizations who are already using Community Server or the free tier of Atlas to become customers of our commercial products and enjoy the benefits of either a self-managed or hosted offering.

We also generate revenue from services, which consist primarily of fees associated with consulting and training services. Revenue from services accounted for 3% of our total revenue for each of the three and six months ended July 31, 2026 and 2025. We expect to continue to invest in our services organization as we believe it plays an important role in accelerating our customers’ realization of the benefits of our platform, which helps drive customer retention and expansion.

We compete in the database management software market, which is one of the largest in the software industry and growing. According to the IDC’s Semiannual Software Tracker, May 2026, the worldwide Database Management Software market was $108 billion in 2025, and is expected to grow to approximately $193 billion in 2030. This represents a 12% five-year compound annual growth rate. Over the last two years, a number of companies launched code assistant tools, which leverage generative AI to help developers write and test their code faster, thereby accelerating application development. We believe this acceleration in application development will further benefit the database management software market, by increasing the volume of new software and demand for scalable, flexible data platforms to manage the resulting growth of data.

We have experienced rapid growth and have made substantial investments in developing our platform and expanding our sales and marketing footprint. We intend to continue to invest to grow our business to take advantage of our market opportunity.

Macroeconomic and Other Factors

Our operational and financial performance is subject to risks including those caused by the adverse macroeconomic environment and the geopolitical landscape.

Adverse macroeconomic conditions include slower or negative economic growth and higher inflation. While the impact of these macroeconomic conditions on our business, results of operations and financial position remain uncertain over the long term, T1we expect to experience macroeconomic headwinds on growth rate for our existing Atlas applications in the short term.

We continue to monitor the developments of the macroeconomic environment and the geopolitical landscape. As these factors develop and we evaluate their impact on our business, we may adjust our business practices accordingly. For further

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discussion of the potential impacts of these factors on our business, operating results, and financial condition, see the section titled “Risk Factors” included in Part II, Item 1A of this Quarterly Report on Form 10-Q. Other factors affecting our performance are discussed below.

Share Repurchase Program

In February 2025, the Company’s Board of Directors authorized a program to repurchase up to $200.0 million of the Company’s common stock. In June 2025, the Company’s Board of Directors authorized an additional $800.0 million in repurchases under the Share Repurchase Program, bringing the aggregate authorized repurchase amount to $1.0 billion.

T2During the six months ended July 31, 2026, the Company repurchased 666,452 shares of common stock for $200.0 million and the average price per share for the six months ended July 31, 2026 was $300.10. All repurchases of common stock were made in open market transactions and recorded in treasury stock. As of July 31, 2026, the total remaining authorization under the Share Repurchase Program is $399.7 million.

The timing and amount of any repurchases will be determined by management based on an evaluation of market conditions and other factors. The program does not obligate us to acquire any particular amount of common stock, and the repurchase program may be suspended or discontinued at any time at our discretion.

Factors Affecting Our Performance

Extending Product Leadership and Maintaining Developer Mindshare

We are committed to delivering market-leading products to continue to build and maintain credibility with the global software developer community. We believe we must maintain our product leadership position and the strength of our brand to drive further revenue growth. We intend to continue to invest in our product offerings with the goal of expanding the functionality and adoption of our developer data platform. During 2024, we introduced MongoDB version 8.0 enhancing enterprise-grade security, resilience and availability for a wide variety of applications. We added additional features to Queryable Encryption, an encrypted search scheme, to support equality and range searches. Over the years, we have introduced additional features and functionality to Atlas, including Atlas Search, Atlas Vector Search, Atlas Data Federation, Atlas Charts, and Atlas Stream Processing, which now provide dedicated infrastructure for search use cases so customers can scale independently of their database to manage their workloads with greater flexibility and operational efficiency.

Recently, T3we have introduced an application programming interface (“API”) within Atlas that natively provides access to Voyage AI’s embedding and reranking models. These capabilities, when combined with the core functionality of Atlas, enable organizations to build, deploy and scale AI-powered applications with higher accuracy, lower latency and reduced architectural complexity.

We intend to continue to invest in our engineering capabilities and marketing activities to maintain our strong position in the developer community. We have spent $3.6 billion on research and development since our inception. Our results of operations may fluctuate as we make these investments to drive increased customer adoption and usage.

Growing Our Customer Base and Expanding Our Global Reach

We are intensely focused on continuing to grow our customer base. We have invested, and expect to continue to invest, in our sales and marketing efforts and developer community outreach, which are critical to driving customer acquisition. T4As of July 31, 2026, we had over 70,600 customers across a wide range of industries and in over 100 countries, compared to over 59,900 customers as of July 31, 2025. All affiliated entities are counted as a single customer and our definition of “customer” excludes users of our free offerings.

We are also focused on increasing the number of overall Atlas customers as we emphasize the on-demand scalability of Atlas by allowing our customers to consume the product with minimal commitment. We had over 69,300 Atlas customers as of July 31, 2026 compared to over 58,500 as of July 31, 2025. The growth in Atlas customers included new customers to MongoDB and existing MongoDB Enterprise Advanced customers adding incremental Atlas workloads.

Retaining and Expanding Revenue from Existing Customers

The economic attractiveness of our subscription-based model is demonstrated by customer renewals and increasing existing customer subscriptions over time, referred to as land-and-expand. We believe that there is a significant opportunity to drive additional sales to existing customers, and expect to invest in sales and marketing and customer success personnel and activities to achieve additional revenue growth from existing customers. If an application grows and requires additional

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capacity, our customers increase their usage of our platform. Our customers add incremental workloads or expand their subscriptions to our platform as they migrate additional existing applications or build new applications, either within the same department or in other lines of business or geographies. Also, as customers modernize their information technology infrastructure and move to the cloud, they may migrate applications from legacy databases. Our goal is to increase the number of customers that standardize on our platform within their organization, as well as add new workloads with new and existing customers. Over time, the subscription amount for our typical direct sales customer has increased.

We calculate annualized recurring revenue (“ARR”) to help us measure our subscription revenue performance. ARR includes the revenue we expect to receive from our customers over the following 12 months based on contractual commitments and, in the case of direct sales customers of Atlas, by annualizing the prior 90 days of their actual usage of Atlas, assuming no increases or reductions in their subscriptions or usage. For all other customers of our self-serve products, we calculate ARR by annualizing the prior 30 days of their actual usage of such products, assuming no increases or reductions in usage. ARR excludes professional services. The number of customers with $100,000 or greater in ARR was 2,999 and 2,564 as of July 31, 2026 and 2025, respectively.

Our ability to increase sales to existing customers will depend on a number of factors, including customers’ satisfaction or dissatisfaction with our products and services, competition, pricing, economic conditions or overall changes in our customers’ spending levels.

We also examine the rate at which our customers increase their spend with us, which we call net ARR expansion rate. We calculate net ARR expansion rate by dividing the ARR at the close of a given period (the “measurement period”), from customers who were also customers at the close of the same period in the prior year (the “base period”), by the ARR from all customers at the close of the base period, including those who churned or reduced their subscriptions. T5As of July 31, 2026, our net ARR expansion rate was 122%. Our net ARR expansion rate may fluctuate in future periods due to a variety of factors, including the volume and type of workloads that we onboard, growth rate of historical workloads on our platform and changes in the macroeconomic environment.

Components of Results of Operations

Revenue

Subscription Revenue. Our subscription revenue is comprised of database-as-a-service solutions and term licenses. Revenue from our Atlas database-as-a-service offering is primarily generated on a usage basis and is billed either monthly in arrears or paid upfront. Subscriptions to term licenses include technical support and access to new software versions on a when-and-if available basis. Revenue from our term licenses is recognized upfront for the license component and ratably for the technical support and when-and-if available update components. Associated contracts are typically billed annually in advance. The majority of our subscription contracts are one year in duration. When we enter into multi-year subscriptions, the customer is typically invoiced on an annual basis or pays upfront. Our subscription contracts are generally non-cancelable and non-refundable.

Services Revenue. Services revenue is comprised of consulting and training services and is recognized over the period of delivery of the applicable services.

We expect our revenue may vary from period to period based on, among other things, the timing and size of new subscriptions, customer usage patterns, the proportion of term license contracts that commence within the period, the rate of customer renewals and expansions, delivery of professional services, the impact of significant transactions and seasonality of or fluctuations in usage from our Atlas customers.

Cost of Revenue

Cost of Subscription Revenue. Cost of subscription revenue primarily includes third-party cloud infrastructure expenses for our database-as-a-service solutions. We expect our cost of subscription revenue to increase in absolute dollars as our subscription revenue increases and, depending on the results of Atlas, our cost of subscription revenue may increase as a percentage of subscription revenue as well. Cost of subscription revenue also includes personnel costs, including salaries, bonuses and benefits and stock-based compensation, for employees associated with our subscription arrangements principally related to technical support and allocated shared costs, as well as depreciation and amortization.

Cost of Services Revenue. Cost of services revenue primarily includes personnel costs, including salaries, bonuses and benefits, and stock‑based compensation, for employees associated with our professional service contracts, as well as, travel costs, the costs of contracted third-party consultants, allocated shared costs and depreciation and amortization. We expect our cost of services revenue to increase in absolute dollars as our services revenue increases.

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Gross Profit and Gross Margin

Gross Profit. Gross profit represents revenue less cost of revenue.

Gross Margin. Gross margin, or gross profit as a percentage of revenue, has been and will continue to be affected by a variety of factors, including the average sales price of our products and services, the mix of products sold, transaction volume growth and the mix of revenue between subscriptions and services. We expect our gross margin to fluctuate over time depending on the factors described above and, to the extent Atlas revenue increases as a percentage of total revenue, our gross margin may decline as a result of the associated hosting costs of Atlas.

Operating Expenses

Our operating expenses consist of sales and marketing, research and development and general and administrative expenses. Personnel costs are the most significant component of each category of operating expenses. Operating expenses also include travel and related costs and allocated overhead costs for facilities, information technology and employee benefit costs.

Sales and Marketing. Sales and marketing expense consists primarily of personnel costs, including salaries, sales commission and benefits, bonuses and stock‑based compensation. These expenses also include costs related to marketing programs, travel‑related expenses and allocated overhead. Marketing programs consist of advertising, events, corporate communications, and brand‑building and developer‑community activities. We expect our sales and marketing expense to increase in absolute dollars over time as we expand our sales force and increase our marketing resources, expand into new markets and further develop our self-serve and partner channels.

Research and Development. Research and development expense consists primarily of personnel costs, including salaries, bonuses and benefits, and stock‑based compensation. It also includes amortization associated with intangible acquired assets and allocated overhead. We expect our research and development expenses to continue to increase in absolute dollars, as we continue to invest in our developer data platform and develop new products.

General and Administrative. General and administrative expense consists primarily of personnel costs, including salaries, bonuses and benefits, and stock‑based compensation for administrative functions including finance, legal, human resources and external legal and accounting fees, as well as allocated overhead and the ongoing costs of compliance associated with being a publicly traded company. We expect general and administrative expense to increase in absolute dollars over time as we continue to invest in the growth of our business.

Other Income (Expense), Net

Other income (expense), net consists primarily of interest income, interest expense, gains and losses on financial instruments, net and gains and losses from foreign currency transactions.

Provision for Income Taxes

Provision for income taxes consists primarily of state income taxes in the United States and income taxes in certain foreign jurisdictions in which we conduct business.

We account for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted rates expected to be in effect during the year in which the basis differences reverse.

We regularly assess the need for a valuation allowance against our deferred tax assets. In making that assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. Refer to Note 11, Income Taxes, in our Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion regarding the valuation allowance.

Results of Operations

The following tables set forth our results of operations for the periods presented in U.S. dollars (unaudited, in thousands) and as a percentage of our total revenue. Percentage of revenue figures are rounded and therefore may not subtotal exactly.

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Three Months Ended July 31,

Six Months Ended July 31,

Consolidated Statements of Operations Data:

Revenue:

Subscription

$

$

$

$

Services

Total revenue

Cost of revenue:

Subscription(1)

Services(1)

Total cost of revenue

Gross profit

Operating expenses:

Sales and marketing(1)

Research and development(1)

General and administrative(1)

Total operating expenses

Income (loss) from operations

Other income, net

Income (loss) before provision for income taxes

Provision for income taxes

Net income (loss)

$

$

$

$

(1) Includes stock‑based compensation expense as follows (unaudited, in thousands):

Three Months Ended July 31,

Six Months Ended July 31,

Cost of revenue—subscription

$

$

$

$

Cost of revenue—services

Sales and marketing

Research and development

General and administrative

Total stock‑based compensation expense

$

$

$

$

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Three Months Ended July 31,

Six Months Ended July 31,

Percentage of Revenue Data:

Revenue:

Subscription

%

%

%

%

Services

3

%

3

%

3

%

3

%

Total revenue

%

%

%

%

Cost of revenue:

Subscription

%

%

%

%

Services

4

%

5

%

4

%

5

%

Total cost of revenue

%

%

%

%

Gross profit

%

%

%

%

Operating expenses:

Sales and marketing

%

%

%

%

Research and development

%

%

%

%

General and administrative

%

%

%

%

Total operating expenses

%

%

%

%

Income (loss) from operations

2

%

%

1

%

%

Other income, net

2

%

4

%

4

%

4

%

Income (loss) before provision for income taxes

4

%

(7)

%

5

%

(7)

%

Provision for income taxes

1

%

1

%

1

%

1

%

Net income (loss)

3

%

(8)

%

4

%

(8)

%

Revenue

Three Months Ended July 31,

Change

(unaudited, in thousands)

$

%

Subscription

$

$

$

%

Services

%

Total revenue

$

$

$

%

Total revenue growth reflects increased demand for our platform and related services. T6Subscription revenue increased by $174.8 million primarily due to an increase in consumption of Atlas by our large existing customers and growth in MongoDB Enterprise Advanced, reflecting ongoing expansion within our customer base, as evidenced by our net ARR expansion rate of 122% as of July 31, 2026.

Cost of Revenue, Gross Profit and Gross Margin Percentage

Three Months Ended July 31,

Change

(unaudited, in thousands)

$

%

Subscription cost of revenue

$

$

$

%

Services cost of revenue

%

Total cost of revenue

%

Gross profit

$

$

$

%

Gross margin

%

%

Subscription

%

%

Services

%

%

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The increase in subscription cost of revenue was primarily due to a $31.4 million increase in third‑party cloud infrastructure costs, including costs associated with the growth of Atlas and an increase of $2.3 million in personnel costs. The increase in third-party cloud infrastructure costs was partially offset by continued cost efficiencies realized as we scale Atlas. The decrease in services cost of revenue was primarily due to a decrease in third-party consultant costs related to the delivery of consulting and training services.

T7Our overall gross margin increased to 74%. Our subscription gross margin increased to 77% primarily due to a shift in subscription revenue mix toward MongoDB Enterprise Advanced and other revenue products. Services gross margin increased due to the impact of lower third-party consultant costs.

Operating Expenses

Sales and Marketing

Three Months Ended July 31,

Change

(unaudited, in thousands)

$

%

Sales and marketing

$

$

$

4

%

The increase in sales and marketing expense was primarily driven by a $5.2 million increase in spend on in-person events and digital marketing programs and a $4.6 million increase in commissions.

Research and Development

Three Months Ended July 31,

Change

(unaudited, in thousands)

$

%

Research and development

$

$

$

%

T8The increase in research and development expense was primarily driven by a $16.7 million increase in personnel costs and stock-based compensation, an $8.1 million increase in third-party infrastructure expenses to support ongoing product development and testing activities and a $7.0 million increase in software costs due to an increase in the use of AI tools.

General and Administrative

Three Months Ended July 31,

Change

(unaudited, in thousands)

$

%

General and administrative

$

$

$

%

The increase in general and administrative expense was primarily driven by a $14.2 million increase in personnel cost and stock-based compensation.

Other Income, Net

Three Months Ended July 31,

Change

(unaudited, in thousands)

$

%

Other income, net

$

$

$

%

Other income, net for the three months ended July 31, 2026 decreased primarily due to lower interest income from our short-term investments.

Provision for Income Taxes

Three Months Ended July 31,

Change

(unaudited, in thousands)

$

%

Provision for income taxes

$

$

$

%

The increase in the provision for income taxes during the three months ended July 31, 2026 was primarily due to an increase in foreign taxes as we continue our global expansion.

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Revenue

Six Months Ended July 31,

Change

(unaudited, dollars in thousands)

$

%

Subscription

$

$

$

%

Services

%

Total revenue

$

$

$

%

Total revenue growth reflects increased demand for our products and related services. Subscription revenue increased by $309.5 million primarily due to an increase in consumption of Atlas by our large existing customers and growth in MongoDB Enterprise Advanced, reflecting ongoing expansion within our customer base, as evidenced by our net ARR expansion rate of 122% as of July 31, 2026.

Cost of Revenue, Gross Profit and Gross Margin Percentage

Six Months Ended July 31,

Change

(unaudited, dollars in thousands)

$

%

Subscription cost of revenue

$

$

$

%

Services cost of revenue

(9)

%

Total cost of revenue

%

Gross profit

$

$

$

%

Gross margin

%

%

Subscription

%

%

Services

%

%

The increase in subscription cost of revenue was primarily due to a $60.8 million increase in third‑party cloud infrastructure costs, including costs associated with the growth of Atlas and an increase of $5.3 million in personnel costs and stock-based compensation. The increase in third-party cloud infrastructure costs was partially offset by continued cost efficiencies realized as we scale Atlas. The decrease in services cost of revenue was primarily due to a decrease in third-party consultant costs related to the delivery of consulting and training services.

Our overall gross margin increased to 73%. Our subscription gross margin remained at 76%. Services gross margin increased due to the impact of lower third-party consultant costs.

Operating Expenses

Sales and Marketing

Six Months Ended July 31,

Change

(unaudited, dollars in thousands)

$

%

Sales and marketing

$

$

$

8

%

The increase in sales and marketing expense was primarily driven by a $12.0 million increase in commissions, an $11.2 million increase in spend on in-person events and digital marketing programs, a $10.9 million increase in personnel costs, and a $7.9 million increase in travel-related expenses due to internal travel for our annual sales kickoff event that occurred in the first quarter of fiscal 2027. The increase in sales and marketing was partially offset by a $7.0 million decrease in stock-based compensation.

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Research and Development

Six Months Ended July 31,

Change

(unaudited, dollars in thousands)

$

%

Research and development

$

$

$

%

The increase in research and development expense was primarily driven by a $40.2 million increase in personnel costs and stock-based compensation, a $12.0 million increase in third-party infrastructure expenses to support ongoing product development and testing activities and an $11.2 million increase in software costs due to an increase in the use of AI tools.

General and Administrative

Six Months Ended July 31,

Change

(unaudited, dollars in thousands)

$

%

General and administrative

$

$

$

%

The increase in general and administrative expense was primarily driven by a $28.6 million increase in personnel costs and stock-based compensation.

Other Income, Net

Six Months Ended July 31,

Change

(unaudited, dollars in thousands)

$

%

Other income, net

$

$

$

%

Other income, net, for the six months ended July 31, 2026 increased primarily due to realized and unrealized gains recognized from our non-marketable securities, partially offset by lower short-term income from our short-term investments.

Provision for Income Taxes

Six Months Ended July 31,

Change

(unaudited, dollars in thousands)

$

%

Provision for income taxes

$

$

$

%

The increase in the provision for income taxes during the six months ended July 31, 2026 was primarily due to an increase in foreign taxes as we continue our global expansion.

Liquidity and Capital Resources

As of July 31, 2026, our principal sources of liquidity were cash, cash equivalents, short-term investments and restricted cash totaling $2.4 billion. Our cash and cash equivalents primarily consist of bank deposits and money market funds. Our short-term investments consist of U.S. government treasury securities, and our restricted cash represents collateral for our available credit on corporate credit cards. We believe our existing cash and cash equivalents and short-term investments will be sufficient to fund our operating and capital needs for at least the next 12 months.

In June 2025, the Company’s Board of Directors authorized an additional $800.0 million in repurchases under the Share Repurchase Program, bringing the aggregate authorized repurchase amount to $1.0 billion. During the six months ended July 31, 2026, the Company repurchased 666,452 shares of common stock for $200.0 million and the average price per share repurchased during the six months ended July 31, 2026 was $300.10. Refer to Note 9, Equity, in our Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, and “Purchases of Equity Securities by the Issuer” included in Part II, Item 2 of this Quarterly Report on Form 10-Q for further details.

In October 2025, we began funding withholding taxes in certain jurisdictions due on the vesting of employee RSUs by net share settlement, rather than our previous approach of selling shares of our common stock to cover taxes upon vesting of such awards. The amount of withholding taxes paid related to net share settlement of employee RSUs was $117.7 million for the six months ended July 31, 2026.

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We have generated significant operating losses as reflected in our accumulated deficit of $1.9 billion as of July 31, 2026. We expect to continue to incur operating losses, may experience negative cash flows from operations in the future and may require additional capital resources to execute strategic initiatives to grow our business. Our future capital requirements and adequacy of available funds will depend on many factors, including our growth rate and any impact on it from global macroeconomic conditions, including rising interest rates, inflation, the timing and extent of spending to support development efforts, the expansion of sales and marketing and international operation activities, the timing and size of new subscription introductions and customer usage of our developer data platform, the continuing market acceptance of our subscriptions and services and the impact of the macroeconomic conditions on the global economy and our business, financial condition and results of operations.

As the impact of macroeconomic conditions on the global economy and our operations continues to evolve, we will continue to assess our liquidity needs. In the future, we may enter into arrangements to acquire or invest in complementary businesses, services and technologies, including intellectual property rights. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, operating results and financial condition would be adversely affected.

The following table summarizes our cash flows for the periods presented (unaudited, in thousands):

Six Months Ended July 31,

Net cash provided by operating activities

$

$

Net cash provided by (used in) investing activities

Net cash used in financing activities

Operating Activities

Net cash provided by operating activities during the six months ended July 31, 2026 was $343.5 million, and reflects our net income of $45.4 million, adjusted by non-cash items such as $286.8 million of stock‑based compensation, $16.6 million of net realized and unrealized gains on financial instruments, $11.5 million of depreciation and amortization, and net cash provided by changes in operating assets and liabilities of $10.6 million. The net cash provided by changes in operating assets and liabilities primarily consisted of an increase in cash collected from customers resulting from an increase in sales as evidenced through a net increase in cash of $19.5 million from changes in accounts receivable and deferred revenue.

Additionally, a decrease of $10.1 million in deferred commissions primarily due to amortization exceeding current-period capitalization. Partially offsetting these benefits to our operating cash flow were increases in prepaid expenses and other assets of $30.5 million and a decrease of $17.5 million of accrued liabilities and accounts payable.

Net cash provided by operating activities during the six months ended July 31, 2025 was $182.0 million, driven primarily by an increase in our cash collections reflecting the overall growth of our sales and expansion of our customer base. Accordingly, our accounts receivable decreased by $41.8 million. In addition, our net loss of $84.7 million, includes non‑cash charges of $272.8 million for stock‑based compensation, $11.0 million for depreciation and amortization and deferred commissions of $14.5 million. Partially offsetting these benefits to our operating cash flow were a decrease in deferred revenue of $49.5 million, an increase in other long-term assets of $11.1 million, and a decrease in other net non-cash charges of $12.8 million.

Investing Activities

Net cash used in investing activities during the six months ended July 31, 2026 was $123.6 million, due to purchases of marketable securities, net of maturities, of $117.3 million, payments related to a business combination, net of cash acquired of $9.2 million and purchases of property and equipment of $4.8 million, partially offset by proceeds from non-marketable securities, net of investments made, of $7.7 million.

Net cash provided by investing activities during the six months ended July 31, 2025 was $141.2 million, due to proceeds from maturities of marketable securities, net of purchases, of $153.7 million, partially offset by, cash used for investments in non-marketable securities of $8.3 million, purchases of property and equipment of $2.1 million and payments related to a business combination, net of cash acquired of $2.0 million.

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MONGODB, INC.

Financing Activities

Net cash used in financing activities during the six months ended July 31, 2026 was $296.8 million, due to repurchases of common stock of $200.3 million and $117.7 million due to taxes paid related to net share settlement of equity awards, partially offset by $24.7 million due to proceeds from the issuance of common stock under the Employee Stock Purchase Plan and exercise of options.

Net cash used in financing activities during the six months ended July 31, 2025 was $173.8 million, due to repurchases of common stock of $194.4 million and principal payments of finance leases of $4.1 million, offset by proceeds from the issuance of common stock under the Employee Stock Purchase Plan of $22.9 million and proceeds from the exercises of stock options of $1.8 million.

Seasonality

We have experienced seasonal fluctuations in our revenue and operating results and this trend may continue in the future. We may experience variability and reduced comparability of our quarterly revenue and operating results with respect to the timing and nature of certain contracts, particularly multi-year contracts that contain a term license. We may also experience fluctuations as Atlas revenue is recorded on a consumption basis and varies with usage, inclusive of seasonal variability. As Atlas revenue continues to increase as a percentage of total revenue, these fluctuations may have a greater impact on our results of operations.

Contractual Obligations and Commitments

There were no other material changes outside the ordinary course of business to our contractual obligations and commitments from those disclosed in our 2026 Form 10-K. Refer to Note 6, Leases and Note 7, Commitments and Contingencies, in our Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further details.

Critical Accounting Estimates

Our financial statements are prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates.

Income Taxes

We are subject to income taxes in the U.S. and in many foreign jurisdictions. Significant judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets that are not more-likely-than-not to be realized. The determination of the realizability of deferred tax assets requires significant judgment in assessing the likelihood of future tax consequences and evaluation of all available evidence in accordance with applicable accounting guidance. In completing our assessment of realizability of our deferred tax assets, we consider our history of losses measured at pre-tax income (loss) adjusted for permanent book-tax differences on a jurisdictional basis, volatility in actual earnings, excess tax benefits related to stock-based compensation in recent prior years, and impacts of the timing of reversal of existing temporary differences.

We also rely on our assessment of the Company’s projected future results of business operations, relative to historical results, volatility in the market price of our common stock and its performance over time, variable macroeconomic conditions impacting our ability to forecast future taxable income, and changes in business that may affect the existence and magnitude of future taxable income. Our valuation allowance assessment is based on our best estimate of future results considering all available information. There were no material changes in our valuation allowance assessment, given our current earnings and anticipated future earnings, we believe that there is a reasonable possibility that sufficient positive evidence may become available within the next 12 months to reach a conclusion that all or a portion of the U.S. valuation allowance will no longer be needed.

Release of the valuation allowance would result in a material income tax benefit due to the recognition of U.S. federal and state deferred tax assets and a corresponding decrease to income tax expense in the period the release is recorded. The exact timing and amount of any potential valuation allowance release are subject to change on the basis of our level of sustained U.S. profitability, as well as the amount of our tax deductible stock-based compensation, which is dependent upon our publicly traded share price and macroeconomic conditions, among other factors. We will continue to monitor this on a quarterly basis.

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MONGODB, INC.