MongoDB Q2 FY2027 Earnings: $772M Revenue, a GAAP Profit and a $149M Stock Bill

MongoDB reported a net loss in each of its last seven fiscal years. Its accumulated deficit stands at $1.87 billion. In the quarter that ended July 31, 2026, it reported $771.8 million of revenue, up 30.5%, and $40.9 million of net income, against a loss of $47.0 million a year earlier. Income from operations was positive too, at $28.4 million. The same income statement contains $148.9 million of stock-based compensation, and the cash flow statement shows what the company now spends to keep that stock from diluting its owners. Both numbers belong in any reading of the profit.

Every second-quarter figure below is from the Form 10-Q that MongoDB filed on September 1, 2026, the same day as its earnings release. The quarterly statements are unaudited. MongoDB's fiscal year ends January 31 and is named for the year in which it ends, so the second quarter of fiscal 2027 is the three months from May 1 to July 31, 2026. The company reports in thousands of dollars; we show millions to one decimal here, and our ledger keeps all three. Rounded lines can differ from a rounded total by $0.1 million. This quarter is the current picture of the company until its third-quarter report, which we expect in early December.

The Headline Numbers​

Revenue grew by $180.4 million and total operating expenses by $56.1 million. That is the whole quarter in two numbers. Sales and marketing, the largest expense, rose 3.7% while revenue rose 30.5%, so it fell from 41.3% of revenue to 32.8%. The operating margin moved from −11.0% to +3.7%, a swing of 14.7 points in one year.

Two details temper the net income figure. First, $17.5 million of the $45.9 million of pre-tax income is interest and other income, most of it interest on $2.4 billion of cash and short-term investments. Second, the last row. Stock-based compensation is not a separate line on MongoDB's income statement. It sits inside cost of revenue and each operating expense, and the filing gives the amounts in a table underneath. It grew 6.1% while revenue grew 30.5%, which is where much of the operating leverage came from: it was 23.7% of revenue a year ago and 19.3% now.

Revenue Deep Dive​

MongoDB sells one database in two ways. Atlas is the version it hosts and runs in the cloud, charged mostly by usage. Enterprise Advanced is the version customers run themselves under a term license. The 10-Q splits revenue along that line.

Atlas added $126.9 million of revenue in a year. The 10-Q gives the reason in one sentence: subscription revenue grew "primarily due to an increase in consumption of Atlas by our large existing customers and growth in MongoDB Enterprise Advanced". This is growth from customers the company already had. The filing's own measure of that, the net ARR expansion rate, was 122% at July 31, 2026, against 121% at the end of fiscal 2026 and 118% a year before that. Atlas customers numbered more than 69,300, up from more than 58,500.

Enterprise Advanced and other grew faster than Atlas, which is unusual. It was 35.9% against 28.9%, and Atlas's share of revenue slipped from 74.2% to 73.3%. This category behaves differently from Atlas in the accounts. The 10-Q explains that "Revenue from our term licenses is recognized upfront for the license component", so a large multi-year license signed in a quarter lands in that quarter's revenue. The filing warns about exactly this: results vary with "the proportion of term license contracts that commence within the period". A strong quarter for licenses is real revenue, but it does not repeat the way usage does.

Services is consulting and training, 3% of revenue, and it runs at a loss. Its cost of $27.8 million exceeded its revenue of $24.6 million.

The earnings release describes the quarter as "30% year-over-year revenue growth—the highest level of growth in several years" and credits "strength driven by core enterprise workloads and early momentum with AI use cases". The 10-Q says "Total revenue growth reflects increased demand for our platform and related services." The numbers support the first half of the release's sentence well: large existing customers used more. The second half has no number attached. Neither document gives revenue from AI workloads, and the release's word for it is "early".

By region, the Americas produced $478.3 million, EMEA $210.3 million and Asia Pacific $83.2 million. Customers with at least $100,000 of annualized recurring revenue reached 2,999, up from 2,564.

The Margin Story​

Gross margin had been falling for two years, and the filings say why. Atlas runs on infrastructure rented from the large cloud providers, so its cost of revenue is higher than a software license's. The 10-Q repeats the warning this quarter: "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."

This quarter the margin went the other way, up 2.8 points. The filing gives three causes. Subscription gross margin rose to 77% from 76% "primarily due to a shift in subscription revenue mix toward MongoDB Enterprise Advanced and other revenue products". That is the license quarter again. Cloud infrastructure costs rose $31.4 million, but the filing says the increase "was partially offset by continued cost efficiencies realized as we scale Atlas." And the services business lost less: its gross margin was −13% against −65%, because the company spent less on outside consultants.

The filings contain no statement about price. There is no sentence saying that prices rose, and the company's stated reason for growth is consumption, which is volume. So the margin gain here is mix and efficiency, not pricing.

The operating expenses tell a plainer story. Sales and marketing rose $9.0 million on $180.4 million of new revenue. Research and development rose $32.1 million, and one of its drivers is worth noting: "a $7.0 million increase in software costs due to an increase in the use of AI tools". General and administrative rose $15.0 million, nearly all of it personnel cost and stock-based compensation.

The One Big Question: What Does the Profit Cost in Shares?​

MongoDB reports a second set of results that leaves out stock-based compensation. The release reconciles the two:

The $153.4 million in the bridge is a little larger than the $148.9 million in the income statement table, because the release's line also includes employer payroll taxes on the awards, among other items. Either way, one adjustment explains almost the whole gap between a 3.7% operating margin and a 24.1% one. The release calls the result "very strong and growing operating leverage" and notes a "third consecutive quarter of GAAP EPS profitability".

The usual argument for the adjustment is that stock compensation is not a cash cost. MongoDB's own cash flow statement now complicates that. The company does two things to stop its share count from rising. It buys back stock: $200.3 million in the six months ended July 31, 2026. And it has changed how it handles the tax due when employee awards vest. The 10-Q explains: "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." That cost $117.7 million of cash in the same six months. A year earlier the line was zero.

The last row is our subtraction. Over six months MongoDB generated $335.2 million of free cash flow and spent $317.9 million of it holding its share count roughly where it was: 80.6 million shares outstanding at July 31, against 80.5 million at January 31. The stock compensation is a cash cost after all. It is paid one step later, in the financing section.

This is not a criticism of the buyback. A company that issues stock to employees and does not repurchase it dilutes its owners instead, which is the same cost in another form. MongoDB did that for years: its shares outstanding rose from 67.4 million to 72.7 million in the two years to the end of fiscal 2024, before the note conversion added more. What has changed is that the cost is now visible as cash.

Our library has the natural comparison. Snowflake closed its own second quarter of fiscal 2027 on the same day, July 31, 2026, and also sells a data platform priced by usage.

The Snowflake figures are from our published analysis of that quarter, and the ratios in both columns are our division. Snowflake is twice MongoDB's size and growing a little faster. MongoDB keeps more of each dollar at every level, and the distance between its GAAP and non-GAAP operating margins is 20 points against Snowflake's 32. The last two rows show a difference in how the two get paid, which we come to next.

Tracking a $3.8 Billion Balance Sheet in Plain Text​

A press release can lead with whichever profit figure looks best. A double-entry ledger cannot: every line the company filed has to be posted, and the transaction has to sum to zero. Our MongoDB ledger records the GAAP lines exactly as filed, with stock compensation left inside them, and follows how we model every company.

Here is the second quarter's income statement as it sits in the ledger. In Beancount, income is negative (a credit) and expenses are positive (a debit).

; Check: −771.773 + 174.251 + 27.757 + 213.874 + 253.071 + 74.420 + −19.706 + 0.924 + 1.237 + 5.005 + 40.940 = 0 ✓
2026-07-31 * "MongoDB, Inc." "FY2027Q2 Income Statement"
  Income:Revenue                               -771.773 MUSD  ; total revenue: subscription 747.147 + services 24.626
  Expenses:CostOfRevenue                        174.251 MUSD  ; cost of revenue — subscription
  Expenses:CostOfRevenue                         27.757 MUSD  ; cost of revenue — services
  Expenses:ResearchAndDevelopment               213.874 MUSD  ; research and development
  Expenses:SellingGeneralAdministrative         253.071 MUSD  ; sales and marketing
  Expenses:SellingGeneralAdministrative          74.420 MUSD  ; general and administrative
  Income:OtherNet                               -19.706 MUSD  ; interest income — the filing's own line (a credit)
  Income:OtherNet                                 0.924 MUSD  ; interest expense — the filing's own line
  Income:OtherNet                                 1.237 MUSD  ; other expense, net — the filing's own line
  Expenses:IncomeTax                              5.005 MUSD  ; provision for income taxes
  Equity:Adjustments                             40.940 MUSD  ; net income offset (accumulated deficit set by balance assertion)

Revenue is one posting equal to the filing's total, with the subscription and services split in the comment. Cost of revenue is two postings and so is selling, general and administrative, one for each line the statement prints. The three lines on Income:OtherNet are interest income, interest expense and other expense. They net to income of $17.5 million, so they share the income account and the two expenses appear there as debits. There is no stock-compensation posting. The filing's table of it is a comment in the ledger file, because splitting it out would mean restating lines the company did not file that way.

The balance sheet lines that carry the story:

2026-07-31 balance Assets:Current:AccountsReceivable               458.221 MUSD  ; accounts receivable, net of allowance for doubtful accounts
2026-07-31 balance Liabilities:Current:DeferredRevenue            -339.462 MUSD  ; deferred revenue (current)
2026-07-31 balance Liabilities:NonCurrent:DeferredRevenue         -108.233 MUSD  ; deferred revenue (non-current)
2026-07-31 balance Liabilities:NonCurrent:LongTermDebt               0.000 MUSD  ; no convertible senior notes or other debt caption at this date (nil, so no pad)
2026-07-31 balance Equity:CommonStockAndAPIC                     -4846.829 MUSD  ; common stock, $0.001 par value 0.082 + additional paid-in capital 4,846.747
2026-07-31 balance Equity:TreasuryStock                              0.000 MUSD  ; treasury stock — the filing prints '—': no shares held after the retirements in the six months ended July 31, 2026
2026-07-31 balance Equity:RetainedEarnings                        1866.481 MUSD  ; accumulated deficit (1,866.481) — a deficit is a debit balance

Start with the first two. Accounts receivable of $458.2 million are larger than current deferred revenue of $339.5 million. At a company that bills a year in advance it is the other way round, because the unearned part of each payment sits in deferred revenue. Atlas customers mostly pay after they use the service. The 10-Q says so: "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." That is why MongoDB's deferred revenue is 44% of a quarter's revenue and Snowflake's is 166%. It also means deferred revenue says little about MongoDB's future, and the usage line says more. The company's remaining performance obligations were $1,519.2 million, up 91% by the release's count, and the filing expects about 52% of that to become revenue within 12 months.

The debt line is zero. MongoDB had $1.15 billion of convertible notes until December 2024, when it called them and nearly all converted into 5.7 million shares. The treasury stock line is also zero, for a different reason: the company retired the shares it had bought back, $694.8 million of them in six months, adding the two quarters in the equity statement, and charged the cost to additional paid-in capital. The buyback has not vanished from the ledger. It is the main reason paid-in capital fell from $5,345.5 million to $4,846.7 million in half a year.

The Multi-Year Arc​

The Atlas share is the percentage each 10-K states in its discussion of results. Margins and the stock compensation share are our division of the filed lines.

Revenue nearly tripled in four years, and Atlas went from just over half of it to nearly three quarters. Growth slowed from 48% to 19% and then turned up again, to 23% in fiscal 2026 and 28% in the first half of fiscal 2027.

The loss narrowed every year after fiscal 2023, and the table shows how. Gross margin did not do it; it is lower now than in fiscal 2024. The operating margin improved by 27.6 points between fiscal 2022 and fiscal 2026 because operating expenses grew more slowly than revenue. Stock compensation is the clearest case. It more than doubled in dollars, from $251.1 million to $550.5 million, and still fell from 28.7% of revenue to 22.3%.

Operating cash flow tells the same story earlier than net income does. It reached $121.5 million in fiscal 2024, when the net loss was still $176.6 million, because stock compensation reduces net income without using operating cash. Fiscal 2026's $505.1 million of operating cash flow against a $71.2 million net loss is that gap at its widest.

The balance sheet changed character in fiscal 2025. Total liabilities fell from $1,800.7 million to $648.1 million in one year when the convertible notes became equity. Fiscal 2026 added the Voyage AI acquisition, which appears as goodwill rising from $69.7 million to $191.4 million, and the first large buybacks.

The Verdict: Bull vs. Bear​

Bull Case

• Revenue grew 30.5%, and the 10-Q attributes it to existing large customers using more. The net ARR expansion rate rose to 122% from 118% eighteen months earlier.
• Sales and marketing rose 3.7% on that growth. The operating margin improved 14.7 points in a year and is positive under GAAP.
• Free cash flow was $137.6 million in the quarter, 17.8% of revenue, nearly double the prior year's $69.9 million.
• The balance sheet has $2.4 billion of cash and short-term investments and no debt.
• The release raised the full-year revenue outlook to $2.99 billion to $3.03 billion and headlined it "Raising full year fiscal 2027 guidance, with H2 raise mainly due to Atlas".

Bear Case

• The same guidance implies a slowdown. First-half revenue was $1,459.4 million, up 28.0%. The midpoint of the full-year range leaves about $1,551 million for the second half, which by our arithmetic is growth of roughly 17%. The third-quarter range of $756 million to $761 million is below the second quarter's $771.8 million.
• The company also guides to a GAAP operating loss of $10.5 million to $14.5 million for the third quarter and $8.0 million to $28.0 million for the year. The second quarter's operating profit is not yet the run rate.
• Enterprise Advanced grew 35.9% and lifted both revenue and gross margin. License revenue is recognized upfront and the filing warns that it makes quarters hard to compare.
• The release's "early momentum with AI use cases" comes with no revenue figure in either document. The numbers show more consumption by existing customers; they do not show what kind.
• Holding the share count flat took $317.9 million of the first half's $335.2 million of free cash flow. Counted that way, little of the cash is left for owners.
• Interest income is 43% of pre-tax income, and it fell from $23.6 million to $19.7 million in a year.

Our Take

MongoDB has become a profitable company in the way that matters most: its operating expenses now grow far more slowly than its revenue, and that shows up under GAAP, with stock compensation counted. That is real, and the 14.7-point improvement in operating margin is the best evidence in the filing. We would not lean on this particular quarter's $40.9 million, though. It was helped by a strong license quarter, and management's own guidance says the next quarter will show an operating loss. The more useful number is the one the non-GAAP presentation removes. Stock compensation is $149 million a quarter, and the company is now spending almost all of its free cash flow to offset it. We think that is the honest cost of the business, and it is falling as a share of revenue every year. The number to watch is that share. At 19.3% it has dropped more than nine points since fiscal 2022. If it keeps falling while Atlas keeps growing near 29%, the GAAP profit will stop depending on which quarter the licenses land in.