Why MongoDB Stock Popped Today

MongoDB (NASDAQ: MDB) stock, provider of cloud-based database services, soared 15.8% through 11:15 a.m. ET Thursday after announcing tremendous earnings last night.

Heading into its fiscal Q1 2026 report, analysts forecast MongoDB would earn $0.66 per share on sales of $527.5 million. Instead, MongoDB reported sales of $549 million -- and EPS $1 on the nose.

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MongoDB's Q1 earnings

Not all the news was good. Sales surged 22% year over year at MongoDB, but the gross profit margin the company earned on those sales contracted, from 73% to just 71%. Moreover, the $1 "profit" MongoDB reported was only an adjusted, non-GAAP number. Actual earnings as calculated according to generally accepted accounting principles (GAAP) remained negative, with MongoDB reporting a $0.46 GAAP loss for the quarter.

Still, that was less than half last year's Q1 GAAP loss of $1.10 per share. Even better, MongoDB grew its free cash flow 74% year over year, to $105.9 million in the quarter.

Is MongoDB stock a buy?

Thus, while still GAAP-unprofitable (MongoDB has never reported a GAAP profit) and lacking a P/E ratio, MongoDB has now generated nearly $166 million in free cash flow over the last 12 reported months, a new record. Granted, this still gives MongoDB stock a very expensive-looking price-to-free cash flow ratio of 114 -- but at least it's a positive number.

And MongoDB is still growing. Management says sales will probably exceed analyst estimates at $548 million to $553 million next quarter, and more than $2.25 billion for the year. Non-GAAP earnings forecasts also came in ahead of expectations.

Now, if only someone could convince MongoDB to give guidance in the form of free cash flow, maybe we could figure out if this stock is a buy!

Should you invest $1,000 in MongoDB right now?

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MongoDB. The Motley Fool has a disclosure policy.