MongoDB (MDB) risk factors, FY2026 10-K

Risks Related to Our Business and Industry

1. 01Unfavorable conditions in our industry or the global economy or reductions in information technology spending could limit our ability to grow our business and materially and adversely affect our results of operations
2. 02We have a limited operating history at our current scale, which makes it difficult to predict our future results of operations
3. 03We have a history of losses and as our costs increase, we may not be able to generate sufficient revenue to achieve or sustain profitability25% rewritten
4. 04Because we derive more than the majority of our revenue from Atlas, failure of MongoDB Atlas to satisfy customer demands could adversely affect our business, results of operations, financial condition and growth prospects and our future revenue may be more difficult to predict
5. 05We currently face significant competition and expect that intense competition will continue
6. 06If we do not effectively expand our sales and marketing organization, we may be unable to add new customers or increase sales to our existing customers
7. 07Our adoption strategies include offering Community Server and a free tier of Atlas and we may not be able to realize the intended benefits of these strategies
8. 08Our decision to offer Community Server under the SSPL, may harm the adoption of Community Server
9. 09We track certain operational metrics with internal systems and tools and do not independently verify such metrics. Certain of our operational metrics are subject to inherent challenges in measurement, and any real or perceived inaccuracies in such metrics may adversely affect our business and reputation
10. 10We could be negatively impacted if the AGPL, the SSPL and other open source licenses under which some of our software is licensed are not enforceable
11. 11Our licensing model for Community Server could negatively affect our ability to monetize and protect our intellectual property rights
12. 12Our software incorporates third-party open source software, which could negatively affect our ability to sell our products and subject us to possible litigation
13. 13If we are not able to introduce new features or services successfully and to make enhancements to our software or services, our business and results of operations could be adversely affected27% rewritten
14. 14Our success is highly dependent on our ability to penetrate the existing market for database products, as well as the growth and expansion of the market for database products
15. 15Our future quarterly results may fluctuate significantly and if we fail to meet the expectations of analysts or investors, our stock price could decline substantially33% rewritten
16. 16We have experienced rapid growth in recent periods. If we fail to continue to grow and to manage our growth effectively, we may be unable to execute our business plan, increase our revenue, improve our results of operations, maintain high levels of service, or adequately address competitive challenges97% rewritten
17. 17Applicable data privacy and security obligations may require us to notify relevant stakeholders of security breaches and other security incidents. Such disclosures are costly, and the disclosures or the failure to comply with such requirements could lead to adverse consequences
18. 18Our contracts may not contain limitations of liability, and even where they do, there can be no assurance that limitations of liability in our contracts are sufficient to protect us from liabilities, damages, or claims related to our data privacy and security obligations
19. 19Our sales cycle may be long and is unpredictable and our sales efforts require considerable time and expense
20. 20We may be forced to reduce prices for our subscription offerings and as a result our revenue and results of operations will be harmed
21. 21If we are unable to attract new customers in a manner that is cost-effective and assures customer success, we will not be able to grow our business, which would adversely affect our results of operations and financial condition
22. 22If we fail to offer high quality support, our business and reputation could suffer
23. 23Real or perceived errors, failures or bugs in our software could adversely affect our business, results of operations, financial condition and growth prospects85% rewritten
24. 24Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all
25. 25We could incur substantial costs in obtaining, maintaining, protecting, defending or enforcing our intellectual property rights and any failure to obtain, maintain, protect, defend or enforce our intellectual property rights could reduce the value of our software and brand
26. 26We have been, and may in the future be, subject to intellectual property rights claims by third parties, which may be costly to defend, could require us to pay significant damages and could limit our ability to use certain technologies
27. 27If we are unable to maintain successful relationships with our partners, our business, results of operations and financial condition could be harmed
28. 28We rely upon third-party cloud providers to host our cloud offering; any disruption of or interference with our use of third-party cloud providers would adversely affect our business, results of operations and financial condition
29. 29Interruptions or performance problems associated with our technology and infrastructure may adversely affect our business, results of operations and financial condition
30. 30Incorrect or improper implementation or use of our software could result in customer dissatisfaction and harm our business, results of operations, financial condition and growth prospects
31. 31If we fail to meet our service level commitments, our business, results of operations and financial condition could be adversely affected30% rewritten
32. 32We rely on the performance of highly skilled personnel, including senior management and our engineering, professional services, sales and technology professionals; if we are unable to retain or motivate key personnel or hire, retain and motivate qualified personnel, our business would be harmedNew
33. 33Further, if members of our management and other key personnel in critical functions across our organization are unable to perform their duties or have limited availability, we may not be able to execute on our business strategy and/or our operations may be negatively impacted
34. 34If we are not able to maintain and enhance our brand, especially among developers, our business and results of operations may be adversely affected
35. 35Our corporate culture has contributed to our success and if we cannot continue to maintain and develop this culture as we grow and evolve, we may be unable to execute effectively and could lose the innovation, creativity and entrepreneurial spirit we have worked hard to foster, which could harm our business
36. 36We depend and rely upon SaaS technologies from third parties to operate our business and interruptions or performance problems with these technologies may adversely affect our business and results of operations
37. 37Indemnity provisions in various agreements could expose us to substantial liability for data breaches, intellectual property infringement and other losses
38. 38Because our long-term growth strategy involves sales to customers outside the United States, our business is susceptible to risks associated with international operations
39. 39Changes in government trade policies, including the imposition of tariffs and other trade barriers, could limit our ability to sell our products to certain customers and certain markets, which could adversely affect our business, financial condition and results of operations27% rewritten
40. 40If currency exchange rates fluctuate substantially in the future, our financial results, which are reported in U.S. dollars, could be adversely affected
41. 41Changes in laws and regulations related to the internet or changes in the internet infrastructure itself may diminish the demand for our software and could have a negative impact on our business
42. 42Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions and we could be obligated to pay additional taxes, which would harm our results of operations
43. 43We have completed acquisitions in the past and may in the future expand through acquisitions or investments in strategic partnerships, each of which may divert our management’s attention, result in additional dilution to our stockholders, increase expenses, disrupt our operations, and harm our results of operations
44. 44We are subject to risks associated with our non-marketable securities, including partial or complete loss of invested capital. Significant changes in the fair value of our private investment portfolio could negatively impact our financial results
45. 45Failure to comply with anti-bribery, anti-corruption and anti-money laundering laws could subject us to penalties and other adverse consequences
46. 46Our reported financial results may be adversely affected by changes in accounting principles generally accepted in the United States
47. 47If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our results of operations could be adversely affected
48. 48If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired
49. 49We may require additional capital to support our operations or the growth of our business and we cannot be certain that this capital will be available on reasonable terms when required, or at all
50. 50We are a multinational organization with a distributed workforce facing increasingly complex tax issues in many jurisdictions and we could be obligated to pay additional taxes in various jurisdictions
51. 51The enactment of legislation implementing changes in U.S. taxation of international business activities or the adoption of other tax reform policies could materially impact our financial position and results of operations
52. 52Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations
53. 53Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, value added or similar taxes and we could be subject to liability with respect to past or future sales, which could adversely affect our results of operations
54. 54We are subject to governmental export and import controls that could impair our ability to compete in international markets or subject us to liability if we violate the controls
55. 55Our business is subject to the risks of earthquakes, fire, floods, pandemics and public health emergencies and other natural catastrophic events and to interruption by man-made problems such as power disruptions, security breaches or other security incidents, or terrorism
56. 56We are subject to risks related to our environmental, social, and governance activities and disclosures
57. 57Social, ethical, security and regulatory issues relating to the use of new and evolving technologies, such as AI and ML, in our offerings or partnerships may result in reputational harm and liability54% rewritten

Risks Related to Ownership of Our Common Stock

1. 58The trading price of our common stock has been and is likely to continue to be volatile, which could cause the value of our common stock to decline
2. 59We may fail to meet our publicly announced guidance or other expectations about our business and future operating results, which would cause our stock price to decline
3. 60Our issuance of additional capital stock in connection with financings, acquisitions, investments, our equity incentive plans or otherwise will dilute all other stockholders
4. 61We do not intend to pay dividends on our common stock for the foreseeable future
5. 62The requirements of being a public company may strain our resources, divert management's attention and affect our ability to attract and retain additional executive management and qualified board members
6. 63Delaware law and our corporate charter and bylaws contain anti-takeover provisions that could delay or discourage takeover attempts that stockholders may consider favorable21% rewritten
7. 64Sales of a substantial number of shares of our common stock into the public market, particularly sales by our directors, executive officers, and principal stockholders, or the perception that these sales might occur, could cause the market price of our common stock to decline
8. 65There can be no assurance that we will repurchase shares of our common stock or that we will repurchase shares at favorable pricesNew

Risks Related to our Indebtedness

1. 66In the past, we incurred significant amounts of debt and may in the future incur additional indebtedness. We may not have sufficient cash flow from our business to make payments on such debt when due21% rewritten