MongoDB, Inc.MDB
MongoDB, Inc. Income Taxes Disclosure
Income Taxes
The components of loss before provision for (benefit from) income taxes were as follows (in thousands):
| Years Ended January 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| United States | $ | 494 | $ | (99,978) | $ | (138,936) | |||||||||||
| Foreign | (56,185) | (31,621) | (24,580) | ||||||||||||||
| Total | $ | (55,691) | $ | (131,599) | $ | (163,516) | |||||||||||
The components of the provision for (benefit from) income taxes were as follows (in thousands):
| Years Ended January 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | (535) | $ | 1,035 | $ | 522 | |||||||||||
| State | 1,396 | 512 | 289 | ||||||||||||||
| Foreign | 18,055 | 12,761 | 13,363 | ||||||||||||||
| Total | 18,916 | 14,308 | 14,174 | ||||||||||||||
| Deferred: | |||||||||||||||||
| Federal | 38 | 38 | 42 | ||||||||||||||
| State | 54 | 51 | 46 | ||||||||||||||
| Foreign | (3,548) | (16,924) | (1,178) | ||||||||||||||
| Total | (3,456) | (16,835) | (1,090) | ||||||||||||||
Provision for (benefit from) income taxes | $ | 15,460 | $ | (2,527) | $ | 13,084 | |||||||||||
The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for (benefit from) income taxes consisted of the following (in thousands):
| Years Ended January 31, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||
| US federal statutory tax rate | $ | (11,695) | 21.0 | % | $ | (27,636) | 21.0 | % | $ | (34,339) | 21.0 | % | |||||||||||||||||||||||
State and local income taxes, net of federal income tax effect(a) | (6,193) | 11.1 | % | (3,715) | 2.8 | % | (12,402) | 7.6 | % | ||||||||||||||||||||||||||
| Foreign tax effects | |||||||||||||||||||||||||||||||||||
| India | |||||||||||||||||||||||||||||||||||
| Statutory tax rate difference between India and the United States | 366 | (0.7) | % | 634 | (0.5) | % | 779 | (0.5) | % | ||||||||||||||||||||||||||
| Other | 2 | — | % | (1,584) | 1.2 | % | (507) | 0.3 | % | ||||||||||||||||||||||||||
| Ireland | |||||||||||||||||||||||||||||||||||
| Statutory tax rate difference between Ireland and the United States | 7,613 | (13.7) | % | 3,175 | (2.4) | % | 5,119 | (3.1) | % | ||||||||||||||||||||||||||
| Changes in valuation allowances | 9,988 | (17.9) | % | 6,105 | (4.6) | % | 8,260 | (5.1) | % | ||||||||||||||||||||||||||
| Non deductible/non taxable items | 5,761 | (10.3) | % | 2,523 | (1.9) | % | 881 | (0.5) | % | ||||||||||||||||||||||||||
| Other foreign jurisdictions | (1,732) | 3.1 | % | (8,925) | 6.8 | % | 2,128 | (1.3) | % | ||||||||||||||||||||||||||
| Tax credits | |||||||||||||||||||||||||||||||||||
| United States | |||||||||||||||||||||||||||||||||||
| Research and development tax credits | (28,582) | 51.3 | % | (44,664) | 33.9 | % | (39,319) | 24.1 | % | ||||||||||||||||||||||||||
| Foreign tax credit | — | — | % | — | — | % | (3,014) | 1.8 | % | ||||||||||||||||||||||||||
| Changes in valuation allowances | 1,985 | (3.5) | % | 33,328 | (25.3) | % | 64,378 | (39.4) | % | ||||||||||||||||||||||||||
| Nontaxable or nondeductible items | |||||||||||||||||||||||||||||||||||
| United States | |||||||||||||||||||||||||||||||||||
| Nondeductible executive compensation | 5,428 | (9.7) | % | 5,603 | (4.3) | % | 5,512 | (3.4) | % | ||||||||||||||||||||||||||
| Stock-based compensation | (468) | 0.8 | % | 1,710 | (1.3) | % | (64,721) | 39.6 | % | ||||||||||||||||||||||||||
| Other | (3,947) | 7.1 | % | 1,850 | (1.4) | % | — | — | % | ||||||||||||||||||||||||||
| Changes in unrecognized tax benefits | 36,006 | (64.7) | % | 29,163 | (22.2) | % | 76,178 | (46.6) | % | ||||||||||||||||||||||||||
| Other adjustments | 928 | (1.7) | % | (94) | 0.1 | % | 4,151 | (2.5) | % | ||||||||||||||||||||||||||
| Effective tax rate | $ | 15,460 | (27.8) | % | $ | (2,527) | 1.9 | % | $ | 13,084 | (8.0) | % | |||||||||||||||||||||||
(a) State taxes in California, New York City and New York State made up the majority (greater than 50 percent) of the tax effect in this category.
The provision for income taxes for fiscal years 2026, 2025 and 2024 is $15.5 million, ($2.5 million), and $13.1 million, respectively. The difference in tax expense between fiscal years 2026 and 2025 is due to a valuation allowance release in the UK that occurred in fiscal year 2025. For fiscal year 2026, the Company's increase in tax provision is a result of its continued global expansion in foreign markets.
Income taxes tax paid (net of refunds) exceeded 5% of total income taxes paid (net of refunds) in the following jurisdictions:
| Years Ended January 31, | |||||||||||||||||
| Net cash paid | 2026 | 2025 | 2024 | ||||||||||||||
| Federal | $ | — | $ | — | $ | — | |||||||||||
| State | 384 | 229 | 10 | ||||||||||||||
| Foreign | |||||||||||||||||
| India | 2,343 | 2,233 | 2,456 | ||||||||||||||
| Ireland | 1,411 | 2,126 | 1,832 | ||||||||||||||
| Other | 10,330 | 9,965 | 9,345 | ||||||||||||||
| Total | $ | 14,468 | $ | 14,553 | $ | 13,643 | |||||||||||
Deferred Income Taxes
Deferred income taxes arise from temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax reporting purposes, as well as operating loss and tax credit carryforwards.
Significant components of the Company’s deferred tax assets are shown in the following table as of January 31, 2026 and 2025, respectively (in thousands):
| Years Ended January 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Deferred tax assets: | |||||||||||
| Net operating loss carryforwards | $ | 812,930 | $ | 784,638 | |||||||
| Deferred revenue | 83,630 | 64,429 | |||||||||
| Finance and operating lease liabilities | 14,247 | 17,807 | |||||||||
| Capitalized research and development costs | 122,639 | 163,963 | |||||||||
| Other reserves | 38,436 | 25,870 | |||||||||
| Gross deferred tax assets | 1,071,882 | 1,056,707 | |||||||||
| Valuation allowance | (951,021) | (942,513) | |||||||||
| Total deferred tax assets, net of valuation allowance | 120,861 | 114,194 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Finance and operating lease right-of-use assets | (9,639) | (12,505) | |||||||||
| Deferred commission | (79,298) | (77,298) | |||||||||
| Other liabilities and accruals | (6,255) | (3,842) | |||||||||
| Total deferred tax liabilities | (95,192) | (93,645) | |||||||||
| Net deferred tax assets | $ | 25,669 | $ | 20,549 | |||||||
Deferred tax assets are recognized when management believes it is more likely than not that they will be realized. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The valuation allowance for deferred tax assets as of January 31, 2026, 2025 and 2024 was $951.0 million, $942.5 million and $903.7 million, respectively. The valuation allowance increased by $8.5 million, $38.9 million and $94.7 million during the years ended January 31, 2026, 2025 and 2024, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the
generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax planning strategies in making this assessment.
As of January 31, 2026 the Company had net operating loss carryforwards for U.S. federal, state, Irish and U.K. income tax purposes of $2.2 billion, $2.0 billion, $857.2 million and $64.5 million, respectively, which begin to expire in the year ending January 31, 2028 for U.S. federal purposes and January 31, 2027 for state purposes. Ireland, U.K. and the U.S. federal losses for years after January 31, 2019 allow for operating losses to be carried forward indefinitely. The Company also has U.S. federal and state research credit carryforwards of $207.2 million and $19.6 million, respectively, which begin to expire in the year ending January 31, 2029 for federal purposes and January 31, 2027 for state purposes. Furthermore, the Company has U.S. foreign tax credit carryforwards of $6.9 million and U.S. charitable contribution carryforwards of $0.6 million, which will begin to expire in the year ending January 31, 2030 and January 31, 2027, respectively. Utilization of the federal net operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation, should the Company undergo an ownership change, may result in the expiration of federal or state net operating losses and credits before utilization, however the Company does not expect any such limitation to be material.
Uncertain Tax Positions
The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based upon the Company’s evaluation of the facts, circumstances and information available at each period end. For those tax positions where the Company has determined there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information.
For those income tax positions where it is determined there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized.
Although the Company believes that it has adequately reserved for its uncertain tax positions, the Company can provide no assurance that the final tax outcome of these matters will not be materially different. As the Company expands internationally, it will face increased complexity and the Company’s unrecognized tax benefits may increase in the future. The Company makes adjustments to its reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made.
The following table summarizes the changes in the Company’s unrecognized gross tax benefits during the periods presented (in thousands):
| Years Ended January 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Unrecognized tax benefits at beginning of year | $ | 104,543 | $ | 81,604 | $ | 29,284 | |||||||||||
| Increase (decrease) in tax positions in prior years | (475) | 1,075 | 1,692 | ||||||||||||||
| Additions based on tax positions in the current year | 38,686 | 21,864 | 50,628 | ||||||||||||||
| Unrecognized tax benefits at end of year | $ | 142,754 | $ | 104,543 | $ | 81,604 | |||||||||||
The Company intends to invest substantially all of its foreign subsidiary earnings, as well as its capital in foreign subsidiaries, indefinitely outside of the U.S. in those jurisdictions in which the Company would incur significant, additional costs upon repatriation of such amounts.
The Company is not currently under Internal Revenue Service, state, or foreign income tax examination with the exception of audits in Ireland, France, India and Italy for which the Company does not expect a material outcome. The Company files tax returns in the United States for federal and certain states. All tax years remain open to examination for both federal and state purposes as a result of the net operating loss and credit carryforwards. The Company files foreign tax returns in various locations. These foreign returns are open to examination for the fiscal years ending January 31, 2015 through January 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 11, 2026 | Showing above |
| 2025 | Mar 21, 2025 | |
| 2024 | Mar 15, 2024 | |
| 2023 | Mar 17, 2023 | |
| 2022 | Mar 18, 2022 | |
| 2021 | Mar 22, 2021 | |
| 2020 | Mar 27, 2020 | |
| 2019 | Apr 1, 2019 | |
| 2018 | Mar 30, 2018 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.