Monday.com Ltd. (NASDAQ: MNDY) experienced a significant stock price decline on Monday, reaching a fresh 52-week low amid investor reactions to its cautious financial outlook for 2026. The company, known for its subscription-based cloud platform Work OS, reported quarterly results that outperformed market expectations, though tempered guidance tempered market enthusiasm.
For the fiscal quarter, Monday.com achieved revenue of $333.88 million, representing a 25% increase compared to the same period last year and surpassing the analyst consensus estimate of $329.64 million. The adjusted earnings per share (EPS) reached $1.04, which was notably above the projected 92 cents per share.
The firm’s monthly subscription revenue model showed strong customer engagement metrics, with a net dollar retention rate of 110% overall and 114% among customers with over 10 users. Monday.com’s large customer base saw expansion as well, with the tally of clients generating more than $50,000 in annual recurring revenue (ARR) rising 34% year-over-year to 4,281.
Despite revenue growth, the company reported a 200 basis point decrease in adjusted operating margin to 13%. This contraction primarily reflected a 180 basis point adverse impact from foreign currency fluctuations. Cash flows also experienced a decline compared to the prior year; operating cash flow amounted to $59.7 million, down from $76.7 million, and adjusted free cash flow fell to $56.7 million from $72.7 million. At quarter-end, Monday.com held $1.67 billion in cash and equivalents, maintaining a robust liquidity position.
Co-CEOs Roy Mann and Eran Zinman commented on the company’s execution throughout 2025, noting a 27% annual revenue increase and a solid 14% adjusted operating margin while extending the product portfolio and bolstering AI integration. They emphasized that Monday.com continues to gain traction with larger enterprise clients who increasingly rely on the platform for essential workflow management.
Chief Financial Officer Eliran Glazer acknowledged some short-term margin pressures due to foreign exchange headwinds but underscored that the company’s underlying fundamentals and expansion within the more sizable customer segment remain strong.
Looking ahead, Monday.com provided guidance for the first quarter of fiscal 2026, forecasting revenue between $338 million and $340 million. This range falls slightly short of the analyst consensus estimate of $342.97 million. The adjusted operating margin is expected to range from 11% to 12%. For the full fiscal year 2026, management anticipates revenue between $1.452 billion and $1.462 billion, compared with the analysts’ consensus estimate of $1.477 billion, and projects an adjusted operating margin of 11% to 12%. These projections incorporate an estimated 100 to 200 basis point negative impact related to foreign exchange rates.
Investors reacted notably to these forward-looking results, evident in the stock’s premarket trading on Monday where shares declined by approximately 14.8% to $83.50, marking the lowest price level in a year according to market data.
The company’s quarterly earnings report reaffirms its growth trajectory and strong customer engagement, but the tempered revenue and margin outlook for the upcoming period highlights the persistent challenges from currency volatility and market conditions. Monday.com’s commitment to expanding AI features and penetrating the enterprise segment positions it to leverage future growth opportunities, albeit within a landscape of cautious near-term financial expectations.
For the fiscal quarter, Monday.com achieved revenue of $333.88 million, representing a 25% increase compared to the same period last year and surpassing the analyst consensus estimate of $329.64 million. The adjusted earnings per share (EPS) reached $1.04, which was notably above the projected 92 cents per share.
The firm’s monthly subscription revenue model showed strong customer engagement metrics, with a net dollar retention rate of 110% overall and 114% among customers with over 10 users. Monday.com’s large customer base saw expansion as well, with the tally of clients generating more than $50,000 in annual recurring revenue (ARR) rising 34% year-over-year to 4,281.
Despite revenue growth, the company reported a 200 basis point decrease in adjusted operating margin to 13%. This contraction primarily reflected a 180 basis point adverse impact from foreign currency fluctuations. Cash flows also experienced a decline compared to the prior year; operating cash flow amounted to $59.7 million, down from $76.7 million, and adjusted free cash flow fell to $56.7 million from $72.7 million. At quarter-end, Monday.com held $1.67 billion in cash and equivalents, maintaining a robust liquidity position.
Co-CEOs Roy Mann and Eran Zinman commented on the company’s execution throughout 2025, noting a 27% annual revenue increase and a solid 14% adjusted operating margin while extending the product portfolio and bolstering AI integration. They emphasized that Monday.com continues to gain traction with larger enterprise clients who increasingly rely on the platform for essential workflow management.
Chief Financial Officer Eliran Glazer acknowledged some short-term margin pressures due to foreign exchange headwinds but underscored that the company’s underlying fundamentals and expansion within the more sizable customer segment remain strong.
Looking ahead, Monday.com provided guidance for the first quarter of fiscal 2026, forecasting revenue between $338 million and $340 million. This range falls slightly short of the analyst consensus estimate of $342.97 million. The adjusted operating margin is expected to range from 11% to 12%. For the full fiscal year 2026, management anticipates revenue between $1.452 billion and $1.462 billion, compared with the analysts’ consensus estimate of $1.477 billion, and projects an adjusted operating margin of 11% to 12%. These projections incorporate an estimated 100 to 200 basis point negative impact related to foreign exchange rates.
Investors reacted notably to these forward-looking results, evident in the stock’s premarket trading on Monday where shares declined by approximately 14.8% to $83.50, marking the lowest price level in a year according to market data.
The company’s quarterly earnings report reaffirms its growth trajectory and strong customer engagement, but the tempered revenue and margin outlook for the upcoming period highlights the persistent challenges from currency volatility and market conditions. Monday.com’s commitment to expanding AI features and penetrating the enterprise segment positions it to leverage future growth opportunities, albeit within a landscape of cautious near-term financial expectations.