Company Overview
Monday.com is a cloud-based work management and productivity software company founded in 2012 and headquartered in Tel Aviv, Israel. The company provides a highly configurable Work OS that allows teams to plan, track, and execute projects across functions such as product development, marketing, sales, CRM, IT, and operations. Monday.com monetizes primarily through seat-based SaaS subscriptions with tiered pricing and has increasingly pushed upmarket into larger enterprise accounts over the past several years. For full-year 2025, the company generated approximately $1.38 billion in revenue, maintaining strong growth while expanding operating leverage. Its primary competitors include $ASAN Asana, Smartsheet $SMAR, Atlassian $TEAM, and ClickUp, all of whom operate in the increasingly competitive collaborative work management category.
Most Recent Earnings Overview
Monday.com reported its fourth-quarter and full-year 2025 earnings today, with results covering the period ended December 31, 2025. The company delivered adjusted earnings per share of approximately $1.04, materially ahead of consensus expectations that were closer to the low-$0.90 range. Revenue for the quarter came in at roughly $334 million, representing about 25% year-over-year growth and modestly exceeding analyst expectations. Both top-line and bottom-line performance reflected continued customer expansion, improved monetization per account, and disciplined cost control. Despite these beats, the market reaction was sharply negative due to forward-looking guidance.
Revenue and Earnings Performance Versus Last Year
On a year-over-year basis, Monday.com’s Q4 revenue growth of roughly 25% represented a continued deceleration from the hypergrowth phase of prior years but still compared favorably to many peers in the work management and SaaS productivity space. Gross margins remained strong, and operating margins expanded meaningfully as the company scaled its R&D and go-to-market investments more efficiently. Net income for the quarter was approximately $77 million, reflecting significant operating leverage and a sharp improvement compared to the year-ago period. Earnings growth materially outpaced revenue growth, signaling that the company is firmly in a margin expansion phase rather than pure growth-at-all-costs mode.
Customer Metrics and Expansion Trends
Monday.com continued to demonstrate strength in customer expansion, particularly among larger customers. The number of customers with annual recurring revenue above $50,000 and $100,000 both grew at double-digit rates year over year, reinforcing management’s strategy to move upmarket. Net dollar retention remained above 110%, supported by seat expansion, adoption of additional products such as CRM and Dev, and increased usage of AI-driven automation features. Small- and mid-market demand remained stable, though management acknowledged more measured buying behavior compared to earlier post-pandemic periods.
Product and Platform Evolution
The company continues to position its Work OS as a horizontal platform rather than a single-use project management tool. During 2025, Monday.com expanded its AI capabilities, focusing on workflow automation, predictive insights, and natural-language task creation. Management emphasized that AI features are driving higher engagement rather than being directly monetized at this stage, with pricing power expected to materialize over time. The platform strategy remains centered on extensibility, integrations, and configurability, which differentiates Monday.com from more rigid point-solution competitors.
Geographic and Vertical Performance
Geographically, Monday.com maintained solid growth across North America and Europe, with emerging traction in Asia-Pacific. The U.S. remains the company’s largest revenue contributor, driven by mid-market and enterprise adoption. Vertical-wise, demand was strongest in technology, professional services, marketing, and operations-heavy industries, while more discretionary sectors showed modest caution. The company did not report any material geographic weakness but acknowledged longer sales cycles for larger enterprise deals.
Q1 2026 Guidance
For the first quarter of fiscal 2026, Monday.com guided revenue to approximately $338 million to $340 million, implying year-over-year growth of around 20%. While this represents continued expansion, the midpoint of guidance came in below Street expectations, which were closer to the low-$340 million range. Management cited macro uncertainty, more deliberate customer purchasing decisions, and conservative forecasting assumptions as reasons for the softer outlook. Operating margin guidance suggested continued profitability but at a slower pace of sequential improvement.
Full-Year 2026 Outlook
For full-year 2026, Monday.com guided revenue in the range of approximately $1.45 billion to $1.46 billion, representing growth of roughly 18% to 19% year over year. This guidance also fell modestly short of analyst consensus and signaled a further deceleration in headline growth. Management emphasized that the company is prioritizing durable, profitable growth over aggressive expansion, with continued investment in R&D and enterprise sales capacity. The outlook implies sustained margin discipline but lower incremental growth than investors had priced in.
Stock Performance and Market Reaction
Despite strong Q4 execution, Monday.com shares sold off sharply following the earnings release, declining roughly 14% to 15% in after-hours trading. The selloff reflected investor disappointment with forward guidance rather than concerns about current operating performance. The market reaction underscores how sensitive high-multiple SaaS stocks remain to growth trajectory expectations, particularly when deceleration is visible. Valuation compression, rather than fundamentals, was the primary driver of the stock’s decline.
Competitive Landscape
Monday.com operates in a crowded and increasingly competitive market that includes Asana, Smartsheet, Atlassian’s Jira and Trello products, ClickUp, and Microsoft’s growing suite of collaborative tools. While competitors are also investing heavily in AI and automation, Monday.com differentiates itself through ease of use, flexibility, and its Work OS positioning. However, pricing pressure and feature parity remain long-term risks as competitors converge on similar capabilities. Enterprise buyers increasingly evaluate multiple platforms, extending sales cycles and increasing competition.
Differentiation and Strategic Positioning
The company’s key differentiation lies in its modular architecture and ability to serve multiple use cases from a single platform without heavy customization or professional services. Monday.com has successfully marketed itself as a “no-code” or “low-code” solution, enabling business users rather than IT teams to design workflows. This flexibility has driven strong organic adoption within organizations. The trade-off is that differentiation is experiential rather than purely technical, making continued product innovation critical.
Management Team Overview
Monday.com is led by co-founders Roy Mann and Eran Zinman, who serve as co-CEOs and continue to be deeply involved in product and strategic decisions. The leadership team has demonstrated consistent execution, balancing growth and profitability more effectively than many SaaS peers. Financial discipline has improved under the current management structure, with a clear emphasis on sustainable margins. The management team’s credibility remains strong despite the near-term guidance reset.
Five-Year Financial Performance Trends
Over the past five years, Monday.com has delivered compound annual revenue growth well above 30%, transitioning from sub-$300 million revenue levels to nearly $1.4 billion in 2025. Gross margins have remained consistently high, supporting significant operating leverage as the company scaled. Earnings have inflected meaningfully over the last two years, with Monday.com moving from operating losses to sustained profitability. The balance sheet remains strong, with substantial cash reserves and no material debt, providing flexibility for continued investment or potential strategic acquisitions.
Bull Case
The bull case for Monday.com centers on its ability to continue expanding upmarket while maintaining strong net retention and margin expansion. If AI-driven features translate into higher pricing power or reduced churn, revenue growth could reaccelerate above guidance. Additionally, sustained profitability combined with durable growth could support multiple expansion once investor sentiment stabilizes.
Bear Case
The bear case rests on continued growth deceleration as the work management category matures and competition intensifies. If enterprise sales cycles lengthen further or pricing pressure increases, revenue growth could undershoot even conservative guidance. Valuation sensitivity remains high, meaning further multiple compression is possible even with solid execution.
The stock is in a stage 4 decline on all time frames with a realistic bottom not clear yet, but support in the $73 range. Wont be a stock to be interested in the near term.