Monday.com Ltd. (NASDAQ:MNDY) reported fourth‑quarter 2025 results on February 9, 2026, with revenue of $333.9 million, up 25% year‑over‑year from $268.0 million in Q4 2024. Adjusted earnings per share were $1.04, beating the consensus estimate of $0.92 (or $0.91) by $0.12, a 13–14% upside that reflects disciplined cost control and a favorable mix of high‑margin enterprise contracts.
Revenue growth was driven by strong demand from larger enterprise customers and accelerated adoption of the company’s AI‑enabled product suite. The company added record net customers with more than $100,000 in annual recurring revenue, and its net dollar retention rate rose to 110%. In contrast, the full‑year 2025 revenue grew 27% from $972.0 million in FY 2024, underscoring the company’s successful shift up‑market and the impact of AI on sales velocity.
The quarter’s non‑GAAP operating margin was 13%, slightly below the 14% margin reported for the full fiscal year. The margin compression was largely due to higher sales and marketing spend associated with the AI product launch and a modest increase in cost of revenue from higher‑volume enterprise deployments. Nevertheless, the margin remains healthy compared to the 10% margin seen in Q4 2024, indicating that the company is maintaining profitability while investing in growth.
Guidance for the first quarter of fiscal 2026 was $338 million to $340 million in revenue and $37 million to $39 million in operating income, both below consensus estimates of $342.6 million and $39 million, respectively. Management cited macro‑economic uncertainty and foreign‑exchange headwinds—particularly the appreciation of the Israeli shekel—as reasons for the cautious outlook. The guidance also reflects a slowdown in the SMB self‑serve segment, which the company expects to remain choppy in 2026.
Co‑founders and co‑CEOs Roy Mann and Eran Zinman said, “We delivered another year of strong, disciplined execution in 2025, with 27% revenue growth and a 14% non‑GAAP operating margin, while expanding our product portfolio and seeing strong adoption of our AI products.” CFO Eliran Glazer added, “Foreign‑exchange rates have created some near‑term pressure on margins, but the underlying fundamentals remain healthy and we continue to see momentum with larger customers.”
Following the release, the market reacted sharply, with the stock falling 12–20% as investors focused on the weaker‑than‑expected forward guidance. The guidance miss was the primary driver of the decline, outweighing the earnings beat and revenue upside. Analysts noted that the company’s enterprise momentum and AI investments remain attractive, but the headwinds—particularly FX and a slowing SMB segment—raise concerns about sustaining high growth rates in the near term.
The results reinforce Monday.com’s strategy of moving up‑market and deepening customer stickiness, but the cautious outlook signals that management is prioritizing profitability and risk management amid macro uncertainty. The company’s focus on AI adoption and enterprise expansion positions it well for long‑term growth, while the FX headwinds and SMB challenges highlight areas that could temper short‑term momentum.
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