Monday.com Earnings Beat, Guidance Disappoints
monday.com earnings beat estimates but weaker guidance and front-loaded AI investments are likely to raise volatility and pressure trader positioning.
KEY TAKEAWAYS
- Reported Q4 revenue $334 million and non-GAAP EPS $1.04, topping estimates.
- Guided FY revenue $1.5 billion and operating income $165-175 million, citing FX, self-serve volatility and front-loaded AI spend.
- Held $1.5 billion cash, 4,281 customers over $50,000 ARR, and roughly 110% net-dollar retention.
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monday.com (NASDAQ: MNDY) reported quarterly and full-year results on Feb. 9, 2026, beating revenue and earnings estimates. However, its fiscal 2026 guidance cited foreign-exchange headwinds, self-serve demand volatility, and front-loaded sales and AI investments, clouding the near-term outlook.
MNDY Earnings and Margins
The company posted fourth-quarter revenue of $333.9 million, up 25% year over year and above analyst estimates of $329.5 million. Non-GAAP earnings per share were $1.04, exceeding consensus. Non-GAAP operating income for the quarter reached $41.9 million, a 13% margin that included a roughly 180-basis-point negative impact from foreign exchange.
For fiscal 2025, monday.com reported revenue of $1.232 billion, a 27% increase from the prior year. Non-GAAP operating income totaled $175.3 million, reflecting a 14% margin that factored in about a 110-basis-point drag from currency fluctuations.
Guidance and AI Investments
The company forecast fiscal 2026 revenue between $1.452 billion and $1.462 billion, representing 18% to 19% growth. It projected non-GAAP operating income of $165 million to $175 million, implying an 11% to 12% margin, and adjusted free cash flow of $275 million to $290 million, or roughly a 19% to 20% margin. Headcount is expected to rise in the mid-teens percentage range.
For the first quarter, monday.com guided revenue of $338 million to $340 million, about 20% growth year over year, with non-GAAP operating income of $37 million to $39 million, implying an 11% to 12% margin. This outlook assumes a 100- to 200-basis-point negative foreign-exchange impact.
Management said the guidance reflects continued volatility in self-serve demand, no rebound in top-of-funnel activity, and foreign-exchange pressure, with about 55% of headcount based in Israel. The company also plans front-loaded investments in sales capacity and AI product development, which could reduce gross margin from the high-80s toward the mid-80s.
Cash Position and Customer Metrics
monday.com entered the year with $1.5 billion in cash and equivalents. Customers generating more than $50,000 in annual recurring revenue numbered 4,281, accounting for 41% of total ARR. Net-dollar retention was about 110%. Headcount increased by 137 from the prior quarter to 3,155 employees.
