monday.com (MNDY)·Q4 2025 Earnings Summary
monday.com Beats Q4 But Guidance Miss Sends Stock Down 14%
February 9, 2026 · by Fintool AI Agent
monday.com delivered a solid Q4 2025, beating both revenue and EPS estimates, but a disappointing FY26 outlook sent shares tumbling 14% in aftermarket trading. The AI work platform posted $333.9M in revenue (+25% YoY) and non-GAAP EPS of $1.04, handily exceeding the $0.92 consensus. However, guidance for 18-19% revenue growth in FY26—below Street expectations of 20%+—and margin compression from 14% to 11-12% overshadowed the operational beat.
Did monday.com Beat Earnings?
Yes, but the guidance stole the show. Q4 results exceeded estimates on all key metrics:
Revenue grew 25% YoY, marking the ninth consecutive quarter of $50M+ revenue additions. Non-GAAP diluted EPS of $1.04 beat consensus by $0.12, though it declined from $1.08 in Q4 2024 due to FX headwinds.
For the full year, monday.com generated $1.232B in revenue (+27% YoY), narrowly beating the ~$1.228B consensus. Non-GAAP operating income reached a record $175.3M with 14% margin—matching FY24 despite FX pressure.
Ask Fintool AI AgentWhat Did Management Guide?
Below-consensus guidance triggered the selloff. The FY26 outlook disappointed on multiple fronts:
The guidance implies continued growth deceleration: from 27% in FY25 to 18-19% in FY26. Management attributed margin pressure to:
- FX headwinds: 100-200 bps expected negative impact; 55% of headcount in Israel with shekel up 20%+ YoY
- Continued R&D investment: R&D as % of revenue expanded to 20% in Q4 from 18% YoY
- Go-to-market expansion: S&M remained elevated at 48% of revenue
Importantly, the FY27 targets are off the table. CFO Glazer: "We will no longer be discussing our previously provided 2027 targets...we will revisit long-term targets when there is greater visibility and it's appropriate to do so."
How Did the Stock React?
Down 14% aftermarket to $84.64. MNDY closed regular trading at $98.00 on February 6, then plunged following the earnings release. The magnitude of the selloff reflects:
- Valuation reset: At ~$85, MNDY trades at ~6x FY26 revenue guidance vs ~7x pre-earnings
- Growth multiple compression: The market is pricing in durable deceleration
- Guidance conservatism uncertainty: Investors questioning if management is sandbagging or signaling structural slowdown
The 52-week high of $342.64 now seems distant—MNDY has lost 75% from peak. Even with strong enterprise momentum, the stock has underperformed broader SaaS indices.
What Changed From Last Quarter?
Enterprise momentum accelerated, but growth decelerated. Key sequential changes:
The 200 bps margin contraction from 15% to 13% was notable. Management cited FX as the primary driver (~180 bps impact), but R&D spending also accelerated significantly for AI initiatives.
Ask Fintool AI AgentEnterprise Momentum: The Bright Spot
Upmarket traction continues to impress. Despite the guidance concerns, enterprise growth metrics remained strong:
Enterprise customers ($50k+ ARR) now represent 41% of total ARR, up from 36% a year ago. Net dollar retention for this cohort remained healthy at 116%.
Record enterprise net adds: Q4 saw record net additions of $100k+ ARR customers, suggesting the go-to-market motion is working upmarket.
Gross retention hit historical highs: 91% gross retention in the $50K+ cohort—the highest ever. CFO Glazer noted this metric has been trending up for several quarters and "we have reasons to believe that once we continue to offer the additional product and we continue to extract more revenue from existing customer base with AI products that are providing us stickiness and retention, this number will continue to go up."
CRO Casey George on enterprise momentum: "Our clients like our products. They really do...they're looking to rationalize their vendor suite, and we have a very healthy portfolio that we can offer...the ground's very fertile."
The SMB Challenge: What's Really Happening
Performance marketing ROI has deteriorated, and management doesn't expect recovery in FY26.
CEO Roy Mann was blunt on the earnings call: "No-touch channels continue to operate in a choppy demand environment, particularly among the smaller customers, which we expect to persist in 2026."
The numbers tell the story:
- Cost to acquire self-serve customers has increased
- Returns on SMB investments are below historical levels
- Management is actively shifting budget away from smaller customers
CFO Glazer clarified that enterprise is unaffected: "We don't see this impact on the bigger customer. We have strong momentum with the upmarket motion, and we only see it in the SMB segment, namely the S of the SMB."
The guidance assumes no improvement in performance marketing for FY26—management is effectively writing off that channel for the year.
Capital Allocation
$135M buyback + $1.5B cash position provides cushion. monday.com remains well-capitalized:
The company repurchased approximately 884,000 shares in Q4 at an average price of ~$153—well above the current ~$85 level. With $735M remaining in buyback capacity, management has significant firepower if they believe the selloff is overdone.
Q&A Highlights: What Analysts Asked
On the guidance miss and 2027 targets: Analyst Mark Murphy pressed management on what changed since last quarter when they blessed the $1.5B consensus. CFO Eliran Glazer was direct: "Since then, there is a lot of noise in the market in terms of macroeconomy. Our no-touch business continued to be choppy and volatile. We didn't see the improvement that we expected to see."
Critically, 2027 targets are now off the table: "Due to the macroeconomy and the choppiness that we have seen, the 2027 number is currently off the table, and we are focusing on fiscal year 2026 execution."
On the SMB/no-touch headwinds: CEO Roy Mann explained the dynamic: "The cost to acquire and expand self-serve customers has increased over the past year, and the returns on those investments have been below historical levels. We do not see the same dynamic in our touch business, which has continued to accelerate."
The response: shifting budgets away from smaller customers to higher-ROI enterprise channels.
On enterprise gross retention: A bright spot that didn't get enough attention—91% gross retention in the $50K+ cohort, a historical high. CFO Glazer noted: "Not only that this is historical highs in Q4 of 2025, but this is the cadence that we have seen over the past few quarters."
On AI competitive positioning: Co-CEO Eran Zinman addressed concerns about AI disruption: "Most of our customers are still trying to figure out what's the best way to leverage that technology. And for them, the best way to leverage that technology is use already systems they're using before where they have most of the data and the context and the workflows."
On FX impact details: The FX headwind is significant—55% of monday.com's headcount is in Israel, and the shekel appreciated 20%+ against the dollar over the past year. Even with a 12-month rolling hedge strategy, the impact flows through.
AI Products: Deeper Dive
Three-layer AI architecture is now live:
- AI Agents & Workflows (beta): Create an on-demand AI workforce that can "reason, act, and execute across workflows—effectively enabling businesses to scale output without scaling headcount"
- Monday Vibe: Full application building on top of monday.com data—"the only vibe tool out there that is enterprise-grade" per Roy Mann
- AI Sidekick: The "central intelligence layer" and "business brain of the company" that accesses all account data
Usage metrics:
- Monday Blocks: 77 million actions powered
- Sidekick: 500,000+ user messages processed
- Vibe: Fastest product to $1M ARR in company history
Monetization approach: Sidekick is a paid add-on for Pro and below packages, included in Enterprise. CRO Casey George explained: "Our AI capabilities are foundational in our platform. They're embedded in our workflows...some of the more compute-intensive workloads, we are charging and monetizing through credits."
Forward Catalysts and Risks
Key catalysts:
- AI monetization: monday vibe's early success could accelerate if enterprise adoption continues
- RPO conversion: $839M in RPO (+37% YoY) provides visibility; cRPO of $676M (+31%) suggests near-term revenue stability
- Buyback acceleration: At current prices, management could retire significant shares
- Enterprise momentum: 91% gross retention in $50K+ cohort suggests land-and-expand is working
Key risks:
- Growth deceleration: 18-19% guidance may prove optimistic if macro deteriorates
- Margin compression: Guiding to 11-12% operating margin vs 14% in FY25 suggests investment phase continues
- Competition: Atlassian, Asana, and Microsoft are all investing heavily in AI-powered work management
- FX volatility: 55% Israel headcount + 20% shekel appreciation = structural margin pressure
- No-touch recovery uncertain: Management explicitly said they assume no improvement in FY26
Ask Fintool AI AgentThe Bottom Line
monday.com delivered operationally—beating Q4 estimates and growing enterprise customers at impressive rates. But the FY26 guidance miss, margin compression, and withdrawal of 2027 targets signal that management is resetting expectations.
At ~$85 (down 14% aftermarket), MNDY trades at ~6x forward revenue with 18-19% growth and 11-12% margins. For a SaaS company transitioning from hypergrowth to durable growth, the valuation is reasonable but no longer cheap.
The bull case: Enterprise is accelerating (91% gross retention, 74% growth in $500K+ customers), AI products are gaining traction (Vibe fastest to $1M ARR ever), and management has $735M in buyback capacity at depressed prices.
The bear case: SMB recovery isn't happening in FY26, 2027 targets are off the table, and 55% Israel headcount means FX pressure is structural.
The key question: Is this a growth slowdown or a growth normalization? The enterprise momentum and AI traction suggest the business is healthy, but the market is clearly recalibrating expectations.
Related Links:
Data sources: monday.com Q4 2025 Press Release, Earnings Presentation, S&P Global estimates.