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Monday.com (MNDY) AI Stock Analysis
Monday.com
(NASDAQ:MNDY)
Overall score is driven primarily by strong financial performance (high gross margins, sustained profitability, and robust free cash flow) and a generally positive earnings outlook with upmarket and AI traction. The score is tempered by mixed technicals (still below the 200-day average), a relatively high P/E without dividend support, and execution risks flagged on the earnings call (restructuring, softer downmarket demand, FX pressure, and modest NDR headwinds).
Monday.com Key Performance Indicators (KPIs)
Dollar-Based Net Retention RateShows how revenue from existing customers changes over time after upsells, downgrades, and churn; a rate above 100% means current customers are expanding their spend and can drive growth without relying solely on new sales. Consistently high retention reflects strong product value and long-term revenue sustainability.
Large-account cohorts have regained much of their post‑2022 expansion and now show clear upmarket resilience, while aggregate NDR has flattened to a lower plateau. Management warns NDR may tick down by year‑end as the company laps prior pricing actions, so any upside will depend on AI/new‑product monetization and continued enterprise expansion. Net: retention quality is improving at the top end—supporting ARR durability—but overall NDR is no longer a strong organic growth lever, increasing reliance on product monetization, efficiency and capital returns for upside.
The FlyMonday.com (MNDY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $3.96B
- Dividend Yield
- ―
- Average Volume (3M)
- 1.22M
- Price to Earnings (P/E)
- 39.2
- Beta (1Y)
- 1.77
- Revenue Growth
- 24.21%
- EPS Growth
- 206.42%
- Country
- US
- Employees
- 3,155
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
Monday.com Business Overview & Revenue Model
Company Description
monday.com Ltd., along with its affiliated entities, designs and provides software solutions for a global market, spanning the United States, Europe, the Middle East, Africa, and other international regions. Its flagship offering is Work OS, an intui...
How the Company Makes Money
monday.com primarily generates revenue from subscription fees for access to its cloud-based platform. Customers (generally businesses and organizations) purchase paid plans that are typically priced by tier and by number of users (“seats”), with high...
Monday.com Earnings Call Summary
The call highlights solid top-line growth (22% YoY in Q2), improved profitability (non-GAAP operating margin expanding to 17%), strong upmarket traction (large-account growth of 37% and 68% in $100k+/ $500k+ cohorts), and accelerating AI adoption (AI ARR doubled QoQ and early monetization via credit consumption). Offsetting these positives are a sizeable ~20% workforce reduction with near-term execution risk, cautious/tempered guidance for the year, downmarket demand and marketing headwinds, FX-driven margin pressure, and higher R&D intensity as the company retools around AI. Overall, the positives around revenue, ARR milestone, profitability expansion and early AI adoption outweigh the transition-related risks and conservatism.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
monday.com provided a detailed outlook: Q3 revenue is guided to $368–370 million (up 16–17% YoY) with non‑GAAP operating income of $57–59 million and an operating margin of ~16% (assuming a 100–200 bps negative FX impact). For full‑year FY26 the company expects revenue of $1.466–1.474 billion (growth of 19–20% YoY), non‑GAAP operating income of $230–234 million and an operating margin of ~16% (again assuming a 100–200 bps negative FX impact), plus adjusted free cash flow of $280–290 million and an adjusted FCF margin of 19–20% (100–200 bps FX headwind). Management also reiterated an NDR assumption around 108% for FY26, expects headcount to be roughly 20% lower by year‑end, and noted Q2 results that set the base for the guide: Q2 revenue $365 million (+22% YoY), Q2 non‑GAAP operating margin 17%, Q2 adjusted FCF $52.3 million (14% margin), $1.07 billion in cash and equivalents, and completion of the $870 million share‑repurchase ($182 million executed in the quarter).
Monday.com Financial Statement Overview
Summary
Strong financial quality: revenue scaled materially ($308M in 2021 to $1.23B in 2025; $1.37B TTM) with consistently exceptional gross margins (~87–89%). Profitability has inflected meaningfully (net margin ~9% in 2025 and ~8.9% TTM) and cash generation is robust (TTM operating cash flow $319M; TTM free cash flow $298M). Key offsets are decelerating growth, slightly negative TTM FCF growth, and balance-sheet risk signals (higher leverage and a sharp equity drop from 2025 to TTM).
Income Statement
84Very PositiveBalance Sheet
70PositiveCash Flow
78Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.37B | 1.23B | 972.00M | 729.70M | 519.03M | 308.15M |
| Gross Profit | 1.21B | 1.10B | 868.30M | 649.05M | 452.50M | 269.14M |
| EBITDA | 94.34M | 73.12M | 51.62M | 12.79M | -120.10M | -123.25M |
| Net Income | 121.24M | 118.74M | 32.37M | -1.88M | -136.87M | -129.29M |
Balance Sheet | ||||||
| Total Assets | 1.62B | 2.11B | 1.69B | 1.28B | 1.04B | 933.19M |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 1.67B | 1.46B | 1.12B | 885.89M | 886.81M |
| Total Debt | 237.49M | 311.71M | 106.04M | 61.15M | 77.72M | 84.00K |
| Total Liabilities | 1.00B | 859.76M | 655.28M | 462.15M | 359.30M | 229.80M |
| Stockholders Equity | 617.98M | 1.25B | 1.03B | 813.51M | 679.74M | 703.39M |
Cash Flow | ||||||
| Free Cash Flow | 298.49M | 309.90M | 295.83M | 204.94M | 8.14M | 2.60M |
| Operating Cash Flow | 318.98M | 333.64M | 311.06M | 215.40M | 27.14M | 16.36M |
| Investing Cash Flow | -203.02M | -133.72M | -70.81M | -10.46M | -19.00M | -3.63M |
| Financing Cash Flow | -869.75M | -108.38M | 55.21M | 25.29M | -9.05M | 742.27M |
Monday.com Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNDY, the sentiment is Neutral. The current price of 93.59 is below the 20-day moving average (MA) of 94.56, above the 50-day MA of 90.86, and above the 200-day MA of 83.04, indicating a neutral trend. The MACD of 2.44 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 26.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MNDY.
Monday.com Peers Comparison
Overall Rating
FRSH82Outperform- MNDY73Outperform
GTLB72Outperform
SPT69Neutral
WK69Neutral
ASAN59Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| FRSH | 82Outperform | $3.71B | 19.04 | 19.50% | ― | 15.57% | ― |
| MNDY | 73Outperform | $4.03B | 39.17 | 12.46% | ― | 24.21% | 206.42% |
| GTLB | 72Outperform | $8.68B | -166.04 | -5.51% | ― | 22.99% | -1190.91% |
| SPT | 69Neutral | $733.04M | -23.86 | -14.05% | ― | 11.85% | 47.54% |
| WK | 69Neutral | $4.61B | 101.06 | -123.75% | ― | 19.67% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| ASAN | 59Neutral | $2.53B | -16.88 | -105.68% | ― | 9.48% | 26.94% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MNDY | Monday.Com Ltd. | 93.59 | -98.64 | -51.31% | |
| WK | Workiva Inc. | 83.88 | 1.77 | 2.16% | |
| SPT | Sprout Social Inc Class A | 11.93 | 1.68 | 16.39% | |
| ASAN | Asana, Inc. | 11.15 | -2.00 | -15.21% | |
| FRSH | Freshworks, Inc. Class A | 14.15 | 3.09 | 27.94% | |
| GTLB | Gitlab, Inc. Class A | 52.37 | 6.54 | 14.27% |
Monday.com Corporate Events
monday.com Posts Record Q2 2026 Profit as AI Work Platform Strategy Takes Hold
On August 10, 2026, monday.com reported second-quarter results for the period ended June 30, 2026, highlighting 22% year-over-year revenue growth to $364.6 million and record non-GAAP operating income of $61.1 million, as GAAP operating loss narrowed...
monday.com shareholders back board, pay policies and auditor at August AGM
At its annual general meeting held on August 6, 2026 in Tel Aviv, monday.com shareholders re-elected Eran Zinman, Aviad Eyal and Petra Jenner as Class II directors to serve until 2029, underscoring continuity in the company’s leadership. Invest...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 19, 2026