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Monday.com
(NASDAQ:MNDY)
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Rating:71Outperform
Price Target:
$90.00
▲(38.48% Upside)
Action:Reiterated
Date:06/02/26
The score is driven primarily by strong financial performance—high gross margins, meaningful free cash flow, and improving profitability—reinforced by constructive FY26 guidance and solid Q1 execution. Offsetting factors are elevated valuation (P/E 38.41) and a mixed technical setup: strong near-term momentum but overbought signals and the stock still below its 200-day moving average.
Positive Factors
Recurring revenue scale
Consistent multi-year revenue growth demonstrates a scalable SaaS model and expanding product adoption. Larger recurring revenue base improves predictability, supports reinvestment in R&D and sales, and increases the durability of cash flow even if growth moderates over the next several quarters.
Negative Factors
AI-related gross margin pressure
Rising AI compute and agent costs are a structural margin headwind as usage and agent capabilities scale. Higher COGS could compress historical industry-leading gross margins, forcing trade-offs between product investment, pricing, and profitability durability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue scale
Consistent multi-year revenue growth demonstrates a scalable SaaS model and expanding product adoption. Larger recurring revenue base improves predictability, supports reinvestment in R&D and sales, and increases the durability of cash flow even if growth moderates over the next several quarters.
Read all positive factors
Monday.com Key Performance Indicators (KPIs)
Any
Dollar-Based Net Retention Rate
Shows 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.
Shows 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.
Data provided by:
The Fly
The FlyMonday.com (MNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.19B
Dividend YieldN/A
Average Volume (3M)1.29M
Price to Earnings (P/E)34.5
Beta (1Y)1.87
Revenue Growth25.42%
EPS Growth125.90%
CountryUS
Employees3,155
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)2.34
Shares Outstanding42,906,944
10 Day Avg. Volume730,108
30 Day Avg. Volume1,290,672
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)6.09
Price to Sales (P/S)6.16
P/FCF Ratio24.50
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$114.60Price Target Upside76.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)4.45
Revenue Forecast (FY)$1.47B
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 in...
How the Company Makes Money
Monday.com primarily makes money by selling subscriptions to its cloud-based Work OS SaaS platform. Revenue is generated through recurring fees from customers who purchase paid plans, typically priced by tier and user seats (with higher tiers offe...
Monday.com Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution and healthy top-line growth (24% YoY), record operating profit, robust adjusted free cash flow margin (29%), improved gross retention and accelerating upmarket momentum. Management highlighted meaningful product and AI advances (platform rearchitecture, DB 3.0, developer productivity gains) and a strategic acquisition to add voice agent capabilities. Offsetting these positives were cautionary items: guidance implies moderation in growth for the rest of the year, expected modest decline in NDR as the company laps prior pricing actions, early-stage monetization of AI agents with uncertain adoption timing, pressure on gross margins from AI compute costs (management expects margins to be lower over the foreseeable future), top-of-funnel softness, and FX impacts. On balance, the highlights—strong revenue growth, profitability, cash generation, retention improvements and clear AI/product momentum—outweigh the listed risks, though leaders flagged several sources of near-term uncertainty that temper visibility.Positive Updates
Strong Top-Line Growth
Total revenue of $351 million in Q1, up 24% year-over-year, driven by sustained demand and broad-based outperformance across geographies and segments.
Negative Updates
Guidance Moderation and Seasonality
Q2 revenue guidance of $354–$356 million implies growth of 18%–19% YoY (down from Q1's 24%), and full-year revenue guide of $1.466–$1.475 billion implies 19%–20% growth, signaling moderation through the year and potential H2 moderation.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue of $351 million in Q1, up 24% year-over-year, driven by sustained demand and broad-based outperformance across geographies and segments.
Read all positive updates
Company Guidance
monday.com’s FY‑26 guidance called for Q2 revenue of $354–356M (up 18–19% YoY) and non‑GAAP operating income of $46–48M with a 13–14% operating margin (assuming a 100–200 bps negative FX impact); full‑year revenue of $1.466–1.475B (19–20% growth), full‑year non‑GAAP operating income of $185–191M (~13% margin, 100–200 bps FX headwind) and adjusted free cash flow of $280–290M (19–20% adjusted FCF margin), noting the Q1 accelerated buyback will reduce FY26 adjusted FCF by ~ $20M. Q1 actuals included revenue $351M (+24% YoY), adjusted FCF $102.8M (29% margin), operating income $49M (14% margin), gross margin 89%, net income $56M, diluted EPS $1.15 on 48.9M diluted shares, cash & equivalents $1.21B after $553M repurchases (≈$182M remaining authorization), headcount 3,211 (expected largely flat), R&D $78.4M (22% of revenue), S&M $158.2M (45%), G&A $28.6M (8%), and NDR of 110% (management expects a slight decline by year‑end); management also cited AI contribution to net new ARR (roughly 3% in one comment; elsewhere new products/AI‑related ARR was described at ~10%), and warned of near‑term AI compute pressure on margins with gross margin expectations trending down from prior highs.Monday.com Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.30B | 1.23B | 972.00M | 729.70M | 519.03M | 308.15M |
| Gross Profit | 1.16B | 1.10B | 868.30M | 649.05M | 452.50M | 269.14M |
| EBITDA | 76.41M | 73.12M | 58.00M | 12.79M | -120.10M | -123.25M |
| Net Income | 119.35M | 118.74M | 32.37M | -1.88M | -136.87M | -129.29M |
Balance Sheet | ||||||
| Total Assets | 1.69B | 2.11B | 1.69B | 1.28B | 1.04B | 933.19M |
| Cash, Cash Equivalents and Short-Term Investments | 1.21B | 1.67B | 1.46B | 1.12B | 885.89M | 886.81M |
| Total Debt | 177.57M | 311.71M | 106.04M | 61.15M | 77.72M | 84.00K |
| Total Liabilities | 933.51M | 859.76M | 655.28M | 462.15M | 359.30M | 229.80M |
| Stockholders Equity | 758.69M | 1.25B | 1.03B | 813.51M | 679.74M | 703.39M |
Cash Flow | ||||||
| Free Cash Flow | 304.15M | 309.90M | 295.83M | 204.94M | 8.14M | 2.60M |
| Operating Cash Flow | 326.36M | 333.64M | 311.06M | 215.40M | 27.14M | 16.36M |
| Investing Cash Flow | -182.34M | -133.72M | -70.81M | -10.46M | -19.00M | -3.63M |
| Financing Cash Flow | -674.49M | -108.38M | 55.21M | 25.29M | -9.05M | 742.27M |
Monday.com Technical Analysis
Neutral
64.99
Price Trends
78.10
Positive
74.30
Positive
112.99
Negative
Market Momentum
1.67
Negative
52.63
Neutral
65.81
Neutral
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 64.99 is below the 20-day moving average (MA) of 76.85, below the 50-day MA of 78.10, and below the 200-day MA of 112.99, indicating a neutral trend. The MACD of 1.67 indicates Negative momentum. The RSI at 52.63 is Neutral, neither overbought nor oversold. The STOCH value of 65.81 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.13B | 15.64 | 50.21% | 0.16% | 3.50% | 75.14% | |
71 Outperform | $4.19B | 34.48 | 10.69% | ― | 25.42% | 125.90% | |
68 Neutral | $5.57B | -217.56 | -2.66% | ― | 24.90% | -233.01% | |
67 Neutral | $5.97B | 12.16 | 14.03% | ― | 9.29% | 18.05% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $1.72B | -10.92 | -92.84% | ― | 9.47% | 31.43% | |
52 Neutral | $2.95B | -19.16 | -12.16% | ― | 31.25% | 56.23% |
* Technology Sector Average
MNDY
Monday.com
80.71
-206.34
-71.88%
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Monday.com Corporate Events
Monday.com Calls August 6 Shareholder Meeting to Back New Executive Pay Policy Amid AI Platform Push
Jul 2, 2026
Monday.com has convened shareholders for its annual general meeting scheduled for August 6, 2026 in Tel Aviv, following a year of rapid expansion and a strategic pivot toward an AI-centric work platform. The company’s proxy materials detail ...
monday.com Posts Record Q1 2026 Results and Launches AI Work Platform
May 11, 2026
On May 11, 2026, monday.com reported first-quarter 2026 results, posting revenue of $351.3 million, up 24% year over year, and record GAAP and non-GAAP operating income, while net income per share and cash generation remained strong. The firm deep...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.