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Monday.com
(NASDAQ:MNDY)
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Rating:72Outperform
Price Target:
$103.00
▲(33.02% Upside)
Action:Reiterated
Date:08/10/26
MNDY scores well primarily on strong financial performance (high gross margins, meaningful revenue scale, and robust free cash flow) and a generally positive earnings outlook with expanding profitability and solid upmarket/AI momentum. The score is held back by a premium valuation (P/E ~39.8), technicals that are still below the 200-day moving average, and near-term execution risks from restructuring, FX pressure, and modestly softer retention/guidance tone.
Positive Factors
Cash Generation
Consistent, large operating cash flow and FCF (~$313–315M TTM/2025) demonstrate strong cash conversion from subscription revenues. Durable free cash flow supports reinvestment in product/AI, working capital, and strategic initiatives without immediate financing stress over the next several quarters.
Negative Factors
Restructuring / Execution Risk
A substantial ~20% workforce reduction creates execution and delivery risk during product reprioritization and AI integration. While intended to sharpen focus, such a large reorg can disrupt go‑to‑market, slow feature delivery, and temporarily weaken customer onboarding and support, affecting growth momentum over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Consistent, large operating cash flow and FCF (~$313–315M TTM/2025) demonstrate strong cash conversion from subscription revenues. Durable free cash flow supports reinvestment in product/AI, working capital, and strategic initiatives without immediate financing stress 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.
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The Fly
The FlyMonday.com (MNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.99B
Dividend YieldN/A
Average Volume (3M)1.25M
Price to Earnings (P/E)36.6
Beta (1Y)1.89
Revenue Growth24.21%
EPS Growth206.42%
CountryUS
Employees3,155
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)2.39
Shares Outstanding42,274,120
10 Day Avg. Volume1,660,760
30 Day Avg. Volume1,245,158
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
$110.47Price Target Upside42.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)5.41
Revenue Forecast (FY)$1.47B
Monday.com Business Overview & Revenue Model
Company Description
monday.com Ltd. (MNDY) is a software company in the enterprise/work management and SaaS sector that provides a cloud-based Work Operating System (Work OS) used to plan, track, and automate work. Its platform enables teams to build and run workflow...
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 h...
Monday.com Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Strong Top-Line Growth
Q2 revenue of $365 million, up 22% year-over-year; full year 2026 revenue guidance of $1.466B–$1.474B (19%–20% YoY). Q3 revenue guidance of $368M–$370M (16%–17% YoY).
Negative Updates
Workforce Reduction and Short-Term Execution Risk
Global workforce reduced by ~20% (announced July 22). Management acknowledged this was a difficult decision and flagged short-term disruption and execution risk, which contributed to conservative guidance.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q2 revenue of $365 million, up 22% year-over-year; full year 2026 revenue guidance of $1.466B–$1.474B (19%–20% YoY). Q3 revenue guidance of $368M–$370M (16%–17% YoY).
Read all positive 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
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 | 1.37B | 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 | 58.00M | 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
Positive
77.43
Price Trends
81.14
Positive
76.42
Positive
101.54
Negative
Market Momentum
2.79
Positive
52.37
Neutral
59.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNDY, the sentiment is Positive. The current price of 77.43 is below the 20-day moving average (MA) of 85.31, below the 50-day MA of 81.14, and below the 200-day MA of 101.54, indicating a neutral trend. The MACD of 2.79 indicates Positive momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 59.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.86B | 15.23 | 11.28% | ― | 8.08% | -18.39% | |
72 Outperform | $3.99B | 36.63 | 10.69% | ― | 24.21% | 206.42% | |
68 Neutral | $5.51B | 17.01 | 48.90% | 0.45% | 3.60% | 48.92% | |
68 Neutral | $7.32B | -282.44 | -2.66% | ― | 24.90% | -233.01% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $2.28B | -13.24 | -92.84% | ― | 9.47% | 31.43% | |
52 Neutral | $3.47B | -22.28 | -12.16% | ― | 31.25% | 56.23% |
* Technology Sector Average
MNDY
Monday.com
87.52
-88.22
-50.20%
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Monday.com Corporate Events
monday.com Posts Record Q2 2026 Profit as AI Work Platform Strategy Takes Hold
Aug 10, 2026
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 narro...
monday.com shareholders back board, pay policies and auditor at August AGM
Aug 6, 2026
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. Inv...
Monday.com Launches July 2026 Restructuring to Sharpen Focus on AI Work Platform
Jul 22, 2026
On July 22, 2026, Monday.com initiated a restructuring plan to better align its organization with its strategic focus on its AI Work Platform, reflecting an ongoing shift in product, marketing, and go-to-market strategy toward AI-driven growth. Th...
Monday.com Cuts Excess Equity Reserves Ahead of August 2026 Shareholder Meeting
Jul 18, 2026
On July 17, 2026, Monday.com filed a Form 6-K and issued a supplement to its July 2 proxy statement ahead of its August 6, 2026 annual general meeting, clarifying changes to its equity plans without altering any voting proposals or the meeting tim...
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.