Monday.com (MNDY) AI Stock Analysis

• Market Cap: $3.60B
• Dividend Yield: N/A
• Average Volume (3M): 3.25M
• Price to Earnings (P/E): 31.7
• Beta (1Y): 2.24
• Revenue Growth: 28.62%
• EPS Growth: 186.67%
• Country: US
• Employees: 2,508
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.04
• Shares Outstanding: 50,773,340
• 10 Day Avg. Volume: 2,932,721
• 30 Day Avg. Volume: 3,253,053
• PEG Ratio: 0.25
• Price to Book (P/B): 6.09
• Price to Sales (P/S): 6.16
• P/FCF Ratio: 24.23
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 2.37
• Enterprise Value/Ebitda: 35.54
• 1Y Price Target: $133.29
• Price Target Upside: 87.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): 4.12
• Revenue Forecast (FY): $1.46B

• Rating: 67 Neutral
• Price Target: $84.00 ▲(18.34% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is supported by strong financial quality (high gross margins, robust free cash flow, low leverage) and a generally constructive earnings outlook despite slower growth. It is held back primarily by very weak technicals (sharp downtrend and bearish momentum) and a valuation that still prices in solid performance without dividend support.

Positive Factors

Very high gross margins

Sustained ~89–90% gross margins reflect a high-margin SaaS model that supports durable operating leverage. Persistently strong gross margins allow monday.com to fund R&D and AI initiatives, absorb SG&A for upmarket expansion, and preserve long-term cash generation even amid growth variability.

Strong cash generation and conservative leverage

Robust free cash flow and low leverage provide financial flexibility. Consistent FCF conversion (~0.94 FCF/NI) and a large cash buffer support buybacks, reinvestment in product and sales, plus resilience to slower demand, enabling strategic choices without pressuring liquidity.

Clear upmarket traction and high NDR

A growing enterprise mix and 110% NDR indicate strong retention and expansion among higher-ACV accounts. Upmarket adoption raises average contract value, lengthens customer lifecycles, and smooths revenue visibility, helping margin expansion and more predictable long-term ARR growth.

Negative Factors

Revenue growth deceleration

Management's materially lower growth guidance signals slower top-line momentum versus recent years. Prolonged deceleration can limit operating leverage, increase the payback period on sales investments, and requires sustained execution on upmarket and product initiatives to restore prior growth trajectories.

Guided margin and FCF compression

Guided compression of operating and free cash flow margins, amplified by a 100–200bps FX headwind and higher investment, reduces the firm's internal funding capacity. Sustained margin pressure would constrain reinvestment, capital returns, or margin expansion even if revenue stabilizes.

Weaker self-serve demand and rising CAC

Persistent weakness in no-touch channels and rising CAC force a strategic shift to higher-touch, upmarket sales motions. That raises sales cost, lengthens sales cycles and increases headcount spend, making customer acquisition more expensive and slowing scalable growth from SMB/self-serve cohorts.

Monday.com Business Overview & Revenue Model

Company Description

monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, and internationally. It provides Work OS, a cloud-based visual work operating system that consists of modular building blocks used and assembled to create software applications and work management tools. The company also offers product solutions for marketing, CRM, project management, software development, and other fields; and business development, presale, and customer success services. It serves organizations, educational or government institution, and distinct business unit of an organization. The company was formerly known as DaPulse Labs Ltd. and changed its name to monday.com Ltd. in November 2017. monday.com Ltd. was incorporated in 2012 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Monday.com generates revenue primarily through a subscription-based model, offering tiered pricing plans that cater to different business sizes and needs. The company provides several subscription options, including Basic, Standard, Pro, and Enterprise plans, with increasing levels of features and capabilities. Key revenue streams include monthly and annual subscriptions from its growing customer base, which spans various industries. Additionally, Monday.com benefits from partnerships with third-party integrations and APIs, enhancing its platform's functionality and appeal. The company continuously invests in marketing and expansion strategies to capture a larger share of the project management software market, contributing to its overall earnings.

Monday.com Financial Statement Overview

Summary

Strong overall fundamentals: very high gross margins (~89–90%), solid and well-converting free cash flow (~$321M TTM; FCF/NI ~0.94), and a conservative balance sheet with low leverage (debt-to-equity ~0.09). Offsets include decelerating growth and still-thin/volatile operating profitability (EBIT near break-even in TTM).

Income Statement

Profitability has improved materially versus earlier loss-making years, with TTM (Trailing-Twelve-Months) net income of about $119M and a mid-single-digit net margin (~5.6%). Gross margins remain exceptionally strong (~89% in TTM), supporting operating leverage as the business scales. The main offset is that operating profitability is still thin/volatile (EBIT is near break-even in TTM after being negative in prior years), and revenue growth has decelerated sharply in TTM versus the very high growth rates posted in 2020–2022.

Balance Sheet

The balance sheet looks conservative, with low leverage (TTM debt-to-equity ~0.09) and a solid equity base (~$1.25B in TTM). Returns on equity have turned positive (TTM ~5.7%) after prior-year losses, indicating improving underlying earnings quality. The key watch item is that total debt has increased meaningfully versus 2023–2024 levels, though it remains modest relative to equity and assets.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow is strong (~$341M) with free cash flow close behind (~$321M), and free cash flow tracks net income closely (TTM free cash flow to net income ~0.94), suggesting earnings are converting well into cash. While free cash flow growth is slightly negative in TTM (~-3%), the broader trend since 2021 shows a major step-up in cash flow versus earlier periods, improving financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.23B	972.00M	729.70M	519.03M	308.15M
Gross Profit	1.10B	868.30M	649.05M	452.50M	269.14M
EBITDA	73.12M	58.00M	12.79M	-120.10M	-123.25M
Net Income	118.74M	32.37M	-1.88M	-136.87M	-129.29M
Balance Sheet
Total Assets	2.11B	1.69B	1.28B	1.04B	933.19M
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.46B	1.12B	885.89M	886.81M
Total Debt	311.71M	106.04M	61.15M	77.72M	84.00K
Total Liabilities	859.76M	655.28M	462.15M	359.30M	229.80M
Stockholders Equity	1.25B	1.03B	813.51M	679.74M	703.39M
Cash Flow
Free Cash Flow	313.28M	295.83M	204.94M	8.14M	2.60M
Operating Cash Flow	333.64M	311.06M	215.40M	27.14M	16.36M
Investing Cash Flow	-133.72M	-70.81M	-10.46M	-19.00M	-3.63M
Financing Cash Flow	-108.38M	55.21M	25.29M	-9.05M	742.27M

Monday.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 70.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNDY, the sentiment is Negative. The current price of 70.98 is below the 20-day moving average (MA) of 81.23, below the 50-day MA of 115.25, and below the 200-day MA of 196.65, indicating a bearish trend. The MACD of -12.94 indicates Negative momentum. The RSI at 26.46 is Positive, neither overbought nor oversold. The STOCH value of 38.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNDY.

Monday.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NICE	76 Outperform	$7.28B	11.93	16.53%	―	9.46%	34.09%
PEGA	71 Outperform	$7.54B	20.50	57.32%	0.16%	17.00%	120.21%
MNDY	67 Neutral	$3.60B	31.68	10.43%	―	28.62%	186.67%
GTLB	65 Neutral	$4.41B	-100.89	-5.17%	―	27.35%	18.18%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KC	60 Neutral	$3.90B	―	-15.88%	―	24.26%	55.58%
ASAN	55 Neutral	$1.73B	-7.83	-102.48%	―	9.47%	16.97%

Monday.com Corporate Events

Monday.com Posts Strong 2025 Growth and Profitability Gains as Enterprise, AI Offerings Accelerate

Monday.com on February 9, 2026 reported its fourth-quarter and full-year 2025 results, highlighting 27% annual revenue growth to $1.23 billion and a sharp improvement in GAAP profitability, with operating loss narrowing to nearly breakeven and non-GAAP operating income rising to $175.3 million. The company is pushing further upmarket, as customers generating more than $50,000 in ARR grew 34% and now contribute 41% of total ARR, while its fastest-growing AI product, monday vibe, surpassed $1 million in ARR just 2.5 months after launch, supporting record growth in large accounts and underpinning an $839 million backlog and an active share repurchase program that signals confidence in its longer-term trajectory despite foreign-exchange headwinds on margins.

In the fourth quarter of 2025, revenue climbed 25% year over year to $333.9 million, non-GAAP operating margin came in at 13% after FX pressure, and cash generation remained strong, with $56.7 million in adjusted free cash flow. Management guided for more measured growth in 2026, projecting 18%–19% revenue expansion, an 11%–12% non-GAAP operating margin and up to $290 million in adjusted free cash flow, suggesting a shift toward sustained profitability and disciplined investment as monday.com leans on its unified AI platform and expanding base of larger customers to consolidate its position in enterprise work management software.

The most recent analyst rating on (MNDY) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on Monday.com stock, see the MNDY Stock Forecast page.