Monday.com (MNDY) AI Stock Analysis

• Market Cap: $10.02B
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 268.2
• Beta (1Y): 2.12
• Revenue Growth: 30.24%
• EPS Growth: -6.69%
• Country: US
• Employees: 2,508
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.09
• Shares Outstanding: 50,773,340
• 10 Day Avg. Volume: 779,765
• 30 Day Avg. Volume: 1,232,866
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 13.84
• Enterprise Value/Gross Profit: 15.48
• Enterprise Value/Ebitda: -2.33K
• 1Y Price Target: $267.15
• Price Target Upside: 34.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 70 Outperform
• Price Target: $212.00 ▲(6.65% Upside)

Monday.com's strong financial performance and positive earnings call are the primary drivers of its stock score. Despite high valuation concerns and technical indicators suggesting caution, the company's robust revenue growth, strategic investments in AI, and enterprise expansion provide a solid foundation for future growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for monday.com's platform, supporting long-term market expansion and competitive positioning.

AI Capabilities Expansion

Advancements in AI enhance product offerings, driving user engagement and differentiating monday.com in the competitive software market.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility for strategic investments and growth initiatives.

Negative Factors

Profitability Challenges

Ongoing profitability challenges may hinder reinvestment capabilities and affect long-term financial sustainability.

Google Algorithm Impact

Changes in Google's algorithm impacting customer acquisition could slow growth in certain segments, affecting revenue diversification.

Deceleration in NDR

A slight deceleration in net dollar retention may indicate challenges in maintaining customer spending levels, impacting future revenue growth.

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

Monday.com showcases strong financial health with significant revenue growth and improved profitability metrics. The balance sheet reflects low leverage and strong equity, while cash flow generation is robust, supporting operational and strategic initiatives. Despite operating losses in the past, the company's trajectory toward profitability and efficient cash management positions it well for future growth in the software application industry.

Income Statement

Monday.com demonstrates strong revenue growth with a TTM revenue of $1.04 billion, a significant increase from $971.99 million in 2024. The gross profit margin remains robust at 89.52%, indicating efficient cost management. Although operating at a loss, the company has improved its net profit margin to 5.08%, showcasing its trajectory towards profitability. Both EBITDA and EBIT margins have improved, reflecting better operational performance.

Balance Sheet

The balance sheet of Monday.com is solid, with a strong equity ratio of 59.66%, indicating financial stability. The debt-to-equity ratio is low at 0.11, suggesting minimal leverage and reduced financial risk. Return on equity is positive at 4.79%, reflecting the company's ability to generate returns on investments. The equity growth and asset management are commendable, although the company still carries some liabilities.

Cash Flow

Cash flow analysis shows impressive free cash flow growth, with TTM free cash flow reaching $312.85 million, up from $297.85 million in 2024. The operating cash flow to net income ratio of 6.26 indicates strong cash generation relative to earnings, which is favorable for sustaining operations and future growth. The company efficiently converts net income to free cash flow, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.10B	972.00M	729.70M	519.03M	308.15M	161.12M
Gross Profit	983.79M	868.30M	649.05M	452.50M	269.14M	138.63M
EBITDA	-6.53M	58.00M	12.79M	-120.10M	-123.93M	-147.11M
Net Income	39.98M	32.37M	-1.88M	-136.87M	-129.29M	-152.20M
Balance Sheet
Total Assets	1.96B	1.69B	1.28B	1.04B	933.19M	157.42M
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.46B	1.12B	885.89M	886.81M	139.81M
Total Debt	126.21M	106.04M	61.15M	77.72M	84.00K	21.10M
Total Liabilities	771.59M	655.28M	462.15M	359.30M	229.80M	374.98M
Stockholders Equity	1.19B	1.03B	813.51M	679.74M	703.39M	-217.56M
Cash Flow
Free Cash Flow	323.21M	297.85M	204.94M	8.14M	2.60M	-42.66M
Operating Cash Flow	342.12M	311.06M	215.40M	27.14M	16.36M	-37.17M
Investing Cash Flow	-85.09M	-70.81M	-10.46M	-19.00M	-3.63M	-11.48M
Financing Cash Flow	43.24M	55.21M	25.29M	-9.05M	742.27M	8.47M

Monday.com Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 198.78
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 198.78 is above the 20-day moving average (MA) of 187.27, above the 50-day MA of 189.86, and below the 200-day MA of 251.24, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 87.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MNDY.

Monday.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NICE	―	$8.33B	15.93	15.07%	―	11.72%	37.05%
PEGA	―	$11.25B	44.91	51.96%	0.14%	17.00%	120.21%
MNDY	―	$10.02B	268.19	3.80%	―	30.24%	-6.69%
GTLB	―	$8.09B	―	-0.63%	―	28.97%	98.96%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASAN	―	$3.44B	―	-80.55%	―	9.74%	22.36%
KC	―	$3.86B	―	-31.02%	―	20.42%	-9.39%

Monday.com Corporate Events

Monday.com Announces $870 Million Share Repurchase Amid Investor Day Insights

On September 17, 2025, Monday.com Ltd. hosted its 2025 Investor Day in New York City, where the executive team outlined their vision for the future of work with AI, product strategy, and financial targets. Additionally, on September 15, 2025, the company’s Board of Directors approved a share repurchase program worth up to $870 million, demonstrating a strategic move to enhance shareholder value and potentially strengthen its market position.

Monday.com Updates Financial Statements with Corrected Revenue Figures

On August 11, 2025, Monday.com Ltd. issued a correction to its unaudited financial statements for the first half of 2025, specifically updating revenue figures attributed to geographic areas. The correction involved adjusting the revenue figures for the United States and the rest of the world for the six months ending June 30, 2024. This update is significant for stakeholders as it ensures accurate financial reporting and may influence investor perceptions and decisions.

Monday.com Reports Strong Q2 2025 Results with 27% Revenue Growth

On August 11, 2025, monday.com announced its financial results for the second quarter of 2025, revealing a 27% year-over-year revenue growth to $299 million. The company highlighted its strong performance in customer acquisition, with a record number of new customers exceeding $100k in annual recurring revenue (ARR). The introduction of new AI-powered capabilities and a focus on innovation have been pivotal in driving demand. Despite a GAAP operating loss of $11.6 million, the company reported a non-GAAP operating income of $45.1 million. The announcement underscores monday.com’s strategic focus on AI innovation and operational efficiency, positioning it as a leader in the work execution space.

Monday.com Re-elects Directors and Confirms Auditor at Annual Meeting

On July 31, 2025, Monday.com Ltd. held its annual general meeting of shareholders in Tel Aviv, where key proposals were voted on. The shareholders re-elected Mr. Roy Mann, Ms. Gili Iohan, and Mr. Ronen Faier as Class I directors, each to serve until 2028. Additionally, Brightman Almagor Zohar & Co. was re-appointed as the company’s independent registered public accounting firm for the year ending December 31, 2025. These decisions reflect the company’s ongoing commitment to maintaining strong leadership and financial oversight, which are crucial for its strategic growth and operational stability.