monday.com (MNDY) investor relations material

Executive summary

• Q3 revenue was $377.5M, up 19% YoY; non-GAAP operating income reached a record $89.4M, with a 24% margin.

• AI ARR reached $36M as the AI-first, enterprise-focused transition continued amid near-term operational headwinds and slower growth.

Financial highlights

• Revenue was $377.5M, up 19% YoY; non-GAAP gross margin was 88% vs. 90% in Q3 FY25.

• Non-GAAP operating income was $89.4M vs. $47.5M YoY; GAAP operating income was $31.2M, and non-GAAP diluted EPS was $2.14.

• Non-GAAP expenses were R&D $70M (19% of revenue), sales and marketing $145.4M (39%), and G&A $29.1M (8%).

• Operating cash flow was $20.4M; adjusted free cash flow was $63M, or 17% of revenue, vs. $92.3M and 29% a year earlier.

• GAAP net income was $35.2M vs. $13.1M YoY; GAAP diluted EPS was $0.80 vs. $0.25.

Outlook and guidance

• Q4 revenue guidance is $380M–$382M, implying ~14% YoY growth; non-GAAP operating income is $68M–$70M, with ~18% margin and 100–200 bps negative FX impact.

• FY2026 revenue guidance is $1.473B–$1.475B, implying ~20% YoY growth; non-GAAP operating income is $268M–$270M, with ~18% margin and 100–200 bps negative FX impact.

• FY2026 adjusted FCF guidance is $282M–$288M, with 19%–20% margin and 100–200 bps negative FX impact.

• Guidance assumes persistent macro and downmarket pressure, longer upmarket sales cycles, rising AI adoption, disciplined costs, and NDR declining to 107%; management expects several quarters, into 2027, before revenue trends stabilize.