monday.com (MNDY) investor relations material

Executive summary

• Q2 FY26 revenue reached $365 million, up 22% year-over-year, reflecting strong upmarket momentum and AI adoption, with a major strategic shift toward integrating people and AI agents in a unified workspace.

• Organizational restructuring included a 20% global workforce reduction and a $21.4 million restructuring charge for non-cash impairment of office assets in Israel.

• AI-powered product suite saw robust usage, with AI ARR doubling quarter-over-quarter and now representing 17% of net new ARR.

• Customer base is strong and diverse, spanning 200+ industries and 200+ global markets, with significant growth in large customer segments.

• Most cost savings from restructuring are being reinvested in talent, products, and AI, with a flatter organization and deeper customer partnerships.

Financial highlights

• Q2 revenue: $365 million, up 22% year-over-year, with gross margin at 89% (non-GAAP).

• Q2 non-GAAP operating margin: 17%, up from 15% a year ago; non-GAAP operating income was $61.1 million.

• Net income: $65.5 million in Q2, up from $58.3 million year-over-year.

• Adjusted free cash flow: $52.3 million, margin 14%.

• Total remaining performance obligations (RPOs) grew 34% year-over-year to $937 million.

Outlook and guidance

• Q3 2026 revenue expected at $368–$370 million, 16–17% growth year-over-year.

• Full-year 2026 revenue guidance: $1,466–$1,474 million, 19–20% growth.

• Full-year non-GAAP operating income: $230–$234 million, margin ~16%.

• Full-year adjusted free cash flow: $280–$290 million, margin 19–20%.

• Guidance assumes 100–200 bps negative FX impact and no rebound in performance marketing.