monday.com (MNDY) Q4 2025 earnings summary

Executive summary

• Achieved 27% year-over-year revenue growth in fiscal 2025, reaching $1.23 billion, with strong upmarket momentum and rapid AI product adoption, including launches like AI Agents, Monday Vibe, and Sidekick.

• Q4 FY25 revenue was $334M, up 25% YoY, with record net adds in $100K+ and $500K+ ARR segments and 41% of total ARR now from $50K+ ARR customers.

• Non-GAAP operating margin for FY25 was 14%, with record non-GAAP operating profit and strong cash generation despite FX headwinds.

• No-touch/self-serve SMB segment remains challenged, with increased acquisition costs and lower ROI, prompting investment shift to enterprise and higher ROI channels.

• Gross margin remained strong at 89% (GAAP) and 90% (non-GAAP) for the year.

Financial highlights

• Q4 2025 revenue: $334M (up 25% YoY); FY25 revenue: $1.232B (up 27% YoY).

• Q4 gross margin: 89%; FY25 gross margin: 90%.

• Q4 operating income: $41.9M (13% margin, non-GAAP); FY25 operating income: $175.3M (14% margin, non-GAAP).

• Q4 net income: $55M; FY25 net income: $233.6M (up from $183.3M in FY24).

• Adjusted free cash flow: $56.7M in Q4 (17% margin); $322.7M in FY25 (26% margin).

• Recognized $61.2M non-cash income tax benefit in Q4 related to deferred tax asset.

Outlook and guidance

• FY26 revenue guidance: $1.452B–$1.462B (18–19% YoY growth).

• FY26 non-GAAP operating income: $165M–$175M (11–12% margin), with 100–200 bps negative FX impact.

• FY26 adjusted free cash flow: $275M–$290M (19–20% margin), reflecting FX headwinds.

• Q1 2026 revenue expected at $338M–$340M (20% YoY growth), with non-GAAP operating income of $37–$39M.

• NDR expected stable at 110% for FY26.

• Headcount growth planned in mid-teens %, focused on sales and R&D.