monday.com’s fourth quarter results in 2025 were met with a significant negative market reaction, with investors responding to a mix of strong top-line growth and concerns about profitability and future momentum. Management attributed the revenue gains primarily to continued expansion among enterprise customers and rapid adoption of new AI-driven products like Monday Vibe and Sidekick. However, operating margins declined as the company increased investment in research and development and navigated persistent challenges among smaller, self-serve customers. Co-CEO Roy Mann acknowledged that "the cost to acquire and expand self-serve customers have increased over the past year, and the returns on those investments have been below historical levels."
Is now the time to buy MNDY? Find out in our full research report (it’s free for active Edge members).
monday.com (MNDY) Q4 CY2025 Highlights:
- Revenue: $333.9 million vs analyst estimates of $329.5 million (24.6% year-on-year growth, 1.3% beat)
- Adjusted EPS: $1.04 vs analyst estimates of $0.92 (13.2% beat)
- Adjusted Operating Income: $41.93 million vs analyst estimates of $37.43 million (12.6% margin, 12% beat)
- Revenue Guidance for Q1 CY2026 is $339 million at the midpoint, below analyst estimates of $342.7 million
- Operating Margin: 0.7%, down from 3.6% in the same quarter last year
- Customers: 4,281 customers paying more than $50,000 annually
- Net Revenue Retention Rate: 114%, down from 115% in the previous quarter
- Annual Recurring Revenue: $1.34 billion (24.6% year-on-year growth, beat)
- Billings: $337.1 million at quarter end, up 21.2% year on year
- Market Capitalization: $3.73 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From monday.com’s Q4 Earnings Call
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Arjun Bhatia (William Blair) asked about the factors behind decelerating growth in 2026 and the role of enterprise expansion. Co-CEO Eran Zinman explained growth is now driven by upmarket expansion and multiproduct adoption, while self-serve remains weak.
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Scott Berg (Needham) pressed on margin compression despite revenue growth. CFO Eliran Glazer attributed it to FX headwinds, increased investment in sales-led growth and AI, and front-loaded costs that take longer to yield returns.
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Ryan McWilliams (Wells Fargo) inquired about why customers should build AI agents within monday.com. Co-CEO Eran Zinman emphasized the value of deep workflow integration, platform security, and enterprise-grade capabilities.
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Mark Murphy (JPMorgan) challenged management on the reset of long-term guidance. Glazer acknowledged that persistent macro and demand volatility, especially in self-serve, led to more conservative projections.
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D.J. Hynes (Canaccord) sought clarity on Vibe’s competitive positioning and customer adoption. Co-CEO Eran Zinman noted Vibe’s differentiation through integration with monday.com’s data and workflows, enabling customers to build enterprise-grade applications.
Catalysts in Upcoming Quarters
In the coming quarters, our analyst team will be focused on (1) the pace of adoption and monetization of Monday Vibe and Sidekick, (2) stabilization or further deterioration in the self-serve/small business channel, and (3) the impact of FX movements and continued investment on operating margins. Execution on upmarket expansion and the ability to translate AI product traction into recurring revenue will also be critical markers of progress.
monday.com currently trades at $72.68, down from $98 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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