Financials
monday.com Ltd — The Financial Record
monday.com is a single-segment, subscription software business: it sells seat-based access to a cloud "Work OS" platform, books the cash up front as deferred revenue, and recognizes it ratably. The economics that follow are the economics of that model — very high gross margin, revenue that is almost entirely recurring, and a cost base dominated by people (R&D and sales & marketing) and the equity used to pay them. This page lays out what the filings, transcripts and reported financials actually say, oldest to newest, with every material figure linked to its source page.
Three facts frame everything below. First, revenue reached $1,231,997 thousand in FY2025, up from $971,995 thousand in FY2024 and $729,695 thousand in FY2023 [1]. Second, GAAP operating result was a loss of $1,748 thousand while reported net income was $118,742 thousand ($2.24 diluted EPS) — a gap created below the operating line by financial income and a tax benefit [2]. Third, the shares traded at $147.56 on 31 December 2025 and $67.09 on 25 June 2026, roughly halving over the period covered by this run's price history.
FY2025 Revenue ($000)
Revenue Growth YoY
Gross Margin
Operating Cash Flow ($000)
Free Cash Flow ($000)
FCF Margin
Sources: revenue, gross profit and operating result from FY2025 20-F Consolidated Statements of Operations [3]; operating and free cash flow from the cash-flow summary [4]; margins derived from reported financials.
How to read a SaaS income statement. Because subscription revenue is recognized over the life of the contract, the income statement understates current demand while the balance sheet's deferred revenue captures cash already collected. "Net Dollar Retention" (NDR) measures how much a cohort of existing customers spends a year later — above 100% means existing customers expanded net of churn. "Non-GAAP operating income" here is GAAP operating income with share-based compensation (SBC) added back; the two diverge by the size of the equity comp bill.
1. The growth record: 16x revenue in six years, now decelerating
Revenue compounded from $78,089 thousand in FY2019 [5] and $161,123 thousand in FY2020 to $308,150 thousand in FY2021 [6], then to $519,029 thousand (FY2022), $729,695 thousand (FY2023), $971,995 thousand (FY2024) and $1,231,997 thousand (FY2025) [7]. FY2025 growth was 26.7%; management's first-quarter FY2026 update reported Q1 revenue of $351 million, up 24% year over year [8].
Sources: FY2019 from FY2021 20-F Statements of Operations [9]; FY2020–FY2021 from FY2022 20-F Statements of Operations [10]; FY2022–FY2025 from FY2025 20-F Statements of Operations [11].
What is driving the revenue
The growth is broad-based, not customer-concentrated: monday had over 250,000 paying customers as of 31 December 2025 (nearly 245,000 a year earlier), no single customer was more than 1% of revenue, and the top 100 customers were less than 10% of revenue [12]. The mix is shifting upmarket: customers with more than $50,000 in ARR grew 34% to 4,281, those above $100,000 grew 45% to 1,756, and those above $500,000 grew 74% to 87; enterprise (over-$50,000) accounts rose to 41% of ARR from 36% [13].
Net Dollar Retention was 110% overall and 116% for customers above $50,000 in ARR for the three months ended 31 December 2025, and was noted to have been positively affected by 2024–2025 pricing actions [14]. On the Q1 FY2026 call, management said it now expects overall NDR to slightly decline by the end of fiscal 2026 as those prior pricing actions stop boosting the comparison [15].
Revenue is geographically diversified. In FY2025 the United States was $619,191 thousand, EMEA $264,459 thousand, the United Kingdom $134,576 thousand and the rest of the world $213,771 thousand of the $1,231,997 thousand total [16].
Source: revenue by geography from the segment-reporting notes — FY2023–FY2025 from the FY2025 20-F [17] and FY2021–FY2022 from the FY2022 20-F [18]; the chart's EMEA series folds in the separately broken-out United Kingdom for comparability. Figures as reported.
2. Margin structure: SaaS-grade gross margin, an operating line straddling zero
Gross margin has sat near 89% for four straight years — 87.2% (FY2022), 88.9% (FY2023), 89.3% (FY2024) and 89.2% (FY2025) — reflecting cost of revenue of only $133,099 thousand on $1,231,997 thousand of FY2025 sales [19]. The variable line below gross profit is operating expense, where the two largest items in FY2025 were sales & marketing of $630,851 thousand and R&D of $320,799 thousand [20].
The GAAP operating line has climbed from a loss of $152,015 thousand (FY2022) toward breakeven — losses of $38,585 thousand (FY2023), $21,034 thousand (FY2024) and $1,748 thousand (FY2025) [21]. The company's own non-GAAP measure, which adds back share-based compensation, shows non-GAAP operating income of $175,263 thousand in FY2025, up from $132,383 thousand and $61,601 thousand, on SBC add-backs of $177,011 / $129,209 / $100,186 thousand [22].
Source: FY2025 20-F non-GAAP operating income reconciliation [23].
Margins as a percentage of revenue make the same point: the gross margin line is flat and high, while the GAAP operating margin has risen from -29.3% (FY2022) to -0.1% (FY2025) and the non-GAAP operating margin reached 14.2% in FY2025.
Source: gross and GAAP operating margins derived from the FY2025 20-F Statements of Operations [24]; non-GAAP operating margin derived from the non-GAAP reconciliation [25].
3. Earnings quality: where the $118.7M net income came from
FY2025 reported net income of $118,742 thousand did not originate in operating profit. Working down the income statement: GAAP operating result was a loss of $1,748 thousand; financial income, net of $61,065 thousand (interest earned on the cash pile) turned pretax income positive at $59,317 thousand; and a $59,425 thousand income tax benefit roughly doubled the bottom line to $118,742 thousand [26].
The tax benefit is non-recurring in nature: management reversed a previously recorded valuation allowance on deferred tax assets, producing a non-cash tax benefit that "significantly reduced the Company's effective tax rate for 2025," with no valuation allowance remaining at year-end [27].
Cash conversion
Turning to the cash-flow statement: operating cash flow has scaled from $27,138 thousand (FY2022) to $215,404, $311,065 and $333,644 thousand through FY2025; reported free cash flow reached $309,902 thousand, and the company's "adjusted free cash flow" (which adds back headquarters build-out spend) was $322,660 thousand [28]. The single largest reconciling item between net income and operating cash flow is share-based compensation of $177,011 thousand, a non-cash expense; deferred revenue added a further $69,029 thousand and the deferred-tax movement subtracted $61,150 thousand [29].
Source: FY2025 20-F Consolidated Statements of Cash Flows and cash-flow summary [30], [31].
Free cash flow exceeds GAAP net income in every recent year — FCF was 2.6x net income in FY2025 and free cash flow margin was 25.2%, up from 1.6% in FY2022. The gap is dominated by the SBC add-back and growth in deferred revenue. SBC equal to roughly 14% of FY2025 revenue is the largest single non-cash item in that gap (see capital allocation below).
4. Balance sheet: net cash, no debt, customer-funded
monday carries no financial debt. At 31 December 2025 the balance sheet held $1,503,149 thousand of cash and $162,308 thousand of marketable securities against total liabilities of $859,764 thousand, of which the largest single item was deferred revenue of $409,677 thousand [32]. Management describes deferred revenue — payments invoiced in advance of the service — as a principal source of funds, and it grew to $411.6 million from $342.6 million year over year; the company also still carries an accumulated deficit of $433.3 million from its loss-making history [33].
The only sizeable fixed commitments are leases — $189.5 million of lease payment obligations ($28.5 million within 12 months), plus $51.7 million of new leases not yet commenced and $73.2 million of other purchase obligations [34].
Source: cash, marketable securities and equity from the FY2025 20-F Consolidated Balance Sheets [35]; prior years as reported; the balance sheet carries no borrowings.
After a large first-quarter FY2026 buyback (next section), cash and marketable securities stood at $1.21 billion at the end of Q1 FY2026, down from $1.67 billion, per management [36].
5. Capital allocation: a new, large buyback against a falling share price
monday pays no dividend. Its first return of capital is a buyback: the board authorized a repurchase program of up to $870 million in September 2025, of which $135.0 million (883,913 shares) was repurchased in Q4 2025, leaving $735.0 million [37]. The pace then accelerated sharply: the FY2025 subsequent-events note discloses that during 2026 the company repurchased and retired 7,269,499 shares for $552,758 thousand in open-market transactions [38]. On the Q1 call management confirmed roughly $553 million repurchased in the quarter, leaving about $182 million on the authorization, and said the accelerated buyback would reduce FY2026 adjusted free cash flow by approximately $20 million [39].
The buyback matters against the share count, which had been rising with SBC. Diluted shares grew from 45.8 million (FY2022) toward 53.1 million (FY2025); the Q1 FY2026 retirement of ~7.3 million shares pulled shares outstanding back to roughly 48.9 million.
Source: share counts from FY2025 20-F Statements of Operations / balance sheet and Q1 FY2026 reporting [40], [41].
6. The year-wise statements table
The standard multi-year view an investor scans first. All figures in $000 except per-share, margins and ratios. Cash includes marketable securities; net cash equals cash and securities (debt is zero).
Sources: income-statement and balance-sheet lines from the FY2025 20-F Statements of Operations and Balance Sheets [42], [43]; cash-flow lines from the Statements of Cash Flows [44]; margins derived from reported financials.
7. The quarterly trajectory
Five reported quarters through Q1 FY2026 show sequential revenue growth alongside a GAAP operating line that swings around zero (it carries the full SBC charge); Q1 FY2026 GAAP operating income was $19,754 thousand on revenue of $351,265 thousand.
Source: quarterly figures as reported; Q1 FY2026 revenue corroborated by the earnings-call transcript [45].
8. Valuation facts and forward guidance
This is reported data and arithmetic from it — no judgment is offered here. At the $67.09 close on 25 June 2026 and roughly 48.9 million shares outstanding after the Q1 buyback, market capitalization is about $3.28 billion; with $1.21 billion of net cash, enterprise value is about $2.07 billion [46]. Against trailing-twelve-month revenue of roughly $1.30 billion that is about 2.5x price/sales (1.6x EV/sales); against the FY2026 adjusted-FCF guide that is roughly 11–12x price/FCF.
Price (25 Jun 2026, $)
Market Cap ($M, approx)
Enterprise Value ($M, approx)
P/S (TTM, x)
P/FCF (FY26 guide, x)
Analyst Mean Target ($)
Source: price from this run's price history; net cash from the Q1 FY2026 transcript [47]; multiples derived from reported financials and FY2026 guidance; analyst target from consensus estimates as reported.
The share-price path
The price history covered by this run runs from $147.56 (31 Dec 2025) to a low of $58.81 (10 Apr 2026) and $67.09 (25 Jun 2026). The steepest leg was January–February 2026, around the FY2025 results and the initial FY2026 guidance; a bounce to $83.62 followed the Q1 FY2026 report in mid-May.
Source: month-end closing prices from this run's price history, as reported.
Consensus and guidance
Consensus among 24 analysts is a mean price target of $108.13 (median $105, range $75–$165), versus the ~$67–73 prevailing price. Consensus revenue estimates are about $1.471 billion for FY2026 and $1.708 billion for FY2027 (≈19% and ≈16% growth), with non-GAAP EPS estimates of about $4.45 and $5.39.
monday's own FY2026 guidance, given on the Q1 call: full-year revenue of $1.466–$1.475 billion (19%–20% growth), non-GAAP operating income of $185–$191 million (≈13% margin) [48], and adjusted free cash flow of $280–$290 million (19%–20% margin) — a step down in dollar terms from FY2025's $322.7 million, which management attributes in part to the accelerated buyback's foregone interest and to FX [49].
Peer positioning (reported figures)
The peer set is drawn from competitors monday names in its own filing — Asana, Atlassian, Freshworks — plus larger platform players ServiceNow, Salesforce and (not shown for scale) Microsoft. The table below uses each company's latest reported annual revenue and free cash flow and its market capitalization as of 27 June 2026; price/sales is market cap divided by latest annual revenue. monday's row is the reference point, not a verdict.
Source: peer market caps as of 27 June 2026 from this run's competitor snapshots; revenue, gross margin and free cash flow derived from each peer's latest reported annual financials; monday's competitor list is named in the FY2025 20-F (Our Competition, p.41). Figures as reported / derived.
Stated as facts: monday's FY2025 revenue growth of 26.7% (24% in Q1 FY2026) is the highest in this set; its ~89% gross margin is at the top; its 25% FCF margin trails the larger, more mature ServiceNow, Salesforce and Freshworks; and its ~2.5x price/sales is below every peer shown except Asana, whose revenue grows in the high single digits.
9. What the record states, going into FY2026
Pulling the facts together without interpreting them: revenue has compounded to $1.23 billion at ~89% gross margin; the GAAP operating line reached breakeven in FY2025 while SBC ran at $177 million; reported net income of $118.7 million was lifted by $61 million of interest income and a $59 million non-cash tax-allowance reversal; free cash flow was $309.9 million (adjusted $322.7 million); the balance sheet holds net cash with no debt; the company has begun returning capital, retiring 7.3 million shares for $553 million in Q1 FY2026; and management guides FY2026 to 19–20% revenue growth with adjusted FCF stepping down to $280–290 million, while the shares trade near $67 against a $108 consensus target. The forward variables management itself flagged are the trajectory of net dollar retention (guided to decline modestly), FX from a strengthening shekel, and rising AI compute costs.
→ Our read on what this means is in AI Opinions.