Monday.com has reported fourth quarter and monetary yr 2025 outcomes that confirmed an organization rising shortly and spending fastidiously, however dealing with questions on what comes subsequent.
This fall income was $333.9 million, up 25% year-over-year. Full-year income reached $1.232 billion, up 27%, with a non-GAAP working margin of 14% and adjusted free money circulate of $322.7 million. By the numbers, a robust yr.
The market disagreed. Monday.com‘s inventory dropped roughly 15% in pre-market buying and selling on 9 February after the corporate guided for FY2026 income of $1.452 billion to $1.462 billion, implying 18–19% progress, effectively beneath the 21% Wall Road anticipated. The corporate additionally pulled its beforehand shared 2027 targets, citing uncertainty within the AI panorama and chronic weak point in its self-serve buyer channels.
For workforce administration consumers and IT leaders, although, the monetary headline is much less attention-grabbing than what Monday.com is constructing and the way it matches into a piece administration market that’s altering quick.
AI Roadmap: Transferring From Work Administration to Work Execution
Co-CEO Eran Zinman described how firm is transferring “from serving to clients handle work to really doing the work for them.”
That ambition sits on 4 merchandise that now make up Monday.com’s AI platform:
Monday Sidekick: an assistant that surfaces insights and triggers actions throughout a buyer’s knowledge and workflows. It has processed over half one million consumer messages to this point.
Monday Vibe: lets clients construct purposes on high of their Monday knowledge, consolidating enterprise processes into one platform. Vibe hit $1 million in ARR simply 2.5 months after pricing launched in October 2025, the quickest any Monday.com product has reached that mark.
Monday Brokers: presently in beta, these execute duties throughout workflows autonomously, performing as a digital workforce that scales output with out including headcount.
Monday Workflows: AI-driven automation connecting the above. Monday’s AI blocks have powered greater than 77 million actions to date.
Zinman’s positioning for brokers and workflows was express about labour leverage, a message prone to resonate with operations and workforce leaders dealing with finances constraints.
“These permit clients to create an on-demand workforce of AI brokers that may motive, act, and execute throughout their workflows, successfully enabling companies to scale output with out scaling headcount.”
Enterprise Adoption: Giant Clients Drive the Development Combine
Monday.com’s upmarket momentum was one of many strongest components of the discharge. Giant accounts are rising shortly and taking a much bigger share of whole ARR:
Clients above $50,000 in ARR rose to 4,281 (up 34% year-over-year) and now signify 41% of ARR (up from 36%).
Clients above $100,000 in ARR rose to 1,756 (up 45%) and now signify 28% of ARR (up from 24%).
Clients above $500,000 in ARR rose to 87 (up 74%) and now signify 6% of ARR (up from 4%).
Mann stated bigger organisations are standardising on the platform for extra essential use circumstances.
“Bigger clients are more and more standardizing on monday.com Ltd. to help extra advanced essential workflows throughout their organizations.”
Retention was steadier on the excessive finish than the general quantity suggests. Web greenback retention was 110% total in This fall, however 116% for purchasers above $50,000 in ARR and likewise 116% for purchasers above $100,000 in ARR.
The pipeline image strengthened as effectively. Whole remaining efficiency obligations (RPO), which displays contracted future income, rose 37% to $839 million, whereas present RPO grew 31% to $676 million.
Self-Serve Demand: A Weak Spot That Could Persist
Mann additionally acknowledged the softer aspect of the enterprise. He stated the associated fee to accumulate and increase self-serve clients has risen, and returns have been beneath historic ranges. The corporate expects that “uneven” surroundings, notably amongst smaller clients, to persist in 2026.
Monday.com constructed a lot of its early progress on bottom-up adoption, small groups signing up with out gross sales involvement. That channel is now underperforming, and the corporate says it’s shifting funding towards higher-return enterprise alternatives. It’s also utilizing automation and AI instruments to enhance conversion and adoption.
That dynamic is just not distinctive to monday.com. Throughout SaaS, many organisations are slicing again on level instruments, consolidating distributors and scrutinising renewals. Work administration platforms sit instantly within the crosshairs of that consolidation as a result of they usually overlap with collaboration suites, IT service administration instruments and workflow automation merchandise.
Aggressive Context: A Crowded Work Administration Market
Monday.com is competing in a crowded class the place the boundaries hold shifting.
Atlassian stays a dominant drive in technical workflows, notably round Jira and Confluence, with deep enterprise penetration and ongoing AI funding. Asana continues to compete instantly in visible work administration however has grown extra slowly in latest intervals. Smartsheet, now personal after its acquisition by Blackstone and Vista Fairness Companions, stays influential in project-heavy industries. Privately held instruments reminiscent of ClickUp and Notion are additionally pushing upmarket with broader “all-in-one” positioning and their very own AI options.
For consumers, the comparability is more and more about outcomes relatively than options: how effectively instruments combine into enterprise programs, whether or not they simplify governance relatively than complicate it, and whether or not automation reduces administrative work in a measurable manner.
Backside Line: What Issues Past the Monday.com Earnings Headline
Monday.com completed FY2025 with $1.232 billion in income, robust money era, and clear momentum in bigger accounts. The near-term query is tempo. Development is decelerating, self-serve demand is beneath strain, and the corporate is stepping again from longer-range targets.
For workforce administration and analytics groups, the longer-term significance is the route of the class. Work administration platforms are attempting to turn out to be operational programs that hyperlink planning, execution and measurement. Monday.com is positioning its AI and application-building instruments as the subsequent step in that shift. The following few quarters will present whether or not these merchandise drive sustained enterprise adoption or add complexity with out altering outcomes.
