## What the latest disclosures imply about monday.com’s fundamentals vs. the reset in expectations ### 1) The “fundamental picture” in the most recent disclosure is still strong—especially in enterprise monday.com’s most recent SEC-furnished earnings release (Form 6‑K, Exhibit 99.1) shows that the company exited FY2025 with meaningful upmarket momentum: - **Very large customers are scaling quickly:** paid customers with **>$500,000 in ARR** rose to **87**, up **74%** from **50** a year earlier. ["more than $500,000 in ARR was 87, up 74%"](0001178913-26-000346|1) - **Enterprise mix is rising:** customers with **>$50,000 ARR** represent **41% of total ARR** (up from 36%); customers with **>$100,000 ARR** represent **28% of ARR** (up from 24%); and customers with **>$500,000 ARR** represent **6% of ARR** (up from 4%). ["represent 41% of ARR"](0001178913-26-000346|1) ["represent 28% of ARR"](0001178913-26-000346|1) ["represent 6% of ARR"](0001178913-26-000346|1) - **Retention remains healthy:** reported **net dollar retention rate (NDR) = 110%**, and it is higher for larger cohorts (e.g., **114%** for customers with >10 users; **116%** for customers with >$50k or >$100k in ARR). ["Net dollar retention rate was 110%"](0001178913-26-000346|1) ["more than 10 users was 114%"](0001178913-26-000346|1) ["more than $50,000 in ARR was 116%"](0001178913-26-000346|1) **How to interpret this:** the combination of (a) accelerating count of very large customers and (b) NDR above 100% supports the view that monday.com can keep expanding inside existing accounts while pushing upmarket. But NDR at **110%** is also “good-not-hypergrowth,” which matters when the market is debating how durable growth will be at scale. ["Net dollar retention rate was 110%"](0001178913-26-000346|1) --- ### 2) Financial performance: profitable growth + strong cash generation, with FX pressure a key swing factor FY2025 and Q4 FY2025 results show continued growth with profitability and cash flow: - **Q4 FY2025 revenue** was **$333.9 million (+25% Y/Y)**. ["Revenue was $333.9 million, an increase of 25%"](0001178913-26-000346|1) - **FY2025 revenue** was **$1,232.0 million (+27% Y/Y)**. ["Revenue was $1,232.0 million, an increase of 27%"](0001178913-26-000346|1) - **FY2025 non-GAAP operating income** was **$175.3 million** (non-GAAP operating margin **14%**). ["Non-GAAP operating income was $175.3 million"](0001178913-26-000346|1) ["Non-GAAP operating margin was 14%"](0001178913-26-000346|1) - **FY2025 operating cash flow** was **$333.6 million** and **adjusted free cash flow** was **$322.7 million**. ["Net cash provided by operating activities was $333.6 million"](0001178913-26-000346|1) ["$322.7 million of adjusted free cash flow"](0001178913-26-000346|1) - Management flagged **foreign exchange headwinds** as a near-term margin pressure in Q4 and FY2025 (with quantified basis-point impacts), even while stating underlying fundamentals are healthy. ["foreign exchange rates have created some near-term pressure"](0001178913-26-000346|1) ["approximately 180 basis point negative impact from FX"](0001178913-26-000346|1) ["approximately 110 basis point negative impact from FX"](0001178913-26-000346|1) **Balance sheet strength (and why it matters in a risk-off tape):** - **Cash and cash equivalents** at 12/31/2025 were **$1.503 billion** (USD). ["Cash and cash equivalents | $ | 1,503,149"](0001178913-26-000346|1) - **Marketable securities** were **$162.3 million** (USD). ["Marketable securities | 162,308"](0001178913-26-000346|1) This liquidity profile gives the company flexibility to invest through volatility (product, go-to-market, AI roadmap) and to run capital returns without needing external financing. ["Cash and cash equivalents"](0001178913-26-000346|1) ["Marketable securities"](0001178913-26-000346|1) --- ### 3) Why expectations reset: FY2026 guidance implies a clear deceleration and margin compression vs. FY2025 The most important “disclosure delta” in the same filing is the **FY2026 outlook**, which points to slower growth and lower operating margins: - **FY2026 revenue guidance:** **$1.452B–$1.462B** (18%–19% Y/Y growth). ["Total revenue of $1,452 million to $1,462 million"](0001178913-26-000346|1) ["growth of 18% to 19%"](0001178913-26-000346|1) - **FY2026 non-GAAP operating income guidance:** **$165M–$175M**, with **non-GAAP operating margin 11%–12%**. ["Non-GAAP operating income of $165 million to $175 million"](0001178913-26-000346|1) ["operating margin of 11% to 12%"](0001178913-26-000346|1) - **FX is explicitly embedded** as a negative margin factor (100–200 bps assumed). ["negative FX impact of 100 to 200 basis points"](0001178913-26-000346|1) **What’s directionally “new” vs. FY2025:** - Growth: FY2025 was **+27%**; FY2026 guide is **18%–19%** (deceleration). ["increase of 27%"](0001178913-26-000346|1) ["growth of 18% to 19%"](0001178913-26-000346|1) - Profitability: FY2025 non-GAAP operating margin was **14%**; FY2026 guide is **11%–12%** (margin compression). ["Non-GAAP operating margin was 14%"](0001178913-26-000346|1) ["operating margin of 11% to 12%"](0001178913-26-000346|1) In other words, even if “enterprise is accelerating” in customer metrics, the company is telling investors to underwrite **slower top-line growth** and **less operating leverage** near-term—an expectations reset that can dominate the stock reaction in the short run. ["Total revenue of $1,452 million to $1,462 million"](0001178913-26-000346|1) ["operating margin of 11% to 12%"](0001178913-26-000346|1) --- ### 4) Bookings / forward demand signal: RPO growth supports durability, but doesn’t eliminate guidance risk The same release reports strong growth in contracted future revenue: - **Total RPO**: **$839 million (+37% Y/Y)**. ["Total remaining performance obligations (RPOs) were $839 million, up 37%"](0001178913-26-000346|1) - **Current RPO (cRPO)**: **$676 million (+31% Y/Y)**. ["Current remaining performance obligations (cRPOs) were $676 million, up 31%"](0001178913-26-000346|1) **Interpretation:** RPO/cRPO growth suggests continued momentum in contracted business, consistent with the enterprise customer adds. But guidance still matters because it reflects management’s view of (a) renewal/expansion pacing, (b) new logo environment, and (c) FX impacts on reported margins. ["cRPOs were $676 million, up 31%"](0001178913-26-000346|1) ["negative FX impact"](0001178913-26-000346|1) --- ### 5) Capital allocation: buybacks are now a meaningful part of the “floor” narrative monday.com disclosed meaningful repurchases: - Repurchased **~884,000 ordinary shares for $135 million**, with **~$735 million** remaining under the **$870 million** authorization. ["repurchased approximately 884,000"](0001178913-26-000346|1) ["for $135 million"](0001178913-26-000346|1) ["approximately $735 million remains"](0001178913-26-000346|1) **Why it matters:** in a drawdown, a large remaining authorization plus >$1.5B cash provides optionality to (i) keep buying back stock, (ii) continue investing in product/AI and enterprise GTM, or (iii) do both—though management may prioritize flexibility given FX and macro uncertainty. ["approximately $735 million remains"](0001178913-26-000346|1) ["Cash and cash equivalents"](0001178913-26-000346|1) --- ## Key metrics snapshot (latest disclosure) | Metric | Q4 FY2025 | FY2025 | FY2026 guidance | |---|---:|---:|---:| | Revenue (USD) | $333.9m ["Revenue was $333.9 million"](0001178913-26-000346|1) | $1,232.0m ["Revenue was $1,232.0 million"](0001178913-26-000346|1) | $1,452m–$1,462m ["Total revenue of $1,452 million to $1,462 million"](0001178913-26-000346|1) | | Revenue growth Y/Y | 25% ["increase of 25%"](0001178913-26-000346|1) | 27% ["increase of 27%"](0001178913-26-000346|1) | 18%–19% ["growth of 18% to 19%"](0001178913-26-000346|1) | | Non-GAAP op margin | 13% ["Non-GAAP operating margin was 13%"](0001178913-26-000346|1) | 14% ["Non-GAAP operating margin was 14%"](0001178913-26-000346|1) | 11%–12% ["operating margin of 11% to 12%"](0001178913-26-000346|1) | | Operating cash flow (USD) | $59.7m ["Net cash provided by operating activities was $59.7 million"](0001178913-26-000346|1) | $333.6m ["Net cash provided by operating activities was $333.6 million"](0001178913-26-000346|1) | — | | Adj. free cash flow (USD) | $56.7m ["$56.7 million of adjusted free cash flow"](0001178913-26-000346|1) | $322.7m ["$322.7 million of adjusted free cash flow"](0001178913-26-000346|1) | $275m–$290m ["Adjusted free cash flow of $275 million to $290 million"](0001178913-26-000346|1) | | Net dollar retention | 110% ["Net dollar retention rate was 110%"](0001178913-26-000346|1) | 110% ["Net dollar retention rate was 110%"](0001178913-26-000346|1) | — | | Paid customers >$500k ARR | 87 ["more than $500,000 in ARR was 87"](0001178913-26-000346|1) | 87 ["more than $500,000 in ARR was 87"](0001178913-26-000346|1) | — | | Cash & cash equivalents (12/31/25) | $1.503B ["Cash and cash equivalents | $ | 1,503,149"](0001178913-26-000346|1) | $1.503B ["Cash and cash equivalents | $ | 1,503,149"](0001178913-26-000346|1) | — | | Total RPO (12/31/25) | $839m ["RPOs were $839 million"](0001178913-26-000346|1) | $839m ["RPOs were $839 million"](0001178913-26-000346|1) | — | --- ## What I would watch next (based strictly on disclosed drivers) 1) **Is the enterprise mix increase (>$50k, >$100k, >$500k ARR cohorts) enough to stabilize NDR above 110%?** If NDR slips while large-customer counts rise, it could signal expansion pressure in the installed base. ["Net dollar retention rate was 110%"](0001178913-26-000346|1) ["more than $500,000 in ARR was 87"](0001178913-26-000346|1) 2) **FX sensitivity:** management explicitly quantified FX headwinds to margins in both recent results and the FY2026 outlook, so reported profitability may remain noisy even if underlying operating execution is solid. ["negative impact from FX"](0001178913-26-000346|1) ["negative FX impact of 100 to 200 basis points"](0001178913-26-000346|1) 3) **RPO/cRPO vs. guided growth:** RPO growth is strong, but if revenue guidance remains at 18%–19%, the market will likely treat that as the “true” near-term growth rate unless bookings accelerate further. ["RPOs were $839 million, up 37%"](0001178913-26-000346|1) ["growth of 18% to 19%"](0001178913-26-000346|1) If you want, I can also map these disclosures into a simple “expectations bridge” (growth, margin, FX, enterprise mix, cash/FCF, buybacks) to show which line items likely mattered most to the re-pricing. ["Financial Outlook"](0001178913-26-000346|1) ["repurchased approximately 884,000"](0001178913-26-000346|1)

## What the latest disclosures imply about monday.com’s fundamentals vs. the reset in expectations ### 1) The “fundamental picture” in the most recent disclosure is still strong—especially in enterprise monday.com’s most recent SEC-furnished earnings release (Form 6‑K, Exhibit 99.1) shows that the company exited FY2025 with meaningful upmarket momentum: - **Very large customers are scaling quickly:** paid customers with **>$500,000 in ARR** rose to **87**, up **74%** from **50** a year earlier. ["more than $500,000 in ARR was 87, up 74%"](0001178913-26-000346|1) - **Enterprise mix is rising:** customers with **>$50,000 ARR** represent **41% of total ARR** (up from 36%); customers with **>$100,000 ARR** represent **28% of ARR** (up from 24%); and customers with **>$500,000 ARR** represent **6% of ARR** (up from 4%). ["represent 41% of ARR"](0001178913-26-000346|1) ["represent 28% of ARR"](0001178913-26-000346|1) ["represent 6% of ARR"](0001178913-26-000346|1) - **Retention remains healthy:** reported **net dollar retention rate (NDR) = 110%**, and it is higher for larger cohorts (e.g., **114%** for customers with >10 users; **116%** for customers with >$50k or >$100k in ARR). ["Net dollar retention rate was 110%"](0001178913-26-000346|1) ["more than 10 users was 114%"](0001178913-26-000346|1) ["more than $50,000 in ARR was 116%"](0001178913-26-000346|1) **How to interpret this:** the combination of (a) accelerating count of very large customers and (b) NDR above 100% supports the view that monday.com can keep expanding inside existing accounts while pushing upmarket. But NDR at **110%** is also “good-not-hypergrowth,” which matters when the market is debating how durable growth will be at scale. ["Net dollar retention rate was 110%"](0001178913-26-000346|1) --- ### 2) Financial performance: profitable growth + strong cash generation, with FX pressure a key swing factor FY2025 and Q4 FY2025 results show continued growth with profitability and cash flow: - **Q4 FY2025 revenue** was **$333.9 million (+25% Y/Y)**. ["Revenue was $333.9 million, an increase of 25%"](0001178913-26-000346|1) - **FY2025 revenue** was **$1,232.0 million (+27% Y/Y)**. ["Revenue was $1,232.0 million, an increase of 27%"](0001178913-26-000346|1) - **FY2025 non-GAAP operating income** was **$175.3 million** (non-GAAP operating margin **14%**). ["Non-GAAP operating income was $175.3 million"](0001178913-26-000346|1) ["Non-GAAP operating margin was 14%"](0001178913-26-000346|1) - **FY2025 operating cash flow** was **$333.6 million** and **adjusted free cash flow** was **$322.7 million**. ["Net cash provided by operating activities was $333.6 million"](0001178913-26-000346|1) ["$322.7 million of adjusted free cash flow"](0001178913-26-000346|1) - Management flagged **foreign exchange headwinds** as a near-term margin pressure in Q4 and FY2025 (with quantified basis-point impacts), even while stating underlying fundamentals are healthy. ["foreign exchange rates have created some near-term pressure"](0001178913-26-000346|1) ["approximately 180 basis point negative impact from FX"](0001178913-26-000346|1) ["approximately 110 basis point negative impact from FX"](0001178913-26-000346|1) **Balance sheet strength (and why it matters in a risk-off tape):** - **Cash and cash equivalents** at 12/31/2025 were **$1.503 billion** (USD). ["Cash and cash equivalents | $ | 1,503,149"](0001178913-26-000346|1) - **Marketable securities** were **$162.3 million** (USD). ["Marketable securities | 162,308"](0001178913-26-000346|1) This liquidity profile gives the company flexibility to invest through volatility (product, go-to-market, AI roadmap) and to run capital returns without needing external financing. ["Cash and cash equivalents"](0001178913-26-000346|1) ["Marketable securities"](0001178913-26-000346|1) --- ### 3) Why expectations reset: FY2026 guidance implies a clear deceleration and margin compression vs. FY2025 The most important “disclosure delta” in the same filing is the **FY2026 outlook**, which points to slower growth and lower operating margins: - **FY2026 revenue guidance:** **$1.452B–$1.462B** (18%–19% Y/Y growth). ["Total revenue of $1,452 million to $1,462 million"](0001178913-26-000346|1) ["growth of 18% to 19%"](0001178913-26-000346|1) - **FY2026 non-GAAP operating income guidance:** **$165M–$175M**, with **non-GAAP operating margin 11%–12%**. ["Non-GAAP operating income of $165 million to $175 million"](0001178913-26-000346|1) ["operating margin of 11% to 12%"](0001178913-26-000346|1) - **FX is explicitly embedded** as a negative margin factor (100–200 bps assumed). ["negative FX impact of 100 to 200 basis points"](0001178913-26-000346|1) **What’s directionally “new” vs. FY2025:** - Growth: FY2025 was **+27%**; FY2026 guide is **18%–19%** (deceleration). ["increase of 27%"](0001178913-26-000346|1) ["growth of 18% to 19%"](0001178913-26-000346|1) - Profitability: FY2025 non-GAAP operating margin was **14%**; FY2026 guide is **11%–12%** (margin compression). ["Non-GAAP operating margin was 14%"](0001178913-26-000346|1) ["operating margin of 11% to 12%"](0001178913-26-000346|1) In other words, even if “enterprise is accelerating” in customer metrics, the company is telling investors to underwrite **slower top-line growth** and **less operating leverage** near-term—an expectations reset that can dominate the stock reaction in the short run. ["Total revenue of $1,452 million to $1,462 million"](0001178913-26-000346|1) ["operating margin of 11% to 12%"](0001178913-26-000346|1) --- ### 4) Bookings / forward demand signal: RPO growth supports durability, but doesn’t eliminate guidance risk The same release reports strong growth in contracted future revenue: - **Total RPO**: **$839 million (+37% Y/Y)**. ["Total remaining performance obligations (RPOs) were $839 million, up 37%"](0001178913-26-000346|1) - **Current RPO (cRPO)**: **$676 million (+31% Y/Y)**. ["Current remaining performance obligations (cRPOs) were $676 million, up 31%"](0001178913-26-000346|1) **Interpretation:** RPO/cRPO growth suggests continued momentum in contracted business, consistent with the enterprise customer adds. But guidance still matters because it reflects management’s view of (a) renewal/expansion pacing, (b) new logo environment, and (c) FX impacts on reported margins. ["cRPOs were $676 million, up 31%"](0001178913-26-000346|1) ["negative FX impact"](0001178913-26-000346|1) --- ### 5) Capital allocation: buybacks are now a meaningful part of the “floor” narrative monday.com disclosed meaningful repurchases: - Repurchased **~884,000 ordinary shares for $135 million**, with **~$735 million** remaining under the **$870 million** authorization. ["repurchased approximately 884,000"](0001178913-26-000346|1) ["for $135 million"](0001178913-26-000346|1) ["approximately $735 million remains"](0001178913-26-000346|1) **Why it matters:** in a drawdown, a large remaining authorization plus >$1.5B cash provides optionality to (i) keep buying back stock, (ii) continue investing in product/AI and enterprise GTM, or (iii) do both—though management may prioritize flexibility given FX and macro uncertainty. ["approximately $735 million remains"](0001178913-26-000346|1) ["Cash and cash equivalents"](0001178913-26-000346|1) --- ## Key metrics snapshot (latest disclosure) | Metric | Q4 FY2025 | FY2025 | FY2026 guidance | |---|---:|---:|---:| | Revenue (USD) | $333.9m ["Revenue was $333.9 million"](0001178913-26-000346|1) | $1,232.0m ["Revenue was $1,232.0 million"](0001178913-26-000346|1) | $1,452m–$1,462m ["Total revenue of $1,452 million to $1,462 million"](0001178913-26-000346|1) | | Revenue growth Y/Y | 25% ["increase of 25%"](0001178913-26-000346|1) | 27% ["increase of 27%"](0001178913-26-000346|1) | 18%–19% ["growth of 18% to 19%"](0001178913-26-000346|1) | | Non-GAAP op margin | 13% ["Non-GAAP operating margin was 13%"](0001178913-26-000346|1) | 14% ["Non-GAAP operating margin was 14%"](0001178913-26-000346|1) | 11%–12% ["operating margin of 11% to 12%"](0001178913-26-000346|1) | | Operating cash flow (USD) | $59.7m ["Net cash provided by operating activities was $59.7 million"](0001178913-26-000346|1) | $333.6m ["Net cash provided by operating activities was $333.6 million"](0001178913-26-000346|1) | — | | Adj. free cash flow (USD) | $56.7m ["$56.7 million of adjusted free cash flow"](0001178913-26-000346|1) | $322.7m ["$322.7 million of adjusted free cash flow"](0001178913-26-000346|1) | $275m–$290m ["Adjusted free cash flow of $275 million to $290 million"](0001178913-26-000346|1) | | Net dollar retention | 110% ["Net dollar retention rate was 110%"](0001178913-26-000346|1) | 110% ["Net dollar retention rate was 110%"](0001178913-26-000346|1) | — | | Paid customers >$500k ARR | 87 ["more than $500,000 in ARR was 87"](0001178913-26-000346|1) | 87 ["more than $500,000 in ARR was 87"](0001178913-26-000346|1) | — | | Cash & cash equivalents (12/31/25) | $1.503B ["Cash and cash equivalents | $ | 1,503,149"](0001178913-26-000346|1) | $1.503B ["Cash and cash equivalents | $ | 1,503,149"](0001178913-26-000346|1) | — | | Total RPO (12/31/25) | $839m ["RPOs were $839 million"](0001178913-26-000346|1) | $839m ["RPOs were $839 million"](0001178913-26-000346|1) | — | --- ## What I would watch next (based strictly on disclosed drivers) 1) **Is the enterprise mix increase (>$50k, >$100k, >$500k ARR cohorts) enough to stabilize NDR above 110%?** If NDR slips while large-customer counts rise, it could signal expansion pressure in the installed base. ["Net dollar retention rate was 110%"](0001178913-26-000346|1) ["more than $500,000 in ARR was 87"](0001178913-26-000346|1) 2) **FX sensitivity:** management explicitly quantified FX headwinds to margins in both recent results and the FY2026 outlook, so reported profitability may remain noisy even if underlying operating execution is solid. ["negative impact from FX"](0001178913-26-000346|1) ["negative FX impact of 100 to 200 basis points"](0001178913-26-000346|1) 3) **RPO/cRPO vs. guided growth:** RPO growth is strong, but if revenue guidance remains at 18%–19%, the market will likely treat that as the “true” near-term growth rate unless bookings accelerate further. ["RPOs were $839 million, up 37%"](0001178913-26-000346|1) ["growth of 18% to 19%"](0001178913-26-000346|1) If you want, I can also map these disclosures into a simple “expectations bridge” (growth, margin, FX, enterprise mix, cash/FCF, buybacks) to show which line items likely mattered most to the re-pricing. ["Financial Outlook"](0001178913-26-000346|1) ["repurchased approximately 884,000"](0001178913-26-000346|1)