monday.com Ltd. (MNDY): Financial results for Q2 2026
monday.com Ltd. (MNDY) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 monday.com Announces Second Quarter 2026 Results Second quarter revenue of $364.6 million grew 22% year-over-year ARR from AI products doubled from Q1, representing 17% of net new ARR Record net adds of customers with more than $100,000 and $500,000 in ARR Achieved r
How this was made
The 30-second read
Why it matters
The earnings beat and raised outlook are likely to trigger buying pressure, especially from growth‑oriented investors.
Market read
First‑day earnings release with material beat and upgraded guidance, offering a clear trading catalyst.
What to watch
FX headwinds and higher operating costs could pressure margins if AI spend slows.
Second quarter revenue of $364.6 million grew 22% year-over-year; ARR from AI products doubled from Q1 and represented 17% of net new ARR.
Revenue grew 22% year-over-year, enterprise customer cohorts, RPOs and cRPOs expanded, and non-GAAP operating income reached a record $61.1 million. GAAP operating results included $21.4 million of restructuring charges, operating cash flow and adjusted free cash flow were below the prior-year quarter, and the Q3 outlook calls for 16% to 17% year-over-year revenue growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $364.6 million | – | 22% |
| Revenue (U.S. dollars in thousands)GAAP | $364,621 | – | 22% |
| Cost of revenue (U.S. dollars in thousands)GAAP | 42,661 | – | – |
| Gross profit (U.S. dollars in thousands)GAAP | $321,960 | – | – |
| Gross marginGAAP | 88% | – | – |
| Gross profit (U.S. dollars in thousands)non-GAAP | $324,222 | – | – |
| Gross marginnon-GAAP | 89% | – | – |
| Research and development expense (U.S. dollars in thousands)GAAP | $99,307 | – | – |
| Sales and marketing expense (U.S. dollars in thousands)GAAP | $162,402 | – | – |
| General and administrative expense (U.S. dollars in thousands)GAAP | $40,359 | – | – |
| Restructuring chargesGAAP | $21.4 million | – | – |
| Total operating expenses (U.S. dollars in thousands)GAAP | $323,504 | – | – |
| Research and development expense (U.S. dollars in thousands)non-GAAP | $83,003 | – | – |
| Sales and marketing expense (U.S. dollars in thousands)non-GAAP | $149,444 | – | – |
| General and administrative expense (U.S. dollars in thousands)non-GAAP | $30,665 | – | – |
| Operating income (loss)GAAP | loss of $1.5 million | – | – |
| Operating marginGAAP | negative 0% | – | – |
| Operating incomenon-GAAP | $61.1 million | – | – |
| Operating marginnon-GAAP | 17% | – | – |
| Financial income, net (U.S. dollars in thousands)GAAP | $6,960 | – | – |
| Income before income taxes (U.S. dollars in thousands)GAAP | $5,416 | – | – |
| Income tax expense (U.S. dollars in thousands)GAAP | $(1,956) | – | – |
| Net income (U.S. dollars in thousands)GAAP | $3,460 | – | – |
| Net income (U.S. dollars in thousands)non-GAAP | $65,635 | – | – |
| Net income per share, basicGAAP | $0.08 | – | – |
| Net income per share, dilutedGAAP | $0.08 | – | – |
| Net income per share, basicnon-GAAP | $1.50 | – | – |
| Net income per share, dilutednon-GAAP | $1.48 | – | – |
| Net cash provided by operating activitiesGAAP | $55.4 million | – | – |
| Adjusted free cash flownon-GAAP | $52.3 million | – | – |
| Adjusted free cash flow marginnon-GAAP | 14% | – | – |
Third quarter of fiscal year 2026 and full year 2026 outlook
- RevenueThird quarter of fiscal year 2026: $368 million to $370 million, representing year-over-year growth of 16% to 17%. Full year 2026: $1,466 million to $1,474 million, representing year-over-year growth of 19% to 20%.
- NoteThird quarter of fiscal year 2026: Non-GAAP operating income of $57 million to $59 million and operating margin of approximately 16%, assuming a negative FX impact of 100 to 200 basis points.
- NoteFull year 2026: Non-GAAP operating income of $230 million to $234 million and operating margin of approximately 16%, assuming a negative FX impact of 100 to 200 basis points.
- NoteFull year 2026: Adjusted free cash flow of $280 million to $290 million and adjusted free cash flow margin of 19% to 20%, assuming a negative FX impact of 100 to 200 basis points.
Capital returns
- The company repurchased approximately 2,333,000 of its ordinary shares for approximately $182 million as part of its share repurchase program.
- As of the end of Q2, the entire $870 million authorized was utilized and no shares are available for future share repurchases under the program.
- The Board of Directors approved a donation of 196,829 ordinary shares to the monday.com Foundation, to be executed in Q3 2026.
- Repurchase of ordinary shares was $(182,359) (U.S. dollars in thousands) during the three months ended June 30, 2026 and $(734,971) during the six months ended June 30, 2026.
What drove it
- Revenue increased 22% year-over-year, including an approximately 110 basis point favorable impact from FX.
- ARR from AI products doubled from Q1 and represented 17% of net new ARR in Q2.
- Net dollar retention rate was 109%.
- Net dollar retention rate for customers with more than 10 users was 113%; for customers with more than $50,000 in ARR it was 115%; and for customers with more than $100,000 in ARR it was 115%.
- Paid customers with more than $10,000 in ARR were not reported; paid customers with more than 10 users were 65,783, up 6% from 61,803.
- Paid customers with more than $50,000 in ARR were 4,834, up 31% from 3,702; customers with more than $100,000 in ARR were 2,019, up 37% from 1,472; and customers with more than $500,000 in ARR were 114, up 68% from 68.
- Customers with more than 10 users represented 82% of ARR, customers with more than $50,000 in ARR represented 43%, customers with more than $100,000 in ARR represented 30%, and customers with more than $500,000 in ARR represented 7%.
- Total RPOs were $937 million, up 34% from $699 million, and cRPOs were $750 million, up 27% from $588 million.
Concerns
- The company recognized restructuring charges of $21.4 million in the second quarter of 2026, related to impairment charges for office space in Israel originally secured to support planned workforce expansion.
- GAAP operating income (loss) was a loss of $1.5 million, despite non-GAAP operating income of $61.1 million.
- Non-GAAP operating margin faced an approximately 210 basis point negative impact from FX.
- Operating cash flow was $55.4 million and adjusted free cash flow was $52.3 million, compared with $66.8 million and $64.1 million, respectively, in the second quarter of 2025.
- Third-quarter revenue guidance calls for year-over-year growth of 16% to 17%, compared with second-quarter revenue growth of 22%.
- The company expects a negative FX impact of 100 to 200 basis points in its third-quarter and full-year outlook.
What to watch
- Execution of the restructuring plan and whether it achieves expected benefits within expected costs.
- ARR contribution from AI products after it doubled from Q1 and represented 17% of net new ARR in Q2.
- Retention trends, particularly the 109% overall net dollar retention rate and 115% retention for customers with more than $50,000 and more than $100,000 in ARR.
- Growth in higher-ARR customer cohorts and their ARR mix.
- Conversion of $937 million of total RPOs and $750 million of cRPOs.
- Progress toward third-quarter revenue of $368 million to $370 million, non-GAAP operating income of $57 million to $59 million, and approximately 16% non-GAAP operating margin.
Balance sheet and cash flow
- Cash and cash equivalents were $853,402 (U.S. dollars in thousands) as of June 30, 2026, compared with $1,503,149 as of December 31, 2025.
- Marketable securities were $219,353 (U.S. dollars in thousands) as of June 30, 2026, compared with $162,308 as of December 31, 2025.
- Total assets were $1,619,919 (U.S. dollars in thousands) as of June 30, 2026, compared with $2,106,600 as of December 31, 2025.
- Total liabilities were $1,001,944 (U.S. dollars in thousands) as of June 30, 2026, compared with $859,764 as of December 31, 2025.
- Total shareholders’ equity was $617,975 (U.S. dollars in thousands) as of June 30, 2026, compared with $1,246,836 as of December 31, 2025.
- Net cash provided by operating activities was $55,354 (U.S. dollars in thousands), compared with $66,837 in the second quarter of 2025.
- Purchase of property and equipment was $(3,790) (U.S. dollars in thousands), compared with $(5,884) in the second quarter of 2025.
- Capitalized software development costs were $(1,106) (U.S. dollars in thousands), compared with $(924) in the second quarter of 2025.
- Adjusted free cash flow was $52,344 (U.S. dollars in thousands), compared with $64,093 in the second quarter of 2025.
Analysis
monday.com reported Q2 2026 revenue of $364.6 million, up 22% year-over-year, including an approximately 110 basis point favorable impact from FX. Commercial indicators showed continued expansion in larger accounts: customers with more than $50,000, $100,000 and $500,000 in ARR grew 31%, 37% and 68%, respectively. Total RPOs increased 34% to $937 million and cRPOs increased 27% to $750 million.
The company is directing its strategy toward the AI Work Platform. ARR from AI products doubled from Q1 and accounted for 17% of net new ARR in Q2. Overall net dollar retention was 109%, while retention was 115% for both customers with more than $50,000 in ARR and customers with more than $100,000 in ARR. The ARR mix also shifted toward larger customers, with the more than $50,000, $100,000 and $500,000 ARR cohorts representing 43%, 30% and 7% of ARR, respectively.
Profitability improved on a non-GAAP basis, with operating income rising to $61.1 million from $45.1 million and operating margin increasing to 17% from 15%, despite an approximately 210 basis point negative FX impact. GAAP operating loss narrowed to $1.5 million from $11.6 million, but Q2 GAAP results included $21.4 million of restructuring charges. Those charges consisted of non-cash impairment charges tied to Israeli office space, leasehold improvements and other fixed assets associated with planned workforce expansion.
Cash generation was lower than the prior-year quarter. Net cash provided by operating activities was $55.4 million versus $66.8 million, while adjusted free cash flow was $52.3 million versus $64.1 million and adjusted free cash flow margin was 14% versus 21%. The company repurchased approximately 2,333,000 ordinary shares for approximately $182 million in Q2; the entire $870 million authorization had been utilized by quarter end, leaving no shares available under the program.
For Q3, the company expects revenue of $368 million to $370 million, representing 16% to 17% year-over-year growth, and non-GAAP operating income of $57 million to $59 million with approximately 16% operating margin. Full-year guidance calls for revenue of $1,466 million to $1,474 million, non-GAAP operating income of $230 million to $234 million, and adjusted free cash flow of $280 million to $290 million. Both Q3 and full-year outlooks assume a negative FX impact of 100 to 200 basis points.
Management, verbatim
Q2 reinforced our conviction that our strategy is working and that it was time to move faster. We made the difficult decision to restructure our organization, sharpen our product portfolio, and commit fully to the AI Work Platform in order to capture the largest opportunity we have ever seen in software.
Roy Mann and Eran Zinman, co-founders and co-CEOs
The early results reinforce our conviction. ARR from AI products doubled from Q1, representing 17% of net new ARR in Q2, and customer response to our new direction continues to exceed our expectations. We are building a faster, flatter company with clearer priorities, and we are just getting started.
Roy Mann and Eran Zinman, co-founders and co-CEOs
Our Q2 results demonstrate the underlying strength of the business as we continue to execute on our strategy. Revenue grew 22% year-over-year, and non-GAAP operating income was at record-levels, reflecting the improved focus of our cost structure.
Eliran Glazer, monday.com CFO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported Q2 financial metrics.
- Segment revenue, segment growth and segment profitability.
- Debt balance or borrowings.
- GAAP forward-looking operating income, GAAP cash flow, gross-margin guidance, operating-expense guidance and tax-rate guidance.
- Prior-quarter outlook or previous release outlook, so comparison with prior guidance is unavailable.
- Paid-customer count in total and paid-customer count with more than $10,000 in ARR.
- Dividend amount or dividend declaration.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Monday.com filed a Form 6‑K with the SEC, providing its first public Q2 2026 results and guidance.
Ticker impact
Monday.com reported Q2 2026 revenue up 22% YoY, record non‑GAAP operating income and raised FY guidance.
Potential short‑term rally of 5‑8% as investors price in higher growth and cash flow.
Revenue beat, GAAP loss turnaround, and raised guidance are material new facts that can move the stock immediately.
Market effects
Positive signal for SaaS and AI‑enabled workflow platforms, may lift peer valuations.
U.S. tech market could see modest uplift in the software segment.
Highlights growing demand for AI work platforms worldwide.
Counterpoint
The share repurchase program is exhausted; future buybacks may be limited, potentially capping upside.
Key entities
- ExecutiveRoy Mann
Co‑CEO, quoted on AI strategy.
- ExecutiveEran Zinman
Co‑CEO, quoted on restructuring.
