Shareholder letter
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1.monday.com Q2 2026 Shareholder Letter כת
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Financial highlights Second quarter 2026 key results Revenue Gross margin Customers $50k+ ARR* $364.6M 22% Y/Y Growth 89% NON-GAAP 4,834 31% Y/Y Growth Net dollar retention rate (NDR)* Operating margin Adjusted free cash flow margin 109% for all customers 17% NON-GAAP 14% NON-GAAP Financial outlook Q3 FY 2026 Revenue O p er a ting inco m e (Non-GAAP) $368M - $370M $ 5 7M - $ 5 9M 16% - 17% Y/Y growth ~ 16% m argin FY 2026 Revenue O p erating inco m e (Non-GAAP) A dj. f ree cash f low $1,466M - $1,474M $230M - $234M $280M - $290M 1 9 % - 20% Y/Y growth ~ 16% m argin 1 9 % -20% m argin *Metrics as of the end of the quarter ended June 30, 2026 Q2 | 2026 Shareholder Letter
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From the CEOs Fellow shareholders, Over the past nine months, monday .com has undergone the most meaningful strategic shift in our history . We moved from building software that helps people manage work to building software that does the work with people and AI agents operating together in a single, unified workspace. That shift changed our product, our strategy, and how we serve our customers. It also required us to change ourselves. On July 22, we reduced our global workforce by approximately 20%. It was the hardest decision we have made since founding this company . The people who left were talented colleagues who built something we are proud of, and we are grateful for everything they contributed. We are also certain it was the right call. Our focus is not to protect where we are, but to position us for where we are going. Most of the savings will be reinvested into people, products, and AI. What changes is how we operate with fewer management layers, smaller teams with real decision-making authority, and a go-to-market model built around the deeper customer partnership that AI deployment demands. Our Q2 results reflect the strength of the business we are building from. Q2 revenue grew 22% year-over-year while Q2 non-GAAP operating margin expanded to 17%. In July, we crossed $1.5 billion in ARR, a milestone that reflects the durability of our core business even as we reshape the company around AI. We raised our full-year non-GAAP operating margin outlook while holding our revenue growth and free cash flow guidance. More telling than any single metric is that AI product adoption continues to accelerate, and customer response to our new direction continues to exceed our expectations. We have never seen an opportunity this large in software. We intend to take it. Promising start to the new AI Work Platform The clearest evidence that our strategy is working is what we are seeing in AI adoption. AI ARR doubled from Q1 to Q2 and now represents 17% of net new ARR added in the quarter. That is a meaningful signal, not because the absolute number is large yet but because the rate of change tells us customers are actively choosing our AI capabilities, not simply inheriting them. Equally encouraging is the early reception to our new seat-and-credit pricing model, launched in May . Adoption has been strong out of the gate, and customers are engaging deeply enough with our AI products to invest beyond the default package. Pricing models only work when customers see value worth paying for. We are beginning to see that. 2x AI ARR growth Q1→Q2 We are under no illusion that these are anything other than early results. The numbers are promising, not definitive. But they are moving in the right direction, at an accelerating pace, and they reinforce our conviction that the strategic bets we are making on the AI Work Platform, on new pricing, and on a reorganized company built to execute faster, are the right ones. Q2 | 2026 Shareholder Letter
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A growing base of strategic customers Record net additions of $100k+ and $500k+ customers in Q2 reflect the continued strength of our upmarket motion. Larger customers continue to be an important driver of our business, and we remain focused on deepening those relationships as we expand our AI capabilities. RPO growth also showed improvement in the quarter, an encouraging signal that our largest customers are extending their commitments to monday .com. The opportunity ahead The decisions we made this quarter, restructuring our organization, sharpening our product portfolio, and committing fully to the AI Work Platform were not easy ones. But they were ours to make, and we made them with clear eyes. What lies ahead is an opportunity in software unlike anything we have seen before: a genuine chance to redefine what work looks like when AI and people operate as one. We are building the company, the products, and the go-to-market model to capture it. We are grateful for your continued trust, and we look forward to earning it quarter by quarter. Best, Roy and Eran Q2 | 2026 Shareholder Letter
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The AI Work Platform in action Real usage that compounds The clearest evidence that our strategy is working is what we are seeing in AI adoption. AI ARR doubled from Q1 to Q2 and now represents 17% of net new ARR added in the quarter. That is a meaningful signal, not because the absolute number is large yet, but because the rate of change tells us customers are actively choosing our AI capabilities, not simply inheriting them. What sits behind that ARR number is genuine, broad-based product usage across our AI suite. Customers are automating workflows with monday Agents, accelerating execution with AI-powered blocks, getting real-time assistance through monday Sidekick, and reclaiming time in meetings with monday Notetaker. These are not features being explored in pilots. They are tools being used at scale, every day , by real teams doing real work. Wor k S p ace Agents A pp s N otetaker F a v orites M ore Age n ts m ad e fo r you Home My w ork T ools Activ e Ritas tea m w ork T eam w ork Monthly proj ects Monthly proj ects Identifies threats , gaps, and o pportunities across the co mpetiti v e landsca pe. P aused What would you like to work on today? Ask Sidekick anything... Lena, S creening T alent s James, Competitor research P ersonal agent Shared agentAdd context Screens , scores, and shortlists qualified candidates. Monitors competitor activ ity and highlights i mportant market changes. Activ e Activ e+10RL Write a doc Research online Analy ze data Brainstor m ideas Generate an i mage Build a Vibe app L earn abo ut S u ggested starters tailored f or yo u r w ork Re v ie w m y recent emails and s urf ace what needs m y attention Create an searchable map of your company's structures Scan m y Slack con v ersations and add action items to m y task bo a rd Generate a board f or managing e mployee lif ecycle ste ps and doc ume ntatio SlackGmail Doc Board P aused RLAgents AI Workflo wsVibe Sidekick monday AI Vibe AI w orkflo ws T eam w ork T eam w ork An a utonomous time-intelligence agent that proactiv ely monitors project w orkflo ws. It doesnt j ust track time it predicts budget burn rates , nudges tea m members to log hours based on acti v ity , and generates a utomated productiv ity a udits f or stakeholders.... RL AI Sidekick Home Ale x, W orkflo w Intelligen ce P ersonal agent AI Agents AI Notetaker Monthly proj ects Ritas tea m w ork Project agent Create a board Schedule time John, Competitive Insights P ersonal agent Create an searchable map of your company's structures Analy zes industry signals and s urf aces emerging risks and o pportunities. Build an RSVP hel p e v ent organizers con firm attendance f or their e v ent s by calling in v itees and recording their RSVP stat us. Jenny, Mark et Intelligen ce P ersonal agent Search or ask anything... Hi Sandra, Shared Beck y, T alent Pipeline P ersonal agent Identifies strong candidates and organi zes the m by rele v ance and fit. Set up a Cross -Board Status Sync to auto- up date stat uses and o wne rs across connected boards Create an searchable map of your company's structures P aused Doc Taken together, the usage data tells a consistent story: customers are engaging with our AI products deeply and repeatedly . That kind of habitual usage is what drives retention, expansion, and ultimately the ARR growth we expect to accelerate in the quarters ahead. We are still early , but the foundation is solid and the trajectory is clear. Scan m y Slack con v ersations and add action ite ms to m y task board Slack monday agents monday blocks 1 . 7M+ Agent interactions *B ased on data at the end of Q2 since the product feature launch 98M+ AI blocks actions ~3M Conversations monday sidekick monday notetaker P ersonal agent P repares daily summaries with priorities , risks, and next ste ps. Ca ptures key decisions and con v erts the m into trackable actions. Reactiv ate P aused P aused Maya, CSO Manager P ersonal agent Resol v es tickets, automates res ponses , and escalates critical iss ues. P aused Ava, Daily Meeting Briefing 180 k + Notetaker hours Ethan, Meeting Summarizer P ersonal agent Q2 | 2026 Shareholder Letter
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Expanding upmarket 4,834 2,019 4,547 1,844 1,7564,281 3,993 1,603 3,702 1,472 68 78 87 99 114 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q4’25 Q1’26 Q2’26 Q1’26 Q2’26Q2’25 Q3’25 Q2’25 Q3’25 Q4’25 # of customers with $50k+ ARR* # of customers with $100k+ ARR* # of customers with $500k+ ARR* In Q2’26, we added 287 net new customers over $50k in ARR, 175 customers over $100k in ARR, and a record 15 customers over $500k in ARR. This growth was supported by our continued commitment to strengthening our enterprise-grade product capabilities and ongoing efforts to bolster our enterprise go-to-market approach. 30%43% 7%29%42% 6% 6% 6%28%41% 5%27%40% 26% 38% Q2’25 Q3’25 Q4’25 Q1’26 Q2’26Q2’25Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’25 Q4’25 Q1’26 Q2’26 % of ARR from customers with $50k+ ARR* % of ARR from customers with $500k+ ARR* % of ARR from customers with $100k+ ARR* Customers with more than $50k in ARR now represent 43% of ARR, up from 38% a year ago. Customers with more than $100k in ARR now represent 30% of ARR, up from 26% a year ago. Customers with more than $500k in ARR now represent 7% of ARR, up from 5% a year ago. *Data as of the end of each quarter Q2 | 2026 Shareholder Letter
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Multi-product expansion Our multi-product strategy continues to drive strong growth, reaching customers across a wider variety of teams and use cases. As of the end of Q2, new products* now account for 11.6% of total ARR, with ongoing momentum as we continue to integrate AI across the product suite. [TBD] 11.3% 11.6% [TBD] 10.2% 10.7% 9.4% 8.8% 7.7% 7.0% 6.0% [TBD] Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 *”New products” include the monday CRM suite (monday CRM and monday campaigns), monday dev, and monday service. *”New products” include the monday CRM suite (monday CRM and monday campaigns), monday dev, and monday service. Q2 | 2026 Shareholder Letter
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Financial highlights Eliran Glazer CFO Fiscal year 2026 has continued to build momentum, with Q2 revenue growing 22% year- over-year to $365 million, driven by record net additions of $100k+ and $500k+ customers and solid RPO growth. Non-GAAP operating margin expanded to 17% in the quarter, reflecting both the underlying strength of the business and our ongoing discipline around cost structure. Second quarter fiscal year 2026 (U.S. dollars in millions) A reconciliation of GAAP to non-GAAP measures is provided in the tables at the end of this document. Q2 | 2026 Shareholder Letter A reconciliation of GAAP to non-GAAP measures is provided below.
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Total revenue Total revenue came in at $364.6 million in Q2’26, up 22% from the year ago quarter. $334M $317M $299M $282M$268M $251M $236M $351M $365M Q2’25Q2’24 Q3’25 Q4’25 Q1’26 Q2’26Q3’24 Q4’24 Q1’25 Remaining performance obligations (RPOs) Total RPOs were $937 million, up 34% year-over-year, and current remaining performance obligations (cRPOs) were $750 million, up 27% year-over-year. Total RPOs $839M $747M$699M$660M$614M $548M$518M $880M $937M Q2’24 Q3’24 (NON-GAAP) Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 $750McRPOs $676M $716M $568M $588M $620M $445M $471M $516M Q2’24 Q4’24 Q1’25Q3’24 Q2 | 2026 Shareholder Letter Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Note: Data as of the end of each quarter
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Net dollar retention rate Our overall NDR was 109% in Q2’26. As a reminder, our NDR is a trailing four-quarter, weighted average calculation. Note: all NDR data is as of the end of each quarter For all customers 111% 111% 110% 110% 109% Q2’25 Q3’25 Q4’25 For customers with 10+ users For customers with more than $50k ARR Q1’26 Q2’26 For customers with more than $100k ARR 117%117% 117% 117% 115% 115% 114% 114% 113% 116% 116% 116% 115% 116% 115% 115% Q2’25 Q3’25 Q4’25 Q2’26 Q2’25Q1’26 Q2 | 2026 Shareholder Letter Q4’25 Q1’26 Q2’26 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26Q3’25Q3’25
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Margin and operating expenses (N ON-GAA P) Research and development (R&D) e x pense was $83.0 million in Q2’26, or 23% of revenue, compared to 20% in Q2’25. Sales and mar k eting (S&M) e x pense was $149.4 million in Q2’26, or 41% of revenue, compared to 47% in Q2’25. General and administrative (G&A) e x pense was $30.7 million in Q2’26, or 8% of revenue, compared to 9% in Q2’25. Operating income was $61.1 million in Q2’26, up from $45.1 million in Q2’25, and operating margin was 17%, up from 15% in Q2’25. Net income was $65.6 million in Q2’26, compared to $58.3 million in Q2’25. Diluted net income per share was $1.48 in Q2, based on 44.4 million fully diluted shares outstanding. % of revenue 48%47% 45% 41%48% 20% 22% 23%20% 18% 9% 9% 9% 8% 8% Q4’25 Q1’26 Q2’26Q2’25 Q3’25 G&A as % of revenue S&M as % of revenue R&D as % of revenue Operating margin 15% 15% 13% 14% 17% Headcount Total employee headcount was 3,169, a decrease of 42 employees since Q1’26. 2,110 2,305 2,508 2,695 2,867 3,018 3,155 3,211 3,169 Q2 | 2026 Shareholder Letter Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26
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Balance sheet Cash, cash equivalents and marketable securities totaled $1.07 billion at the end of Q2’26, compared to $1.21 billion at the end of Q1’26, reflecting $182 million of share repurchases executed during the quarter. 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. Adjusted free cash flow (NON-GAAP) Adjusted free cash flow for Q2’26 was $52.3 million, and adjusted free cash flow margin, as defined as adjusted free cash flow as a percentage of revenue, was 14%. 29% 21% $92M 29% 17% $103M $64M $57M 14% $52M Q2’25 Q3’25 Q4’25 Adjusted free cash flow margin Q1’26 Q2’26 Q2 | 2026 Shareholder Letter
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Financial guidance Q3 FY 2026 Revenue $368 - $370 million Y/Y growth % 16% - 17% Non-GAAP operating income $57 - $59 million Margin % ~16% Adjusted free cash flow Margin % FY 2026 $1,466 - $1,474 million 19% - 20% $230 - $234 million ~16% $280 - $290 million 19% - 20% For the third quarter of fiscal year 2026, we expect our revenue to be in the range of $368 million to $370 million, representing growth of 16% to 17% year- over-year. We expect non-GAAP operating income of $57 million to $59 million and a non-GAAP operating margin of approximately 16%, which assumes a negative FX impact of 100 to 200 basis points. For the full year 2026, we expect revenue to be in the range of $1,466 million to $1,474 million, representing growth of 19% to 20% year-over-year. We expect full year non-GAAP operating income of $230 million to $234 million and a non- GAAP operating margin of approximately 16%, which assumes a negative FX impact of 100 to 200 basis points. We expect full year adjusted free cash flow of $280 million to $290 million and adjusted free cash flow margin of 19% to 20%, which assumes a negative FX impact of 100 to 200 basis points. Q2 | 2026 Shareholder Letter
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Forward-looking statements This shareholder letter contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “outlook,” “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward- looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond monday .com’s control. monday .com’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to our ability to effectively manage the scope and complexity of our business following years of rapid growth, increasing operating expenses, and our ability to maintain profitability; foreign currency exchange rate fluctuations; the fact that we continue to derive a majority of revenue from monday work management; fluctuations in operating results; real or perceived errors, failures, vulnerabilities or bugs in our platform, products or third-party applications offered on our app marketplace or interruptions or performance problems associated with the technology or infrastructure underlying our platform; risks related to artificial intelligence (“AI”) and machine learning; our ability to attract customers, grow our retention rates, expand usage within organizations, including cross-selling and upselling and sell subscription plans; risks related to our subscription-based business model; our sales efforts may require considerable time and expense and the use of differing sales strategies may extend our sales cycles; changes in sizes or types of business that purchase our platform and products; our ability to offer high- quality customer support and direct sales capabilities;that our restructuring plan may not achieve the expected benefits or that the costs may exceed our expectations; maintenance of corporate culture; risks related to international operations and compliance with laws and regulations applicable to our global operations; risks related to acquisitions, strategic investments, partnerships, or alliances; risks associated with scrutiny related to environmental and social matters; our dependence on founders and other key employees and ability to attract and retain highly skilled employees; our ability to raise additional capital or generate cash flows necessary to expand our operations and invest in new technologies; uncertain global economic conditions and inflation; changes and competition in the market and software categories in which we participate; our ability to introduce new products, features, integrations, capabilities, and enhancements; the ability of our platform to interoperate with a variety of software applications; our reliance on third-party application stores to distribute our mobile application; our successful strategic relationships with, and our dependence on third parties; our reliance on web search engines, both traditional and AI generated, to direct traffic to our website; interruptions or delays in service from third parties or our inability to plan and manage interruptions; risks related to security incidents and unauthorized access to our or our third-party vendors’ systems, networks or data or the data of users and organizations on our platform; evolving privacy protection and data security laws, regulations, industry standards, policies, contractual obligations, and cross-border data transfer or localization restrictions; new legislation and regulatory obligations regulating AI; changes in tax law and regulations or if we were to be classified as a passive foreign investment company; our ability to realize deferred tax assets or requirements to collect sales or other indirect taxes; our ability to maintain, protect or enforce our intellectual property rights or risks related to intellectual property infringement claims; risks related to our use of open-source software; risks related to our founder share that provides certain veto rights; risks related to our status as a foreign private issuer incorporated and located in Israel, including risks related to conflicts in the region and escalations thereof; our expectation not to pay dividends for the foreseeable future; risks related to our repurchase program, including an inability to guarantee the amount of repurchases of our ordinary shares that will occur, if any, or that our repurchase program will enhance long-term shareholder value; risks related to our Digital Lift Initiative and the monday .com Foundation; risks related to legal and regulatory matters; and other factors described in “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2025, filed with the SEC on March 13, 2026. Further information on potential risks that could affect actual results will be included in the subsequent filings that monday .com makes with the Securities and Exchange Commission from time to time. Q2 | 2026 Shareholder Letter
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Past performance is not necessarily indicative of future results. The forward-looking statements included in this shareholder letter represent monday .com’s views as of the date of this shareholder letter. monday .com anticipates that subsequent events and developments will cause its views to change. monday .com undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward- looking statements should not be relied upon as representing monday .com’s views as of any date subsequent to the date of this shareholder letter. Earnings Webcast monday .com will hold a public webcast at 8:30 a.m. ET today to discuss the results for its second quarter and fiscal year 2026 financial outlook. The live call may also be accessed via telephone at +1 (646) 968-2525 or +1 (888) 596-4144 (toll-free). Please reference conference ID: 1347415. An archived webcast can be accessed from the News & Events section of monday .com’s Investor Relations website following the call. About monday .com monday .com is the AI work platform that not only helps manage and orchestrate work, but also does the work for you. Around 250,000 customers worldwide use monday .com to bring people, workflows, and AI agents together on one flexible platform, where AI doesn’t just assist, it executes. From work management and CRM to service and dev, every monday .com product runs on the same AI layer, automating tasks, running workflows, and helping teams deliver exponentially more with less effort. Q2 | 2026 Shareholder Letter
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Appendix Condensed consolidated statements of operations (U.S. dollars in thousands, except share and per share data) Q2 | 2026 Shareholder Letter
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Condensed consolidated balance sheets (U.S. dollars in thousands) Q2 | 2026 Shareholder Letter
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Condensed consolidated statements of cash flows (U.S. dollars in thousands) Q2 | 2026 Shareholder Letter
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Reconciliation of gaap to Non-gaap financial information (U.S. dollars in thousands) Q2 | 2026 Shareholder Letter
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Reconciliation of gaap to Non-gaap financial information (cont.) (U.S. dollars in thousands, except share and per share data) (1) In connection with the Company's broader restructuring plan, the Company recognized restructuring charges of $21.4 million in the second quarter of 2026, consisting of non-cash impairment charges related to operating lease right-of-use assets, leasehold improvements, and other fixed assets for office space in Israel that was originally secured to support planned workforce expansion. (2) During the fourth quarter of 2025, the Company recorded a non-cash income tax benefit related to the reversal of a valuation allowance on deferred tax assets following sustained profitability . This benefit is excluded from non-GAAP net income as management believes it is a discrete item that is not indicative of the Company’s ongoing operating performance. The Company continues to evaluate the realizability of its deferred tax assets each reporting period. (3) The tax expense (benefit) related to share-based compensation was excluded in calculating non-GAAP net income and non- GAAP net income per basic and diluted share. The Company believes that excluding the tax expense (benefit) enables investors to see the full effect that excluding share-based compensation expenses had on the operating results. Q2 | 2026 Shareholder Letter
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Reconciliation of net cash provided by operating activities to adjusted free cash flow (U.S. dollars in thousands) Reconciliation of net cash provided by operating activities to adjusted free cash flow (1) For the three months ended June 30, 2026 and March 31, 2026, mainly represents renovation costs at an office space in Israel that were capitalized prior to the Company's decision to vacate that space in Q2 2026. Although the related leasehold improvements were subsequently impaired as part of the restructuring charges excluded from non-GAAP operating income, the adjusted free cash flow add-back reflects cash previously paid for the renovation project — a distinct event from the non-cash impairment — and is included because it represents a one-time, non-recurring capital outlay not reflective of our ongoing capital expenditures. Q2 | 2026 Shareholder Letter reconciliation of to non easures is provided below