monday.com (MNDY) investor relations material

Executive summary

• Q1 2026 revenue grew 24% year-over-year to $351–$351.3 million, driven by strong enterprise demand, AI product adoption, and robust gross margins at 89%.

• Operating profit reached a record $49 million, with adjusted free cash flow margin at 29%.

• AI contributed 10% of net new ARR in Q1, and internal AI use improved developer output by 32% and reduced product time to market by 38%.

• Launched the monday AI Work Platform with native agents, introduced a new seats-plus-credits pricing model, and announced the acquisition of One AI to add native voice capabilities.

• Ongoing upmarket momentum with significant growth in customers with $50k+, $100k+, and $500k+ ARR.

Financial highlights

• Q1 revenue: $351–$351.3 million, up 24% year-over-year.

• Gross margin: 89% (non-GAAP and GAAP).

• Operating income: $49 million (non-GAAP, 14% margin); GAAP operating income: $19.8 million (6% margin).

• Net income: $56 million, diluted EPS: $1.15 (non-GAAP); GAAP net income per share: $0.58 basic, $0.57 diluted.

• Adjusted free cash flow: $102.8–$103 million; margin: 29%.

• Total remaining performance obligations (RPOs): $880 million, up 33% year-over-year.

• $553 million in share repurchases reduced cash to $997.1 million–$1.21 billion.

Outlook and guidance

• Q2 2026 revenue expected at $354–$356 million (18–19% growth year-over-year).

• Q2 non-GAAP operating income: $46–$48 million; margin: 13–14%, with 100–200 bps negative FX impact.

• FY 2026 revenue guidance: $1.466–$1.474 billion (19–20% growth year-over-year).

• FY 2026 non-GAAP operating income: $185–$191 million; margin: ~13%.

• FY 2026 adjusted free cash flow: $280–$290 million; margin: 19–20%.

• Management highlights ongoing investment in AI and platform innovation, focusing on durable revenue streams and upmarket expansion.