monday.com (MNDY) Q1 2026 earnings summary

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 customer growth across all segments.

• Operating profit reached a record $49 million (non-GAAP), with adjusted free cash flow margin at 29% and gross margin at 89%.

• AI contributed 10% of net new ARR, with internal AI use improving developer output by 32% and reducing product time to market by 38%.

• Launched the monday AI Work Platform, introduced a seats plus credits pricing model, and expanded platform capabilities.

• Announced acquisition of One AI to add native voice agent capabilities.

Financial highlights

• Q1 revenue: $351–$351.3 million, up 24% year-over-year; gross margin: 89% (non-GAAP and GAAP).

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

• Net income: $56 million; adjusted free cash flow: $102.8–$103 million (29% margin).

• Net dollar retention rate: 110% overall; 116% for $50k+ ARR customers.

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

Outlook and guidance

• Q2 2026 revenue expected at $354–$356 million (18–19% YoY growth); non-GAAP operating income: $46–$48 million (13–14% margin).

• FY 2026 revenue guidance: $1.466–$1.474 billion (19–20% growth); non-GAAP operating income: $185–$191 million; adjusted free cash flow: $280–$290 million.

• Guidance assumes negative FX impact of 100–200 basis points.

• Management focuses on AI and platform innovation, targeting durable revenue and upmarket expansion.