monday.com (MNDY) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue reached $365 million, up 22% year-over-year, with strong upmarket momentum and a major strategic shift toward AI-powered products and organizational restructuring, including a 20% global workforce reduction.

• AI product adoption accelerated, with AI ARR doubling quarter-over-quarter and representing 17% of net new ARR, supported by over 1.7 million agent interactions and 98 million+ AI block actions.

• Significant growth in large customer segments: $50k+ ARR customers up 31%, $100k+ up 37%, and $500k+ up 68% year-over-year.

• Focus sharpened on monday service and monday CRM, each with dedicated teams and go-to-market strategies.

• Customer base spans 200+ industries and global markets, with robust enterprise adoption.

Financial highlights

• Q2 revenue was $365 million, up from $299 million a year ago, with gross margin at 89% (non-GAAP) and adjusted free cash flow of $52.3 million (14% margin).

• Non-GAAP operating margin expanded to 17%, up from 15% a year ago; net income was $65.5 million.

• Net dollar retention rate was 109% overall, 115% for $50k+ ARR customers.

• Total remaining performance obligations (RPOs) grew 34% year-over-year to $937 million.

• Ended Q2 with $1.07 billion in cash after $182 million in share repurchases, exhausting the $870 million buyback authorization.

Outlook and guidance

• Q3 2026 revenue expected at $368–$370 million (16–17% YoY growth); non-GAAP operating income of $57–$59 million (16% margin).

• FY26 revenue guidance is $1,466–$1,474 million (19–20% YoY growth); non-GAAP operating income of $230–$234 million (16% margin).

• FY26 adjusted free cash flow expected at $280–$290 million (19–20% margin), with guidance assuming a 100–200 basis point negative FX impact and no rebound in performance marketing.

• Management highlights durable revenue streams, strong customer retention, and continued focus on upmarket expansion and AI-driven innovation.