monday.com grows on AI demand as large clients surge

monday.com reported fourth-quarter revenue growth of 25% to USD $333.9 million and full-year revenue growth of 27% to USD $1.23 billion, along with higher non-GAAP operating income for the year.

Non-GAAP operating income for fiscal 2025 was USD $175.3 million, representing a 14% operating margin. On a GAAP basis, the company posted an operating loss of USD $1.7 million, narrowing from a loss of USD $21.0 million in fiscal 2024.

AI products

monday.com is a cloud-based AI work platform and project management tool. It cited demand for its AI product set and highlighted adoption of monday vibe, an AI-powered no-code builder. monday vibe became its fastest product to reach USD $1 million in annual recurring revenue, hitting that level 2.5 months after pricing launched in mid-October 2025.

The company said it now offers "one unified AI platform" with four core AI Work Capabilities: monday sidekick, monday vibe, monday agents and monday workflows.

In management commentary, co-founders and co-CEOs Roy Mann and Eran Zinman said the group expanded its product portfolio during the year, saw increased use of AI products and continued to make progress with larger customers.

"We delivered another year of strong, disciplined execution in 2025, with 27% revenue growth and a 14% non-GAAP operating margin, while expanding our product portfolio and seeing strong adoption of our AI products," Mann and Zinman said. "At the same time, we continue to make progress upmarket, as larger customers increasingly adopt more solutions and standardize on monday.com for mission-critical workflows."

Upmarket mix

Customer cohort metrics showed a larger share of annual recurring revenue coming from bigger accounts. Customers with more than USD $50,000 in annual recurring revenue represented 41% of total ARR, up from 36% a year earlier. Customers with more than USD $100,000 in ARR represented 28% of ARR, up from 24%.

Paid customers with more than USD $50,000 in ARR rose 34% year on year to 4,281. Customers above USD $100,000 in ARR increased 45% to 1,756, while those above USD $500,000 in ARR rose 74% to 87.

monday.com also reported net dollar retention of 110% for the period. Net dollar retention for customers with more than 10 users was 114%. For customers with more than USD $50,000 in ARR and more than USD $100,000 in ARR, net dollar retention was 116% for both groups.

Quarter details

For the fourth quarter, GAAP operating income was USD $2.4 million, down from USD $9.6 million a year earlier. The GAAP operating margin was 1%, compared with 4% in the prior-year quarter.

Non-GAAP operating income was USD $41.9 million, compared with USD $40.3 million in the fourth quarter of 2024. The non-GAAP operating margin was 13%, down from 15% a year earlier. Foreign exchange had an approximately 180 basis point negative impact on the non-GAAP operating margin in the quarter.

Net cash provided by operating activities was USD $59.7 million for the quarter. Adjusted free cash flow was USD $56.7 million, compared with USD $72.7 million in the prior-year quarter.

Cash and buybacks

For the full year, net cash provided by operating activities was USD $333.6 million. Adjusted free cash flow was USD $322.7 million, compared with USD $295.8 million in fiscal 2024.

monday.com repurchased about 884,000 ordinary shares for USD $135 million under its share repurchase programme. About USD $735 million remained available for future buybacks from an authorisation of USD $870 million at the end of the quarter.

Remaining performance obligations were USD $839 million, up 37% from USD $614 million a year earlier. Current remaining performance obligations were USD $676 million, up 31% from USD $516 million.

Outlook range

For the first quarter of fiscal 2026, monday.com forecast total revenue of USD $338 million to USD $340 million, implying about 20% year-on-year growth. It guided to non-GAAP operating income of USD $37 million to USD $39 million and an operating margin of 11% to 12%, assuming a negative foreign exchange impact of 100 to 200 basis points.

For full-year 2026, the company projected total revenue of USD $1,452 million to USD $1,462 million, implying 18% to 19% year-on-year growth. It forecast non-GAAP operating income of USD $165 million to USD $175 million and an operating margin of 11% to 12%, again assuming a negative FX impact of 100 to 200 basis points.

It also guided to adjusted free cash flow of USD $275 million to USD $290 million and an adjusted free cash flow margin of 19% to 20%, based on the same foreign exchange assumption.

Chief Financial Officer Eliran Glazer said foreign exchange affected margins in the near term, while describing underlying performance as healthy.

"We delivered strong financial results in 2025 with solid revenue growth and record non-GAAP operating profit and cash generation," Glazer said. "While foreign exchange rates have created some near-term pressure on margins, the underlying fundamentals remain healthy and we continue to see momentum with larger customers."