monday.com (NASDAQ:MNDY) Releases Quarterly Earnings Results, Beats Expectations By $0.73 EPS

monday.com (NASDAQ:MNDY) posted its earnings results on Monday. The company reported $2.14 earnings per share for the quarter, topping analysts’ consensus estimates of $1.41 by $0.73, FiscalAI reports. monday.com had a return on equity of 15.86% and a net margin of 10.05%. The firm had revenue of $377.54 million for the quarter, compared to the consensus estimate of $369.17 million. During the same quarter in the prior year, the business earned $1.16 EPS. The business’s revenue for the quarter was up 19.1% on a year-over-year basis.

Here are the key takeaways from monday.com’s conference call:

• Q3 revenue rose 19% year over year to $378 million, and non-GAAP operating margin reached a record 24%. However, Q4 revenue guidance implies growth of about 14%, while management expects NDR to fall to 107% and says current headwinds may persist into 2027.
• AI ARR reached $36 million, and monday agents recorded more than 6 million interactions in under two quarters. Adoption and usage are strongest among customers with $50,000 or more in ARR, where over 30% pay for AI credits.
• Management cited weaker SMB additions and higher SMB churn, longer enterprise sales cycles, and lingering disruption from the workforce reduction. It also said it sees no improvement in the downmarket top of funnel.
• The company is shifting toward an AI-first platform, larger enterprise customers, usage-based pricing, and hands-on implementation through monday Frontier. Executives called the transition strategic but said it will continue into 2027; Frontier may pressure margins, though they expect increased product and AI usage to offset the investment.
• Adjusted free cash flow was $63 million, but that measure excluded $47.2 million of restructuring-related cash payments; operating cash flow was $20.4 million. Management said slower ARR growth and longer sales cycles are weighing on cash generation.

monday.com Stock Performance

Shares of MNDY traded down $1.03 during mid-day trading on Wednesday, hitting $75.35. 386,933 shares of the stock were exchanged, compared to its average volume of 1,752,756. The company has a market cap of $3.85 billion, a PE ratio of 25.96, a price-to-earnings-growth ratio of 1.80 and a beta of 1.06. monday.com has a 52-week low of $57.50 and a 52-week high of $166.29. The firm has a 50-day moving average of $89.81 and a two-hundred day moving average of $82.56.

Wall Street Analysts Forecast Growth

MNDY has been the topic of a number of analyst reports. Wells Fargo & Company dropped their price target on shares of monday.com from $120.00 to $100.00 and set an “overweight” rating on the stock in a research note on Tuesday. Zacks Research lowered shares of monday.com from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 15th. Wolfe Research cut monday.com from an “outperform” rating to a “peer perform” rating in a research report on Tuesday, August 11th. Wall Street Zen raised monday.com from a “hold” rating to a “buy” rating in a research report on Sunday, November 1st. Finally, BTIG Research dropped their target price on shares of monday.com from $105.00 to $100.00 and set a “buy” rating on the stock in a report on Tuesday. Nine research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $103.09.

Insider Buying and Selling at monday.com

In related news, Director Aviad Eyal sold 2,000 shares of the firm’s stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $100.04, for a total value of $200,080.00. Following the completion of the transaction, the director directly owned 203,455 shares of the company’s stock, valued at approximately $20,353,638.20. This trade represents a 0.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 22.30% of the company’s stock.

Top monday.com Stories

Investors following MNDY have been watching these stories:

• Neutral Sentiment: Analyst views remain mixed: some firms still rate MNDY Buy or Overweight, although several have reduced their price targets. Article: Citigroup analyst rating
• Negative Sentiment: Canaccord Genuity and Needham downgraded monday.com to Hold, while Loop Capital cut its target and maintained a Hold rating. The moves add to investor concern following the company’s outlook. Article: Canaccord downgrades monday.com Article: Needham lowers monday.com rating Article: Loop Capital cuts monday.com price target
• Negative Sentiment: Traders bought an unusually large volume of MNDY put options, signaling increased demand for downside protection and adding to the bearish tone. Article: Traders buy large volume of monday.com put options

monday.com Company Profile

monday.com Ltd. is a software company that provides a cloud-based platform for organizations to plan, manage and track work. Founded in 2012 as dapulse, the company adopted the monday.com name in 2017. Its products include monday work management, monday CRM, monday dev and monday service. The platform offers tools for project and workflow management, customer relationship management, software development and service operations, with features for collaboration, automation and reporting. Headquartered in Tel Aviv, Israel, monday.com serves customers across a range of industries and geographies.