Monday.com (NASDAQ:MNDY) stock tanked on Monday after the work-management software company topped quarterly earnings expectations but tempered investor optimism with a weaker-than-anticipated outlook for 2026.

The company reported a quarterly revenue growth of 25% year-on-year (Y/Y) to $333.88 million, beating the analyst consensus estimate of $329.64 million. 

The company’s adjusted fourth-quarter EPS of $1.04 beat the analyst consensus estimate of 92 cents.

Monday.com makes money from selling subscriptions to customers to access its cloud-based Work OS platform. 

The net dollar retention rate was 110% and 114% for customers with more than 10 users.

The number of paid customers with over $50,000 in annual recurring revenue (ARR) rose 34% Y/Y to 4,281.

The adjusted operating margin decreased 200 bps to 13% reflecting an approximately 180 basis point negative impact from foreign exchange.

In the quarter, Monday.com generated operating cash flow of $59.7 million, down from $76.7 million a year ago.

It generated $56.7 million in adjusted free cash flow, compared to $72.7 million a year ago, and ended the quarter with $1.67 billion in cash and equivalents.

Co-founders and co-CEOs Roy Mann and Eran Zinman said the company delivered another year of disciplined execution in 2025, posting 27% revenue growth and a 14% adjusted operating margin while expanding its product lineup and driving strong adoption of its AI offerings.

They added that Monday.com continues to gain traction upmarket, with larger customers increasingly standardizing on the platform for mission-critical workflows.

CFO Eliran Glazer noted that foreign exchange headwinds are creating some near-term margin pressure, but emphasized that fundamentals remain healthy and momentum among larger customers continues.

Outlook

Monday.com expects fiscal first-quarter 2026 revenue guidance of $338.00 million-$340.00 million against the analyst consensus estimate of $342.97 million and an adjusted operating margin outlook of 11%-12%.

Monday.com expects 2026 revenue guidance of $1.452 billion-$1.462 billion, against the analyst consensus estimate of $1.477 billion, and an adjusted operating margin outlook of 11%-12%.

Guidance is based on an assumed 100–200 basis point headwind from foreign exchange.

MNDY Price Action: Monday.com shares were down 19% at $79.2 during premarket trading on Monday. The stock is trading at a new 52-week low, according to Benzinga Pro data.