monday.com (NASDAQ: MNDY) grows Q1 2026 revenue 24% with record profit

Rhea-AI Filing Summary

monday.com reported strong first quarter 2026 results, with revenue of $351.3M, up 24% year-over-year, and record GAAP and non-GAAP operating income. GAAP operating income was $19.8M for a 6% margin, while non-GAAP operating income reached $49.0M with a 14% margin.

GAAP net income was $28.0M, or $0.57 per diluted share. Adjusted free cash flow was $102.8M, with a 29% margin compared with 39% a year earlier. The company launched its AI Work Platform and continued shifting to consumption-based pricing.

monday.com ended the quarter with cash and cash equivalents of $997.1M, down from $1.50B at year-end 2025, largely reflecting $552.6M of ordinary share repurchases during the quarter.

Positive

• Strong top-line growth and profitability: Q1 2026 revenue reached $351.3M, up 24% year-over-year, with GAAP operating income of $19.8M and non-GAAP operating income of $49.0M, both at record levels.
• Robust cash generation: Adjusted free cash flow was $102.8M in Q1 2026, and GAAP net income was $28.0M, indicating the business is generating meaningful cash and earnings while investing in growth.
• Capital return via large buyback: The company repurchased $552.6M of ordinary shares during the quarter, a sizable return of capital that materially reduced the cash balance.

Negative

• Lower cash balance and FCF margin: Cash and cash equivalents fell from $1.50B to $997.1M in Q1 2026, and adjusted free cash flow margin declined from 39% to 29%, reflecting heavier capital deployment and somewhat weaker cash conversion.

Insights

Equity analyst

Q1 2026 shows strong growth, solid profitability and heavy capital return.

monday.com grew Q1 2026 revenue to $351.3M, up 24% year-over-year, while keeping GAAP gross margin very high at 89%. GAAP operating income more than doubled to $19.8M, and non-GAAP operating income rose to $49.0M with a 14% margin.

GAAP net income was $28.0M, or $0.57 per diluted share, and adjusted free cash flow reached $102.8M. Adjusted free cash flow margin declined from 39% to 29%, suggesting less cash conversion even as profitability remained healthy.

A key development is capital allocation: the company repurchased $552.6M of ordinary shares in the quarter, reducing cash and cash equivalents from $1.50B to $997.1M. Future disclosures in company filings may clarify how ongoing buybacks balance against investment needs and liquidity.

Key Figures

Q1 2026 revenue: $351.3M GAAP operating income: $19.8M Non-GAAP operating income: $49.0M +5 more

8 metrics

Q1 2026 revenue $351.3M Three months ended March 31, 2026; up 24% year-over-year vs $282.3M

GAAP operating income $19.8M Three months ended March 31, 2026; operating margin 6%

Non-GAAP operating income $49.0M Three months ended March 31, 2026; non-GAAP operating margin 14%

GAAP net income $28.0M Q1 2026; $0.57 diluted EPS vs $27.4M and $0.52 in Q1 2025

Adjusted free cash flow $102.8M Three months ended March 31, 2026; margin 29% vs 39% in Q1 2025

Share repurchases $552.6M Repurchase of ordinary shares in Q1 2026 financing cash flows

Cash and cash equivalents $997.1M Balance at March 31, 2026 vs $1.50B at December 31, 2025

GAAP gross margin 89% Q1 2026 GAAP gross margin vs 90% in Q1 2025

Key Terms

Adjusted free cash flow, Net Dollar Retention Rate, Annual Recurring Revenue, Remaining Performance Obligations, +2 more

6 terms

Adjusted free cash flow financial

"adjusted free cash flow, which is defined as free cash flow plus costs associated with the build-out"

Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.

Net Dollar Retention Rate financial

"We calculate Net Dollar Retention Rate as of a period end by starting with the ARR"

Net dollar retention rate measures how much revenue a company keeps from its existing customers over a set period after accounting for additional sales to them, reduced spending, and customers who leave. It matters to investors because it shows whether a company’s customer base is growing in value or shrinking—like checking whether the same garden produces more or fewer fruits over time—which signals the health and sustainability of recurring revenue.

Annual Recurring Revenue financial

"Annual Recurring Revenue (“ARR”) is defined to mean, as of the measurement date"

Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.

Remaining Performance Obligations financial

"Remaining Performance Obligations (RPOs) are the aggregate amount of transaction price allocated"

Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.

Non-GAAP operating margin financial

"Non-GAAP operating margin | | | 14 | % | | | 14 | %"

Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.

forward-looking statements regulatory

"This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Earnings Snapshot

Revenue: $351.3M

Q1 2026

Revenue $351.3M +24% year-over-year vs $282.3M in Q1 2025

GAAP operating income $19.8M vs $9.8M in Q1 2025

GAAP net income $28.0M vs $27.4M in Q1 2025

Non-GAAP operating income $49.0M vs $40.8M in Q1 2025

Adjusted free cash flow $102.8M vs $109.5M in Q1 2025; margin 29% vs 39%

Form 6-K: How Foreign Companies Report to the SEC →

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 under the

Securities Exchange Act of 1934

For the month of May 2026

Commission File Number: 001-40461

monday.com Ltd.

(Translation of registrant’s name into English)

6 Yitzhak Sadeh Street,

Tel Aviv, 6777506 Israel

 (Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒      Form 40-F ☐

Explanatory Note

On May 11, 2026, monday.com Ltd. (the “Company”) issued a press release titled “monday.com Announces First Quarter 2026 Results”. A copy of this press release is attached to this Form 6-K as Exhibit 99.1.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MONDAY.COM LTD.
	By:	/s/ Shiran Nawi
		Name: Shiran Nawi
		Title:   Chief People and Legal Officer

Date: May 11, 2026

EXHIBIT INDEX

Exhibit		Description
99.1		Press release, dated May 11, 2026

Exhibit 99.1

 

monday.com Announces First Quarter 2026 Results

First quarter revenue of $351.3 million grew 24% year-over-year

Record GAAP and non-GAAP operating income

Record net adds of customers with more than $500,000 in ARR

Launches AI Work Platform with Native Agents

New York / Tel Aviv, May 11, 2026 -- monday.com (NASDAQ: MNDY), the AI work platform that turns strategy into execution, at scale, today reported financial results for its first quarter ended March 31, 2026.

Management Commentary:

“The results we delivered in Q1 reflect a business that is executing with discipline and building with ambition at the same time,” said monday.com co-founders and co-CEOs Roy Mann and Eran Zinman. “The launch of the AI Work Platform and our shift to consumption-based pricing build directly on that momentum. As AI takes on more work for our customers, our business grows with it. We believe the best chapter of monday.com’s story is the one we are writing now.”

“Q1 was a strong quarter across every financial dimension, with revenue, margins and cash flow all coming in ahead of expectations,” said Eliran Glazer, monday.com CFO. “Perhaps most encouragingly, the AI productivity gains we are seeing inside our own organization are demonstrating that we can grow revenue without growing headcount in lockstep, a dynamic we believe will be a meaningful driver of operating leverage over time.”

First Quarter Fiscal 2026 Financial Highlights:

● Revenue was $351.3 million, an increase of 24% year-over-year.

● GAAP operating income was $19.8 million, compared to $9.8 million in the first quarter of 2025; GAAP operating margin was 6%, compared to 3% in the first quarter of 2025.

● Non-GAAP operating income was $49.0 million, compared to $40.8 million in the first quarter of 2025. Non-GAAP operating margin was 14%, same as in the first quarter of 2025, despite an approximately 190 basis point negative impact from FX.

● GAAP basic and diluted net income per share was $0.58 and $0.57, respectively, compared to GAAP basic and diluted net income per share of $0.54 and $0.52, respectively, in the first quarter of 2025; non-GAAP basic and diluted net income per share was $1.17 and $1.15, respectively, compared to non-GAAP basic and diluted net income per share of $1.14 and $1.10, respectively, in the first quarter of 2025.

● Net cash provided by operating activities was $104.7 million, with $102.8 million of adjusted free cash flow, compared to net cash provided by operating activities of $112.0 million and $109.5 million of adjusted free cash flow in the first quarter of 2025.

Recent Business Highlights:

● Net dollar retention rate was 110%.

● Net dollar retention rate for customers with more than 10 users was 114%.

● Net dollar retention rate for customers with more than $50,000 in ARR was 116%.

● Net dollar retention rate for customers with more than $100,000 in ARR was 115%.

● The number of paid customers with more than 10 users was 65,016, up 7% from 60,566 as of March 31, 2025.

● The number of paid customers with more than $50,000 in ARR was 4,547, up 32% from 3,444 as of March 31, 2025.

● The number of paid customers with more than $100,000 in ARR was 1,844, up 39% from 1,328 as of March 31, 2025.

● The number of paid customers with more than $500,000 in ARR was 99, up 74% from 57 as of March 31, 2025.

● Customers with more than 10 users now represent 82% of ARR, up from 80% as of March 31, 2025.

● Customers with more than $50,000 in ARR now represent 42% of ARR, up from 37% as of March 31, 2025.

● Customers with more than $100,000 in ARR now represent 29% of ARR, up from 24% as of March 31, 2025.

● Customers with more than $500,000 in ARR now represent 6% of ARR, up from 5% as of March 31, 2025.

● Total remaining performance obligations (RPOs) were $880 million, up 33% from $660 million as of March 31, 2025.

● Current remaining performance obligations (cRPOs) were $716 million, up 26% from $568 million as of March 31, 2025.

● The company repurchased approximately 7,269,000 of its ordinary shares for approximately $553 million as part of its share repurchase program. As of the end of Q1, of the $870 million authorized, approximately $182 million remains available for future share repurchases under the program.

● Launched AI Work Platform with native AI agents and a new seats-plus-credits pricing model, giving businesses a unified system to orchestrate work between humans and AI at scale.

● Agreed to acquire OneAI, adding voice agent capabilities and extending the AI Work Platform across every surface of where work happens.

Financial Outlook:

For the second quarter of fiscal year 2026, monday.com currently expects:

● Total revenue of $354 million to $356 million, representing year-over-year growth of 18% to 19%.

● Non-GAAP operating income of $46 million to $48 million and operating margin of 13% to 14%, assuming a negative FX impact of 100 to 200 basis points.

For the full year 2026, monday.com currently expects:

● Total revenue of $1,466 million to $1,474 million, representing year-over-year growth of 19% to 20%.

● Non-GAAP operating income of $185 million to $191 million and operating margin of approximately 13%, assuming a negative FX impact of 100 to 200 basis points.

● Adjusted free cash flow of $280 million to $290 million and adjusted free cash flow margin of 19% to 20%, assuming a negative FX impact of 100 to 200 basis points.

Non-GAAP Financial Measures:

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expenses, non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, adjusted free cash flow, which is defined as free cash flow plus costs associated with the build-out and expansion of our corporate headquarters, and adjusted free cash flow margin. Certain of these non-GAAP financial measures exclude share-based compensation.

monday.com believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to monday.com’s financial condition and results of operations. monday.com management uses these non-GAAP measures to compare monday.com performance to that of prior periods, for trend analysis and for budgeting and planning purposes. monday.com believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing monday.com financial results to the results of other software companies, many of which present similar non-GAAP financial measures to investors. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in monday.com financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures.

Reconciliation tables of the most directly comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. monday.com urges investors to review these reconciliation tables and not to rely on any single financial measure to evaluate the monday.com business. Management is not able to forecast GAAP operating income (loss) on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting share-based compensation expense, the amounts of which may be significant in future periods. Management is not able to forecast GAAP net cash provided by operating activities on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting property and equipment purchases and capitalized software costs, the amounts of which may be significant in future periods.

Definitions of Business Key Performance Indicators

Net Dollar Retention Rate

We calculate Net Dollar Retention Rate as of a period end by starting with the ARR from customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The calculation of Current Period ARR includes any upsells, contraction and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Net Dollar Retention Rate. For the trailing 12-month calculation, we take a weighted average of this calculation of our quarterly Net Dollar Retention Rate for the four quarters ending with the most recent quarter.

Annual Recurring Revenue

Annual Recurring Revenue (“ARR”) is defined to mean, as of the measurement date, the annualized value of our customer subscription plans assuming that any contract that expires during the next 12 months is renewed on its existing terms.

Remaining Performance Obligations

Remaining Performance Obligations (RPOs) are the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the reporting date, including both deferred revenues and non-invoiced amounts expected to be billed and recognized in the future.

Current Remaining Performance Obligations

Current Remaining Performance Obligations (cRPOs) are the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the reporting date, including both deferred revenues and non-invoiced amounts expected to be billed and recognized in the next 12 months.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “outlook,” “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond monday.com control. monday.com’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to our ability to effectively manage the scope and complexity of our business following years of rapid growth, increasing operating expenses, and our ability to maintain profitability; foreign currency exchange rate fluctuations; the fact that we continue to derive a majority of revenue from monday work management; fluctuations in operating results; real or perceived errors, failures, vulnerabilities or bugs in our platform, products or third-party applications offered on our app marketplace or interruptions or performance problems associated with the technology or infrastructure underlying our platform; risks related to artificial intelligence (“AI”) and machine learning; our ability to attract customers, grow our retention rates, expand usage within organizations, including cross-selling and upselling and sell subscription plans; risks related to our subscription-based business model; our sales efforts may require considerable time and expense and the use of differing sales strategies may extend our sales cycles; changes in sizes or types of business that purchase our platform and products; our ability to offer high-quality customer support and direct sales capabilities; maintenance of corporate culture; risks related to international operations and compliance with laws and regulations applicable to our global operations; risks related to acquisitions, strategic investments, partnerships, or alliances; risks associated with scrutiny related to environmental and social matters; our dependence on founders and other key employees and ability to attract and retain highly skilled employees; our ability to raise additional capital or generate cash flows necessary expand our operations and invest in new technologies; uncertain global economic conditions and inflation; changes and competition in the market and software categories in which we participate; our ability to introduce new products, features, integrations, capabilities, and enhancements; the ability of our platform to interoperate with a variety of software applications; our reliance on third-party application stores to distribute our mobile application; our successful strategic relationships with, and our dependence on third parties; our reliance on web search engines, both traditional and AI generated, to direct traffic to our website; interruptions or delays in service from third parties or our inability to plan and manage interruptions; risks related to security incidents and unauthorized access to our or our third-party vendors’ systems, networks or data or the data of users and organizers on our platform; evolving privacy protection and data security laws, regulations, industry standards, policies, contractual obligations, and cross-border data transfer or localization restrictions; new legislation and regulatory obligations regulating AI; changes in tax law and regulations or if we were to be classified as a passive foreign investment company; our ability to realize deferred tax assets or requirements to collect sales or other indirect taxes; our ability to maintain, protect or enforce our intellectual property rights or intellectual property infringement claims; risks related to our use of open-source software; risks related to our founder share that provides certain veto rights; risks related to our status as a foreign private issuer incorporated and located in Israel, including risks related to the ongoing conflicts in the region and escalations thereof; our expectation not to pay dividends for the foreseeable future; risks related to our repurchase program, including an inability to guarantee the amount of repurchases of our ordinary shares that will occur, if any, or that our repurchase program will enhance long-term shareholder value; risks related to our Digital Lift Initiative and the monday.com Foundation; risks related to legal and regulatory matters; and other factors described in “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2025, filed with the SEC on March 13, 2026. Further information on potential risks that could affect actual results will be included in the subsequent filings that monday.com makes with the Securities and Exchange Commission from time to time.

Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent monday.com’s views as of the date of this press release. monday.com anticipates that subsequent events and developments will cause its views to change. monday.com undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing monday.com’s views as of any date subsequent to the date of this press release.

Earnings Webcast:

monday.com will hold a public webcast at 8:30 a.m. ET today to discuss the results for its first quarter fiscal year 2026 and financial outlook. The live call may also be accessed via telephone at +1 (646) 968-2525 or +1 (888) 596-4144 (toll-free). Please reference conference ID: 1347415. An archived webcast can be accessed from the News & Events section of monday.com’s Investor Relations website following the call.

Investor Presentation Details:

An investor presentation providing additional information can be found at http://ir.monday.com.

About monday.com:

monday.com is the AI work platform that not only helps manage and orchestrate work, but also does the work for you. Over 250,000 customers worldwide use monday.com to bring people, workflows, and AI agents together on one flexible platform, where AI doesn't just assist, it executes. From work management and CRM to service and dev, every monday.com product runs on the same AI layer, automating tasks, running workflows, and helping teams deliver exponentially more with less effort. Visit monday.com to learn more.

CONTACTS

Investor Relations:

Byron Stephen

byron@monday.com

Media Relations:

Tiffani Gibson

tiffanigi@monday.com

MONDAY.COM LTD

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

		Three months ended March 31,
		2026				2025
		(unaudited)
Revenue		$	351,265			$	282,250
Cost of revenue			38,124				28,805
Gross profit			313,141				253,445
Operating expenses:
Research and development			92,020				69,385
Sales and marketing			165,395				141,720
General and administrative			35,972				32,544
Total operating expenses			293,387				243,649
Operating income			19,754				9,796
Financial income, net			10,376				17,647
Income before income taxes			30,130				27,443
Income tax expense			(2,096	)			(18	)
Net income		$	28,034			$	27,425
Net income per share attributable to ordinary shareholders, basic		$	0.58			$	0.54
Net income per share attributable to ordinary shareholders, diluted		$	0.57			$	0.52
Weighted-average ordinary shares used in calculating net income per ordinary share, basic			48,018,030				51,005,188
Weighted-average ordinary shares used in calculating net income per ordinary share, diluted			48,857,280				53,042,479

MONDAY.COM LTD

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

		March 31,				December 31,
		2026				2025
ASSETS		(unaudited)				(audited)
CURRENT ASSETS:
Cash and cash equivalents		$	997,135			$	1,503,149
Marketable securities			215,141				162,308
Accounts receivable, net			34,370				30,552
Prepaid expenses and other current assets			100,686				93,055
Total current assets			1,347,332				1,789,064
LONG-TERM ASSETS:
Property and equipment, net			54,178				53,888
Operating lease right-of-use assets			160,099				149,149
Deferred tax assets, net			56,639				58,682
Other long-term assets			73,951				55,817
Total long-term assets			344,867				317,536
Total assets		$	1,692,199			$	2,106,600
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	46,527			$	45,001
Accrued expenses and other current liabilities			252,191				234,377
Deferred revenue, current			455,131				409,677
Operating lease liabilities, current			28,527				25,819
Total current liabilities			782,376				714,874
LONG-TERM LIABILITIES:
Operating lease liabilities, non-current			149,046				142,948
Deferred revenue, non-current			2,086				1,942
Total long-term liabilities			151,132				144,890
Total liabilities			933,508				859,764
SHAREHOLDERS' EQUITY:
Other comprehensive income			10,821				18,097
Share capital and additional paid-in capital			1,153,126				1,662,029
Accumulated deficit			(405,256	)			(433,290	)
Total shareholders’ equity			758,691				1,246,836
Total liabilities and shareholders’ equity		$	1,692,199			$	2,106,600

MONDAY.COM LTD

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

		Three months ended March 31,
		2026				2025
		(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	28,034			$	27,425
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			3,848				3,250
Share-based compensation			29,283				30,958
Amortization of discount and accretion of interest on marketable securities			(2,471	)			(675	)
Changes in operating assets and liabilities:
Accounts receivable, net			(3,818	)			(632	)
Prepaid expenses and other assets			(16,417	)			(9,770	)
Deferred taxes			2,250				—
Accounts payable			436				(3,844	)
Accrued expenses and other liabilities, net			17,944				21,157
Deferred revenue			45,598				44,101
Net cash provided by operating activities			104,687				111,970
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(2,447	)			(3,687	)
Purchase of marketable securities			(69,123	)			(10,049	)
Maturities of marketable securities			18,247				—
Investment in affiliated company			(9,332	)			—
Capitalized software development costs			(484	)			(779	)
Net cash used in investing activities			(63,139	)			(14,515	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of share options and employee share purchase plan			7,040				14,136
Receipt (repayment) of tax advance relating to exercises of share options and RSUs, net			(1,990	)			4,412
Repurchase of ordinary shares			(552,612	)			—
Net cash provided by (used in) financing activities			(547,562	)			18,548
INCREASE (DECREASE)  IN CASH, AND CASH EQUIVALENTS			(506,014	)			116,003
CASH AND CASH EQUIVALENTS - Beginning of period			1,503,149				1,411,602
CASH AND CASH EQUIVALENTS - End of period		$	997,135			$	1,527,605

MONDAY.COM LTD

Reconciliation of GAAP to Non-GAAP Financial Information

(U.S. dollars in thousands)

		Three months ended March 31,
		2026				2025
		(unaudited)
Reconciliation of gross profit and gross margin
GAAP gross profit		$	313,141			$	253,445
Share-based compensation			1,049				1,134
Non-GAAP gross profit		$	314,190			$	254,579
GAAP gross margin			89	%			90	%
Non-GAAP gross margin			89	%			90	%
Reconciliation of operating expenses
GAAP research and development		$	92,020			$	69,385
Share-based compensation			(13,607	)			(15,541	)
Non-GAAP research and development		$	78,413			$	53,844
GAAP sales and marketing		$	165,395			$	141,720
Share-based compensation			(7,214	)			(5,838	)
Non-GAAP sales and marketing		$	158,181			$	135,882
GAAP general and administrative		$	35,972			$	32,544
Share-based compensation			(7,413	)			(8,445	)
Non-GAAP general and administrative		$	28,559			$	24,099
Reconciliation of operating income (loss)
GAAP operating income (loss)		$	19,754			$	9,796
Share-based compensation			29,283				30,958
Non-GAAP operating income		$	49,037			$	40,754
GAAP operating margin			6	%			3	%
Non-GAAP operating margin			14	%			14	%
Reconciliation of net income
GAAP net  income		$	28,034			$	27,425
Share-based compensation			29,283				30,958
Tax benefit related to share-based compensation(1)			(1,313	)		$	—
Non-GAAP net income		$	56,004			$	58,383
Reconciliation of weighted average number of shares outstanding
Weighted-average ordinary shares used in calculating GAAP and Non-GAAP net income per ordinary share, basic			48,018,030				51,005,188
Effect of dilutive shares			839,250				2,037,291
Weighted-average ordinary shares used in calculating GAAP and Non-GAAP net income per ordinary share, diluted			48,857,280				53,042,479
GAAP net income per share, basic		$	0.58			$	0.54
GAAP net income  per share, diluted		$	0.57			$	0.52
Non-GAAP net income per share, basic		$	1.17			$	1.14
Non-GAAP net income per share, diluted		$	1.15			$	1.10

(1) The tax benefit related to share-based compensation was excluded in calculating non-GAAP net income and non-GAAP net income per basic and diluted share. The Company believes that excluding the tax benefit enables investors to see the full effect that excluding share-based compensation expenses had on the operating results.

MONDAY.COM LTD

Reconciliation of net cash provided by operating activities to adjusted free cash flow

(U.S. dollars in thousands)

		Three months ended March 31,
		2026				2025
		(unaudited)
Net cash provided by operating activities		$	104,687			$	111,970
Purchase of property and equipment			(2,447	)			(3,687	)
Capitalized software development costs			(484	)			(779	)
Purchase of property and equipment related to build-out and expansion of our corporate headquarters			1,022				2,028
Adjusted free cash flow		$	102,778			$	109,532
Adjusted free cash flow margin			29	%			39	%

FAQ

How did monday.com (MNDY) perform financially in Q1 2026?

monday.com delivered strong Q1 2026 results, with revenue of $351.3 million, up 24% year-over-year. GAAP operating income rose to $19.8 million, and GAAP net income reached $28.0 million, or $0.57 per diluted share.

What were monday.com (MNDY) profit margins in Q1 2026?

GAAP gross margin was a high 89% in Q1 2026. GAAP operating margin reached 6%, while non-GAAP operating margin was 14%, supported by non-GAAP operating income of $49.0 million on $351.3 million of revenue.

How much adjusted free cash flow did monday.com (MNDY) generate in Q1 2026?

Adjusted free cash flow in Q1 2026 was $102.8 million. This equates to an adjusted free cash flow margin of 29%, compared with 39% in the same quarter of 2025, reflecting softer cash conversion despite solid earnings.

What happened to monday.com’s (MNDY) cash balance in Q1 2026?

Cash and cash equivalents decreased to $997.1 million at March 31, 2026, from $1.50 billion at December 31, 2025. The decline was driven largely by $552.6 million of ordinary share repurchases during the quarter.

Did monday.com (MNDY) repurchase shares in Q1 2026?

Yes. monday.com repurchased $552.6 million of its ordinary shares in Q1 2026. This significant buyback reduced cash and cash equivalents but represents a major capital return decision alongside continued investment in operations.

What new products or strategic initiatives did monday.com (MNDY) highlight?

The company launched its AI Work Platform with native agents and emphasized a shift to consumption-based pricing. Management framed these initiatives as central to aligning the platform’s AI-driven capabilities with customer usage and future revenue growth.

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