Monday.com Stock Earnings Reports

monday.com reported a strong start to fiscal 2026: Q1 revenue was $351 million, up 24% year-over-year, with record operating profit of $49 million and adjusted free cash flow margin of 29%. Gross retention reached historical highs and enterprise momentum continued (42% of ARR from customers > $50k ARR; record number of customers > $500k ARR). Management emphasized a strategic shift: the product is being rearchitected and renamed from monday Work Management to the "monday AI work platform," with a new consumption-based pricing model (seats + AI credits) for new customers and an opt-in path for existing customers. The company announced an acquisition of One AI to add native voice-agent capabilities. Management attributed early productivity gains from AI internally (notably higher developer output and faster time to market) and said AI is already contributing to new ARR (management cited AI-driven net new ARR contribution during the quarter). Financials and guidance: gross margin ~89% in Q1; R&D spend increased as a percent of revenue (22%); net dollar retention was 110% in Q1 but management expects a slight decline by year end; Q2 revenue guide $354–356M (18–19% y/y) and full-year revenue guide $1.466–1.475B (19–20% y/y). The company repurchased $553M of stock in Q1 and ended the quarter with $1.21B in cash and marketable securities. Headcount is roughly 3,211 and expected to be largely flat for the remainder of FY26, reflecting productivity gains from AI. Management flagged that AI compute costs could pressure gross margins relative to historical levels and that top-of-funnel demand remains soft but in line with their expectations.