McGinnis is Cautious on Monday.com (MNDY) Due to Reduced Guidance, 2026 Growth Concerns

Core Insights - Monday.com Ltd. is viewed as a promising stock with significant upside potential, although recent guidance adjustments have raised concerns about its growth trajectory for 2026 [1][3]. Financial Performance - For Q3 2025, Monday.com reported total revenue of $317 million, reflecting a 26% year-over-year increase and exceeding Street expectations by $4.59 million [2]. - The company's EPS for the quarter was $1.16, surpassing guidance by $0.28 [2]. - The Net Dollar Retention rate stood at 111% in Q3, with expectations for stability throughout 2025 [2]. Guidance and Growth Concerns - The Q4 revenue guidance is projected to be between $328 million and $330 million, indicating a lower growth rate of 22% to 23% [3]. - Full-year 2025 revenue guidance is set at $1.226 to $1.228 billion, representing approximately 26% growth [3]. - The multi-product strategy is driving growth, with new products contributing over 10% to total Annual Recurring Revenue (ARR), surpassing the company's 2025 goal ahead of schedule [3]. Company Overview - Monday.com develops software applications internationally, offering a cloud-based Work Operating System that consists of modular building blocks for software applications and work management tools [4].