monday.com(US:MNDY) Prnewswire·2026-03-12 20:24Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against monday.com Ltd. for alleged violations of federal securities laws, particularly regarding misleading statements about the company's revenue growth outlook and performance [1][2] Group 1: Legal Action and Class Action Details - Investors who purchased monday.com securities between September 17, 2025, and February 6, 2026, are reminded of the May 11, 2026, deadline to seek the role of lead plaintiff in a federal securities class action [1] - The complaint alleges that monday.com and its executives made false or misleading statements and failed to disclose the true state of the company's revenue expansion outlook, which includes decelerating growth and extended sales cycles [1][2] Group 2: Financial Performance and Guidance - On February 9, 2026, monday.com disclosed two headwinds affecting its 2026 guidance: weakness in its "no-touch" performance marketing channel and a foreign exchange drag of 100-200 basis points due to the appreciation of the Israeli shekel [1] - The company is increasing investments in AI products, which are expected to require incremental spending, leading to a decline in gross margins from 90% to the mid-to-high 80s in FY2026 [1] - R&D spending rose from 17% to 19% of revenue in FY2025, with management guiding for mid-teens percentage headcount growth in FY2026, primarily in sales and R&D [1] Group 3: Stock Market Reaction - Following the earnings call on February 9, 2026, monday.com's stock price fell by $20.37, or 20.78%, closing at $77.63 per share [1]