monday.com(US:MNDY) Prnewswire·2026-03-16 20:59Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against monday.com Ltd. for alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status by May 11, 2026 [2][3]. Company Overview - monday.com is facing a federal securities class action due to claims that it and its executives made false or misleading statements regarding the company's revenue growth outlook, which has reportedly decelerated [3][9]. - The company disclosed on its February 9, 2026 earnings call that it anticipates challenges 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 [4][9]. Financial Performance and Guidance - monday.com has guided for a decline in gross margins from 90% to the mid-to-high 80s for FY2026, partly due to increased costs associated with AI infrastructure [4][9]. - Research and Development (R&D) spending increased from 17% to 19% of revenue in FY2025, with management projecting mid-teens percentage headcount growth in FY2026, focusing on sales and R&D [4][9]. - The revenue contribution from AI products remains in early stages, with Monday Vibe achieving $1 million in Annual Recurring Revenue (ARR), a small portion of the company's total annual revenue of $1.2 billion [4][9]. Market Reaction - Following the earnings call and the disclosure of these challenges, monday.com's stock price fell by $20.37, or 20.78%, closing at $77.63 per share on February 9, 2026 [5][9].