monday.com(US:MNDY) TMX Newsfile·2026-03-20 13:36Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Monday.com Ltd. due to allegations of violations of federal securities laws, particularly concerning misleading statements about the company's revenue growth and performance [2][4]. Company Performance and Financials - Monday.com disclosed on February 9, 2026, that it faced two significant challenges affecting its 2026 guidance: ongoing weakness in its performance marketing channel for small and medium businesses and a foreign exchange drag of 100-200 basis points due to the appreciation of the Israeli shekel [5]. - The company is increasing its investment in AI products, which includes Monday Vibe, Monday Sidekick, and Monday Agents, leading to a projected decline in gross margins from 90% to the mid-to-high 80s for FY2026, primarily due to AI infrastructure costs [5]. - Research and Development (R&D) spending rose from 17% to 19% of revenue in FY2025, with management forecasting mid-teens percentage headcount growth in FY2026, focusing on sales and R&D [5]. - The revenue contribution from AI products is still in the 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 [5]. 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 [6].