monday.com (NasdaqGS:MNDY) Q4 2025 Earnings call February 09, 2026 08:30 AM ET Company ParticipantsByron Stephen - VP of Investor RelationsCasey George - CROEliran Glazer - CFOEran Zinman - Co-Founder and Co-CEOMark Murphy - Head of Software ResearchRoy Mann - Co-Founder and Co-CEOConference Call ParticipantsAlex Zukin - Managing Director and Senior AnalystAllan Verkhovski - Director and Application Software AnalystArjun Bhatia - Partner and Equity Research AnalystBilly Fitzsimmons - Senior Research Analyst ...

monday.com (NasdaqGS:MNDY) Q4 2025 Earnings call February 09, 2026 08:30 AM ET Company ParticipantsByron Stephen - VP of Investor RelationsCasey George - CROEliran Glazer - CFOEran Zinman - Co-Founder and Co-CEOMark Murphy - Head of Software ResearchRoy Mann - Co-Founder and Co-CEOConference Call ParticipantsAlex Zukin - Managing Director and Senior AnalystAllan Verkhovski - Director and Application Software AnalystArjun Bhatia - Partner and Equity Research AnalystBilly Fitzsimmons - Senior Research Analyst ...

Financial Data and Key Metrics Changes - Revenue grew by 27% year-over-year, reaching $1.232 billion for fiscal year 2025, with Q4 revenue at $334 million, up 25% from the previous year [4][11] - Operating margin for fiscal year 2025 was 14%, with Q4 operating margin at 13% [4][12] - Net income for Q4 was $55 million, down from $57.3 million in Q4 2024, while fiscal year 2025 net income increased to $233.6 million from $183.3 million in fiscal year 2024 [13][14] - Adjusted free cash flow for Q4 was $56.7 million, with a margin of 17%, and for fiscal year 2025, it was $322.7 million, with a margin of 26% [14][15] Business Line Data and Key Metrics Changes - Customers with more than $50,000 in ARR now represent 41% of total ARR, indicating strong expansion within existing accounts [4] - Customers with over 500K in ARR grew by 74% year-over-year, highlighting success in enterprise-scale deployments [5] - The no-touch channels faced challenges in demand, particularly among smaller customers, affecting customer acquisition costs [5] Market Data and Key Metrics Changes - The company noted a choppy demand environment in no-touch channels, particularly impacting smaller customers, which is expected to persist into 2026 [5][20] - The overall net dollar retention (NDR) was stable at 110% for Q4 and is expected to remain flat for fiscal year 2026 [11][20] Company Strategy and Development Direction - The company is transitioning to an AI-powered work execution platform, focusing on AI Agents, AI Workflows, and Monday Vibe to enhance customer engagement and productivity [7][9] - The strategy includes shifting investments towards higher ROI opportunities that drive demand for larger customers [5] - The company aims to lead in the AI landscape, leveraging its platform to embed intelligence deeply across workflows [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's fundamentals despite a challenging macroeconomic environment, emphasizing a disciplined approach to execution [16][20] - The guidance for fiscal year 2026 reflects expected revenue growth of 18%-19%, with operating margins projected at 11%-12% [17] - Management acknowledged the impact of the Israeli shekel's appreciation on margins, contributing to a negative FX impact of 100-200 basis points [12][31] Other Important Information - The company ended Q4 with $1.5 billion in cash and cash equivalents, reflecting a share repurchase of $135 million during the quarter [14] - Employee headcount increased to 3,155, with expectations for mid-teens percentage growth in fiscal year 2026, focusing on sales and R&D investments [14] Q&A Session Summary Question: Growth outlook for 2026 - Management indicated that guidance reflects current conditions without assuming a rebound in performance marketing, focusing on upmarket and enterprise customer expansion [19][20] Question: Sidekick monetization strategy - Sidekick is offered as a paid add-on for pro and below packages, with plans for further monetization as it provides significant value to customers [23] Question: Impact of customer acquisition costs - Management noted that the headwind in performance marketing affects smaller customers, while larger customers continue to show strong momentum [26][28] Question: Guidance for operating margins - The guidance reflects achievable numbers given the current macro environment, with a focus on disciplined investment and efficiency improvements [29][31] Question: Dynamics of the no-touch business - Management acknowledged ongoing choppiness in the no-touch segment, impacting overall performance, particularly among smaller customers [51][56] Question: Customer retention and churn - Gross retention for the $50K+ cohort is at 91%, with management confident in maintaining and improving this figure through product offerings [82]