Core Insights - The company reported a net income of $55.0 million in Q4, down from $57.3 million year-over-year, with a full-year net income of $233.6 million, an increase from $183.3 million in fiscal 2024 [1][7] - Revenue for Q4 was $334 million, reflecting a 25% year-over-year increase, while full-year revenue reached $1.232 billion, up 27% [3][7] - The company is focusing on upmarket expansion, with customers generating over $50K in ARR now representing 41% of total ARR, and those over $500K in ARR growing 74% year-over-year [6][9] Financial Performance - Operating income for Q4 was $41.9 million, with a 13% operating margin, impacted by a 180-basis-point negative foreign exchange effect [2] - Full-year operating income was $175.3 million, representing a 14% operating margin, with a 110-basis-point FX impact [2] - Diluted EPS for Q4 was $1.04, and for the full year, it was $4.40 [1] AI Strategy and Product Development - The company is re-architecting its platform around AI, introducing features like AI Agents, Monday Vibe, and AI Sidekick, with Sidekick monetized as an add-on for most tiers [5][12] - Early usage metrics indicate over 77 million actions powered by Monday Blocks and more than 500,000 user messages processed by Sidekick [12] - Vibe is noted as the fastest product in company history to surpass $1 million in ARR [18] Guidance and Market Outlook - For Q1 fiscal 2026, the company expects revenue between $338 million and $340 million, indicating about 20% year-over-year growth [16] - Full-year 2026 revenue guidance is set at $1.452 billion to $1.462 billion, reflecting 18% to 19% growth, with a non-GAAP operating income forecast of $165 million to $175 million [19] - The company has adopted a cautious outlook for 2026, focusing on execution and acknowledging FX headwinds and choppy demand in no-touch channels [15][16] Cash Flow and Capital Management - The company ended the quarter with $1.5 billion in cash, down from $1.53 billion, reflecting $135 million in share repurchases [23] - Expected free cash flow for 2026 is projected between $275 million and $290 million, with margins impacted by FX headwinds and increased investments [19][22] - The company anticipates a headcount growth in the mid-teens percentage range for fiscal 2026, primarily directed towards sales and R&D [23]