Second quarter revenue of $299.0 million grew 27% year over year

Added a record number of net new customers with over $100k in ARR

monday CRM recently reached $100 million in ARR

monday.com (NASDAQ:MNDY) today reported financial results for its second quarter ended June 30, 2025.

Management Commentary:

"Q2 marked another strong quarter for monday.com, with continued revenue growth and rapidly growing demand for our broad product suite, particularly from enterprise customers," said monday.com co-founders and co-CEOs Roy Mann and Eran Zinman. "We continue to see evidence that our commitment to AI innovation is delivering real value for customers, and we're proud to be leading a new era of work execution. By taking the platform's flexibility to the next level, our new AI capabilities address core challenges across all our product areas and allow users to focus on their most critical strategic priorities."

"This quarter demonstrated our relentless focus on driving highly efficient growth at scale, and I'm energized by the momentum in our business and the opportunities we see ahead," said Eliran Glazer, monday.com CFO. "As we navigate the shifting landscape, we remain focused on the factors we can control – executing on our innovation roadmap, bolstering our go-to-market efforts to serve customers of all sizes, driving best-in-class operational efficiencies, and delivering products people love."

Second Quarter Fiscal 2025 Financial Highlights:

Revenue was $299.0 million, an increase of 27% year-over-year.
GAAP operating loss was $11.6 million compared to GAAP operating income of $1.8 million in the second quarter of 2024; GAAP operating margin was negative 4% compared to 1% in the second quarter of 2024.
Non-GAAP operating income was $45.1 million compared to $38.4 million in the second quarter of 2024; non-GAAP operating margin was 15%, compared to 16% in the second quarter of 2024.
GAAP basic and diluted net income per share was $0.03, compared to GAAP basic and diluted net income per share of $0.29 and $0.27, respectively, in the second quarter of 2024; non-GAAP basic and diluted net income per share was $1.13 and $1.09, respectively, compared to non-GAAP basic and diluted net income per share of $0.99 and $0.94, respectively, in the second quarter of 2024.
Net cash provided by operating activities was $66.8 million, with $64.1 million of adjusted free cash flow, compared to net cash provided by operating activities of $55.8 million and $50.8 million of adjusted free cash flow in the second quarter of 2024.

Recent Business Highlights:

Net dollar retention rate was 111%.
Net dollar retention rate for customers with more than 10 users was 115%.
Net dollar retention rate for customers with more than $50,000 in ARR was 116%.
Net dollar retention rate for customers with more than $100,000 in ARR was 117%.
The number of paid customers with more than 10 users was 61,803, up 8% from 57,203 as of June 30, 2024.
The number of paid customers with more than $50,000 in ARR was 3,702, up 36% from 2,713 as of June 30, 2024.
The number of paid customers with more than $100,000 in ARR was 1,472, up 46% from 1,009 as of June 30, 2024.
Appointed Harris Beber as Chief Marketing Officer.
Appointed Adi Dar as Chief Customer Officer.
monday CRM recently reached $100 million in ARR, just three years since launch.
Announced three new AI-powered capabilities - monday magic, monday vibe, and monday sidekick.

Financial Outlook:

For the third quarter of fiscal year 2025, monday.com currently expects:

Total revenue of $311 million to $313 million, representing year-over-year growth of 24% to 25%.
Non-GAAP operating income of $34 million to $36 million and operating margin of 11% to 12%.

For the full year 2025, monday.com currently expects:

Total revenue of $1,224 million to $1,229 million, representing year-over-year growth of approximately 26%.
Non-GAAP operating income of $154 million to $158 million and operating margin of approximately 13%.
Adjusted free cash flow of $320 million to $326 million and adjusted free cash flow margin of 26% to 27%.

Non-GAAP Financial Measures:

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expenses, non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, adjusted free cash flow, which is defined as free cash flow plus costs associated with the built-out and expansion of our corporate headquarters and adjusted free cash flow margin. Certain of these non-GAAP financial measures exclude share-based compensation.

monday.com believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to monday.com's financial condition and results of operations. monday.com management uses these non-GAAP measures to compare monday.com performance to that of prior periods, for trend analysis and for budgeting and planning purposes. monday.com believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing monday.com financial results to the results of other software companies, many of which present similar non-GAAP financial measures to investors. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in monday.com financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures.

Reconciliation tables of the most directly comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. monday.com urges investors to review these reconciliation tables and not to rely on any single financial measure to evaluate the monday.com business. Management is not able to forecast GAAP operating income (loss) on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting share-based compensation expense, the amounts of which may be significant in future periods. Management is not able to forecast GAAP net cash provided by operating activities on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting property and equipment purchases and capitalized software costs, the amounts of which may be significant in future periods.

Definitions of Business Key Performance Indicators

Net Dollar Retention Rate

We calculate Net Dollar Retention Rate as of a period end by starting with the ARR from customers as of the 12 months prior to such period end ("Prior Period ARR"). We then calculate the ARR from these customers as of the current period end ("Current Period ARR"). The calculation of Current Period ARR includes any upsells, contraction and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Net Dollar Retention Rate. For the trailing 12-month calculation, we take a weighted average of this calculation of our quarterly Net Dollar Retention Rate for the four quarters ending with the most recent quarter.

Annual Recurring Revenue ("ARR")

Is defined to mean, as of the measurement date, the annualized value of our customer subscription plans assuming that any contract that expires during the next 12 months is renewed on its existing terms.

Forward-Looking Statements:

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "outlook," "guidance," "expect," "anticipate," "should," "believe," "hope," "target," "project," "plan," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond monday.com control. monday.com's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to our ability to effectively manage the scope and complexity of our business following years of rapid growth and our ability to maintain profitability; foreign currency exchange rate fluctuations; the fact that we continue to derive a majority of revenues from monday work management; fluctuations in operating results; real or perceived errors, failures, vulnerabilities or bugs in our platform, products or third-party applications offered in our app marketplace or interruptions or performance problems in the technology or infrastructure underlying our platform; risks related to artificial intelligence and machine learning; our ability to attract customers, grow our retention rates and expand usage within organizations, including cross-selling and upselling; risks related to our subscription-based business model; our sales efforts may require considerable time and expense and the use of differing sales strategies may extend our sales cycles; changes in sizes or types of business that purchase our platform and products; our ability to offer high-quality customer support and consistent sales strategies; maintenance of corporate culture; risks related to international operations and compliance with laws and regulations applicable to our global operations; risks related to acquisitions, strategic investments, partnerships, or alliances; risks associated with environmental and social responsibility and climate change; our dependence on key employees and ability to attract and retain highly skilled employees; our ability to raise additional capital or generate cash flows necessary to grow our business; uncertain global economic conditions and inflation; changes and competition in the market and software categories in which we participate; our ability to introduce new products, features, integrations, capabilities, and enhancements; the ability of our platform to interoperate with a variety of software applications; our reliance on third-party application stores to distribute our mobile application; our successful strategic relationships with, and our dependence on third parties; our reliance on traditional web search engines to direct traffic to our website; interruption or delays in service from third parties or our inability to plan and manage interruptions; risks related to security disruptions, unauthorized system access; evolving privacy protection and data security laws, regulations, industry standards, policies, contractual obligations, and cross-border data transfer or localization restrictions; new legislation and regulatory obligations regulating AI; changes in tax law and regulations or if we were to be classified as a passive foreign investment company; our ability to maintain, protect or enforce our intellectual property rights or intellectual property infringement claims; risks related to our use of open-source software; risks related to our founder share that provides certain veto rights; risks related to our status as a foreign private issuer incorporated and located in Israel, including risks related to the ongoing war between Israel and Hamas and escalations thereof; our expectation not to pay dividends for the foreseeable future; risks related to our Digital Lift Initiative and the monday.com Foundation; risks related to legal and regulatory matters; and other factors described in "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on March 17, 2025. Further information on potential risks that could affect actual results will be included in the subsequent filings that monday.com makes with the Securities and Exchange Commission from time to time.

Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent monday.com's views as of the date of this press release. monday.com anticipates that subsequent events and developments will cause its views to change. monday.com undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing monday.com's views as of any date subsequent to the date of this press release.

Earnings Webcast:

monday.com will hold a public webcast at 8:30 a.m. ET today to discuss the results for its second quarter 2025 and financial outlook. The live call may also be accessed via telephone at +1 (646) 968-2525 or +1 (888) 596-4144 (toll-free). Please reference conference ID: 1347415. An archived webcast can be accessed from the News & Events section of monday.com's Investor Relations website following the call.

Investor Presentation Details:

An investor presentation providing additional information can be found at http://ir.monday.com.

About monday.com:

monday.com is a global software company that builds products people love to manage the core of their work. Our product suite can adapt to the needs of diverse industries and use cases within one powerful platform. Our ~245,000 customers are reimagining how work gets done, driving greater efficiency, and scaling like never before. For more information, visit monday.com.

MONDAY.COM LTD CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)

	Three months ended June 30,						Six months ended June 30,
	2025			2024			2025			2024
		(unaudited)						(unaudited)
Revenue	$	299,014		$	236,106		$	581,264		$	453,019
Cost of revenue		31,173			23,763			59,978			47,217
Gross profit		267,841			212,343			521,286			405,802
Operating expenses:
Research and development		87,039			50,445			156,424			94,868
Sales and marketing		152,590			131,471			294,310			259,612
General and administrative		39,763			28,633			72,307			54,550
Total operating expenses		279,392			210,549			523,041			409,030
Operating income (loss)		(11,551	)		1,794			(1,755	)		(3,228	)
Financial income, net		14,102			14,850			31,749			27,689
Income before income taxes		2,551			16,644			29,994			24,461
Income tax expense		(978	)		(2,329	)		(996	)		(3,068	)
Net income	$	1,573		$	14,315		$	28,998		$	21,393
Net income per share attributable to ordinary shareholders, basic	$	0.03		$	0.29		$	0.57		$	0.43
Net income per share attributable to ordinary shareholders, diluted	$	0.03		$	0.27		$	0.55		$	0.41
Weighted-average ordinary shares used in calculating net income per ordinary share, basic		51,385,862			49,680,114			51,196,507			49,442,327
Weighted-average ordinary shares used in calculating net income per ordinary share, diluted		53,271,524			52,209,431			53,149,561			52,106,369

MONDAY.COM LTD CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)

	June 30,			December 31,
	2025			2024
ASSETS	(unaudited)			(audited)
CURRENT ASSETS:
Cash and cash equivalents	$	1,590,515		$	1,411,602
Marketable securities		60,102			50,004
Accounts receivable, net		36,196			25,804
Prepaid expenses and other current assets		87,237			44,836
Total current assets		1,774,050			1,532,246
LONG-TERM ASSETS:
Property and equipment, net		47,232			41,576
Operating lease right-of-use assets		109,612			94,703
Other long-term assets		33,077			16,983
Total long-term assets		189,921			153,262
Total assets	$	1,963,971		$	1,685,508
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	41,859		$	35,611
Accrued expenses and other current liabilities		198,429			171,040
Deferred revenue, current		402,794			339,951
Operating lease liabilities, current		29,828			29,013
Total current liabilities		672,910			575,615
LONG-TERM LIABILITIES:
Operating lease liabilities, non-current		96,384			77,023
Deferred revenue, non-current		2,299			2,639
Total long-term liabilities		98,683			79,662
Total liabilities		771,593			655,277
SHAREHOLDERS' EQUITY:
Other comprehensive income		22,984			3,189
Share capital and additional paid-in capital		1,692,428			1,579,074
Accumulated deficit		(523,034	)		(552,032	)
Total shareholders' equity		1,192,378			1,030,231
Total liabilities and shareholders' equity	$	1,963,971		$	1,685,508

MONDAY.COM LTD CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)

	Three months ended June 30,						Six months ended June 30,
	2025			2024			2025			2024
	unaudited						unaudited
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,573		$	14,315		$	28,998		$	21,393
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,375			2,920			6,625			5,453
Share-based compensation		56,645			36,623			87,603			63,166
Amortization of discount and accretion of interest on marketable securities		580			—			(95	)		—
Changes in operating assets and liabilities:
Accounts receivable, net		(9,760	)		(1,292	)		(10,392	)		(1,691	)
Prepaid expenses and other assets		(16,987	)		(17,306	)		(26,757	)		(15,199	)
Accounts payable		10,068			9,625			6,224			21,668
Accrued expenses and other liabilities, net		2,941			(3,636	)		24,098			2,710
Deferred revenue		18,402			14,545			62,503			50,249
Net cash provided by operating activities		66,837			55,794			178,807			147,749
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(5,884	)		(4,504	)		(9,571	)		(5,964	)
Purchase of marketable securities		—			—			(10,049	)		—
Capitalized software development costs		(924	)		(469	)		(1,703	)		(1,070	)
Net cash used in investing activities		(6,808	)		(4,973	)		(21,323	)		(7,034	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of share options and employee share purchase plan		12,365			10,616			26,501			19,324
Receipt (repayment) of tax advance relating to exercises of share options and RSUs, net		(9,484	)		4,261			(5,072	)		14,075
Net cash provided by financing activities		2,881			14,877			21,429			33,399
INCREASE IN CASH, AND CASH EQUIVALENTS		62,910			65,698			178,913			174,114
CASH AND CASH EQUIVALENTS - Beginning of period		1,527,605			1,224,544			1,411,602			1,116,128
CASH AND CASH EQUIVALENTS - End of period	$	1,590,515		$	1,290,242		$	1,590,515		$	1,290,242

MONDAY.COM LTD Reconciliation of GAAP to Non-GAAP Financial Information
(U.S. dollars in thousands)

	Three months ended June 30,						Six months ended June 30,
	2025			2024			2025			2024
		(unaudited)						(unaudited)
Reconciliation of gross profit and gross margin
GAAP gross profit	$	267,841		$	212,343		$	521,286		$	405,802
Share-based compensation		2,272			1,872			3,406			3,116
Non-GAAP gross profit	$	270,113		$	214,215		$	524,692		$	408,918

GAAP gross margin		90	%		90	%		90	%		90	%
Non-GAAP gross margin		90	%		91	%		90	%		90	%

Reconciliation of operating expenses
GAAP research and development	$	87,039		$	50,445		$	156,424		$	94,868
Share-based compensation		(27,806	)		(13,567	)		(43,347	)		(23,193	)
Non-GAAP research and development	$	59,233		$	36,878		$	113,077		$	71,675
GAAP sales and marketing	$	152,590		$	131,471		$	294,310		$	259,612
Share-based compensation		(13,367	)		(10,733	)		(19,205	)		(18,068	)
Non-GAAP sales and marketing	$	139,223		$	120,738		$	275,105		$	241,544

GAAP general and administrative	$	39,763		$	28,633		$	72,307		$	54,550
Share-based compensation		(13,200	)		(10,451	)		(21,645	)		(18,789	)
Non-GAAP general and administrative	$	26,563		$	18,182		$	50,662		$	35,761

Reconciliation of operating income (loss)
GAAP operating income (loss)	$	(11,551	)	$	1,794		$	(1,755	)	$	(3,228	)
Share-based compensation		56,645			36,623			87,603			63,166
Non-GAAP operating income	$	45,094		$	38,417		$	85,848		$	59,938
GAAP operating margin		(4	%)		1	%		(0	%)		(1	%)
Non-GAAP operating margin		15	%		16	%		15	%		13	%

Reconciliation of net income
GAAP net income	$	1,573	$	14,315		$	28,998	$	21,393
Share-based compensation		56,645		36,623			87,603		63,166
Tax expense (benefit) related to share-based compensation⁽¹⁾		78		(1,620	)		78		(3,525	)
Non-GAAP net income	$	58,296	$	49,318		$	116,679	$	81,034
Reconciliation of weighted average number of shares outstanding
Weighted-average ordinary shares used in calculating GAAP and Non-GAAP net income per ordinary share, basic		51,385,862		49,680,114			51,196,507		49,442,327
Effect of dilutive shares		1,885,662		2,529,317			1,953,054		2,664,042
Weighted-average ordinary shares used in calculating GAAP and Non-GAAP net income per ordinary share, diluted		53,271,524		52,209,431			53,149,561		52,106,369

GAAP net income per share, basic	$	0.03	$	0.29		$	0.57	$	0.43
GAAP net income per share, diluted	$	0.03	$	0.27		$	0.55	$	0.41
Non-GAAP net income per share, basic	$	1.13	$	0.99		$	2.28	$	1.64
Non-GAAP net income per share, diluted	$	1.09	$	0.94		$	2.20	$	1.56

(1)

The tax benefit related to share-based compensation was excluded in calculating non-GAAP net income and non-GAAP net income per basic and diluted share. The Company believes that excluding the tax benefit enables investors to see the full effect that excluding share-based compensation expenses had on the operating results.

MONDAY.COM LTD Reconciliation of net cash provided by operating activities to adjusted free cash flow
(U.S. dollars in thousands)

	Three months ended June 30,						Six months ended June 30,
	2025			2024			2025			2024
		(unaudited)						(unaudited)

Net cash provided by operating activities	$	66,837		$	55,794		$	178,807		$	147,749
Purchase of property and equipment		(5,884	)		(4,504	)		(9,571	)		(5,964	)
Capitalized software development costs		(924	)		(469	)		(1,703	)		(1,070	)
Purchase of property and equipment related to build-out and expansion of our corporate headquarters		4,064			—			6,092			—
Adjusted free cash flow	$	64,093		$	50,821			173,625			140,715
Adjusted free cash flow margin		21	%		22	%		30	%		31	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20250811246144/en/

Investor Relations:

Byron Stephen

byron@monday.com

Media Relations:

Julie Case

julieca@monday.com

monday.com Announces Second Quarter 2025 Results