Monday.com reported third‑quarter 2025 revenue of $316.9 million, up 26% year‑over‑year, and non‑GAAP earnings per share of $1.16, a $0.27‑to‑$0.28 beat on the consensus estimate of $0.89. The revenue beat was driven by a 12% increase in enterprise‑grade subscriptions and a 15% lift in the company’s newly launched AI‑powered work‑execution suite, which now accounts for more than 10% of total annual recurring revenue. The record operating profit of $47.3 million reflects disciplined cost management and a higher mix of high‑margin enterprise contracts, pushing the operating margin to 15% from 14% in the same quarter last year.
The company’s ecosystem continues to expand, with the Work OS platform hosting over 60,000 third‑party apps, although the exact number is not independently verified. New product offerings, including the monday CRM and service‑management modules, contributed an additional $12 million in recurring revenue, underscoring the company’s strategy to move beyond basic work‑management into broader work‑execution. The growth in the enterprise segment offset a modest decline in the SMB segment, which saw a 3% drop in revenue due to increased competition and a slowdown in paid‑search lead generation caused by Google’s AI‑driven algorithm changes.
Operating margin expansion to 15% was largely a result of pricing power in the enterprise segment and improved operational leverage as the company scales its AI platform. However, management cautioned that the margin is expected to compress to 11%‑12% in the fourth quarter, reflecting higher investment in sales and marketing to support the up‑market shift and the impact of longer sales cycles. The company’s CFO noted that the guidance reflects “timing effects as we rebalance investments toward ROI‑driven initiatives,” indicating a strategic shift toward higher‑margin, high‑growth verticals.
For the fourth quarter of fiscal 2025, monday.com guided revenue of $328 million to $330 million, below the consensus estimate of $333.8 million, and an operating margin of 11%‑12% versus the 15% achieved in Q3. The guidance miss was driven by management’s assessment of a slower demand environment, longer sales cycles, and the need to reallocate spend toward up‑market channels. The company reiterated its full‑year outlook, maintaining revenue guidance of $1.1 billion and a non‑GAAP operating margin of 13%‑14%, signaling confidence in long‑term growth while acknowledging near‑term headwinds.
The market reacted sharply to the guidance, with the stock falling 15%‑19% in pre‑market trading. Investors focused on the lower Q4 revenue outlook and the implied margin compression, which raised concerns about the pace of growth and the effectiveness of the company’s up‑market strategy. Despite the strong Q3 performance, the cautious forward guidance dominated the narrative, underscoring the importance of investor expectations for near‑term momentum.
Management emphasized the company’s disciplined cost discipline and strategic investments in AI and enterprise solutions. Co‑founders and co‑CEOs Roy Mann and Eran Zinman said the quarter’s results “reflect the strength of our execution and the continued success of our strategy to move upmarket while expanding our product suite.” CFO Eliran Glazer highlighted that the record operating profit “underscores our focus on efficient, profitable growth” and that the Q4 guidance reflects a “measured approach” to balancing investment with ROI. The company’s focus on AI integration, coupled with a robust net dollar retention rate of 111%, positions it well to capture larger enterprise deals while navigating competitive pressures from rivals such as Asana, Smartsheet, and Microsoft.
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