monday.com Ltd.

monday.com operates an artificial intelligence cloud-based work platform that consists of modular building blocks that can be easily used and assembled to create software applications and work management tools and serves as a connective layer to integrate with other systems and applications across an organization. The industry is characterized by rapid technological change, with AI adoption being a major barrier to realizing value, and unified platforms are seen as the future of enterprise tech as businesses consolidate their tech stacks. Organizations are increasing software budgets to prepare for the cost of organizational transformation with AI, with Gartner forecasting AI spending to grow to $4.7 trillion by 2029.

The company competes across multiple markets, including project and work management solutions against companies such as Asana, Inc., Smartsheet Inc., Notion Labs, Inc., Atlassian Corporation PLC (Trello), ClickUp, and Freshworks Inc.; customer relationship management solutions against HubSpot, Pipedrive, Zoho Corp., and SugarCRM; enterprise service management tools against Freshworks Inc. (Freshservice) and Atlassian Corporation PLC (Jira Service Management); and software development tools against Atlassian Corporation PLC (Jira). The principal competitive factor is the company's open and modular infrastructure, leading in flexibility and adaptability, and its ability to scale vertical and horizontal offerings while rapidly building end-to-end products and advanced AI capabilities.

The company generates revenue primarily from monthly or annual subscription agreements with customers for access to its cloud-based Work OS products, with customers not having the ability to take possession of the software. Revenue is recognized ratably over the contract term, and the business model is subscription-based, with a large and diversified customer base of over 250,000 paying customers as of December 31, 2025, where no single customer accounts for more than 1% of revenues and the top 100 customers accounted for less than 10% of revenues for the years ended December 31, 2025 and 2024.

The product suite includes monday work management for building workflows, projects, and portfolios; monday CRM for tracking and managing the sales cycle; monday campaigns for creating and sending marketing campaigns with AI at its core; monday service for connecting service desks and their data; and monday dev for agile product and software development workflows. In 2025, four new AI capabilities were introduced: monday vibe, monday agents & monday workflows (the work execution layer), and monday sidekick. As of December 31, 2025, the company had 869 apps in the marketplace and 704 apps with native monetization.

The company's platform is built on a proprietary cloud-based SaaS infrastructure utilizing multiple data centers across AWS and Google Cloud Platform. In 2025, mondayDB 3.0 entered beta, expected to enable Work Management customers to host 5X more projects within a single portfolio. The company also has an in-house business intelligence tool, BigBrain, which collects and processes data from approximately 2 billion events per workday. As of December 31, 2025, the company had 44 non-provisional U.S. patent-pending applications, eight pending U.S. provisional patent applications, 114 granted U.S. patents, four allowed U.S. patents, two EU patent-pending applications, one granted Israeli patent, one Chinese (CNIPA) granted patent, and four pending PCT applications.

In September 2025, the board of directors approved a share repurchase program in the amount of up to $870 million ¹ with no expiration date. In the fourth quarter of 2025, the company repurchased 883,913 ² of its ordinary shares in the total amount of $135.0 million ³. As of December 31, 2025, $735.0 million ⁴ remained of the share repurchase program. On August 26, 2024, the company issued 68,000 ⁵ ordinary shares to the monday.com Foundation and entered into a Donation and Loan Agreement providing a one-time donation of $6.3 million ⁶ to the Foundation. The company also entered into a Services Agreement with the Foundation where fees shall not exceed $1.5 million ⁷ per calendar year.

Revenue was $1,232.0 million ⁸ for the year ended December 31, 2025, an increase of 27% ⁹ compared to $972.0 million ¹⁰ for the year ended December 31, 2024. Net income was $118.7 million ¹¹ for the year ended December 31, 2025, compared to $32.4 million ¹² for the year ended December 31, 2024. Gross margin was 89% ¹³ for both years. Net cash provided by operating activities was $333.6 million ¹⁴ for the year ended December 31, 2025, and adjusted free cash flow was $322.7 million ¹⁵, representing 26% ¹⁶ of revenue.

A primary growth vector is the evolution of the Work OS platform through significant investments in research and development to enable new use cases, serve more verticals, increase enterprise-grade features, and provide the latest AI technology. The company sees a significant opportunity to deliver more value to existing customers and attract new business through its intuitive, embedded approach to AI, where AI capabilities are built directly into products and platform components customers already know. The company also aims to augment its vision with a versatile suite of Work OS-based, interoperable products, prioritizing the creation of new products that can work in harmony with each other as they share a common code base, focusing on customer demand and go-to-market.

Another growth vector is scaling the go-to-market through a multi-product and AI-first strategy, continuing to expand the sales-led motion and scale the self-serve funnel. The company plans to drive growth by acquiring new customers through continued investment in sales, marketing, and the partner ecosystem, with a focus on delivering complete products and tailored features for specific use cases. In 2026, leads generated by AI sales agents will be in full effect. The company also intends to grow and invest in its ecosystem strategy through its app marketplace, believing this will expand the addressable market by serving more customers in new verticals and regulated industries with greater security requirements. Additionally, the company plans to expand its global footprint by deepening global roots, growing global events, investing in the partner ecosystem, and localizing the platform.

The company expects gross margin to decline modestly in the mid-term as adoption of AI-powered offerings increases and associated infrastructure and compute costs increase, before stabilizing over the long term as efficiencies and scale are driven. Research and development expenses are expected to increase in absolute dollar amounts and remain at approximately the same level as a percentage of revenue. Sales and marketing expenses are expected to increase in absolute dollar amounts as the company expands globally, but in the long term, as the business scales, these expenses as a percentage of total revenue are anticipated to continue to decline. General and administrative expenses are expected to increase in absolute dollars as the company grows and expands operations, but in the long term, they are expected to remain at approximately the same level as a percent of total revenue.

The company plans to continue making significant investments in research and development. The company expects its operating expenses will increase over the next several years as it hires additional personnel, expands partners, operations, and infrastructure, continues to enhance its brand, develops and expands products' features, integrations, capabilities, and enhancements, expands and improves APIs, and increases spending on sales and marketing. As of December 31, 2025, the company had 3,155 ¹⁷ employees worldwide, representing a 26% ¹⁸ growth since December 31, 2024.

The company authorized a share repurchase program in September 2025 in the amount of up to $870 million ¹⁹ with no expiration date. In the fourth quarter of 2025, the company repurchased 883,913 ²⁰ of its ordinary shares in the total amount of $135.0 million ²¹. As of December 31, 2025, $735.0 million ²² remained of the share repurchase program. The company does not anticipate paying any dividends in the foreseeable future.

The company faces exposure to foreign currency exchange rate fluctuations, as a significant portion of its headcount-related expenses are denominated in New Israeli Shekels (NIS). In the years ended December 31, 2025 and 2024, approximately 25% ²³ and 21% ²⁴ of expenses, respectively, were denominated in NIS. The appreciation of the NIS in relation to the U.S. dollar amounted to 12.5% ²⁵ for the year ended December 31, 2025, compared to depreciation of 0.6% ²⁶ for the year ended December 31, 2024. The Israeli annual rate of inflation amounted to 2.68% ²⁷ and 3.2% ²⁸ for the years ended December 31, 2025 and 2024, respectively.

The company operates in a highly competitive and rapidly changing market, and its ability to introduce new products, features, integrations, capabilities, and enhancements is dependent on adequate research and development resources. The company also faces risks related to the use of AI and ML in its offerings, including potential legal, regulatory, ethical, reputational, competitive, and financial risks, as well as the risk that it may not be successful in monetizing AI or recouping its investments. Uncertain global economic conditions and inflation could materially adversely affect the business, as current and potential customers may reduce or postpone spending.

The company derives a majority of its revenue from monday work management, and if it is unable to continue to meet customer demands or achieve more widespread market acceptance of its products, its business could be harmed. The company faces exposure to foreign currency exchange rate fluctuations, as approximately 25% ²⁹ of its expenses in 2025 were denominated in NIS, and the appreciation of the NIS against the U.S. dollar was 12.5% ³⁰ in 2025. The company's use of AI and ML in its offerings presents risks including potential legal, regulatory, ethical, and reputational issues, and the company may not be successful in monetizing AI or recouping its investments. The company's ability to realize its deferred tax assets depends on its ability to achieve and maintain sufficient profitability, and if future results do not meet expectations, it may be required to record a valuation allowance against some or all of its deferred tax assets. The company's operations are subject to risks related to its incorporation and location in Israel, including the ongoing military conflicts with Hamas, Hezbollah, and Iran, which could disrupt operations and increase costs.

Management's message emphasizes the company's transition from managing work to doing work for customers with AI, highlighting the introduction of four new AI capabilities in 2025: monday vibe, monday agents & monday workflows, and monday sidekick. The strategic priorities emphasized for the period ahead include evolving the Work OS platform, enhancing offerings with AI that is easy to use and executes work for customers, augmenting the vision with a versatile suite of Work OS-based interoperable products, providing more value to and increasing the number of large accounts, scaling the go-to-market through a multi-product and AI-first strategy, driving increased adoption and expansion within the existing customer base, driving growth by acquiring new customers, growing and investing in the ecosystem strategy, and expanding the global footprint. The company reported a Net Dollar Retention Rate of 110% ³¹ for the three months ended December 31, 2025, and a Net Dollar Retention Rate for Customers with more than $50,000 in ARR of 116% ³² for the same period.