monday.com Q3 Revenue Rises 19% to $377.5M, Guides Below Estimates

monday.com (MNDY) reported third-quarter revenue of $377.5 million, up 19% year over year, and swung to a GAAP operating profit of $31.2 million from a $2.4 million loss a year earlier. Shares fell 9.1% in delayed trading after Q4 guidance came in below consensus.

The work-management software maker said non-GAAP operating income rose to $89.4 million from $47.5 million, lifting non-GAAP operating margin to 24% from 15%. GAAP diluted earnings per share were $0.80, up from $0.25 a year earlier, and non-GAAP diluted EPS was $2.14, up from $1.16.

AI products, including AI credits, agents and vibe, reached $36 million in AI annual recurring revenue, and monday agents passed 6 million interactions in less than two quarters, the company said. Net dollar retention was 108% overall, and 114% for customers with more than $50,000 in annual recurring revenue.

Customer counts grew across tiers: paid customers with more than 10 users rose 5% to 65,965, those with more than $50,000 in ARR rose 26% to 5,038, those with more than $100,000 in ARR rose 33% to 2,127, and those with more than $500,000 in ARR rose 58% to 123. Total remaining performance obligations were $946 million, up 27%, and current RPO was $759 million, up 22%.

Co-founders and co-CEOs Roy Mann and Eran Zinman said the third quarter showed both the strength of the foundation and the work ahead, adding that the business is undergoing a fundamental evolution and the company took significant steps this quarter to become an AI-first company. CFO Eliran Glazer said revenue grew 19% year over year to $377.5 million and the company delivered record non-GAAP operating income and margin.

For the fourth quarter of 2026, monday.com expects revenue of $380 million to $382 million, about 14% growth year over year, with non-GAAP operating income of $68 million to $70 million. For the full year it expects revenue of $1,473 million to $1,475 million, about 20% growth, non-GAAP operating income of $268 million to $270 million, and adjusted free cash flow of $282 million to $288 million.

The guidance shortfall weighed on the stock: monday.com shares were down 9.1% in delayed trading at $79.93. Net cash from operations was $20.4 million in the quarter and adjusted free cash flow was $63.0 million.