20-F: monday.com Posts Strong 2025 Results, Driven by AI and Enterprise Growth

monday.com reported significant revenue and net income growth in 2025, fueled by its AI-powered platform enhancements and expanding enterprise customer base, while also initiating a substantial share repurchase program.

Summary

• Revenue for 2025 reached $1,232.0 million, a 27% increase from $972.0 million in 2024.
• Net income significantly improved to $118.7 million in 2025, compared to $32.4 million in 2024 and a net loss of $1.9 million in 2023.
• Net cash provided by operating activities increased to $333.6 million in 2025 from $311.1 million in 2024.
• Adjusted free cash flow rose to $322.7 million in 2025 from $295.8 million in 2024.
• The company grew its enterprise customer base (>$50,000 ARR) by 34% to 4,281 customers as of December 31, 2025.
• ARR from enterprise customers grew by 42% from December 31, 2024, to December 31, 2025.
• Total paying customers exceeded 250,000 as of December 31, 2025.
• Introduced four new AI capabilities in 2025: monday vibe, monday agents, monday workflows, and monday sidekick, alongside AI enhancements across its product suite.
• Expanded monday CRM into a product suite with the addition of the AI-powered monday campaigns product.
• Reversed a $61.1 million valuation allowance on deferred tax assets in Q4 2025, resulting in a non-cash income tax benefit.
• Authorized a share repurchase program of up to $870 million in September 2025, repurchasing $135.0 million in Q4 2025.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a very positive report, highlighting strong financial performance, successful AI integration, and robust enterprise growth, despite a slight deceleration in overall revenue growth rate.

Positives

• Strong revenue growth of 27% year-over-year, reaching $1,232.0 million in 2025.
• Significant improvement in profitability, with net income of $118.7 million in 2025, up from $32.4 million in 2024 and a net loss in 2023.
• Consistent generation of positive net cash from operating activities, increasing to $333.6 million in 2025.
• Adjusted free cash flow increased to $322.7 million in 2025, demonstrating strong liquidity.
• Robust growth in enterprise customers (>$50,000 ARR) by 34% and their associated ARR by 42%.
• Successful integration and expansion of AI capabilities across the platform and product suite, including new offerings like monday vibe, monday agents, monday workflows, and monday sidekick.
• Expansion of the monday CRM product suite with the new AI-powered monday campaigns.
• Reversal of a $61.1 million valuation allowance on deferred tax assets in Q4 2025, indicating improved outlook for future taxable income.
• Initiation of an $870 million share repurchase program, with $135.0 million already executed in Q4 2025, signaling confidence in financial health and commitment to shareholder returns.
• Gross margin remained strong at 89% for 2025, 2024, and 2023.
• Reduced accumulated deficit from $552.0 million in 2024 to $433.3 million in 2025.

Negatives

• Year-over-year revenue growth rate decelerated to 27% in 2025 from 33% in 2024 and 41% in 2023.
• Net Dollar Retention Rate for all customers slightly decreased to 110% in 2025 from 112% in 2024.
• Operating expenses remain high, with research and development expenses increasing by 50% and sales and marketing expenses by 18% in 2025.
• Anticipate gross margin to decline modestly in the mid-term due to increased infrastructure and compute costs associated with AI adoption.
• A putative class action lawsuit was filed on March 10, 2026, asserting claims under Sections 10(b) and 20(a) of the Exchange Act concerning forward-looking earnings guidance.

Risks

• Failure to effectively manage the scope and complexity of the business following years of rapid growth, potentially impacting service levels and customer satisfaction.
• Inability to maintain profitability due to increasing operating expenses, especially with rapid market evolution and AI adoption.
• Exposure to foreign currency exchange rate fluctuations, particularly between the U.S. dollar and New Israeli Shekel (NIS), which could increase operational costs.
• Dependence on monday work management for a majority of revenue, making the business susceptible if market acceptance for this product declines.
• Quarterly fluctuations in results of operations due to various factors, making period-to-period comparisons potentially misleading.
• Real or perceived errors, failures, vulnerabilities, or bugs in the platform, products, or third-party applications could harm business and reputation.
• Interruptions or performance problems with the underlying technology or infrastructure (e.g., AWS, Cloudflare) could lead to service outages and reputational damage.
• Issues related to the use of Artificial Intelligence (AI) and Machine Learning (ML) in offerings, including potential for inaccurate/misleading content, ethical concerns, regulatory scrutiny, and intellectual property challenges.
• Inability to attract new customers, grow retention rates, expand usage within organizations (cross-selling/upselling), or sell subscription plans could harm revenue growth.
• Downturns in new sales and renewals are not immediately reflected in full in results due to subscription revenue recognition over the term.
• Sales efforts, especially to large organizations, may require considerable time and expense, with longer sales cycles and less predictability.
• Changes in the mix of business sizes or product plans purchased could negatively affect gross margins and operating results.
• Failure to offer high-quality customer support or expand direct sales capabilities could harm customer base expansion and reputation.
• Difficulty in preserving corporate culture as the company grows, potentially impacting innovation, creativity, and teamwork.
• Risks associated with international operations, including unexpected costs, compliance burdens, intellectual property enforcement difficulties, and geopolitical conflicts.
• Future acquisitions, strategic investments, partnerships, or alliances could be difficult to integrate, divert management attention, disrupt business, dilute shareholder value, and harm financial results.
• Scrutiny related to environmental and social matters, and climate change risks, could lead to reputational harm or increased costs.
• Dependence on founders and other key employees, with loss potentially harming the business.
• Inability to attract and retain highly skilled employees, especially those with AI expertise, due to intense competition and wage inflation.
• Failure to raise additional capital or generate sufficient cash flows could limit expansion and investment in new technologies.
• Uncertain global economic conditions and inflation could adversely affect business, as customers may reduce spending.
• Competition in the rapidly changing software market, with new entrants and existing competitors potentially offering superior products or pricing.
• Dependence on adequate research and development resources to introduce new products and features, with potential delays and high costs.
• Reliance on third-party software applications and APIs for interoperability, with risks if providers limit access or change terms.
• Reliance on third-party application stores (Apple, Google) for mobile app distribution, with risks of changes in policies or fees.
• Dependence on strategic relationships with third parties, including application developers and partners.
• Reliance on web search engines (traditional and AI-generated) to direct traffic, with risks from algorithm changes or increased marketing costs.
• Interruptions or delays in services from third-party infrastructure providers (e.g., AWS) could impair service delivery.
• Security incidents (cyberattacks, data breaches) could lead to unauthorized access, data loss, reputational damage, and legal liability.
• Stringent and changing laws and regulations related to privacy, data protection, and data security (e.g., GDPR, HIPAA, PPL, CCPA), including cross-border data transfer restrictions and data localization requirements, could increase costs and limit service adoption.
• Evolving legislation regulating AI, online content, and the digital economy (e.g., EU AI Act, DSA) may impose additional regulatory obligations and liabilities.
• Changes in tax laws or regulations in various jurisdictions could increase costs and harm the business.
• Potential classification as a Passive Foreign Investment Company (PFIC) could result in adverse U.S. federal income tax consequences for U.S. Holders.
• Ability to realize deferred tax assets depends on achieving and maintaining profitability.
• Failure to adequately maintain, protect, or enforce proprietary and intellectual property rights could impair competitive position and lead to costly litigation.
• Risk of protracted intellectual property infringement claims, significant damage awards, or injunctions.
• Use of open-source software carries risks of defects, security vulnerabilities, and license compliance issues.
• Founder share with veto rights for Roy Mann limits other shareholders' influence on key matters.
• Foreign private issuer status means less stringent U.S. reporting and corporate governance rules compared to U.S. domestic companies.
• Provisions of Israeli law and articles of association may delay or prevent acquisitions.
• No expectation of paying dividends in the foreseeable future.
• Share repurchase program does not guarantee repurchases or long-term shareholder value enhancement.
• Conditions in Israel, including conflicts in the region, could materially and adversely affect business operations.
• Difficulty in enforcing U.S. judgments or asserting U.S. securities laws claims in Israel.
• Shareholder rights and responsibilities governed by Israeli law, which may differ from U.S. corporations.
• Potential claims for remuneration or royalties for assigned service invention rights by employees.
• Tax benefits (e.g., Preferred Technological Enterprise) require meeting conditions and may be terminated or reduced.
• Risks related to the Digital Lift Initiative and monday.com Foundation, including potential for unintended consequences, dilution, and control issues.
• Business and financial results may be affected by various litigation and regulatory proceedings.
• Subject to anti-corruption, anti-bribery, anti-money laundering, export controls, and economic sanctions laws, with non-compliance leading to penalties.

Future Outlook

The company expects continued investment in research and development to enhance its Work OS, expand AI-powered capabilities, and build new products, which will contribute to long-term growth but may negatively impact short-term profitability. Sales and marketing expenses are expected to increase in absolute dollar amounts due to global expansion, but are anticipated to decline as a percentage of total revenue in the long term. The company believes its current cash and marketable securities are sufficient to meet capital requirements and fund its share repurchase program for at least the next 12 months and the foreseeable future. mondayDB 3.0 is expected to enable Work Management customers to host 5X more projects within a single portfolio. Leads generated by AI sales agents will be in full effect in 2026, and the company plans to open a new office in Atlanta in 2026.

Management Comments

• We intend to continue making significant investments in research and development to enable new use cases, serve more verticals, increase enterprise-grade features on our platform, and provide the latest AI technology to our customers.
• We recognize that, across the industry, AI adoption remains a major barrier to realizing value. That's why we see a significant opportunity to not only deliver more value to our existing customers, but to also attract new business through our intuitive, embedded approach to AI.
• Our AI capabilities are built directly into the products and platform components our customers already know. So even though these are new features, they feel familiar and easy to use. This leads to faster, broader adoption and helps customers realize the value of AI as part of their everyday workflows.
• We plan to continue investing in ways to expand within our existing customer base through the development of additional products and monetization of AI capabilities.
• In 2025, we doubled-down on customer success resources for our largest clients. In parallel, we introduced a new segmentation of support for medium-sized clients that is AI-first, but human-supported.
• In 2026, leads generated by AI sales agents will be in full effect.
• We believe investing in our ecosystem will expand our addressable market, as we will be able to serve more customers in new verticals and in regulated industries with greater security requirements.
• We believe our current cash and cash equivalents and marketable securities will be sufficient to meet our working capital and capital expenditure requirements as well as our share repurchase program for at least the next 12 months and for the foreseeable future.
• The Company believes the claims [in the class action lawsuit] are without merit and intends to vigorously defend against them.

Industry Context

StockSavvy.ai notes that monday.com's strong focus on AI integration and multi-product strategy aligns with broader industry trends emphasizing unified platforms and AI-driven digital transformation. The company's growth in enterprise customers and efforts to make AI accessible and intuitive directly address the industry's challenge of AI adoption and the shift towards consolidating tech stacks for greater efficiency. The reported increase in software budgets for AI, as highlighted by Gartner, suggests a favorable market environment for monday.com's strategic direction, positioning it to capitalize on the demand for AI-native solutions that execute work autonomously.

Comparison to Industry Standards

• monday.com's revenue growth of 27% in 2025, while strong, shows a deceleration compared to 33% in 2024 and 41% in 2023, which could indicate increasing market maturity or competitive pressures from companies like Asana, Smartsheet, and Atlassian.
• The Net Dollar Retention Rate for all customers at 110% in 2025 is competitive within the SaaS industry, though a slight decrease from 112% in 2024. The 116% retention rate for customers with over $50,000 ARR is a strong indicator of enterprise value, comparable to high-performing SaaS peers.
• The company's gross margin of 89% is excellent and generally higher than many traditional software companies, reflecting the efficiency of its cloud-based Work OS model, but the anticipated modest decline due to AI compute costs suggests a common industry challenge as AI adoption scales.
• The significant increase in net income from a loss in 2023 to $118.7 million in 2025 demonstrates a strong path to profitability, outperforming many high-growth SaaS companies that often prioritize market share over immediate profits.
• The 34% growth in enterprise customers (>$50,000 ARR) and 42% growth in their associated ARR indicates successful upmarket penetration, a key differentiator in a competitive landscape that includes established players like Salesforce (CRM) and Atlassian (Jira, Trello).

Management Changes

Corporate Governance

Legal Proceedings

• A putative class action lawsuit was filed on March 10, 2026, in the U.S. District Court for the Southern District of New York.
• The lawsuit asserts claims under Sections 10(b) and 20(a) of the Exchange Act concerning certain of the company's forward-looking earnings guidance.
• Claims are asserted against the company and certain of its directors and officers.
• The company believes the claims are without merit and intends to vigorously defend against them.
• Management does not believe any current legal matters are likely to have a material impact on financial condition, results, or operations.

Related Party Transactions

• On August 26, 2024, the company issued 68,000 Ordinary Shares to the monday.com Foundation LTD., an Israeli public benefit corporation, as a charitable contribution with a fair value of $17.9 million.
• In 2024, the company donated $6.3 million in cash to the monday.com Foundation, representing 1% of the gross IPO proceeds.
• On August 26, 2024, the company entered into a Donation and Loan Agreement with the Foundation, undertaking a one-time donation of $6.3 million and authorizing future loans to support the Foundation's ongoing activities, with interest accruing per Section 3(j) of the Ordinance.
• On August 26, 2024, the company entered into a Services Agreement with the Foundation, providing services such as lease, logistics, IT, and HR at cost, not exceeding $1.5 million per calendar year.
• The company's Co-founder and the company each hold 14% of the voting rights in the Foundation, but the company does not control the Foundation.
• Employment agreements with executive officers and directors include provisions for non-competition, confidentiality, and assignment of inventions.
• Equity awards (options and RSUs) have been granted to executive officers and directors, with acceleration provisions upon certain merger, acquisition, or change of control transactions.
• The company is party to an amended and restated investors rights agreement, dated June 21, 2019, as amended, which provides certain shareholders, including Roy Mann, with registration rights.

Stakeholder Impact

• Shareholders: Positive impact from strong financial performance (revenue, net income, cash flow), reduced accumulated deficit, and the initiation of a significant share repurchase program. Potential dilution from future equity grants to the monday.com Foundation is a consideration. The class action lawsuit introduces uncertainty and potential legal costs.
• Employees: Positive impact from continued growth, investment in R&D, and a strong corporate culture. The company's commitment to employee wellness and learning/development programs supports retention. Increased competition for skilled employees, especially in AI, could lead to wage inflation.
• Customers: Enhanced value proposition through continuous platform evolution, new AI capabilities (monday vibe, monday agents, monday workflows, monday sidekick), and expanded product suites (monday CRM, monday campaigns). Improved customer support segmentation (high-touch for strategic accounts, AI-first for medium-sized clients). Risks of errors/bugs or service interruptions could negatively impact customer experience.
• Suppliers/Partners: Expanded partner ecosystem and strategic relationships (e.g., Amazon AWS) indicate continued collaboration and potential for growth. Reliance on third-party application stores and software providers introduces dependency risks.
• Creditors: Strong cash position and positive cash flow from operations enhance creditworthiness.

Next Steps

• Continue significant investments in research and development to evolve the Work OS platform, enable new use cases, serve more verticals, and enhance enterprise-grade features.
• Further enhance offerings with AI that is easy to use and executes work for customers, focusing on faster and broader adoption.
• Continue to expand the multi-product suite, ensuring interoperability and addressing specific industry needs.
• Provide more value to and increase the number of large accounts, including through a dedicated Product Alignment Team and expanded partner ecosystem.
• Scale go-to-market strategy through a multi-product and AI-first approach, expanding sales-led motion and self-serve funnel.
• Drive increased adoption and expansion within the existing customer base, including through additional products and monetization of AI capabilities.
• Continue investing in sales, marketing, and the partner ecosystem to acquire new customers, with AI sales agents in full effect in 2026.
• Grow and invest in the ecosystem strategy, including the app marketplace, to expand the addressable market.
• Deepen global footprint, including growth and expansion of global events, investment in the partner ecosystem, and localizing the platform.
• Plan to expand office space in Tel Aviv by an additional 118,000 square feet by the end of 2026.
• Plan to open office space in Atlanta in 2026.
• Expects to fully utilize remaining net operating loss carryforwards during 2026.
• Vigorously defend against the putative class action lawsuit filed on March 10, 2026.
• Evaluate the impact of ASU 2025-11, ASU 2025-06, and ASU 2024-03 on consolidated financial statements and disclosures.
• Monitor developments in Brazil regarding LGPD and international data transfers.
• Implement measures to comply with the EU AI Act, with substantive requirements applying from August 2, 2026.
• Continue to implement requirements of Amendment 13 to the Israeli Privacy Protection Law, effective August 2025.
• Continue share repurchases under the $735.0 million remaining authorization.

Key Dates

Recommendation

The filing demonstrates monday.com's robust financial health, marked by significant net income growth, strong cash flow generation, and a substantial reduction in accumulated deficit. The company's strategic pivot towards AI-powered solutions and successful expansion into the enterprise market are key drivers for future growth, positioning it favorably within evolving industry trends. The initiation of a large share repurchase program further signals management's confidence and commitment to shareholder value. While revenue growth rate has decelerated, the underlying profitability and strategic initiatives suggest continued strong performance.

Keywords

Work OS, AI, Artificial Intelligence, Work Management, CRM, Project Management, Software Development, SaaS, Cloud Computing, Enterprise Software, Productivity Software, Corporate Governance, SEC Filing, Financial Results, Share Repurchase, Israel, Global Expansion, Cybersecurity, Data Privacy, Intellectual Property