monday.com Ltd.

Q2 revenue was $365 million, up 22% year over year. Gross margin was 89% versus 90% a year ago. Operating income was $61.1 million versus $45.1 million a year ago, with operating margin of 17% versus 15%. Net income was $65.5 million versus $58.3 million, and diluted EPS was $1.48. Adjusted free cash flow was $52.3 million and adjusted free cash flow margin was 14%. Cash, cash equivalents, and marketable securities ended at $1.07 billion. For Q3 FY2026, revenue is expected at $368 million to $370 million, up 16% to 17% year over year, with non-GAAP operating margin of approximately 16%. For full-year FY2026, revenue is expected at $1.466 billion to $1.474 billion, up 19% to 20% year over year; non-GAAP operating income is expected at $230 million to $234 million; and adjusted free cash flow is expected at $280 million to $290 million. Management also said full-year NDR is expected to be around 108% and headcount to be down approximately 20% at year-end FY2026.

Roy Mann framed the quarter as evidence of a major strategic pivot: monday.com is moving from software that helps people manage work to software that works with people and AI agents in a unified workspace. He emphasized that the 20% workforce reduction was a hard but necessary decision to create a flatter, faster organization and redirect savings into people, products, and AI. His tone was confident but transitional, repeatedly stressing that the company is in early days of a larger reinvention.

Eliran Glazer highlighted the hard numbers: $365 million in revenue, 89% gross margin, 17% operating margin, $61.1 million in operating income, $52.3 million in adjusted free cash flow, and $1.07 billion in cash and marketable securities. He said operating margin was helped by cost discipline but also hurt by about 210 basis points of FX pressure in Q2, and he flagged further FX headwinds of 100 to 200 basis points in the outlook. On capital allocation, he noted that $182 million of buybacks were executed in the quarter and the entire $870 million repurchase authorization is now used.

Analysts focused on demand trends, especially whether down-market softness or AI adoption were affecting growth. Management said the top-of-funnel and paid-search environment remained volatile but in line with expectations, while upmarket motion, gross retention, and AI adoption were strong; they also said the guidance did not assume a rebound in performance marketing. Several questions pressed on the lower full-year revenue guide despite the Q2 beat, and management pointed to the restructuring, lapping prior price increases, and near-term disruption as reasons for conservatism. On AI monetization, Roy Mann said it is still early, but customers are already topping up consumption buckets, which management views as a new growth vector.