|
|
|
|
|||||
|
|
|
monday.com MNDY reported third-quarter 2025 non-GAAP earnings per share (EPS) of $1.16, which surpassed the Zacks Consensus Estimate by 30.34% and increased 36.5% from the year-ago quarter.
The company’s total revenues of $316.9 million rose 26.2% year over year and beat the Zacks Consensus Estimate by 1.55%.
In the third quarter, MNDY had 1,603 customers with an annual run rate (ARR) of $100,000 or more, which increased 48% year over year. Net dollar retention rate for customers with more than $100,000 in ARR was 117%.
As of Sept. 30, 2025, the number of paid customers with more than 10 users was 63,075, up 7% from 58,760 as of Sept. 30, 2024. Net dollar retention rate for customers with more than 10 users was 115%.
monday.com Ltd. price-consensus-eps-surprise-chart | monday.com Ltd. Quote
Additionally, the number of paid customers with more than $50,000 in ARR was 3,993, up 37% from 2,907 as of Sept. 30, 2024. Net dollar retention rate for customers with more than $50,000 in ARR was 117%.
monday.com’s net dollar retention was 111%.
In the third quarter, MNDY’s adjusted gross margin decreased 80 basis points (bps) on a year-over-year basis to 89.6%.
Research & development expenses rose 34.4% on a year-over-year basis to $57.8 million. Research & development, as a percentage of revenues, increased 110 bps to 18.2%.
Sales and marketing expenses rose 16.5% year over year to $151.8 million. Sales and marketing expenses, as a percentage of revenues, decreased 400 bps to 47.9%.
General & administrative expenses increased 25.9% year over year, reaching $27 million in the reported quarter. General & administrative expenses, as a percentage of revenues, remained flat at 8.5%.
monday.com reported a non-GAAP operating income of $47.5 million compared with $32.2 million in the year-ago quarter. Operating margin expanded 220 basis points year over year to 15%.
As of Sept. 30, 2025, MNDY had cash, cash equivalents and marketable securities of $1.74 million compared with $1.65 billion as of June 30, 2025.
Operating cash flow was $95.1 million in the reported quarter, up from $66.8 million reported in the previous quarter.
Free cash flow during the quarter was $92.3 million compared with $64.1 million in the previous quarter.
For the fourth quarter of 2025, MNDY anticipates revenues between $328 million and $330 million, representing year-over-year growth of 22% to 23%.
Non-GAAP operating income is expected in the band of $36-$38 million and operating margin in the 11% to 12% range.
For 2025, MNDY predicts revenues in the range of $1,226 million to $1,228 million, reflecting approximately 26% year-over-year growth. The company expects non-GAAP operating income of $167-$169 million, translating to an operating margin of around 14%.
monday.com anticipates adjusted free cash flow between $330 million and $334 million, representing an adjusted free cash flow margin of about 27%.
Currently, monday.com carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Computer and Technology sector are Dell Technologies DELL, Nutanix NTNX and Flux Power FLUX, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dell Technologies shares have appreciated 23.9% year to date. DELL is set to report its third quarter of fiscal 2026 results on Nov. 25.
Nutanix shares have gained 18.3% year to date. NTNX is set to report its first quarter of fiscal 2026 results on Nov. 25.
Flux Power shares have rallied 50% year to date. FLUX is set to report its fiscal first-quarter 2026 results on Nov. 13.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 2 hours | |
| 3 hours | |
| 4 hours | |
| 4 hours | |
| 4 hours | |
| 4 hours | |
| 5 hours | |
| 6 hours | |
| 6 hours | |
| 14 hours | |
| 14 hours | |
| Nov-10 | |
| Nov-10 | |
| Nov-10 | |
| Nov-10 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite