Record Large Customer Adds and Expanding Market Share Drive MNDY’s Growth Story
monday.com’s latest financial report for fiscal year 2025 spotlights a company in acceleration mode, as large customer growth and recurring revenues hit new highs. With customers spending over $100,000 in ARR rising 45% year-over-year, and ARR from segments above $50,000 now comprising 41% of the total, the company’s strategy to move upmarket is delivering tangible results.
Annual Recurring Revenue Jumps 27%, Driven by Strong Enterprise Adoption
Full-year revenue grew 27% to $1.23 billion, powered not only by increasing numbers of large accounts but also by healthy retention metrics:
- Net dollar retention rate across all customers: 110%
- Retention rate among customers with >10 users: 114%
- Retention rate among customers with >$50,000 in ARR: 116%
- Paid customers with >10 users: 63,914 (+8%)
- Paid customers with >$50,000 in ARR: 4,281 (+34%)
- Paid customers with >$100,000 in ARR: 1,756 (+45%)
- Paid customers with >$500,000 in ARR: 87 (+74%)
| Customer Segment | 2025 Count | 2024 Count | % Change YoY | % of ARR (2025) |
|---|---|---|---|---|
| >10 users | 63,914 | 59,214 | +8% | 81% |
| >$50k ARR | 4,281 | 3,201 | +34% | 41% |
| >$100k ARR | 1,756 | 1,207 | +45% | 28% |
| >$500k ARR | 87 | 50 | +74% | 6% |
Non-GAAP Profitability Maintained Despite FX Headwinds
The company sustained a non-GAAP operating margin of 14% for the year, matching 2024’s performance, albeit with more than a 100 basis point drag from foreign currency moves. GAAP operating loss narrowed sharply to $1.75 million (from $21 million last year), and net income per share on a diluted basis registered sizable gains on both a GAAP and non-GAAP basis.
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Revenue | $1,231.99M | $971.99M |
| Non-GAAP Operating Income | $175.26M | $132.38M |
| Non-GAAP Operating Margin | 14% | 14% |
| Adjusted Free Cash Flow | $322.66M | $295.83M |
| GAAP Net Income | $118.74M | $32.37M |
AI-Driven Product Momentum: monday vibe Breaks $1 Million ARR In Just 2.5 Months
Innovation is translating into adoption for monday.com’s AI-embedded products. The newly launched monday vibe smashed the $1 million ARR threshold within 2.5 months of launch, making it the fastest-growing product in company history. The unified AI platform, which now includes four core AI Work Capabilities, is beginning to see real traction in the enterprise workflow space.
Cash Generation and Balance Remain Strengths as Share Repurchases Continue
Free cash flow of $322.66 million for the year is paired with more than $1.5 billion in cash and equivalents, providing flexibility for continued investment and capital return. The company repurchased 884,000 shares for $135 million this quarter; $735 million remains authorized for future buybacks.
Guidance Signals Ongoing Expansion but Continued FX Pressures
Looking forward, monday.com forecasts:
- Q1 2026 revenue of $338–$340 million (+20% YoY)
- Full-year 2026 revenue of $1,452–$1,462 million (+18–19% YoY)
- Non-GAAP operating margin expected at 11–12%, with continued FX headwinds projected
Key Takeaway: Sustained Upmarket Growth and Cash Flow Put MNDY in a Strong Position
monday.com’s fiscal 2025 results underscore a company successfully moving beyond SMBs, with a deepening focus on larger customers, robust recurring revenues, and growing AI-powered product adoption. FX pressures remain a watch item, but fundamental momentum is solid—setting up a strong foundation for 2026 and beyond. Investors may want to keep an eye on the company’s enterprise traction and pace of AI integration as key drivers for future performance.
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