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%.
MNDY’s Q3 Details
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 and EPS Surprise
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%.
MNDY’s Operating Details
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%.
MNDY’s Balance Sheet & Cash Flow
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.
MNDY’s Q4 & 2025 Guidance
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%.
MNDY’s Zacks Rank & Other Stocks to Consider
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.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Nutanix (NTNX) : Free Stock Analysis Report
Flux Power Holdings, Inc. (FLUX) : Free Stock Analysis Report
monday.com Ltd. (MNDY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
