The deceleration in revenue guidance (22% → 16-17%) is the key negative signal, partially offset by strong enterprise metrics and AI traction. The restructuring plan introduces execution risk but aims for a leaner cost structure. Monitor Q3 results for whether the guidance deceleration is conservative or reflects genuine demand softening. The fully utilized buyback removes a support mechanism for the stock.
Price Chart
Executive Summary
monday.com reported Q2 2026 results with revenue of $364.6M (+22% YoY), a GAAP operating loss of $1.5M (improved from -$11.6M), and record non-GAAP operating income of $61.1M (+36% YoY). The company guided Q3 revenue of $368-370M (16-17% YoY growth) and FY2026 revenue of $1,466-1,474M (19-20% YoY growth), representing a notable deceleration from the 22% Q2 growth rate. A restructuring plan was announced, including a ~20% workforce reduction and $45-55M in estimated total charges, alongside a $734.9M share repurchase program that has been fully utilized. Enterprise customer metrics were strong, with customers >$100k ARR up 37% YoY and AI ARR doubling from Q1, but the decelerating revenue guidance and restructuring costs temper the overall outlook.
Key Facts
- Q2 2026 revenue of $364.6M, up 22% YoY
- Q3 2026 revenue guidance of $368-370M (16-17% YoY growth), a notable deceleration
- FY2026 revenue guidance of $1,466-1,474M (19-20% YoY growth)
- Record non-GAAP operating income of $61.1M, up from $45.1M; non-GAAP operating margin of 17%
- GAAP operating loss of $1.5M, improved from a loss of $11.6M in Q2 2025
- Restructuring plan announced on July 22, 2026, including ~20% workforce reduction and estimated total charges of $45-55M
- Restructuring charges of $21.4M recognized in Q2 2026 (non-cash impairment of office space)
- Share repurchase program of $870M fully utilized; 9,602,294 shares repurchased in H1 2026 for $734.97M
- Customers with >$100k ARR grew 37% YoY to 2,019; customers with >$500k ARR grew 68% YoY to 114
- AI ARR doubled from Q1, representing 17% of net new ARR in Q2
- Net dollar retention rate was 109%; 115% for customers with >$100k ARR
- Total RPOs of $937M, up 34% YoY; cRPOs of $750M, up 27% YoY
- Cash and cash equivalents of $853.4M, down from $1.5B at year-end 2025 due to share repurchases
- Adjusted free cash flow of $52.3M in Q2, down from $64.1M in Q2 2025
- Non-GAAP diluted EPS of $1.48 vs $1.09 in Q2 2025
Financial Impact
Revenue growth decelerating from 22% in Q2 to 16-17% in Q3 guidance; restructuring charges of $21.4M in Q2 with $45-55M total expected; $734.97M spent on share repurchases in H1 2026
Risk Factors
- Revenue growth deceleration to 16-17% in Q3 guidance signals potential demand softening or competitive pressure
- Restructuring plan execution risk and potential for higher-than-expected charges
- Cash balance reduced significantly ($1.5B to $853M) due to share repurchases, limiting financial flexibility
- GAAP operating loss persists despite non-GAAP profitability
- Negative FX impact of 100-200 bps expected to continue pressuring results
- Securities class action lawsuit filed in March 2026 adds legal overhang
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001178913-26-003971 |
| Exhibit: exhibit_99-1.htm | 0001178913-26-003971 |
| Exhibit: exhibit_99-3.htm | 0001178913-26-003971 |
| Document: zk2635817.htm | 0001178913-26-003971 |
| Document: 0001178913-26-003971-index-headers.html | 0001178913-26-003971 |
| Document: 0001178913-26-003971-index.html | 0001178913-26-003971 |
| Document: 0001178913-26-003971.txt | 0001178913-26-003971 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 3, 2026 29d ago | Insider Cluster | $97.33 $86.84 | ▼ −10.78% | ▼ −9.63% | $78.81 (−19.03%) |
Aug 10, 2026 7w ago | 6-K | $88.62 $83.33 | ▼ −5.97% | ▼ −5.92% | $78.81 (−11.07%) |
Aug 6, 2026 8w ago | 6-K | $93.13 $87.52 | ▼ −6.02% | ▼ −6.42% | $78.81 (−15.38%) |
Jul 22, 2026 10w ago | 6-K | $73.91 $90.25 | ▲ +22.11% | ▲ +24.51% | $78.81 (+6.63%) |
Jul 17, 2026 10w ago | 6-K | $76.75 $77.43 | ▲ +0.89% | ▲ +1.31% | $78.81 (+2.68%) |
Jul 2, 2026 13w ago | 6-K | $79.77 $83.65 | ▲ +4.86% | ▲ +3.93% | $78.81 (−1.20%) |
May 11, 2026 20w ago | 6-K | $76.91 $78.04 | ▲ +1.47% | ▲ +1.55% | $78.81 (+2.47%) |
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