Please refer to our earnings release for more information on the specific factors that could cause actual results to differ materially from our forward-looking statements. Reconciliations to our most directly comparable GAAP financial measures are available in the earnings release and the earnings presentation for today's call, which are posted on our investor relations website. In Q3, we delivered another quarter of strong results and disciplined execution, putting us firmly on track toward our investor day revenue target of $1.8 billion for FY2027. We saw robust net additions of over 100,000 plus and 500,000 plus paying customers, reflecting the strengths of our go-to-market engine and the expanding demand of our platform.
The combination of accelerating customer expansion, record profitability, and surging engagement with our AI offering positioned monday.com strongly for its next phase of growth. These events not only amplified customer enthusiasm and engagement but also generated record engagement and strong pipeline heading into 2026, setting the stage for continued customer expansion and growth. While these motions come with longer sales cycles, they are yielding higher quality pipeline and position us well for sustainable growth. With accelerating customer expansion, record profitability, and growing enthusiasm for our AI-powered platform, we're entering the next phase of durable, profitable growth that will create meaningful long-term value for shareholders.
With that, I'll now turn it over to Eliran to cover our financial and guidance. Q3 was another strong quarter for monday.com, highlighted by solid revenue growth supported by our success with larger customers and continued improvement in operational efficiency. Total revenue came in at $317 million, up 26% from the year-ago quarter. We have provided reconciliation of GAAP to non-GAAP financials in our earnings release.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | Q4 FY2025 | $328 million-$330 million, up 22%-23% year-over-year |
| Non-GAAP operating income | Q4 FY2025 | $36 million-$38 million, operating margin 11%-12% |
| Revenue | FY2025 | $1.226 billion-$1.228 billion, up approximately 26% year-over-year |
| Non-GAAP operating income | FY2025 | $167 million-$169 million, operating margin approximately 14% |
| Adjusted free cash flow | FY2025 | $330 million-$334 million, margin approximately 27% |
| Overall NDR | FY2025 | Stable at 111% |
| Employee headcount | FY2025 | Approximately 30% growth, decelerating in H2 toward roughly 20% in 2026 |
| FY2027 revenue target | FY2027 | $1.8 billion, reaffirmed |
| Metric | YoY | Note |
|---|---|---|
| Revenue | +26% to $317 million | Success with larger customers and continued improvement in operational efficiency, with acceleration across $50K, $100K, and $500K cohorts. |
| Operating income | Record $47.5 million, up from $32.2 million | Continued operating efficiency and disciplined investment while scaling; sales and marketing fell to 48% of revenue from 52%. |
| Net income | Record $61.9 million, up from $45 million | Higher revenue and operating leverage. |
| Adjusted free cash flow margin | 29% | Strong cash generation supported by revenue growth and efficiency. |
| New product share of ARR | Over 10% | Multi-product strategy including CRM, Service, and Dev surpassing the 2025 goal ahead of schedule. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Go-to-market rebalancing | Heavy performance-marketing/PLG spend | Shifting toward mid-funnel and direct sales channels targeting larger opportunities with longer sales cycles but higher-quality pipeline | — |
| Multi-product adoption | Roughly 6% of customers using more than one product | New products over 10% of ARR, new bundles combining Work Management with CRM, Service, and Dev to accelerate cross-sell | — |
| AI monetization | Early AI actions and adoption | New AI credit system rolling out in Q4, Agent Factory launched with consumption-based pricing, and Vibe with a new tiered pricing model | — |
| RPO metric | Introduced at Investor Day in mid-August | Restated for consistency and accuracy, signed off by auditors, and viewed as a better measure than billings | — |
| Contract duration | Multi-year around 5% of ARR five years ago; annual around 65% | Multi-year around 13% and annual around 70%, so annual plus multi-year exceeds 80% of ARR | — |
| FY2027 outlook | $1.8 billion target set at Investor Day | Reaffirmed $1.8 billion for FY2027 and comfortable with consensus for next year | — |