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 the 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. We delivered another year of strong disciplined execution, with revenue growing 27% year-over-year, and operating margin reaching 14%. At the high end, we delivered a record net add of customers with over 100K+ in ARR, and customers with over 500K in ARR grew 74% year-over-year, underscoring our ability to support enterprise-scale deployments.
At the same time, no-touch channels continue to operate in a choppy demand environment, particularly among the smaller customers, which we expect to persist in 2026. In response, we continue to shift investment to higher ROI opportunities that drive demand and success for larger customers. These allow customers to create an on-demand workforce of AI Agents that can reason, act, and execute across their workflows, effectively enabling businesses to scale output without scaling headcount. We've seen very strong demand and accelerating adoption of monday.com AI across our customer base.
It is the fastest product in monday.com's history to surpass $1 million of ARR, highlighting customer willingness to pay for its value and signaling meaningful revenue potential ahead. The pace of adoption reinforces our confidence that Vibe can become a significant growth driver as we scale. With the powerful platform, a clear upmarket strategy, and a global team focused on embedding intelligence deeply across workflows, we believe monday.com is well positioned to deliver durable, profitable growth in the years ahead. With that, I'll turn it over to Eliran to cover our financial guidance.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | Q1 FY2026 | $338 million-$340 million, up approximately 20% year-over-year |
| Non-GAAP operating income | Q1 FY2026 | $37 million-$39 million, operating margin 11%-12% |
| Revenue | FY2026 | $1.452 billion-$1.462 billion, up 18%-19% year-over-year |
| Non-GAAP operating income | FY2026 | $165 million-$175 million, operating margin 11%-12% |
| Adjusted free cash flow | FY2026 | $275 million-$290 million, margin 19%-20% |
| Overall NDR | FY2026 | Expected stable at 110% by end of year |
| Employee headcount | FY2026 | Mid-teens percent growth, weighted toward sales and R&D |
| Gross margin | FY2026 | High 80s |
| FY2027 revenue target | FY2027 | Withdrawn; no longer being discussed |
| Metric | YoY | Note |
|---|---|---|
| Revenue | +25% to $334 million in Q4; +27% to $1.232 billion for the year | Continued upmarket standardization on the platform and strong expansion within existing accounts, offset by choppy no-touch demand. |
| Operating income | Q4 $41.9 million versus $40.3 million; full year $175.3 million | Q4 margin of 13% absorbed roughly 180 basis points of negative FX from shekel appreciation. |
| Net income | Q4 $55 million versus $57.3 million; full year $233.6 million versus $183.3 million | Full-year growth included a $61.2 million non-cash deferred tax asset benefit excluded from non-GAAP. |
| Customers over $500K ARR | +74% | Success supporting enterprise-scale deployments as larger customers standardize on the platform. |
| Adjusted free cash flow margin | 17% in Q4; 26% for the full year | Reflects FX pressure and increased investment. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Guidance approach | Provided fiscal 2027 targets including $1.8 billion revenue | Centering communication on the fiscal 2026 outlook and no longer discussing 2027 targets given AI landscape and demand uncertainty | — |
| No-touch / SMB demand | Choppy in 2025, especially among smaller customers | Expected to remain choppy and not improve in 2026, with investment shifted to higher-ROI upmarket channels | — |
| AI product layers | Early AI actions and adoption | Three layers of AI value: AI Agents and Workflows (in beta), monday Vibe app building, and Sidekick as the central intelligence layer | — |
| NDR | 111% | 110%, with the 100 basis point step-down attributed mostly to lapping the prior price increase | — |
| Gross retention | Improving over prior quarters | Historical highs at 91% in the $50K cohort, with continued upward trajectory expected | — |
| Headcount investment | Approximately 30% growth in fiscal 2025 | Mid-teens percent growth in 2026 as much of the investment is behind the company | — |