Monday.com (NASDAQ:MNDY) stock tanked on Monday after it posted fiscal third-quarter results.
The company reported a quarterly revenue growth of 26% year-on-year (Y/Y) to $316.86 million, beating the analyst consensus estimate of $312.31 million.
The project management software company's adjusted EPS of $1.16 beat the analyst consensus estimate of 88 cents.
Also Read: Monday.com Extends AI Momentum, Wall Street Shrugs Off Near-Term Pressures
Monday.com makes money from selling subscriptions to customers to access its cloud-based Work OS platform.
The net dollar retention rate was 111% and 115% for customers with more than 10 users.
The number of paid customers with over $50,000 in annual recurring revenue (ARR) rose 37% Y/Y to 3,993. The adjusted operating margin increased 200 bps to 15%.
In the quarter, Monday.com generated operating cash flow of $95.14 million, up from $86.61 million a year ago.
It generated $92.30 million in adjusted free cash flow, compared to $82.41 million a year ago, and ended the quarter with $1.74 billion in cash and equivalents.
CFO Eliran Glazer highlighted that monday.com achieved its highest-ever adjusted operating profit for the quarter. He noted that the company is scaling responsibly by balancing investments in innovation and market expansion with operational discipline, maintaining strong margins while supporting sustainable growth.
Outlook
Monday.com expects fiscal fourth-quarter 2025 revenue guidance of $328.00 million-$330.00 million against the analyst consensus estimate of $333.68 million and an adjusted operating margin outlook of 11%-12%.
Monday.com reiterated 2025 revenue guidance of $1.224 billion-$1.229 billion, against the analyst consensus estimate of $1.226 billion, and an adjusted operating margin outlook of approximately 14%.
Price Action: Monday.com stock is trading lower by 19.41% to $153.00 premarket at last check Monday.
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