Monday.com (NASDAQ:MNDY) stock dropped on Monday after it posted second-quarter results.
The company reported a quarterly revenue growth of 27% year-on-year (Y/Y) to $299.01 million, beating the analyst consensus estimate of $293.54 million.
The project management software company’s adjusted EPS of $1.09 beat the analyst consensus estimate of 86 cents.
Also Read: Monday.com’s Strong Q1, Big Customer Growth, High Margins Drive Bullish Wall Street Outlook
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 ten users.
The number of paid customers with over $50,000 in annual recurring revenue (ARR) rose 36% Y/Y to 3,702. The adjusted operating margin decreased 100 bps to 15%.
In the quarter, Monday.com generated an operating cash flow of $66.84 million compared to $55.79 million a year ago.
It generated $64.09 million in adjusted free cash flow, compared to $50.82 million a year ago, and ended the quarter with $1.65 billion in cash and equivalents.
Outlook
Monday.com expects fiscal third-quarter 2025 revenue of $311.00 million-$313.00 million against the analyst consensus estimate of $312.95 million and an adjusted operating margin of 11%-12%.
Monday.com expects 2025 revenue of $1.224 billion-$1.229 billion (prior $1.220 billion-$1.226 billion), against the analyst consensus estimate of $1.220 billion, and an adjusted operating margin of approximately 13%.
The stock gained over 5% year-to-date.
Price Action: Monday.com stock is trading lower by 18.7% to $201.72 premarket at last check Monday.
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