Monday beat forecasts, but expects a slowdown in growth, and the stock is plummeting in pre-market trading
Monday reported second-quarter 2026 revenue of $364.6 million, beating market expectations. Despite the positive financial results, the company's stock fell by more than 8% in pre-market trading on the Nasdaq.
Monday has reassured investors with financial reports that exceeded earlier forecasts. The software company finished the second quarter of 2026 with revenue of $364.6 million, an increase of 22% compared to the same quarter last year, against expectations of $355 million.
The company reiterates its annual revenue forecast of $1.46 to $1.47 billion, reflecting a growth rate of 20%. For the third quarter, it provides a conservative revenue forecast of $368 to $370 million. Although Monday beat market expectations, the stock is plummeting by more than 8% in pre-market trading on the Nasdaq.
On the positive side, Monday notes that its annual revenue run rate from AI (artificial intelligence) products has doubled compared to the previous quarter and already accounts for 17% of annual revenue from new deals. Profitability has also improved, as operating profit excluding one-time items jumped from $45 million to $61 million, and the operating margin rose to 17% of revenue. Including one-time items, Monday recorded an operating loss of $1.5 million, an improvement compared to a loss of $11.5 million a year ago.
"The second-quarter results prove that our strategy is working and make it clear to us that this is the time to accelerate the pace of activity. We made the difficult decision to carry out an organizational change, alongside refining our product offering and concentrating all efforts on our AI-based work platform, in order to realize the greatest opportunity ever in the software field," said Monday's founders and co-CEOs, Roy Mann and Eran Zinman.
"The initial results we are seeing strengthen our confidence in the path the company is taking. The ARR (annual recurring revenue) from AI products doubled compared to the first quarter and accounted for 17% of the net ARR addition in the second quarter. Our customers' response to the new direction is beyond expectations. We are building a faster, flatter company with clearer priorities, and we are only at the beginning of the journey."
