Q2 2026 monday.com Ltd. Earnings Call Transcript
Key Points
- Q2 revenue grew 22% year-over-year to $365 million, with non-GAAP operating margin expanding to 17%.
- AI ARR doubled from Q1 to Q2, now representing 17% of net new ARR, indicating strong customer adoption of AI capabilities.
- Record net additions of over 100,000 and 500,000 customers in Q2, driven by strong upmarket momentum.
- Gross retention at historical highs, with enterprise seat growth still in double digits year-over-year.
- New seat and credit pricing model for AI is gaining traction, with customers topping up credits, creating a new growth vector.
- Reduced global workforce by approximately 20% in July, leading to short-term execution risk and uncertainty.
- Full-year revenue guidance was not raised despite Q2 beat, reflecting caution due to restructuring and near-term headwinds.
- NDR expected to decline to 108% in FY2026 due to lapping prior pricing actions and softer tier upgrades.
- Downmarket demand remains soft, with no rebound in performance marketing or top-of-funnel activity expected.
- R&D expenses increased to 23% of revenue, partly due to strong Israeli shekel, and AI investments are expected to continue.
Good day. My name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to monday.com's second quarter fiscal year 2026 earnings conference call.
I would like to turn the call over to monday.com's Vice President of Investor Relations, Mr. Byron Stephen. Please go ahead.
Hello everyone, and thank you for joining us on today's conference call to discuss the financial results for monday.com's second quarter fiscal year 2026. Joining me today are Roy Mann and Eran Zinman co-CEOs of monday.com; Eliran Glazer, monday.com's CFO; and Casey George, monday.com's CRO.
We released our results for the first quarter of fiscal year 2026 earlier today. You can find our quarterly shareholder letter, along with the investor presentation and a replay of today's webcast under the News and Events section of our IR website at ir.monday.com.
Certain statements made on the call today will be forward-looking statements, which reflect
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
