monday.com grows revenue 19% but sees a slower fourth quarter
The software company reports higher profitability while warning that its shift toward AI brings near-term operating challenges.
monday.com reported a stronger third quarter Monday, but its outlook points to slower revenue growth in the final three months of 2026. Revenue rose 19% from a year earlier to $377.5 million, while fourth-quarter guidance of $380 million to $382 million implies growth of about 14%.
The company reported GAAP operating income of $31.2 million, compared with a $2.4 million operating loss a year earlier. Non-GAAP operating income rose to $89.4 million, with a 24% margin, from $47.5 million and a 15% margin.
AI transition, with a slower growth outlook
Management said its move toward an AI-first business introduces near-term operational headwinds. The company reported $36 million in AI annual recurring revenue, a measure of annualized recurring subscription value rather than revenue recognized during the quarter.
For the full year, monday.com expects revenue of $1.473 billion to $1.475 billion, or about 20% growth. Its fourth-quarter and full-year figures are forecasts, not completed results.
The quarter also showed weaker operating cash flow: $20.4 million, compared with $95.1 million a year earlier. Adjusted free cash flow was $63 million. That adjusted measure excludes certain costs, including restructuring-related cash payments, and should not be treated as interchangeable with GAAP operating cash flow.
The result leaves investors weighing improved reported profitability against a slower growth outlook and the costs of changing the business. Non-GAAP results are supplemental measures and should be read alongside the GAAP figures and the company's reconciliations.
