monday.com closed 2025 with a mix that markets usually like but don’t always price correctly at first glance: strong top-line growth, expanding large-customer adoption, early but real AI monetization, and margins that are under short-term pressure for reasons that have very little to do with demand. Revenue reached $333.9 million in Q4, up 25% year over year, bringing full-year revenue to $1.23 billion, a clean 27% increase. This is not the profile of a company hitting a growth wall; it’s the profile of a company deliberately trading some near-term operating leverage for deeper enterprise penetration and product breadth, while FX noise muddies the surface numbers a bit.
The most important signal in this report isn’t GAAP versus non-GAAP margin math, it’s the continued reshaping of the customer base. Customers with more than $50,000 in ARR grew 34% year over year, those above $100,000 jumped 45%, and the cohort above $500,000 in ARR surged 74%, now representing 6% of total ARR. That’s a material shift in just twelve months, and it explains why management keeps emphasizing standardization and mission-critical workflows rather than seat growth alone. Net dollar retention at 110% overall, rising to 116% for customers above $50,000 and $100,000 in ARR, tells you that expansion inside existing accounts remains the engine, even as the sales motion moves upmarket and inevitably lengthens.
On profitability, the headline GAAP operating income decline in Q4 looks worse than it really is. Non-GAAP operating income still grew slightly year over year to $41.9 million, and the margin compression to 13% was largely driven by an estimated 180 basis-point FX hit. The same FX drag shows up in full-year results, where non-GAAP operating margin held steady at 14% despite heavier investment in R&D and sales capacity. Cash generation remains a quiet strength: $322.7 million in adjusted free cash flow for the year, with over $1.5 billion in cash and equivalents on the balance sheet even after repurchasing $135 million of shares. This is not a company funding growth with hope and dilution; it’s funding it internally, with room to keep buying back stock.
The AI story is still early, but it’s no longer theoretical. monday.com has consolidated its AI efforts into a unified platform with sidekick, vibe, agents, and workflows, and monday vibe crossing $1 million in ARR just 2.5 months after pricing launched is a small number that matters more for trajectory than scale. It shows customers are willing to pay for AI features when they’re embedded directly into execution, not bolted on as novelty copilots. Over time, this is likely to show up less as a separate AI revenue line and more as higher retention, higher ARPU, and faster multi-product adoption inside larger accounts.
Looking ahead, guidance implies a deliberate deceleration: 18–19% revenue growth expected in 2026, with non-GAAP operating margins easing to 11–12%. That’s not a loss of confidence, it’s a choice. Management is clearly prioritizing durability of the upmarket transition, continued AI build-out, and global scale over squeezing margins in a year still distorted by FX and macro uncertainty. The backlog supports that view, with total RPOs up 37% and cRPOs up 31%, giving unusually good visibility for a SaaS company at this stage.
Stepping back, the picture is fairly coherent. monday.com is evolving from a high-growth work management tool into a broad execution platform that larger organizations are willing to standardize on, while quietly laying the groundwork for AI to become a paid, embedded layer rather than a marketing slogan. The financials show some surface friction, but underneath them the signals are consistent: expanding enterprise relevance, resilient cash generation, and a product strategy that’s starting to translate into dollars, not just demos. That combination usually matters more over a multi-year horizon than a quarter or two of FX-compressed margins.