---
title: "monday.com guides to 14% growth after 19%, and its margin to 18% from 24%"
summary: "monday.com’s results for July to September and its guide for the next quarter: what is slowing growth, what a 20% staff cut did to margin and cash, and what its US$36m of AI revenue counts."
url: https://www.thetechbag.com/blog/monday-com-guides-14-percent-after-19
format: Note
desk: "SaaS & business software"
region: Global
published: 2026-11-10
facts_checked: 2026-11-10
author: TechBag (The TechBag Journal)
tags: ["monday.com","work management","earnings","guidance","net dollar retention","restructuring","layoffs","AI ARR","AI credits","hybrid pricing","non-GAAP operating margin","free cash flow","share price"]
cover: https://www.thetechbag.com/blog/covers/monday-com-guides-14-percent-after-19.png
---

# monday.com guides to 14% growth after 19%, and its margin to 18% from 24%

*monday.com’s results for July to September and its guide for the next quarter: what is slowing growth, what a 20% staff cut did to margin and cash, and what its US$36m of AI revenue counts.*

Note · SaaS & business software · By TechBag · Published 2026-11-10 · Facts checked 2026-11-10 · Canonical: https://www.thetechbag.com/blog/monday-com-guides-14-percent-after-19

monday.com, the work-management software company, reported revenue of US$377.5m for July–September, up 19% on a year earlier, and told investors to expect about 14% in October–December: US$380m to US$382m, only US$2.5m to US$4.5m above the quarter just ended.[1] Its operating margin on a non-GAAP basis, which excludes share-based pay, restructuring charges and charitable gifts of shares, is guided to about 18% after a record 24%; the GAAP margin for the quarter was 8%.[1] The co-chief executives, Roy Mann and Eran Zinman, wrote that becoming an “AI-first company” “introduces near-term operational headwinds”.[1]

**Figure: monday.com’s growth has slowed every quarter for two years, and the next step down is the largest**

*Revenue growth on a year earlier (%), quarters to December 2024 through September 2026, and the guide for the quarter to December 2026*

|  | Revenue growth |
| --- | --- |
| Q4 24 | 32 |
| Q1 25 | 30 |
| Q2 25 | 27 |
| Q3 25 | 26 |
| Q4 25 | 25 |
| Q1 26 | 24 |
| Q2 26 | 22 |
| Q3 26 | 19 |
| Q4 26* | 14 |

Source: monday.com results releases, Forms 6-K (Exhibit 99.1) · as of 9 November 2026 · * the company’s guide of about 14%; quarterly figures are as the company rounds them

## The three headwinds behind the 14%

Growth fell from 32% to 19% over the seven quarters to September, a step of one to three points each time.[1][2][3][4][5][6][7][8] The guide is five. On the call Zinman named three causes: the restructuring announced in July, which cut about 20% of the workforce and was “creating some near-term disruption”; small customers, where “SMB customer additions were lower and SMB logo churn was higher”, which he said was “by design” as the company moves towards larger accounts; and “more deliberate buying behavior and longer sales cycles” as customers work out how AI fits their business.[9][10]

The picture differs by size. Net dollar retention, what existing customers pay now against a year earlier, was 108%, down from 111%; the chief financial officer, Eliran Glazer, expects 107% next quarter. Customers paying more than US$50,000 a year rose 26% and those paying more than US$100,000 rose 33%, while customers with more than 10 users rose 5%.[1][10]

The guide assumes the third quarter’s trends continue.[10] It is also the company’s own number, and monday.com has lately beaten its own numbers: it guided 18% to 19% for April–June and reported 22%, and 16% to 17% for July–September and reported 19%.[2][3] Glazer called the outlook “prudent” and said the company was “probably a few quarters from getting back to something that implies more stability”.[10]

## Why the margin peaks and the cash does not

Non-GAAP operating income was US$89.4m against US$47.5m a year earlier. The gain came from sales and marketing, down to US$145.4m from US$151.8m on higher revenue.[1] The guide is US$68m to US$70m. Glazer said most of about US$100m of restructuring savings is being reinvested, with fourth-quarter costs carrying pay changes, AI running costs and the company’s Elevate customer event; the guide also assumes a 100 to 200 basis point hit from currency. For the full year the margin guide rises to about 18% from about 16%.[1][2][10]

TechBag countWhat the guide implies

Sales and marketing was 38.5% of revenue on the non-GAAP basis, against 47.9% a year earlier. At the guide’s midpoints, non-GAAP costs rise about US$24m on the quarter, to about US$312m from US$288m, against about US$3.5m more revenue.[1]

Operating cash flow fell to US$20.4m from US$95.1m. Most of the gap is the restructuring: US$47.2m of severance and office-exit payments went out in the quarter, and the company’s adjusted free cash flow, which adds them back, was still lower at US$63.0m against US$92.3m.[1] Glazer said that cash follows ARR, and that slower net additions from small customers are holding it back.[10]

AI products reached US$36m of annual recurring revenue, about 2.4% of annualised quarterly revenue (our arithmetic). That counts credit packages and an allocated share of plans that include credits.[1] Glazer said of the US$36m: “it’s not incremental yet. It’s part of our overall ARR.”[10]

The release reached the SEC at 7:00am New York time on 9 November, before the market opened. The shares closed at US$79.93 that day, down 9.1% from US$87.93, after falling 6.3% on 6 November.[1][11] What to watch: whether net dollar retention holds at 107%, and whether the fourth-quarter costs prove to be the run rate Glazer describes.

How we did this

Figures as of 10 November 2026, 7:30pm IST

Results, guidance, retention, customer counts and the cash-flow reconciliation are from monday.com’s release of 9 November; the growth series and earlier guidance from its seven earlier releases; the 20% workforce cut from its 6-K of 22 July. Growth rates are as the company rounds them. The call is quoted from a published transcript, labelled where used. “Non-GAAP” here is monday.com’s own measure; it excludes share-based pay, restructuring charges and non-cash charitable contributions. Sales and marketing as a share of revenue, the implied rise in non-GAAP costs, the sequential revenue range and AI ARR against annualised revenue are our arithmetic. Closes are Nasdaq’s, and we attribute no cause to the share move. US trading on 10 November had not opened when this was written.

Spotted an error? Write to us; corrections are published at the foot of the piece.

Sources

1. [monday.com, Announces Third Quarter 2026 Results (6-K, Exhibit 99.1; accepted by the SEC at 7:00am New York time)](https://www.sec.gov/Archives/edgar/data/1845338/000117891326005085/exhibit_99-1.htm) — 9 November 2026
2. [monday.com, second quarter 2026 results (6-K, Exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/1845338/000117891326003971/exhibit_99-1.htm) — 10 August 2026
3. [monday.com, first quarter 2026 results (6-K, Exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/1845338/000117891326002499/exhibit_99-1.htm) — 11 May 2026
4. [monday.com, fourth quarter and fiscal 2025 results (6-K, Exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/1845338/000117891326000346/exhibit_99-1.htm) — 9 February 2026
5. [monday.com, third quarter 2025 results (6-K, Exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/1845338/000117891325003708/exhibit_99-1.htm) — 10 November 2025
6. [monday.com, second quarter 2025 results (6-K, Exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/1845338/000117891325002734/exhibit_99-1.htm) — 11 August 2025
7. [monday.com, first quarter 2025 results (6-K, Exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/1845338/000117891325001699/exhibit_99-1.htm) — 12 May 2025
8. [monday.com, fourth quarter and fiscal 2024 results (6-K, Exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/1845338/000117891325000369/exhibit_99-1.htm) — 10 February 2025
9. [monday.com, Form 6-K on its restructuring plan](https://www.sec.gov/Archives/edgar/data/1845338/000117891326003553/zk2635715.htm) — 22 July 2026
10. [The Motley Fool, monday.com (MNDY) Q3 2026 earnings call transcript (Roy Mann, Eran Zinman, Eliran Glazer)](https://www.fool.com/earnings/call-transcripts/2026/11/09/mondaycom-mndy-q3-2026-earnings-call-transcript/) — 9 November 2026
11. [Nasdaq, monday.com (MNDY) historical prices (closes to 9 November 2026)](https://www.nasdaq.com/market-activity/stocks/mndy/historical) — 9 November 2026

**Disclosure.** TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view.

**Read this next:** [33 of 56 listed vendors fell 30% or more; what changes at renewal and what does not](https://www.thetechbag.com/blog/vendor-shares-fell-30-percent-renewal) — What a falling vendor share price changes for a customer: 33 of 56 listed vendors fell 30% or more, and the clauses that protect a renewal.

Go deeper on TechBag

- [An Agentforce action costs 10 cents, a conversation $2](https://www.thetechbag.com/blog/how-ai-agents-are-billed-credits-actions) — how AI credits and actions are billed, the model monday.com is moving towards
- [Atlassian set an end date for Jira Data Center](https://www.thetechbag.com/blog/cloud-based-project-management-tools-game-changer) — where monday.com’s larger rival is taking its customers
- [Atlassian on TechBag](https://www.thetechbag.com/atlassian) — the products monday.com is most often weighed against