Monday.com Stock Plummets Amid Growth Concerns Despite Earnings Beat
Monday.com shares plunged 26.8% after reporting Q2 2025 earnings, despite surpassing analyst estimates. Revenue reached $299 million with EPS of $1.09, beating expectations of $293.6 million and $0.86 respectively. The market's bearish reaction stems from slowing growth projections—2024 revenue guidance of $1.22-$1.23 billion represents just 26% YoY growth, down from 33.2% in 2024 and 40.7% in 2023.
Investors are particularly concerned about compressed cash FLOW margins. Management forecasts 2025 adjusted free cash flow of $320-$326 million (26-27% margin), below 2024's 30% and 2023's 28%. This deceleration suggests the cloud collaboration platform may be entering a maturation phase, triggering a valuation reset.