Investigating Securities Violations Related to Monday.com's Revenue Guidance Statements

On February 25, 2026, a notable probe was initiated by Levi & Korsinsky, LLP into potential breaches of securities laws by monday.com Ltd. (NASDAQ: MNDY). This investigation emerges from troubling revelations in the company's earnings statement released on February 9, 2026, where it was disclosed that the projected revenue for the fiscal year significantly underperformed against both analyst expectations and prior management assurances.

Background of the Investigation

Levi & Korsinsky is focused on key forward-looking statements made by monday.com across four quarters leading to this concerning guidance adjustment. Investors who purchased stocks in this period and may have suffered losses are invited to explore their legal options. The investigation centers on the dramatic shift in revenue projections, which may have impacted investor confidence directly and subsequently stock performance.

Q2 FY2025: Initial Promises and Fallout

During the earnings call on August 12, 2025, as the company detailed its Q2 FY2025 results, management reported a robust quarterly revenue of $299 million, surpassing the analyst consensus expectations. Moreover, earnings per share (EPS) of $1.09 exceeded the expected $0.81. Despite these impressive figures, executives cautioned about a drop in web traffic linked to changes in Google algorithms affecting its no-touch small and medium-sized business (SMB) segment. Following this call, shares plummeted by 26%, sparking concerns about the sustainability of performance amid noted trends that could threaten future growth.

Q3 FY2025: A Continued Struggle

In the subsequent earnings call on November 10, 2025, monday.com reported Q3 revenues of $316.9 million, slightly beating the estimates of $312.3 million. However, the outlook turned sour with fourth-quarter revenue guidance set around $329 million against a higher expected figure of $333.7 million, causing a near 21% drop in stock value. CFO Eliran Glazer asserted that management was “confident” about hitting a revenue consensus of $1.5 billion for FY2026, further complicating concerns about transparency in forecasting.

Investor Day Highlights

At the Investor Day in September 2025, executive management painted an optimistic financial picture by unveiling long-term targets, including revenue and margin goals aimed for 2027. These projections were instrumental for analysts setting stock price targets ranging between $170 and $230 per share, equipping investors with optimistic assessments based on projected growth trajectories.

The February 2026 Revelation

On the February 9, 2026 earnings call, though monday.com announced a Q4 revenue of $333.9 million—an increase against the estimated $329.7 million—and an EPS of $1.04 that considerably exceeded the $0.60 consensus, the company’s revelations regarding FY2026 forecast sent shockwaves through the market. The guidance projected revenues between $1.452 and $1.462 billion, falling conspicuously short of the earlier-endorsed figure of $1.5 billion by $38 to $48 million. In an alarming move, management also withdrew its 2027 revenue targets, indicating a significant reevaluation of longer-term financial goals, and noted they would