Monday.com shares slumped 37.3% over the course of 2025, underperforming broader software benchmarks as investors voiced concerns that emerging AI development tools could enable enterprises to build in-house workflow platforms, reducing reliance on third-party task-management solutions. The stock is trading roughly 70% below its all-time high, reflecting fears that AI-powered coding assistants such as Claude Code might erode long-term demand for established collaboration software providers.

Despite market skepticism, Monday.com delivered 26% year-over-year revenue growth in its latest quarter, driven by a 37% increase in customers spending over $50,000 annually. This segment now represents a growing portion of total sales, underscoring the platform’s appeal to larger enterprises even as AI-driven build-your-own scenarios emerge. Overall customer count also rose at a double-digit rate, highlighting the company’s sustained ability to win new business across diverse industries.

Since achieving free-cash-flow positivity in 2023, Monday.com has generated $343 million in trailing free cash flow, supported by an industry-leading gross margin of approximately 88.6%. Management continues to invest heavily—hundreds of millions annually—in sales and marketing to fuel customer acquisition. As the base of subscription revenue matures, marketing spend should moderate, paving the way for expanding operating margins and accelerating cash-flow growth beyond the current revenue trajectory.

With a market capitalization near $6.9 billion and a price-to-free-cash-flow ratio around 20, Monday.com trades at a discount relative to peers growing revenue above 20% annually. Investors willing to look past short-term AI disruption fears may find the current valuation compelling, particularly given the company’s track record of profitable growth and its strategic expansion into adjacent markets such as marketing operations, developer services and IT support.