Is MNDY stock a good buy right now? We came across a bullish thesis on monday.com Ltd. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on MNDY. monday.com Ltd.’s share was trading at $72.64 as of February 27th. MNDY’s trailing and forward P/E were 32.43 and 15.62 respectively according to Yahoo Finance.
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monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, the United Kingdom, and internationally. MNDY remains in robust financial health as its growth model shifts toward the up-market segment. In Q3 FY2025, revenue reached $317 million, up 26% year-over-year, with net dollar retention steady at 111%.
Profitability continues to differentiate the company, as non-GAAP operating income hit a record $47.5 million and operating margin expanded to 15%. Free cash flow of $92.3 million, representing a 29% margin, underscores meaningful operating leverage despite ongoing investments in sales capacity and product development.
The company’s CRM offering has gained notable traction, surpassing $100 million in ARR in under two years, driven by adoption rather than displacement of large enterprise CRM suites. Its competitive edge lies in workflow flexibility, lighter implementation, and bundled packages across Work Management, CRM, and Service, which aim to lift ARPU and expand share-of-wallet. However, multi-product penetration remains low at approximately 6%, reflecting both significant runway and suite depth limits compared with incumbents.
Monday’s Agentic AI tools, including Vibe and Agent Factory, have accelerated internal app creation with over 60,000 apps built in months, enhancing retention and product stickiness, though near-term monetization remains gradual. Short-term headwinds persist, particularly in SMB top-of-funnel acquisition and paid search, prompting a reallocation of marketing spend toward longer-cycle, sales-led motions.
Q4 growth is expected around 22–23%, while the path to the $1.8 billion FY2027 target relies on successful up-market execution, higher multi-product adoption, improved gross retention, and eventual AI-driven conversion of engagement into durable ARR. Overall, Monday presents a compelling investment case with strong profitability, clear growth levers, and an evolving suite strategy poised to unlock further value.
Previously, we covered a bullish thesis on monday.com Ltd. (MNDY) by Rijnberk InvestInsights in May 2025, highlighting strong Q4 2024 earnings, 33% revenue growth, record margins, and rising net retention. MNDY’s stock has depreciated by approximately 74.83% since our coverage due to software market volatility due to IT sector headwinds caused by AI disruptions. Sergey shares a similar bullish view but emphasizes the up-market shift, CRM ARR growth, and AI-driven product stickiness.
