monday.com Hits Record $49 Million in Operating Profit as AI-Driven Work Platform Expands
mondays.com, a leading work operating system, has announced a strong start to 2026 with Q1 revenue growing 24% year-over-year. The company generated a record $49 million in operating profit, demonstrating the increasing efficiency of its growth. Adjusted free cash flow margin expanded to 29%, underscoring the financial durability of monday.com's business model.
According to Roy Mann, Co-CEO of monday.com, the company delivered a strong start to 2026 with Q1 revenue growing 24% year-over-year. He attributed this growth to sustained demand for their platform as enterprises consolidate their work infrastructures. "We generated a record $49 million in operating profit, demonstrating that our growth is increasingly efficient," Mann said.
Monday.com also reported a significant increase in enterprise momentum, with 42% of annual recurring revenue (ARR) coming from customers with over $50,000 in ARR. The company saw a record number of new customers with over 500K in ARR and average contract values continued to expand, reinforcing that the consolidation of work infrastructure onto monday.com is a durable enterprise-led trend.
"The market is also responding to our AI product," Mann added. "Approximately 10% of our net new ARR in Q1 was driven by AI, a figure we expect to grow as our AI offering expands and matures."
Monday.com has been leveraging AI to drive efficiency within the company itself. Since 2025, AI has driven a 32% increase in output per developer and a 38% reduction in product time to market. The company believes this is an early but meaningful signal of what AI-native engineering looks like in practice.
Eran Zinman, Co-CEO of monday.com, also highlighted the significant progress made in their AI-driven products during the quarter. At their Investor Day last September, the company laid out a fundamental shift in how they see monday.com as not just a work management platform but one that actually does the work for teams at scale from a single system of records.
As part of this shift, Monday.com has re-architectured its core offering from monday Work Management to monday AI Work Platform. The company has also introduced a new seats plus credits pricing structure for new customers, moving to consumption-based pricing that aligns what customers pay with the value AI actually delivers.
With more than 250,000 customers already running their work inside monday.com, the company has a data advantage that no point solution can replicate. Monday.com's focus on integrating AI into its platform has given it a significant edge in the market, and it is well-positioned to continue growing in the coming quarters.
