A securities class action has been filed against monday.com Ltd. (MNDY) on behalf of all investors who purchased or otherwise acquired monday.com common stock between September 17, 2025 through February 6, 2026. This case has been filed in the USDC – SDNY.
monday.com LTD provided investors with material information concerning monday’s expected revenue target of $1.8 billion for 2027 alongside the growth trajectory for its core business trends. Defendants’ statements included, among other things, confidence in monday’s ability to capitalize on its growth potential through AI product innovation and enterprise expansion.
These overwhelmingly positive statements were provided to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of monday’s revenue expansion outlook; notably decelerating growth, reduced expansion momentum and extended sales cycles. Such statements absent these material facts caused Plaintiff and other shareholders to purchase monday’s securities at artificially inflated prices.
The truth began to emerge on November 10, 2025 when monday issued a press release announcing positive financial results for the third quarter 2025. In pertinent part, the company reported revenue of $316.9 million, an increase of 26% year-over-year, and above consensus of 24%. Despite this positive news, the Company issued softer guidance for the fourth quarter 2025 due to a shift in its performance marketing strategy.
In response to this news, monday’s stock price declined from $189.59 per share to $166.21 per share on November 10, 2025. However, Defendants materially misrepresented and/or concealed the true risks faced with respect to the Company’s bold projections regarding enterprise customer growth, its multiproduct and AI-powered platform, and international expansion. Further, on the accompanying earnings call, management continued to reiterate its 2027 revenue target of $1.8 billion.
Investors remained in the dark until the truth emerged on February 9, 2026, when Defendants issued a press release reporting positive results for the fourth quarter and fiscal year 2025. Notably in the same release, Defendants announced a weaker outlook for the Company’s 2026 guidance and a strategic shift away from its long term 2027 revenue target of $1.8 billion.
Investors and analysts reacted immediately to monday’s revelation. The price of monday’s common stock declined dramatically from a closing market price of $98.00 per share on February 6, 2026, monday’s stock price fell to $77.63 per share on February 9, 2026, a decline of about 21%.