Time-Sensitive: Allegations Focus on Concealed Enterprise Sales Cycle Deterioration
MNDY INVESTOR ALERT
NEW YORK, March 16, 2026 (GLOBE NEWSWIRE) — Levi & Korsinsky, LLP alerts investors in monday.com Ltd. (NASDAQ: MNDY) of a pending securities class action. Class Period: September 17, 2025 through February 6, 2026. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500.
Shares fell 21% on February 9, 2026, closing at $77.63 after the Company rescinded its $1.8 billion fiscal year 2027 revenue target and issued 2026 guidance of just $1.452 billion to $1.462 billion, representing 18% to 19% growth versus the 27% pace investors had been told to expect. The Court has set May 11, 2026 as the deadline to apply for lead plaintiff appointment.
What the Lawsuit Asserts About Enterprise Expansion Momentum
The action claims that throughout the Class Period, the Company painted an overwhelmingly positive picture of enterprise customer adoption and multi-product cross-selling while concealing material adverse trends. At the September 2025 Investor Day, management told shareholders that customers above $50,000 had grown from 5% to 40% of total ARR share, that net dollar retention for enterprise accounts exceeded 115%, and that remaining performance obligations had scaled to $768 million. These metrics were presented as proof of durable, predictable growth.
As alleged in the complaint, however, the Company was simultaneously experiencing reduced expansion momentum within its existing customer base and extended sales cycles among larger enterprise prospects that undermined the very metrics being cited as growth drivers.
Lengthening Sales Cycles and Weakening Top-of-Funnel Demand
– The lawsuit contends that management’s shift toward upmarket enterprise clients introduced timing lags that were not adequately disclosed to investors
– As alleged, the Company’s “no-touch” demand channel was experiencing persistent choppiness that eroded new customer acquisition velocity
– The action asserts that cross-sell penetration among monday.com’s approximately 250,000-plus customers was limited, making the assumptions about multi-product adoption supporting the $1.8 billion target as potentially overstated.
Why Expansion Metrics Allegedly Mattered to Shareholders
The complaint alleges that management emphasized enterprise customer expansion and multi-product adoption as key drivers supporting the $1.8 billion fiscal year 2027 revenue target. Investors relied on these metrics, along with management’s characterization of the target as a baseline framework that did not depend on speculative contributions like AI monetization, and that this narrative was misleading in light of internal trends, including slowing growth and lengthening sales cycles.
Speak with an attorney about recovering damages or call (212) 363-7500.
“Investors deserve transparency about material risks that could affect their investments. When a company anchors its long-term outlook to specific growth drivers, shareholders are entitled to know if those drivers are weakening rather than strengthening,” stated Joseph E. Levi, Esq.
WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services’ Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
