monday.com Ltd. (MNDY) Cash Flow Statement

The gap between net income and operating cash flow is stark, with OCF/NI ranging from 0.78x in 2025Q4 to 42.5x in 2025Q2, per reported figures. This suggests that net income understates cash generation, largely due to non-cash SBC and working capital tailwinds. However, the 2025Q4 dip to 0.78x warrants attention, as it may indicate a temporary working capital drag or timing of collections, though the overall trend remains robust.

FCF margins have been volatile, ranging from 14.9% to 41.4% over the past ten quarters, per reported figures. This volatility appears tied to working capital swings from annual billing and timing of collections, rather than operational deterioration. The TTM FCF margin of approximately 25% (calculated from the data) suggests a healthy cash-generative model, though the deceleration in revenue growth to 21.9% in 2026Q2 may pressure future FCF expansion if investment spending persists.

CapEx/Revenue has stayed between 0.7% and 2.0% over the past ten quarters, per reported figures, reflecting a cloud-based infrastructure with minimal fixed asset requirements. This low capital intensity means that FCF is almost entirely driven by operating cash flow, making the business highly cash-generative relative to its asset base. The slight uptick in CapEx in 2025Q4 (2.0%) may indicate incremental investment in data centers or product infrastructure, but it remains immaterial to overall cash generation.

The working capital line has been the primary source of quarterly OCF volatility, with swings of over $100M between quarters, per reported figures. Positive changes in 2024Q1, 2025Q1, and 2026Q1 suggest strong collections or deferred revenue growth, while negative changes in 2025Q4 and 2026Q2 indicate payouts or timing mismatches. This pattern aligns with a subscription model where annual prepayments create lumpy cash inflows, but investors should monitor whether the negative swings become more frequent as growth decelerates.

The company initiated significant buybacks in 2026Q1 ($552.6M) and 2026Q2 ($201.2M), per reported figures, a notable departure from prior quarters with no repurchases. This deployment appears funded by the $1.5B cash pile and strong operating cash flow, suggesting management views the stock as undervalued or seeks to offset SBC dilution. However, the timing of buybacks during a period of decelerating growth may indicate a maturing capital allocation strategy, though the impact on share count and EPS warrants monitoring.