New York, New York--(Newsfile Corp. - February 10, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into monday.com Ltd. ("monday.com Ltd.") (NASDAQ: MNDY) concerning potential violations of the federal securities laws.

On its February 9, 2026 earnings call, monday.com disclosed two specific headwinds that it had built into its 2026 guidance: persistent weakness in its "no-touch" performance marketing channel serving small and medium businesses, and a 100-200 basis point foreign exchange drag driven by Israeli shekel appreciation. CFO Eliran Glazer stated that the 2026 guidance "doesn't assume any rebound in performance marketing or top-of-funnel activity" and is "based on current conditions."

The no-touch SMB channel has been a recurring concern. In Q2 FY2025, management attributed a revenue headwind to temporary web-traffic softness caused by Google search algorithm changes, and the stock fell 26%. In Q3 FY2025, the stock fell 19% on a similar guidance miss. By the February 9 call, management acknowledged that the no-touch weakness was not temporary but structural, stating it does not believe no touch channels will exit their "choppy demand environment" in 2026. The question is when management first recognized this shift from a temporary disruption to a persistent headwind, and whether prior disclosures adequately reflected that evolution.

Separately, monday.com is increasing investment in AI products - including Monday Vibe, Monday Sidekick, and Monday Agents - which management cited as requiring incremental spending. The company guided gross margins to decline from 90% to the mid-to-high 80s in FY2026, attributed in part to AI infrastructure costs. R&D spending rose from 17% to 19% of revenue in FY2025, and management guided for mid-teens percentage headcount growth in FY2026 concentrated in sales and R&D. These investments reduce near-term profitability while the revenue contribution from AI products remains early-stage - Monday Vibe reached $1 million in ARR, a small fraction of the company's $1.2 billion annual revenue base.

The combination of no-touch channel deterioration, FX headwinds, rising AI investment costs, and the withdrawal of 2027 financial targets collectively explain the deceleration from 27% to 18-19% guided growth. Investors are evaluating whether these headwinds were known to management earlier than they were communicated to the market.

Monday.com's stock fell 13-14% on February 9, 2026, extending its decline to approximately 70% from its 52-week highs.

If you suffered a loss on your monday.com Ltd. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or call (212)363-7500 to speak to our team of experienced shareholder advocates.

WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.

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Source: Levi & Korsinsky, LLP