MNDY Lawsuit Alleges Management Allegedly Inflated Revenue Projections - monday.com Ltd. Investors Face Losses Following Management Allegedly Inflated Revenue Projections: SueWallSt

Important Notice Regarding Alleged Revenue Target Misrepresentations in the SaaS Sector

NEW YORK, March 26, 2026 /PRNewswire/ -- SueWallSt notifies investors in monday.com Ltd. (NASDAQ: MNDY) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between September 17, 2025, and February 6, 2026. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

monday.com shares traded as high as $189.59 before corrective disclosures sent the stock plummeting to $77.63, representing a loss of approximately $112 per share for investors who purchased at the Class Period high. The lead plaintiff deadline is May 11, 2026.

The Alleged $1.8 Billion Revenue Target Methodology

The SaaS enterprise software market rewards companies that can demonstrate predictable, durable revenue growth. At its September 2025 Investor Day, monday.com set a bold public target: $1.8 billion in revenue for fiscal year 2027. The lawsuit contends that this target was presented to the market as a reliable "base case" supported by multi-product expansion, enterprise customer growth, AI monetization and improving net dollar retention rates.

According to the complaint, the assumptions underpinning this target were materially flawed at the time they were communicated. The Company was already experiencing decelerating new customer growth, reduced expansion momentum within existing accounts and lengthening enterprise sales cycles that made the projection increasingly unachievable.

How the Revenue Target Allegedly Affected Investor Decisions

The lawsuit alleges that management presented the $1.8 billion figure alongside metrics designed to reinforce its credibility: remaining performance obligations of $768 million, net dollar retention of 111%, and enterprise customers comprising 40% of total ARR. The action claims these figures, while individually accurate, were packaged to create a misleading impression of trajectory when the Company's underlying growth engine was already showing signs of deceleration.

When the target was quietly rescinded on February 9, 2026, the market repriced MNDY shares by 21% in a single session.

Key Revenue Target Allegations for Shareholders

• The $1.8 billion fiscal year 2027 revenue target was allegedly presented as a conservative "base case" despite known headwinds in enterprise sales cycles and top-of-funnel demand
• AI monetization was cited as a growth driver, yet the lawsuit contends monetization timelines were uncertain and not expected to contribute meaningfully until 2026 at the earliest
• Cross-sell penetration stood at only 6% of customers using more than one product, allegedly insufficient to bridge the gap to the 2027 target
• Performance marketing shifts were allegedly already impacting near-term growth at the time the long-term target was affirmed
• The Company went from reiterating the $1.8 billion target in November 2025 to abandoning it entirely less than three months later

The Enterprise Growth Deceleration Factor

The complaint alleges that while management highlighted accelerating growth among $100,000-plus and $500,000-plus customers, the broader demand environment told a different story. The lawsuit contends that "choppiness in the no-touch demand environment" and shifts away from performance marketing were already eroding the growth foundation that the revenue target required.

"This case presents important questions about revenue projection disclosure obligations in the enterprise software sector. When a company sets a specific, quantified multi-year target and repeatedly affirms it to investors, the market is entitled to know about material risks to that target as they develop." -- Joseph E. Levi, Esq.

Submit your information to join this case or call Joseph E. Levi, Esq. at (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. Applications to serve as lead plaintiff must be filed by May 11, 2026.

CONTACT:
SueWallSt
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171

SOURCE SueWallSt.com