Buy, Sell or Hold Monday.com Stock?
The $13 billion SaaS company recorded $299 million in revenue (+30% YoY) along with an adjusted EPS of $1.09, both figures comfortably surpassing consensus forecasts. However, the management's conservative outlook for Q3, only minor upgrades for the full-year guidance, and statements regarding uncertainty in search traffic undermined bullish sentiment. Our multi-factor assessment — which evaluates Growth, Profitability, Financial Stability, and Downturn Resilience — indicates that while MNDY remains operationally sound, concerns regarding valuation and volatility continue to be significant. If you're looking for upside with reduced volatility compared to individual stocks, the Trefis High Quality Portfolio offers an alternative, having outperformed the S&P 500 with total returns exceeding 91% since its inception. Additionally, take a look at Ethereum: ETH Price To $10,000?
Let's delve into the specifics of each assessed factor.
[1]
Valuation Looks Very High
Monday.com is trading at a significant premium compared to the S&P 500, with a price-to-sales ratio of 12.8 against 3.2 and a price-to-free cash flow multiple of 252.8, which is over ten times the index's 23.6. For further information, please see: MNDY Valuation Ratios
[2] Growth Is Very Strong
In the past three years, MNDY's revenue has expanded at an average annual growth rate of 43.1%, significantly outpacing the S&P 500's 5.7%. In the last twelve months, revenue surged by 32% to $1.0 billion from $784 million, compared to a 5.0% increase in the index. For additional details, refer to: MNDY Revenue Comparison
[3] Profitability Appears Weak
Although Monday.com reported a modest net income of $53 million over the past year (a margin of 5.1%), its operating income was a negative $6.2 million (a margin of -0.6%) compared to the S&P 500's 18.6%. However, the positive aspect is its strong cash generation, exhibiting $331 million in operating cash flow with a margin of 31.9%, well above the index's 20.3%. For further insights, see: MNDY Operating Income Comparison
[4] Financial Stability Looks Very Strong
The company's leverage is minimal, with only $123 million in debt and a 0.9% debt-to-equity ratio, compared to the S&P 500's 21.8%. Liquidity is exceptional — cash and equivalents account for 86% of total assets ($1.6 billion out of $1.8 billion), while the index shows only 6.9%.
[5] Downturn Resilience Is Very Weak
Historically, Monday.com has been significantly more susceptible to market downturns than the S&P 500. During the inflation crisis of 2022, the stock decreased by 82.8% from its peak of $444.70 in November 2021 to $76.46 a year later, while the index experienced a 25.4% decline during the same period. Unlike the S&P 500, which bounced back within 464 days, MNDY has not yet regained its pre-crisis peak, reaching a high of $327.92 in February 2025 and currently trading at $172.
However, the risk is not confined solely to major market crashes. Stocks can decline even during favorable market conditions — think of situations such as earnings reports, business updates, and changes in outlook. To see how the stock has rebounded from sharp declines in the past, read MNDY Dip Buyer Analyses.
Looking for Smarter Alternatives?
Monday.com is experiencing rapid growth, boasts strong financial stability, and maintains an impressive cash position — but it also comes with a high price tag and has historically shown vulnerability to market shocks. If you have faith in the long-term perspective, being patient for a more favorable entry point could be beneficial.
You might consider exploring the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices)and generated strong returns for its investors. What is the reason behind this? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks has provided an effective way to capitalize on positive market conditions while minimizing losses when markets decline, as explained in RV Portfolio performance metrics.
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[1] IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business. Beginning in the first quarter of 2024, our IDC business was subdivided into wholesale IDC business and retail IDC business according to the nature and scale of our data center projects. Prior to 2024, the subdivision was based on customer contract types. [2] Non-IDC business consists of cloud services and VPN services. [3] Utilization rate is calculated by dividing capacity utilized by customers by the capacity in service. [4] Mature wholesale capacity refers to wholesale data centers in which utilization rate is at or above 80%. [5] Ramp-up wholesale capacity refers to wholesale data centers in which utilization rate is below 80%. [6] Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect. [7] Commitment rate is calculated by total capacity committed divided by total capacity in service. [8] Total capacity pre-committed is the capacity under construction which is pre-committed to customers pursuant to customer agreements remaining in effect. [9] Pre-commitment rate is calculated by total capacity pre-committed divided by total capacity under construction. [10] For retail IDC business, since the first quarter of 2024, we have excluded a certain number of reserved cabinets from the capacity in service. Reserved cabinets refer to those that have not been utilized on a large scale, those that are planned to be closed, or those that are planned to be further upgraded. As of June 30, 2024, March 31, 2025, and June 30, 2025, 4,150, 3,766 and 3,791 reserved cabinets, respectively, were excluded from the calculation of utilization rate of retail IDC business capacity. [11] Mature retail capacity refers to retail data centers that came into service prior to the past 24 months. 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The above outlook remains unchanged from the estimates the Company provided on June 27, 2025. The forecast reflects the Company's current and preliminary views on the market and its operational conditions and is subject to change. Conference Call The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Thursday, August 21, 2025, or 8:00 PM Beijing Time on Thursday, August 21, 2025. For participants who wish to join the call, please access the links provided below to complete the online registration process. English line: Chinese line (listen-only mode): Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call. Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at A replay of the conference call will be accessible through August 28, 2025, by dialing the following numbers: US/Canada: 1 855 883 1031 Mainland China: 400 1209 216 Hong Kong, China: 800 930 639 International: +61 7 3107 6325 Reply PIN (English line): 10049370 Reply PIN (Chinese line): 10049371 Non-GAAP Disclosure In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release. The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. Exchange Rate This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.1636 to US$1.00, the noon buying rate in effect on June 30, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. Statement Regarding Unaudited Condensed Financial Information The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information. About VNET VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises. Safe Harbor Statement This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "target," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement as well as VNET's strategic and operational plans, including the plan to sign a definitive agreement on a pre-REITs project, contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law. Investor Relations Contact: Xinyuan LiuTel: +86 10 8456 2121Email: ir@ VNET GROUP, INC. CONSOLIDATED BALANCE SHEETS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) As of As of December 31, 2024June 30, 2025 RMB RMB US$ Assets Current assets: Cash and cash equivalents 1,492,4362,918,345407,385 Restricted cash 545,795458,32163,979 Short-term Investments -1,244,183173,681 Accounts and notes receivable, net 1,655,9842,216,078309,353 Amounts due from related parties 336,360401,72356,078 Prepaid expenses and other current assets 2,789,5732,939,878410,394 Total current assets 6,820,14810,178,5281,420,870 Non-current assets: Restricted cash 42,84243,4176,061 Derivative financial instruments 6,76816,3072,276 Long-term investments, net 794,688787,383109,914 Property and equipment, net 17,216,63519,857,6522,772,021 Intangible assets, net 1,403,7871,938,715270,634 Land use rights, net 766,213901,386125,829 Operating lease right-of-use assets, net 4,618,2125,057,531706,004 Deferred tax assets, net 306,623349,80648,831 Other non-current assets 381,126577,63480,635 Total non-current assets 25,536,89429,529,8314,122,205 Total assets 32,357,04239,708,3595,543,075 Liabilities and Shareholders' Equity Current liabilities: Short-term bank borrowings 589,000929,997129,823 Current portion of long-term borrowings 1,420,1901,795,594250,655 Current portion of finance lease liabilities 208,299249,92934,889 Current portion of operating lease liabilities 899,818944,491131,846 Accounts and notes payable 709,260754,367105,306 Amounts due to related parties 355,679409,63657,183 Income taxes payable 69,56944,1636,165 Advances from customers 1,378,8061,289,187179,964 Deferred revenue 87,83082,32511,492 Current portion of deferred government grants 6,72757,1337,975 Accrued expenses and other payables 3,618,2373,888,806542,856 Total current liabilities 9,343,41510,445,6281,458,154 Non-current liabilities: Long-term borrowings 7,767,3909,476,3931,322,853 Convertible notes 1,897,7385,176,772722,650 Non-current portion of finance lease liabilities 1,532,3091,577,599220,224 Non-current portion of operating lease liabilities 3,779,2934,186,863584,464 Unrecognized tax benefits 107,850107,85015,055 Deferred tax liabilities 734,404898,530125,430 Deferred government grants 273,824219,10430,586 Total non-current liabilities 16,092,80821,643,1113,021,262 Mezzanine equity: Redeemable non-controlling interests -869,838121,425 Total mezzanine equity -869,838121,425 Shareholders' equity Ordinary shares 11211216 Treasury stock (161,892)(161,892)(22,599) Additional paid-in capital 17,298,69217,349,5172,421,899 Statutory reserves 107,380113,29215,815 Accumulated other comprehensive loss (18,504)(15,818)(2,208) Accumulated deficit (10,859,888)(11,115,339)(1,551,641) Total VNET Group, Inc. shareholders' equity 6,365,9006,169,872861,282 Noncontrolling interest 554,919579,91080,952 Total shareholders' equity 6,920,8196,749,782942,234 Total liabilities and shareholders' equity 32,357,04239,708,3595,543,075 VNET GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) Three months ended Six months ended June 30, 2024March 31, 2025June 30, 2025June 30, 2024June 30, 2025 RMB RMB RMB US$ RMB RMB US$ Net revenues 1,993,7602,246,2202,434,205339,8023,891,8864,680,425653,362 Cost of revenues (1,568,865)(1,680,879)(1,886,470)(263,341)(3,056,270)(3,567,349)(497,983) Gross profit 424,895565,341547,73576,461835,6161,113,076155,379 Operating income (expenses) Operating income (loss) -1,461(1,143)(160)3,94931844 Sales and marketing expenses (58,225)(64,346)(69,963)(9,766)(129,968)(134,309)(18,749) Research and development expenses (61,998)(43,603)(67,570)(9,432)(137,387)(111,173)(15,519) General and administrative expenses (107,297)(179,770)(212,473)(29,660)(333,594)(392,243)(54,755) Allowance for doubtful debt (2,753)(30,552)(23,568)(3,290)2,422(54,120)(7,555) Total operating expenses (230,273)(316,810)(374,717)(52,308)(594,578)(691,527)(96,534) Operating profit 194,622248,531173,01824,153241,038421,54958,845 Interest income 5,4496,75116,8692,35517,57823,6203,297 Interest expense (92,172)(100,653)(157,508)(21,987)(229,854)(258,161)(36,038) Other income 30,4751,8115,23473135,2897,045985 Other expenses (6,900)(2,438)(5,499)(768)(8,322)(7,937)(1,108) Changes in the fair value of financial instruments 712(334,904)70,4049,8284,570(264,500)(36,922) Foreign exchange (loss) gain (4,387)9,5279,2581,292(32,748)18,7852,622 Income (loss) before income taxes and gain from equity method investments 127,799(171,375)111,77615,60427,551(59,599)(8,319) Income tax expenses (59,149)(52,062)(95,048)(13,268)(120,533)(147,110)(20,536) Gain from equity method investments 3,1993,2144165,8053,255454 Net income (loss) 71,849(220,223)16,7692,342(87,177)(203,454)(28,401) Net income attributable to noncontrolling interest (8,174)(17,335)(13,656)(1,906)(36,153)(30,991)(4,326) Net income attributable to redeemable non-controlling interests --(15,027)(2,098)-(15,027)(2,098) Net income (loss) attributable to the VNET Group, Inc. 63,675(237,558)(11,914)(1,662)(123,330)(249,472)(34,825) Accretion to redemption amount of redeemable non-controlling interests --(67)(9)-(67)(9) Net profit (loss) attributable to the Company's ordinary shareholders 63,675(237,558)(11,981)(1,671)(123,330)(249,539)(34,834) Earnings (loss) per share Basic 0.04(0.15)(0.01)(0.00)(0.08)(0.16)(0.02) Diluted 0.04(0.15)(0.01)(0.00)(0.08)(0.16)(0.02) Shares used in earnings (loss) per share computation Basic* 1,594,662,0991,608,799,8421,610,484,7261,610,484,7261,581,481,2291,609,646,9391,609,646,939 Diluted* 1,595,517,3381,608,799,8421,610,484,7261,610,484,7261,581,481,2291,609,646,9391,609,646,939 Earnings (loss) per ADS (6 ordinary shares equal to 1 ADS) Basic 0.24(0.90)(0.06)(0.01)(0.48)(0.96)(0.12) Diluted 0.24(0.90)(0.06)(0.01)(0.48)(0.96)(0.12) * Shares used in (loss) earnings per share/ADS computation were computed under weighted average method. VNET GROUP, INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended Six months ended June 30, 2024March 31, 2025June 30, 2025June 30, 2024June 30, 2025 RMB RMB RMB US$ RMB RMB US$ Gross profit 424,895565,341547,73576,461835,6161,113,076155,379 Plus: depreciation and amortization 364,616402,399513,89171,736717,220916,290127,909 Plus: share-based compensation expenses (2,190)10919627-30543 Adjusted cash gross profit 787,321967,8491,061,822148,2241,552,8362,029,671283,331 Adjusted cash gross margin 39.5 %43.1 %43.6 %43.6 %39.9 %43.4 %43.4 % Operating expenses (230,273)(316,810)(374,717)(52,308)(594,578)(691,527)(96,534) Plus: share-based compensation expenses (12,962)6,3299,1631,27998,71915,4922,163 Adjusted operating expenses (243,235)(310,481)(365,554)(51,029)(495,859)(676,035)(94,371) Operating profit 194,622248,531173,01824,153241,038421,54958,845 Plus: depreciation and amortization 394,334427,440550,08776,789773,885977,527136,458 Plus: share-based compensation expenses (15,152)6,4389,3591,30698,71915,7972,206 Adjusted EBITDA 573,804682,409732,464102,2481,113,6421,414,873197,509 Adjusted EBITDA margin 28.8 %30.4 %30.1 %30.1 %28.6 %30.2 %30.2 % VNET GROUP, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended June 30, 2024March 31, 2025June 30, 2025 RMB RMB RMB US$ CASH FLOWS FROM OPERATING ACTIVITIES Net cash generated from operating activities 405,204195,713366,59651,174 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (998,489)(1,792,051)(1,870,296)(261,083) Purchases of intangible assets (7,594)(33,952)(24,388)(3,404) Payments for investments (138,224)(21,440)(1,216,168)(169,771) Proceeds from (payments for) other investing activities 117,209(37,327)(171,213)(23,900) Net cash used in investing activities (1,027,098)(1,884,770)(3,282,065)(458,158) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank borrowings 690,8481,893,3861,004,537140,228 Repayments of bank borrowings (533,324)(369,366)(381,728)(53,287) Proceeds from issuance of 2030 Convertible Notes -3,015,117-- Payments for finance leases (9,586)(37,950)(44,471)(6,208) Contribution from noncontrolling interest in a subsidiary -635,000(4,555)(636) Proceeds from other financing activities 516,493230,4358,8751,239 Net cash generated from financing activities 664,4315,366,622582,65881,336 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 3,3709,020(14,764)(2,061) Net increase (decrease) in cash, cash equivalents and restricted cash 45,9073,686,585(2,347,575)(327,709) Cash, cash equivalents and restricted cash at beginning of period 2,089,9262,081,0735,767,658805,134 Cash, cash equivalents and restricted cash at end of period 2,135,8335,767,6583,420,083477,425 View original content: SOURCE VNET Group, Inc.
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