Wix (WIX) Q2 2026 Earnings Call Transcript
Wix held its Q2 2026 earnings call. Management reported revenue of $563.1 million (+15% YoY) and bookings of $569.1 million (+12% YoY). ARR rose to $1.963 billion (+15%). Non-GAAP gross margin was 67% and non-GAAP operating income was 12% of revenue. Full-year guidance calls for low to mid-teens revenue growth and high-teens FCF margin (ex restructuring/acquisitions).
How this was made
The 30-second read
Why it matters
Traders can update models for Wix’s growth and profitability path based on disclosed Q2 margin drivers (AI compute costs, marketing spend) and forward guidance for revenue, bookings, and free cash flow margin.
Market read
The call provides a fresh set of guidance and margin/mix details that can drive estimate changes for growth, bookings quality, and free cash flow trajectory.
What to watch
Bookings lag revenue due to partner softness, so investors may overfocus on top-line growth while underweighting partner-segment demand and its effect on future ARR conversion.
Background
This is the transcript of Wix’s Q2 2026 earnings call, covering financial results, operating metrics, and guidance, with emphasis on proprietary LLM ownership and BASE44 growth.
Ticker impact
Wix reported Q2 2026 results and guided full-year revenue, bookings, and free cash flow, including margin pressure from elevated AI compute costs.
Near-term volatility likely around guidance interpretation, especially non-GAAP gross margin and BASE44 profitability trajectory.
The article provides multiple forward-looking datapoints (full-year revenue/bookings/FCF margin and Q3 revenue growth) and specific margin drivers (AI compute costs, BASE44 model transition), which can reprice expectations for growth versus profitability.
Market effects
Reinforces that AI-native website/app builders are managing inference cost via proprietary models, with margin sensitivity to compute spend.
FX headwind from a strengthening Israeli shekel is cited as offsetting internal savings, relevant for investors tracking currency sensitivity in Israeli tech.
Signals ongoing investment cycle in AI infrastructure for consumer and SMB software, potentially affecting sentiment toward AI-enabled SaaS unit economics.
Counterpoint
BASE44 margin is expected to improve from near 0% entering the year, so current consolidated margin weakness may be temporary and could be underappreciated by the market.
Key entities
- companyWix
Reported Q2 2026 revenue, bookings, ARR, margin drivers, and provided full-year and Q3 guidance tied to proprietary LLM and BASE44 growth.
- executiveAvishai Abrahami
CEO and co-founder, discussed proprietary Base 1 model benefits and TROI target adjustment.
- executiveLior Shemesh
CFO, discussed FX headwind, bookings lag, and margin expectations tied to AI compute and BASE44.
