Wix.com Ltd. (WIX): Financial results for Q3 2026
Wix.com Ltd. (WIX) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Wix Reports Third Quarter 2026 Results • Q3 bookings of $573 million, up 11% y/y, and revenue of $570 million, up 13% y/y, driven by Base44 outperformance • Base44 now nearing $250 million of ARR, fueled by strong demand and accelerated marketing investments ◦ Retent
How this was made
The 30-second read
Why it matters
The earnings beat and stable guidance reinforce the company's growth narrative, likely supporting a bullish short‑term bias.
Market read
First‑report earnings release with material numbers; traders can act on the data today.
What to watch
Potential headwinds from AI competition and margin pressure if AI costs rise.
Wix Q3 2026 revenue of $570.2 million, up 13% y/y, with bookings of $573.0 million up 11% y/y; full-year FCF margin outlook lowered to about 16%
Revenue growth (13% y/y) and Base44 ARR momentum (close to $250 million) are reported as ahead of expectations, and the non-GAAP gross margin held at 69%. Against that, Q3 GAAP operating loss was $(16,411) thousand, free cash flow fell to $74.5 million from $127.3 million, the full-year FCF margin outlook was reduced to about 16%, Q4 bookings growth is expected to lag revenue growth, and the company reports Partners softness.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | $570.2M | – | up 13% y/y |
| Creative Subscriptions revenue, Q3 2026GAAP | $406.7M | – | up 14% y/y |
| Business Solutions revenue, Q3 2026GAAP | $163.5M | – | up 10% y/y |
| Transaction revenue (portion of Business Solutions), Q3 2026other | $73.1M | – | up 12% y/y |
| Partners revenue, Q3 2026other | $212.4M | – | up 11% y/y |
| Total bookings, Q3 2026non-GAAP | $573M | – | up 11% y/y |
| Creative Subscriptions bookings, Q3 2026non-GAAP | $407M | – | up 11% y/y |
| Business Solutions bookings, Q3 2026non-GAAP | $166M | – | up 12% y/y |
| Cost of revenues, Q3 2026GAAP | $183.3M | – | – |
| Gross profit, Q3 2026GAAP | $386.8M | – | – |
| Total gross margin, Q3 2026GAAP | 68% | – | – |
| Creative Subscriptions gross margin, Q3 2026GAAP | 82% | – | – |
| Business Solutions gross margin, Q3 2026GAAP | 32% | – | – |
| Total non-GAAP gross margin, Q3 2026non-GAAP | 69% | up two percentage points sequentially (per release) | consistent year-over-year (per release) |
| Creative Subscriptions non-GAAP gross margin, Q3 2026non-GAAP | 83% | – | – |
| Business Solutions non-GAAP gross margin, Q3 2026non-GAAP | 33% | – | – |
| Base44 non-GAAP gross margin, Q3 2026non-GAAP | 58% | – | – |
| Total operating expenses, Q3 2026GAAP | $403.2M | – | – |
| Research and development, Q3 2026GAAP | $169.4M | – | – |
| Selling and marketing, Q3 2026GAAP | $193.2M | – | – |
| General and administrative, Q3 2026GAAP | $40.60M | – | – |
| Operating income (loss), Q3 2026GAAP | −$16.41M | – | – |
| Non-GAAP operating income, Q3 2026non-GAAP | $68.73M | – | – |
| Non-GAAP operating margin, Q3 2026non-GAAP | 12% | – | – |
| Financial income (expenses), net, Q3 2026GAAP | 212 thousand (income) | – | – |
| Income tax benefit (expenses), Q3 2026GAAP | 3,264 thousand (benefit) | – | – |
| Net income (loss), Q3 2026GAAP | −$13.70M | – | – |
| Net loss per basic and diluted share, Q3 2026GAAP | $(0.32) | – | – |
| Non-GAAP net income, Q3 2026non-GAAP | $69.3M | – | – |
| Non-GAAP net income per basic share, Q3 2026non-GAAP | $1.64 | – | – |
| Non-GAAP net income per diluted share, Q3 2026non-GAAP | $1.42 | – | – |
| Net cash provided by operating activities, Q3 2026GAAP | $78.3M | – | – |
| Capital expenditures, net, Q3 2026other | $3.8M | – | – |
| Free cash flow, Q3 2026non-GAAP | $74.5M | – | – |
| Free cash flow excluding acquisition and restructuring costs, Q3 2026non-GAAP | $99.6M | – | – |
| Total consolidated ARR, end of Q3 2026other | $2.02B | – | up 15% y/y |
| Base44 ARR, Q3 2026other | close to $250 million | – | – |
| Total employee count, end of Q3 2026other | 4,121 | – | – |
| Total revenue, nine months 2026GAAP | $1.67B | – | – |
| Creative Subscriptions revenue, nine months 2026GAAP | $1.19B | – | – |
| Business Solutions revenue, nine months 2026GAAP | $487.0M | – | – |
| Total bookings, nine months 2026non-GAAP | $1.73B | – | up 12% y/y |
| Creative Subscriptions bookings, nine months 2026non-GAAP | $1.23B | – | up 12% y/y |
| Business Solutions bookings, nine months 2026non-GAAP | $495.5M | – | up 14% y/y |
| Cost of revenues, nine months 2026GAAP | $563.9M | – | – |
| Gross profit, nine months 2026GAAP | $1.11B | – | – |
| Non-GAAP gross margin, nine months 2026non-GAAP | 67% | – | – |
| Research and development, nine months 2026GAAP | $523.3M | – | – |
| Selling and marketing, nine months 2026GAAP | $574.5M | – | – |
| General and administrative, nine months 2026GAAP | $130.5M | – | – |
| Restructuring and other costs, nine months 2026GAAP | $27.11M | – | – |
| Total operating expenses, nine months 2026GAAP | $1.26B | – | – |
| Operating income (loss), nine months 2026GAAP | −$144.9M | – | – |
| Non-GAAP operating income, nine months 2026non-GAAP | $161.3M | – | – |
| Non-GAAP operating margin, nine months 2026non-GAAP | 10% | – | – |
| Net income (loss), nine months 2026GAAP | −$147.5M | – | – |
| Net income (loss) per basic share, nine months 2026GAAP | $(3.13) | – | – |
| Net income (loss) per diluted share, nine months 2026GAAP | $(3.13) | – | – |
| Non-GAAP net income, nine months 2026non-GAAP | $180.0M | – | – |
| Non-GAAP net income per basic share, nine months 2026non-GAAP | $3.82 | – | – |
| Non-GAAP net income per diluted share, nine months 2026non-GAAP | $3.35 | – | – |
| Net cash provided by operating activities, nine months 2026GAAP | $212.4M | – | – |
| Free cash flow, nine months 2026non-GAAP | $202.1M | – | – |
| Free cash flow excluding acquisition and restructuring costs, nine months 2026non-GAAP | $273.1M | – | – |
| Q1 cohort bookings, nine months 2026non-GAAP | $91M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Creative SubscriptionsThe release does not state a segment-level driver. Total revenue growth is attributed by the company to Base44 outperformance. Creative Subscriptions includes Base44. | $406.7M | – | up 14% y/y |
| Business SolutionsThe release does not state a segment-level driver. Business Solutions non-GAAP gross margin was 33% in Q3 2026 against 34% in Q3 2025. | $163.5M | – | up 10% y/y |
| Transaction revenue (portion of Business Solutions)Per the release definition, primarily Wix Payments, plus Wix POS, shipping solutions, multi-channel commerce and gift card solutions. | $73.1M | – | up 12% y/y |
| Partners revenue (cuts across Creative Subscriptions and Business Solutions)Revenue through agencies and freelancers building sites or applications for other users, plus B2B partnerships such as LegalZoom or Vistaprint. The release says Partners softness affects Q4 bookings more immediately. | $212.4M | – | up 11% y/y |
FY2026 and Q4 2026 outlook
- RevenueFY2026: low- to mid-teens percentage y/y growth (maintained). Q4 2026: low-double-digits percentage y/y growth.
- Gross marginBase44 2H 2026 non-GAAP gross margin of approximately 60% (still expected). Q4 2026 non-GAAP gross margin improving to above 60% per the release. Release also states Base44 margin is expected to exit the year above 60%.
- NoteFY2026 bookings: low-teens percentage y/y growth (maintained).
- NoteQ4 2026 bookings growth expected to continue to lag revenue growth, due to the more immediate impact of Partners softness on bookings.
- NoteFY2026 FCF margin excluding acquisition-related and restructuring costs: approximately 16%, down from the high-teens previously anticipated, primarily due to accelerated sales and marketing investments in Base44 (company explanation).
- NoteGross margin improvement is to be reinvested into Base44 sales and marketing in Q4 2026 (company statement).
- NoteWorking capital headwind of approximately $10 million in Q4 2026 related to prepayment of GPUs required to run models for the next couple of years.
Capital returns
- Q3 2026 purchase of treasury shares is shown as nil in the cash flow statement, against $(175,000) thousand in Q3 2025.
- Nine months 2026 purchase of treasury shares under tender offer: $(1,623,438) thousand. Nine months 2025 purchase of treasury shares: $(475,000) thousand.
- Nine months 2026 proceeds from exercise of options and ESPP shares: $48,617 thousand, against $54,618 thousand in nine months 2025.
- No dividend payments are printed in the documents.
What drove it
- Company attributes Q3 2026 revenue growth to Base44 outperformance.
- Company attributes the Q3 2026 non-GAAP gross margin of 69% to its proprietary AI model, Base 1. Base44 non-GAAP gross margin reached 58% in Q3 2026.
- Company attributes the reduced FY2026 FCF margin outlook primarily to accelerated sales and marketing investments in Base44.
- Base44 ARR is described as reaching close to $250 million, driven by ramping top-of-funnel momentum and improving retention of existing users (company explanation).
- Annual plans accounted for more than 20% of subscriptions purchased by the September 2026 Base44 cohort, against approximately 5% in the September 2025 cohort (per release).
Concerns
- Q3 2026 GAAP operating loss of $(16,411) thousand, against $(7,371) thousand in Q3 2025. Nine months 2026 GAAP operating loss of $(144,930) thousand, against operating income of $74,340 thousand in nine months 2025.
- Q3 2026 selling and marketing expense of $193,192 thousand, against $137,428 thousand in Q3 2025. Nine months 2026 selling and marketing of $574,487 thousand, against $362,146 thousand.
- Free cash flow of $74.5 million in Q3 2026, against $127,282 thousand in Q3 2025. Full-year FCF margin outlook reduced to approximately 16%.
- Company expects Q4 2026 bookings growth to lag revenue growth due to Partners softness.
- Non-GAAP operating margin fell to 12% in Q3 2026 from 18% in Q3 2025.
- Current credit facility loans of $500,073 thousand at September 30, 2026, and total shareholders' deficiency of $(1,689,733) thousand.
- Q4 2026 working capital headwind of approximately $10 million related to GPU prepayment.
What to watch
- Conversion of Base44 ARR (close to $250 million) into bookings and revenue, which the company expects over coming quarters given the majority of subscriptions are billed monthly.
- Base44 non-GAAP gross margin exiting 2026 above 60%, and the company's stated intent to reinvest gross margin gains in Q4 sales and marketing.
- Q4 2026 revenue growth in the low-double-digits percentage range and Q4 bookings growth relative to revenue growth.
- Partners revenue trajectory, given the company's reference to Partners softness.
- FY2026 FCF margin excluding acquisition-related and restructuring costs of approximately 16%.
- Adoption of Studio Two and the effect of the leadership change under which Nir Zohar was appointed Co-CEO alongside Avishai Abrahami.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $703,434 thousand, against $311,356 thousand at December 31, 2025.
- Marketable securities (current) at September 30, 2026: $331,984 thousand, against $483,859 thousand at December 31, 2025. Long-term marketable securities: nil, against $474,198 thousand at December 31, 2025.
- Credit facility loans (current) at September 30, 2026: $500,073 thousand, against nil at December 31, 2025. Nine months 2026 proceeds from credit facility loan: $500,000 thousand.
- Convertible notes, net (long-term) at September 30, 2026: $1,129,629 thousand, against $1,125,769 thousand at December 31, 2025.
- Total assets at September 30, 2026: $1,898,167 thousand, against $2,610,974 thousand at December 31, 2025.
- Total liabilities at September 30, 2026: $3,587,900 thousand, against $2,976,976 thousand at December 31, 2025.
- Total shareholders' deficiency at September 30, 2026: $(1,689,733) thousand, against $(366,002) thousand at December 31, 2025. Treasury shares: $(3,223,538) thousand, against $(1,600,156) thousand at December 31, 2025.
- Deferred revenues (current) at September 30, 2026: $783,825 thousand, against $737,346 thousand at December 31, 2025.
- Nine months 2026 proceeds from private placement (ordinary shares and warrants): $260,000 thousand. Payment of issuance costs related to private placement: $(8,408) thousand.
- Nine months 2026 net cash provided by investing activities: $995,820 thousand. Nine months 2025 net cash used in investing activities: $(261,141) thousand.
Analysis
Wix reported Q3 2026 total revenue of $570.2 million, up 13% y/y, with Creative Subscriptions at $406.7 million (up 14% y/y) and Business Solutions at $163.5 million (up 10% y/y). Total bookings were $573.0 million, up 11% y/y, with Creative Subscriptions bookings up 11% and Business Solutions bookings up 12%. The company attributes the revenue growth to Base44 outperformance and reports Base44 ARR close to $250 million. Total ARR was $2.021 billion, up 15% y/y, against $1,761,675 thousand a year earlier.
Profitability is more mixed. The non-GAAP gross margin was 69%, printed as consistent year-over-year and up two percentage points sequentially, while the GAAP total gross margin was 68%. Non-GAAP operating income was $68,734 thousand, against $89,926 thousand in Q3 2025, and the non-GAAP operating margin was 12% against 18%. GAAP operating loss was $(16,411) thousand, against $(7,371) thousand. Selling and marketing expense rose to $193,192 thousand from $137,428 thousand, and research and development fell to $169,432 thousand from $172,025 thousand. GAAP net loss was $(13,695) thousand, or $(0.32) per basic and diluted share, against $(589) thousand, or $(0.01). Non-GAAP net income was $69.3 million, and non-GAAP diluted EPS was $1.42 against $1.68.
Cash generation weakened. Operating cash flow was $78.3 million against $128,699 thousand, capital expenditures were $3.8 million, and free cash flow was $74.5 million against $127,282 thousand. Excluding acquisition and restructuring costs, free cash flow was $99.6 million against $159,410 thousand. For the nine months, free cash flow was $202,086 thousand against $417,388 thousand. The full-year FY2026 FCF margin outlook, excluding acquisition-related and restructuring costs, is now approximately 16%, down from the high-teens previously anticipated, which the company attributes primarily to accelerated sales and marketing investments in Base44.
The guidance is the central point for readers. Full-year revenue growth of low- to mid-teens and bookings growth of low-teens are maintained. Q4 2026 revenue growth is guided to low-double-digits, and Q4 bookings growth is expected to lag revenue growth because of Partners softness. The company expects Base44 non-GAAP gross margin of approximately 60% in 2H and an exit above 60%, and says further gross margin gains will be reinvested in Base44 sales and marketing in Q4. It also flags a Q4 working capital headwind of approximately $10 million tied to GPU prepayments.
The balance sheet shows cash and cash equivalents of $703,434 thousand at September 30, 2026, against $311,356 thousand at December 31, 2025, alongside $500,073 thousand of current credit facility loans drawn in 2026 and convertible notes of $1,129,629 thousand. Total shareholders' deficiency was $(1,689,733) thousand. Nine-month treasury share purchases under the tender offer were $(1,623,438) thousand, and no Q3 2026 buybacks are shown. The release gives no prior-year guidance comparison in the documents provided, so no guidance verdicts are recorded.
Management, verbatim
Base44, our biggest bet, continues to outperform expectations, driven by our leading product, clear strategy and relentless execution underpinned by aggressive and necessary investments
Avishai Abrahami, Co-Founder and CEO, Wix
We expect Base44 non-GAAP gross margin to exit the year above 60% and approach that of our core Wix business next year – an incredible achievement driven by meaningful reductions in AI inference costs delivered by our proprietary Base 1 model.
Lior Shemesh, CFO, Wix
Studio Two was built for exactly that moment.
Avishai Abrahami, Co-Founder and CEO, Wix
Not in the filing
stated, not guessed- Prior-year GAAP total gross margin, Creative Subscriptions GAAP gross margin and Business Solutions GAAP gross margin for Q3 2025 are not printed.
- Year-over-year percentage change for Q3 2026 GAAP operating loss, net loss, non-GAAP operating income and cost of revenues is not printed.
- Year-over-year percentage growth for total revenue, Creative Subscriptions revenue and Business Solutions revenue for the nine months 2026 is not printed.
- Prior-year Base44 non-GAAP gross margin is not printed; Q3 2026 Base44 margin is compared only to Q1 ('near-zero') in narrative form.
- Prior-quarter (Q2 2026) figures are not printed in the release, so no sequential changes beyond the stated 'up two percentage points sequentially' gross margin change.
- Partners and Transaction revenue prior-year figures are not printed.
- Base44 revenue (as distinct from ARR) is not printed.
- Previous outlook was not provided, so no vs_prior_guidance comparison was made; the release's reference to FCF margin being lowered from 'high-teens' is not quantified in a prior guidance document.
- Guidance for tax rate and operating expenses is not provided.
- Q3 2026 restructuring charge is shown as nil; nine-month restructuring prior-year figure is nil.
- Share price reaction, consensus estimates and analyst expectations are not in the documents.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Wix.com filed a Form 6‑K with the SEC, providing its Q3 2026 earnings and outlook.
Ticker impact
Wix.com reported Q3 2026 revenue of $570.2M, up 13% YoY, and reaffirmed full-year guidance.
likely upward pressure as investors price in strong revenue growth and stable outlook
The earnings release provides fresh, material numbers and confirms guidance, giving traders a clear basis for a buy or hold decision.
Market effects
Strong performance in web‑hosting and SaaS may boost sentiment for similar tech firms.
Positive for US Nasdaq‑listed SaaS companies.
Limited to the tech sector; no broad macro impact.
Counterpoint
If the market has already priced in the growth, the reaffirmed guidance may not move the stock further.
Key entities
- companyWix.com Ltd.
Web‑hosting and SaaS provider listed on Nasdaq.
- executiveAvishai Abrahami
Co‑Founder and CEO of Wix.com.
