Q2 FY2026
Filed Aug 4, 2026Wix reported Q2 2026 revenue of $563.1 million, up 15% y/y, and bookings of $569.1 million, up 12% y/y, while GAAP net loss was $76.4 million and Base44 non-GAAP gross margin is expected to reach approximately 60% in 2H.
Revenue, bookings, ARR and both principal revenue businesses grew year over year, but GAAP results shifted to a net loss, non-GAAP operating margin declined, free cash flow declined, and management cited Partners softness affecting bookings.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $563.1 million | – | up 15% y/y |
| Total ARRother | $1.963 billion | – | up 15% y/y |
| Total bookingsnon-GAAP | $569.1 million | – | up 12% y/y |
| Revenue excluding FX impactnon-GAAP | $559,402 | – | 14 % |
| Bookings excluding FX impactnon-GAAP | $564,403 | – | 11 % |
| Total gross profitGAAP | $370,341 | – | – |
| Total gross marginGAAP | 66% | – | – |
| Non-GAAP gross profitnon-GAAP | $374,861 | – | – |
| Total non-GAAP gross marginnon-GAAP | 67% | – | – |
| Total operating expensesGAAP | $429,140 | – | – |
| Research and development expensesGAAP | $175,685 | – | – |
| Selling and marketing expensesGAAP | $181,705 | – | – |
| General and administrative expensesGAAP | $44,641 | – | – |
| Restructuring and other costsGAAP | $27,109 | – | – |
| Operating income (loss)GAAP | $(58,799) | – | – |
| Non-GAAP operating incomenon-GAAP | $64,827 | – | – |
| Non-GAAP operating marginnon-GAAP | 12 % | – | – |
| Net income (loss)GAAP | $(76,360) | – | – |
| Basic net income (loss) per shareGAAP | $(1.78) | – | – |
| Diluted net income (loss) per shareGAAP | $(1.78) | – | – |
| Non-GAAP net incomenon-GAAP | $68,242 | – | – |
| Basic non-GAAP net income per sharenon-GAAP | $1.59 | – | – |
| Diluted non-GAAP net income per sharenon-GAAP | $1.39 | – | – |
| Net cash provided by operating activitiesGAAP | $55.6 million | – | – |
| Capital expendituresGAAP | $2.9 million | – | – |
| Free cash flownon-GAAP | $52.6 million | – | – |
| Free cash flow excluding acquisition and restructuring costsnon-GAAP | $61.2 million | – | – |
| Free cash flow excluding acquisition and restructuring costs as a percentage of revenuenon-GAAP | 11% of revenue | – | – |
| Total employee countother | 4,371 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Creative SubscriptionsStrong Base44 performance and continued core Wix growth. | $398.4 million | – | up 15% y/y |
| Business SolutionsTransaction revenue was $71.5 million, up 12% y/y. | $164.7 million | – | up 14% y/y |
| Partners revenuePartners revenue includes revenue from both the Creative Subscriptions (including Base44) and Business Solutions businesses. | $213.8 million | – | up 17% y/y |
Q3 2026 and full year 2026 outlook
- RevenueFor the third quarter of 2026, we expect revenue to grow at a low-double-digits percentage on a year-over-year basis. We continue to expect revenue to grow at a low- to mid-teens percentage on a year-over-year basis for the full year 2026.
- Gross marginBase44 non-GAAP gross margin of approximately 60% in 2H. This is expected to translate into approximately two points of total non-GAAP gross margin improvement in 2H vs. 1H for the consolidated business.
- Operating expensesWe expect R&D expenses to remain stable. We plan to reinvest these AI cost savings into Base44 sales and marketing through the rest of the year, while expecting decreased sales and marketing costs for core Wix in the second half of the year.
- NoteWe continue to expect bookings to grow at a low-teens percentage on a year-over-year basis, lagging revenue growth by a few points as a result of the more immediate impact of Partners softness on bookings.
- NoteFor the full year 2026, we continue to expect FCF margin excluding acquisition and restructuring costs to be in the high-teens.
- NoteWe continue to expect non-GAAP operating margin for the consolidated basis to step up in the second half of the year when compared to the first half.
- NoteWe expect Base44 to continue on its strong growth trajectory through the rest of the year, with significantly better non-GAAP gross margins.
Capital returns
- Purchase of treasury shares under tender offer: $(1,623,100)
- Purchase of treasury shares: $—
What drove it
- Q2 revenue growth was driven by strong Base44 performance and continued core Wix growth.
- Base44 launched Base 1, its proprietary LLM, which management said provides greater direct control over compute and inference spend.
- The Company expects lower AI costs following the deployment of Base 1.
- Management expects lower AI costs and lower core Wix sales and marketing costs in the second half of the year to offset increased Base44 sales and marketing investment.
- Management said the FX headwind from a strengthening Israeli Shekel offsets savings from organizational realignment in R&D.
Concerns
- Management expects bookings growth to lag revenue growth by a few points because of the more immediate impact of Partners softness on bookings.
- GAAP operating income (loss) was $(58,799), compared with $44,306 in the prior-year period.
- GAAP net income (loss) was $(76,360), compared with $57,703 in the prior-year period.
- Non-GAAP operating margin was 12 %, compared with 22 % in the prior-year period.
- Free Cash Flow was $52,642, compared with $147,665 in the prior-year period.
- Restructuring and other costs were $27,109.
What to watch
- Whether Base44 achieves approximately 60% non-GAAP gross margin in 2H.
- Whether approximately two points of consolidated total non-GAAP gross margin improvement materializes in 2H versus 1H.
- The degree to which increased Base44 sales and marketing investment supports demand and market-share capture.
- Bookings performance given management's expectation that Partners softness will affect bookings more immediately than revenue.
- The expected step-up in consolidated non-GAAP operating margin in the second half of the year.
Balance sheet and cash flow
- Cash and cash equivalents as of June 30, 2026: $262,776
- Short-term deposits as of June 30, 2026: $355,265
- Marketable securities as of June 30, 2026: $342,744
- Total assets as of June 30, 2026: $1,849,535
- Credit facility loans as of June 30, 2026: $500,069
- Convertible notes, net as of June 30, 2026: $1,128,341
- Total liabilities as of June 30, 2026: $3,590,454
- Total shareholders' deficiency as of June 30, 2026: $(1,740,919)
- Net cash provided by operating activities: $55,562
- Net cash used in financing activities: $(1,131,194)
Analysis
Wix reported continued top-line expansion in Q2 2026. Total revenue was $563.1 million, up 15% y/y, while total bookings were $569.1 million, up 12% y/y. Total ARR was $1.963 billion at quarter-end, up 15% y/y. Creative Subscriptions revenue was $398.4 million, up 15% y/y, and Business Solutions revenue was $164.7 million, up 14% y/y. Partners revenue was $213.8 million, up 17% y/y, although management said Partners softness has a more immediate impact on bookings than revenue.
Profitability was pressured in the reported quarter. Total GAAP gross margin was 66%, while total non-GAAP gross margin was 67%, compared with 70 % in the prior-year period. GAAP operating income (loss) was $(58,799), compared with $44,306, and GAAP net income (loss) was $(76,360), compared with $57,703. Non-GAAP operating income was $64,827 versus $110,153, and non-GAAP operating margin was 12 % versus 22 %. Restructuring and other costs were $27,109, while acquisition related expenses were $41,059 in the GAAP-to-non-GAAP operating-income reconciliation.
Base44 is central to management's margin and investment framework. The Company launched Base 1, Base44's proprietary LLM, and expects the deployment to reduce AI inference and compute costs. Management expects Base44 non-GAAP gross margin of approximately 60% in 2H, compared with near-zero non-GAAP gross margin entering the year. It expects this to produce approximately two points of consolidated total non-GAAP gross margin improvement in 2H versus 1H, while reinvesting AI cost savings into Base44 sales and marketing through the rest of the year.
Cash generation was positive but below the prior-year period. Net cash provided by operating activities was $55.6 million, capital expenditures totaled $2.9 million, and free cash flow was $52.6 million. Free cash flow excluding acquisition and restructuring costs was $61.2 million, or 11% of revenue. The balance sheet reported cash and cash equivalents of $262,776, credit facility loans of $500,069, convertible notes, net of $1,128,341, and total shareholders' deficiency of $(1,740,919) as of June 30, 2026. Financing cash flow included $(1,623,100) for purchase of treasury shares under tender offer.
The full-year outlook was maintained following the June 2026 update. Management continues to expect full-year revenue growth at a low- to mid-teens percentage y/y, bookings growth at a low-teens percentage y/y, and FCF margin excluding acquisition and restructuring costs in the high-teens. For Q3 2026, it expects revenue to grow at a low-double-digits percentage y/y. Management also continues to expect consolidated non-GAAP operating margin to step up in the second half of the year compared with the first half.
Management, verbatim
We are continuing to invest in Wix Harmony as well as Base44. We believe that in the long term, this strategy will position us to capture value in an evolving market. With the launch of Base 1, Base44's proprietary LLM, and the release of Wix Harmony's own model earlier this year, we're also developing a portfolio of purpose-built models that give us greater control and faster iteration.
Avishai Abrahami, Co-Founder and CEO of Wix
The deployment of Base 1 marks a turning point in lowering our AI inference and compute costs. With this unit-economic breakthrough, we expect our AI costs to decrease significantly going forward. We now expect non-GAAP gross margin for Base44 to be approximately 60% in the second half of the year, a meaningful improvement from the near-zero non-GAAP gross margin entering this year.
Lior Shemesh, CFO at Wix
Not in the filing
stated, not guessed- Previous-release outlook figures sufficient to compare actual results with prior guidance
- Q2 2026 GAAP gross-margin prior-year comparison
- Prior-quarter comparisons for reported Q2 2026 metrics
- Q2 2026 GAAP operating-margin figure
- Q2 2026 GAAP and non-GAAP tax-rate figures
- Q3 2026 numerical revenue guidance range
- Full-year 2026 numerical revenue guidance range
- Full-year 2026 numerical bookings guidance range
- Dividend information
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.