Wix.com posts Q3 revenue beat, raises AI spend and cuts full‑year free‑cash‑flow margin outlook
Wix.com reported third‑quarter 2026 revenue of about $570 million, up roughly 13% year‑over‑year, and earnings per share of $1.42, beating analyst estimates. The company announced a lower full‑year free‑cash‑flow margin target of around 16%, down from the prior high‑teens, citing higher marketing spend for its AI platform Base44. Shares moved lower in pre‑market trading despite the earnings beat.
Why it matters
The reduced free‑cash‑flow margin outlook signals lower near‑term cash generation, which may affect valuation models that rely on free cash flow. Analysts note the higher AI‑related spend could pressure profitability through 2026, though the revenue beat supports the growth narrative.
Key facts
- 1Q3 revenue was $570 million, up 13% year‑over‑year. tradingview.com
- 2Q3 bookings were $573 million, up 11% year‑over‑year. tradingview.com
- 3Base44 annualized recurring revenue (ARR) was nearing $250 million. tradingview.com
- 4Q3 non‑GAAP gross margin was 69%, with Base44 at 58%. tradingview.com
- 5Wix lowered its 2026 free‑cash‑flow margin outlook to about 16%, from the previously anticipated high‑teens. tradingview.com
- 6Q3 loss was $13.695 million, or $0.32 per share, while adjusted profit was $69.332 million, or $1.42 per share. rttnews.com
Summary written by AlphAI AI Desk from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.