Wix.com Stock Earnings Reports

Wix reported solid Q1 2026 performance with bookings of $585M (up 15% YoY) and revenue of $541M (up 14% YoY). Key drivers were strong new-cohort behavior driven by the rollout of Wix Harmony and continued outperformance and rapid scaling of BASE44 (which reached $150M ARR in mid‑May). Management emphasized their strategic focus on AI: Wix has built and deployed a proprietary LLM to power Harmony, which they say is faster, produces fewer errors, and materially lowers inference/insurance costs versus third‑party frontier models. Marketing spend increased materially in Q1 (including ~ $24M in Super Bowl ads) and acquisition spend (core Wix + BASE44) totaled ~ $90M with an expected blended TROI of 7–9 months. Gross margin declined (non‑GAAP 66%) due to elevated BASE44 AI investments, but Wix expects core Wix gross margins to remain stable and anticipates BASE44 margins to improve materially through the year as AI costs are optimized and initial-build inference demand normalizes. Management reiterated full‑year 2026 guidance: bookings and revenue expected to grow in the mid‑teens percentage range year‑over‑year, and full‑year free cash flow margin (excluding acquisition-related expenses) expected in the high teens; pro‑forma pre‑tender net cash position would imply low‑to‑mid‑20s FCF margin. They completed an $1.6B tender offer in April that reduced shares outstanding by ~30%, moving to a net‑debt position with ~ $900M cash on hand post‑tender and plan to return to net cash. Headwinds called out include temporary productivity impacts from the war in the Middle East (significant Israel headcount) and an FX headwind (~$64M) due to a stronger Israeli shekel. Management remains confident in their AI roadmap, product differentiation, and long‑term market opportunity.