Key Highlights

  • Third quarter EPS of USD 1.42 beat the USD 1.40 estimate, and Revenue of USD 570.2 million topped forecasts.
  • Base44, the AI software-building product, is nearing USD 250 million of annual Recurring Revenue less than two years after founding.
  • Total non-GAAP gross Margin held at 69%, while Base44 reached 58%, with a higher figure projected for the fourth quarter.
  • Management kept full-year revenue guidance but trimmed its free Cash Flow margin target to roughly 16% from the high teens.

Wix.com (NASDAQ:WIX) reported third quarter 2026 Earnings Per Share of USD 1.42, ahead of the USD 1.40 analyst estimate, on revenue of USD 570.2 million against an estimate of USD 566.3 million. Non-GAAP Operating Income came in at 12% of revenue, and the company ended the period with about USD 1.05 billion in cash against USD 1.63 billion of debt.

The quarter also brought a Leadership change: Nir Zohar became Co-CEO alongside Avishai Abrahami, taking the go-to-market and operating side while Abrahami keeps product and technology. Headcount was 25% lower than at the end of 2022.

Base44 Scales as Margins Improve

Base44, the product aimed at people who build software with AI prompts, is closing in on roughly USD 250 million of annual recurring revenue, less than two years after its founder started the business. Management said second-half Demand ran ahead of internal models, so the company is accelerating Marketing spending, with the United States as the priority.

Cohort data supported that decision, management said. Twelve-month retention of the first quarterly cohort beat expectations, renewal rates have improved with each later cohort, and annual plans made up more than 20% of subscriptions bought by the September 2026 cohort, compared with about 5% for the September 2025 cohort.

Margins moved the right way. Base44 non-GAAP gross margin was 58% in the third quarter, and management projects a higher figure in the fourth quarter, putting the second-half average near 60%. Costs of serving free users fell by more than 50% sequentially as traffic shifted to the company's own model infrastructure, and total AI costs for free and paid users are projected to stay below 30% of bookings in the second half.

Product Portfolio and Guidance

Beyond Base44, the company highlighted Symphony by Wix, a multi-agent system launched in August that handles tasks such as marketing campaigns and incoming calls for small businesses. Its annual recurring revenue is already in the millions of dollars, which management called small but encouraging. Wix Studio Two, an editor for agencies, went live last week and connects to outside AI tools.

For 2026, the company maintained its revenue guidance. It now targets a free cash flow margin, excluding Acquisition and restructuring costs, of approximately 16%, down from a prior target in the high teens. Management tied the change mainly to the faster Investment in Base44 and to a prepayment for GPU capacity needed to run its models over the next couple of years, which creates a Working Capital headwind of about USD 10 million in the fourth quarter.

Because most Base44 subscriptions are billed monthly, management said recurring revenue growth reaches bookings and reported revenue gradually over coming quarters.

Reinvestment and Conversion Factors to Watch

The main items to follow are how quickly Base44 recurring revenue converts into reported revenue, whether margin gains continue as the company routes more traffic to its own models, and how the higher marketing spend affects cash generation. Early performance of Symphony and Studio Two adds further data points, along with progress on the Base44 enterprise sales build-out.