Key Highlights

  • Wix reported second-quarter 2026 Revenue of $563.1 million, up 15% year over year, with annual Recurring Revenue up 15% to $1.963 billion.
  • The company generated non-GAAP Net Income of $68.2 million and free Cash Flow of $52.6 million, though it posted a GAAP net loss of $76.4 million.
  • Base44 became the first app-creation platform to launch a proprietary large language model, a step expected to lower AI infrastructure costs.
  • WIX shares jumped as investors rewarded the growth, profitability and AI progress shown in the quarter.

Wix.com Ltd (NASDAQ:WIX), the cloud-based platform that lets businesses and individuals build websites and run online operations, saw its shares jump as the company delivered double-digit growth and pushed deeper into artificial intelligence. The rally raises a familiar question for a profitable, growing software company: whether the move marks the start of a broader re-rating or simply a one-day reaction to a strong quarter.

Wix's model combines a large base of free users with paid subscriptions and a growing suite of Business solutions, payments, commerce and Marketing tools, that deepen monetization. Increasingly, its narrative centers on AI-driven creation, including its Base44 app-building platform, which the company is positioning as a differentiator in a crowded website and no-code market.

Latest developments

In its second-quarter 2026 results, Wix reported revenue of $563.1 million, up 15% year over year, with bookings of $569.1 million (up 12%) and annual recurring revenue of $1.963 billion (up 15%). The company generated non-GAAP net income of $68.2 million ($1.39 diluted EPS) and free cash flow of $52.6 million, though it posted a GAAP net loss of $76.4 million.

On the AI front, Wix highlighted that Base44 became the first app-creation platform to launch a proprietary large language model, a step it expects to lower AI infrastructure costs and lift Base44's non-GAAP gross Margin toward about 60% in the second half of 2026.

Financial and business position

Wix maintained its full-year 2026 outlook for low- to mid-teens percentage revenue growth, and its free-cash-flow generation, more than 10% of revenue even including restructuring costs, underscores a business that has shifted from growth-at-all-costs toward disciplined profitability. The gap between GAAP losses and strong non-GAAP profitability largely reflects stock-based compensation and other items, a common feature among software companies that investors weigh when assessing quality of earnings.

Stock-market context

WIX jumped as the market rewarded double-digit growth, expanding profitability and progress on the Base44 AI initiative. The re-rating case rests on sustained mid-teens growth, improving Base44 Economics and continued free-cash-flow expansion; the cautious case is that competition in AI-assisted website and app creation is intensifying, and that any deceleration could pressure the multiple after the move higher.

What investors should watch

Investors may focus on whether revenue and bookings growth hold in the low- to mid-teens, evidence that Base44's proprietary model is meaningfully improving its gross margin, continued strength in free cash flow, and traction for Wix's AI and business-solutions offerings.

A Growth Story the Market Is Starting to Reward

Wix's evolution captures a broader shift among website and no-code platforms toward embedding generative AI directly into the creation process, lowering the barrier for users to build sites and applications while raising the strategic stakes as competitors race to do the same. The reassuring element for investors is that, unlike many software peers still chasing growth at any cost, Wix is already generating meaningful free cash flow, which affords it the flexibility to invest through this AI transition from a position of financial strength.