Wix (WIXN) Q3 2026 Earnings Report

The call was strongly positive, led by Base44’s nearly $250 million ARR, improving retention and subscription mix, significant gross-margin and AI-cost improvements, early Symphony traction, and the launch of Studio Two. The main negatives were the reduction in full-year free cash flow margin guidance, increased investment requirements, partner-channel disruption from changing customer behavior and AI tools, and uncertainty around Base44’s free cash flow timing. Highlights significantly outweighed the lowlights.

For the full year 2026, Wix is maintaining guidance for bookings to grow at a low-teens percentage and revenue to grow low- to mid-teens on a year-over-year basis; fourth quarter revenue is expected to grow at a low double-digit percentage on a year-over-year basis, with fourth quarter bookings growth continuing to lag revenue growth. Free cash flow margin excluding acquisition and restructuring costs is expected to be approximately 16%, down slightly from the previous target of high-teens, while total AI costs for all free and paid users are expected to represent less than 30% of total bookings in 2H. Fourth quarter sales and marketing activities are expected to increase relative to the third quarter but remain well within the TROI guardrails, with TROI maintained at 13 months; Base44’s second half non-GAAP growth margin is expected to be approximately 60%, its fourth quarter margin is expected to be even higher, and its margin could be approaching that of core Wix already next year. The fourth quarter also includes a working capital headwind of approximately $10 million from prepayment of GPUs, Studio Two is expected to contribute next year, and next year’s absolute free cash flow in dollars is expected to be higher than this year’s.