Wix Q2 Revenue Beats, Base44 AI Margin Breakthrough Drives Outlook

summarizeSummary

Wix reported Q2 2026 revenue of $563M (up 15% y/y) and non-GAAP EPS of $1.39, beating estimates. The launch of Base44's proprietary LLM is expected to dramatically improve AI margins, supporting the full-year outlook.

check_boxKey Events · Earnings and Guidance · WIX

• Q2 Revenue and EPS Beat

  Revenue of $563.1M grew 15% y/y, exceeding the $554M consensus. Non-GAAP diluted EPS of $1.39 was well above the $1.02 estimate.

• Base44 AI Margin Breakthrough

  Base44 launched its proprietary LLM 'Base 1,' expected to drive non-GAAP gross margin to ~60% in 2H 2026 from near-zero entering the year, a significant unit-economic improvement.

• Full-Year Outlook Maintained

  Wix reiterated FY2026 guidance: low- to mid-teens revenue growth and high-teens FCF margin excluding acquisition/restructuring costs, with Q3 revenue growth expected at low-double-digits y/y.

• GAAP Net Loss Widens on Investment

  GAAP net loss was $76.4M ($1.78/share) vs. a $57.7M profit a year ago, driven by higher R&D and S&M spending, including AI investments.

auto_awesomeAnalysis · WIX · Technology

Wix delivered a strong Q2 with revenue of $563M, beating the $554M consensus, and non-GAAP EPS of $1.39, well above the $1.02 estimate. The standout is Base44's proprietary LLM 'Base 1,' which is expected to slash AI compute costs and lift Base44's non-GAAP gross margin to ~60% in the second half from near-zero entering the year. This unit-economic improvement underpins the maintained full-year outlook and signals a path to better profitability even as the company reinvests savings into growth. The GAAP net loss of $76.4M reflects heavy R&D and S&M spending, but the market is likely to focus on the margin inflection story.