Wix Reports Q1 Results: Strong Revenue Growth, Lower Profitability, and Reduced FCF Outlook Post-Tender Offer
WIX is trading near its 52-week low of $60.22 (7.2% above the low).
Summary
Wix.com reported Q1 2026 results with strong revenue and bookings growth, but a wider GAAP net loss and lower non-GAAP net income and free cash flow. The company also reduced its full-year free cash flow margin guidance following its $1.6 billion share repurchase.
Key Events · Earnings and Guidance · WIX
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Q1 2026 Financial Performance
Total revenue grew 14% year-over-year to $541.2 million, and bookings increased 15% to $585.0 million. However, GAAP net loss widened to $57.5 million, and non-GAAP net income fell to $42.5 million from $93.9 million in Q1 2025.
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Free Cash Flow Decline
Net cash provided by operating activities decreased to $78.5 million, resulting in free cash flow of $75.0 million, down from $142.4 million in Q1 2025. Free cash flow excluding acquisition costs was $112.3 million.
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Revised Full-Year FCF Guidance
The company maintained its mid-teens percentage growth outlook for full-year 2026 bookings and revenue but lowered its full-year FCF margin guidance (excluding acquisition costs) to the high-teens, down from a previous expectation of low-to-mid 20% range (pre-tender completion capital structure).
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Share Repurchase Completion
Wix confirmed the completion of its modified Dutch Auction tender offer in early April, repurchasing approximately 17.5 million shares for $1.6 billion, representing nearly 30% of outstanding shares.
Analysis · WIX · Technology
Wix.com reported solid Q1 revenue and bookings growth, driven by new user cohorts and AI innovation. However, GAAP net loss widened, and non-GAAP net income and free cash flow significantly decreased year-over-year. The company also lowered its full-year free cash flow margin guidance, reflecting the impact of its recently completed $1.6 billion share repurchase tender offer and a stronger Israeli shekel. While top-line growth remains robust, the decline in profitability and cash flow, coupled with a revised FCF outlook, presents a mixed financial picture.
At the time of this filing, WIX was trading at $64.57 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.2B. The 52-week trading range was $60.22 to $191.24. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.