The sharp GAAP profitability deterioration and 47% operating expense growth overshadow the solid top-line beat. Monitor the Q3 earnings call for details on whether the Base44 margin improvement materializes and if the restructuring costs are truly one-time. The massive share buyback ($1.72B in H1) has reduced the float significantly, which could amplify any post-earnings move — watch for insider selling patterns in the coming weeks.
Price Chart
Executive Summary
Wix reported Q2 2026 revenue of $563.1M (+15% YoY) and bookings of $569.1M (+12% YoY), driven by strong Base44 performance. However, GAAP net loss was $76.4M vs. $57.7M net income a year ago, with operating income swinging to a loss of $58.8M from a $44.3M profit, as operating expenses surged 47% YoY due to restructuring and acquisition costs. The company maintained its full-year outlook for low- to mid-teens revenue growth and expects Base44 non-GAAP gross margins to reach ~60% in 2H, but the GAAP profitability deterioration and heavy cost structure are significant concerns.
Key Facts
- Q2 2026 revenue was $563.1M, up 15% YoY from $489.9M.
- Q2 2026 GAAP net loss was $76.4M ($1.78/share) vs. net income of $57.7M ($1.03/share) in Q2 2025.
- GAAP operating income swung to a loss of $58.8M from a profit of $44.3M in Q2 2025.
- Total operating expenses rose 47% YoY to $429.1M, including $27.1M in restructuring costs.
- Non-GAAP net income was $68.2M ($1.59 basic EPS), down from $136.2M ($2.44 basic EPS) in Q2 2025.
- Free cash flow was $52.6M, down 64% from $147.7M in Q2 2025.
- Total ARR was $1.963B, up 15% YoY.
- Q3 2026 revenue guidance: low-double-digits YoY growth; full-year 2026 outlook maintained at low- to mid-teens revenue growth.
- Base44 non-GAAP gross margin expected to be ~60% in 2H 2026, up from near-zero entering the year.
- Share count fell sharply: basic weighted-average shares were 42.97M vs. 55.91M a year ago, reflecting $1.72B in treasury share repurchases during H1 2026.
Financial Impact
GAAP net loss of $76.4M vs. $57.7M net income YoY; operating income swung from +$44.3M to -$58.8M; FCF fell 64% to $52.6M; non-GAAP net income halved to $68.2M from $136.2M.
Risk Factors
- GAAP net loss and operating loss signal deteriorating underlying profitability despite revenue growth.
- Free cash flow declined 64% YoY, raising questions about cash generation sustainability.
- Restructuring and acquisition-related costs ($68.2M in Q2) may not be fully one-time if integration challenges persist.
- Guidance for low-double-digits Q3 revenue growth implies deceleration from Q2's 15% rate.
- Heavy share repurchase program ($1.72B in H1) has depleted cash and short-term investments, reducing financial flexibility.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001628280-26-052108 |
| Document: wix-6xkxsecondquarter2026.htm | 0001628280-26-052108 |
| Document: 0001628280-26-052108-index-headers.html | 0001628280-26-052108 |
| Document: 0001628280-26-052108-index.html | 0001628280-26-052108 |
| Document: 0001628280-26-052108.txt | 0001628280-26-052108 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 17d ago | Press Release | $82.58 $78.49 | ▼ −4.95% | ▼ −5.77% | $71.19 (−13.79%) |
Sep 14, 2026 18d ago | Press Release | $83.33 $83.53 | ▲ +0.24% | ▲ +0.13% | $71.19 (−14.57%) |
Sep 10, 2026 22d ago | Press Release | $75.52 $79.90 | ▼ −5.80% | ▼ −6.30% | $71.19 (+5.73%) |
Sep 9, 2026 22d ago | Press Release | $75.52 $79.90 | ▼ −5.80% | ▼ −6.30% | $71.19 (+5.73%) |
Sep 2, 2026 4w ago | Insider Cluster | $86.69 $75.52 | ▼ −12.88% | ▼ −11.93% | $71.19 (−17.88%) |
Aug 28, 2026 5w ago | Press Release | $87.62 $76.21 | ▲ +13.02% | ▲ +13.13% | $71.19 (+18.75%) |
Aug 26, 2026 5w ago | Press Release | $85.76 $86.69 | ▼ −1.08% | ▼ −1.85% | $71.19 (+16.99%) |
Aug 24, 2026 5w ago | Press Release | $84.42 $88.25 | ▲ +4.54% | ▲ +4.07% | $71.19 (−15.67%) |
Aug 20, 2026 6w ago | Press Release | $82.47 $85.76 | ▼ −3.99% | ▼ −2.87% | $71.19 (+13.68%) |
Aug 14, 2026 6w ago | Press Release | $74.13 $82.07 | ▼ −10.71% | ▼ −12.08% | $71.19 (+3.97%) |
US Market Status
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