Price Chart

Executive Summary

Wix reported Q2 2026 revenue of $563.1M (+15% YoY), in line with consensus, but GAAP net loss of $76.4M (-$1.78/share) vs. consensus EPS of $1.21, a 43.6% miss. Non-GAAP diluted EPS of $1.39 also missed consensus. The company maintained full-year guidance for low-to-mid-teens revenue growth and expects Base44 non-GAAP gross margins to improve to ~60% in 2H, but the GAAP loss and EPS miss overshadow the revenue beat, making this a bearish report despite the positive narrative around AI cost savings and Base44 margin expansion. Historical calibration shows past bullish calls on WIX have underperformed (avg T+20 alpha -5.69%, 40% win rate), reinforcing a cautious stance. The EPS miss is severe and the GAAP loss is material, but the revenue growth and maintained guidance prevent a 'strong_miss' rating. Sentiment is bearish with impactScore 6, reflecting a notable miss that will pressure the stock near-term, though the AI cost story may limit downside over weeks.

Key Financial Metrics

Key Facts

• Q2 2026 revenue $563.1M, +15% YoY, in line with consensus of $552.8M (beat by ~1.9%)
• GAAP net loss of $76.4M (-$1.78/share) vs. consensus EPS of $1.21 — a 43.6% miss
• Non-GAAP diluted EPS of $1.39 vs. consensus $1.21 (miss of ~14.9%)
• Total ARR $1.963B, +15% YoY; Creative Subscriptions revenue $398.4M (+15% YoY); Business Solutions $164.7M (+14% YoY)
• Free cash flow $52.6M (ex-restructuring $61.2M, 11% of revenue), down from $147.7M in Q2 2025
• Maintained full-year 2026 outlook: low-to-mid-teens revenue growth, high-teens FCF margin ex-acquisition/restructuring costs
• Base44 non-GAAP gross margin expected to reach ~60% in 2H, up from near-zero entering 2026, driven by proprietary LLM 'Base 1'
• GAAP gross margin 66%; non-GAAP gross margin 67%; operating loss of $58.8M GAAP vs. non-GAAP operating income of $64.8M

Financial Impact

GAAP net loss of $76.4M vs. consensus EPS of $1.21; revenue beat of ~$10.3M (1.9%) but EPS miss of $0.53 (43.6%)

Risk Factors

• GAAP net loss of $76.4M and EPS miss of 43.6% could trigger significant sell-off and analyst downgrades
• Free cash flow declined 64% YoY to $52.6M, raising concerns about profitability trajectory
• Restructuring costs of $27.1M and acquisition-related expenses of $41.1M weigh on GAAP results
• Historical calibration shows past bullish calls on WIX underperformed (avg T+20 alpha -5.69%, 40% win rate), suggesting downside risk persists
• Guidance maintained but vague (low-to-mid-teens growth) — any miss on Q3 expectations could amplify losses

Market Snapshot

Investment Themes

Documents Analyzed

This report is based on 1 press release from GlobeNewswire.

US Market Status