Wix Q2 Results Put Base44 Growth and Margin Reinvestment in Focus

WIX Base44 Cohorts Strengthen the Demand Signal

Base44’s top-of-funnel demand remained elevated in the quarter. Its newest cohort outperformed the preceding cohort, renewals led overall growth and more new and existing users selected annual plans.

The broader first-quarter 2026 user cohort, including core Wix and Base44, generated $74.7 million in cumulative bookings through two quarters. Nearly $23 million was added during the second quarter, supported by improved paid conversion and greater attachment of business applications.

Wix Base 1 Changes the Cost Equation

Base 1 gives Wix greater control over a model built specifically for software creation. Management said the proprietary model should lower inference costs, improve iteration speed and reduce dependence on outside model providers.

Wix expects Base44’s non-GAAP gross margin to reach approximately 60% in the second half of 2026 from near zero entering the year. Those savings are expected to add about two percentage points to consolidated non-GAAP gross margin compared with the first half.

WIX Reinvests Savings to Extend Base44 Growth

Management plans to reinvest the full consolidated gross-margin benefit into Base44 sales and marketing. Wix also raised its marketing return-on-investment target moderately, effectively accepting a longer payback period to pursue additional demand.

Non-GAAP sales and marketing expense was $173.1 million, up 67% year over year, underscoring the cost of the current growth plan. GoDaddy Inc. GDDY reported that its Airo AI experience reached a $50 million annualized bookings run rate in the second quarter. Intuit Inc. INTU is also enabling mid-market businesses to build customizable AI agents for specialized workflows.

Wix Guidance Keeps the Trade-Off Visible

Wix maintained its outlook for low- to mid-teens revenue growth and low-teens bookings growth in 2026. Third-quarter revenues are expected to increase at a low-double-digit rate.

The company still projects a high-teens free cash flow margin excluding acquisition and restructuring costs. Consolidated non-GAAP operating margin is expected to improve in the second half, although elevated Base44 marketing spending will absorb the anticipated gross-margin savings.

WIX Signals Favor Momentum Over Conviction

The quarter strengthened the evidence that Base44 can expand Wix’s addressable market and improve its unit economics. The near-term investment case still depends on whether heavier acquisition spending produces durable bookings, renewals and operating leverage.

WIX currently carries a Zacks Rank #3 (Hold), which supports a neutral near-term stance. Its Momentum Score of A and a VGM Score of B are favorable, while the Value Score of C and Growth Score of C indicate less uniform support across investing styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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