Wix.com (NASDAQ:WIX) Posts Earnings Results

Wix.com (NASDAQ:WIX) issued its quarterly earnings data on Tuesday. The information services provider reported $1.39 EPS for the quarter, topping analysts’ consensus estimates of $1.13 by $0.26, FiscalAI reports. The business had revenue of $563.06 million during the quarter, compared to analysts’ expectations of $552.56 million. Wix.com had a negative net margin of 1.97% and a negative return on equity of 33.28%. The business’s revenue was up 14.9% on a year-over-year basis. During the same period last year, the company posted $2.28 EPS.

Here are the key takeaways from Wix.com’s conference call:

• Q2 growth remained solid: bookings increased 12% year over year and revenue rose 15%, with Self-Creators revenue accelerating to 14% growth and continued strength in Base44. Management maintained its full-year outlook for low-teens bookings growth, low-to-mid-teens revenue growth, and high-teens free-cash-flow margin.
• Base1 materially improved Base44’s economics. Wix said its proprietary LLM is already handling significant traffic, delivering better results for Base44 use cases at lower cost and lifting expected Base44 non-GAAP gross margin from roughly 0% early in 2026 to approximately 60% in the second half.
• Wix plans to reinvest the Base1-driven gross-margin savings into elevated Base44 sales and marketing to capture market share, accepting a moderately longer TROI period. This should support growth, but limits near-term operating-margin expansion.
• Partners remained a pressure point: Partners revenue grew 17%, in line with prior expectations, while GPV growth was only 3%, partly reflecting the wind-down of low-monetization subsidiary Inkfrog. Management also acknowledged that partner migration between Wix Studio and Base44 is still early and that the durability of Base44 annual renewals has not yet been demonstrated.
• Management said Base44 demand remains elevated, with newer cohorts outperforming prior cohorts, improving adoption of annual plans, and roughly 60% of users building business-oriented applications. Wix believes product improvements and user-driven referrals can support continued conversion, retention, and market-share gains.

Wix.com Trading Up 17.5%

Shares of WIX stock opened at $66.78 on Wednesday. Wix.com has a twelve month low of $40.16 and a twelve month high of $190.93. The stock has a fifty day simple moving average of $50.35 and a two-hundred day simple moving average of $67.29. The stock has a market capitalization of $3.89 billion, a price-to-earnings ratio of -85.62 and a beta of 0.90.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. raised its holdings in shares of Wix.com by 632.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the information services provider’s stock valued at $41,000 after purchasing an additional 215 shares in the last quarter. National Bank of Canada FI bought a new position in shares of Wix.com during the third quarter valued at approximately $54,000. Wexford Capital LP purchased a new position in Wix.com during the third quarter valued at approximately $88,000. Kestra Advisory Services LLC bought a new position in Wix.com in the fourth quarter worth approximately $79,000. Finally, Tower Research Capital LLC TRC lifted its holdings in Wix.com by 508.6% during the second quarter. Tower Research Capital LLC TRC now owns 779 shares of the information services provider’s stock worth $123,000 after buying an additional 651 shares during the period. 81.52% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

WIX has been the topic of several analyst reports. Scotiabank reissued an “outperform” rating on shares of Wix.com in a research note on Tuesday, June 9th. Needham & Company LLC reaffirmed a “buy” rating and issued a $80.00 price objective on shares of Wix.com in a research note on Wednesday. Citigroup dropped their target price on Wix.com from $66.00 to $59.00 and set a “neutral” rating for the company in a report on Tuesday, June 9th. Bank of America cut their target price on Wix.com from $136.00 to $109.00 and set a “buy” rating on the stock in a research report on Tuesday, April 21st. Finally, UBS Group dropped their price objective on shares of Wix.com from $68.00 to $58.00 and set a “neutral” rating for the company in a research note on Wednesday, June 10th. Eleven equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $87.85.

Trending Headlines about Wix.com

Here are the key news stories impacting Wix.com this week:

• Positive Sentiment: Q2 earnings and revenue beat expectations. Wix reported adjusted EPS of $1.39, above the $1.13 consensus estimate, while revenue rose 14.9% year over year to $563.1 million, exceeding the $552.6 million forecast. Bookings increased 12% to approximately $569 million. Wix Reports Second Quarter 2026 Results
• Positive Sentiment: Base44 profitability is improving. Wix launched its proprietary Base 1 large language model and expects Base44’s non-GAAP gross margin to reach roughly 60% in the second half of 2026, compared with near-zero margins entering the year. Lower AI inference costs could improve future margins and free cash flow. Wix: Structural Profitability Improvements To Base44 Are Encouraging
• Positive Sentiment: Full-year guidance was maintained. Wix reiterated expectations for low-teens bookings growth, low- to mid-teens revenue growth and a high-teens free-cash-flow margin, excluding acquisition and restructuring costs. The company also announced an intended strategic partnership with Thryv to provide integrated commerce, payments and website solutions for small and midsize businesses. Thryv and Wix Strategic Partnership
• Neutral Sentiment: Analyst views improved but remain mixed. Some coverage upgraded Wix to “Buy” on its valuation and Base44 margin potential, while another analyst moderated its rating because of execution risk and the company’s reduced guidance earlier in the year.
• Negative Sentiment: Multiple securities-law firms publicized a class action against Wix and certain officers. The litigation alleges that Wix overstated the competitiveness and financial prospects of its AI products while understating development, computing and marketing costs. Investors seeking a lead-plaintiff role face a September 22, 2026 deadline. The allegations have not been proven, but the litigation adds legal and reputational risk. Pomerantz Wix Class Action Announcement

About Wix.com

Wix.com Ltd. operates a cloud-based platform that enables individuals and businesses to create, manage and develop professional web presences through an intuitive drag-and-drop interface. The company’s software-as-a-service model provides hosting, customizable templates and a range of design tools, eliminating the need for coding expertise. Users can choose from a variety of premium plans to access custom domains, enhanced storage, and advanced performance features tailored to personal projects, small businesses and online storefronts.

Beyond its core website builder, Wix offers a suite of complementary services designed to support digital growth and marketing.