After the upsets, Wix beats analysts on revenue and earnings

Internet company Wix.com’s (Nasdaq: Wix) second quarter results beat analysts’ estimates. The company, which enables users to set up and manage Internet sites and last year acquired vibe coding platform Base44, recently laid off nearly 1,000 of its employees, and later cut its annual guidance.

Wix reported 14.9% growth in second quarter revenue to $563 million, $10 million above the consensus analysts’ estimate. It posted a GAAP-based net loss of $76.4 million, which compares with a net profit in the corresponding quarter of 2025. The results were impacted by expenses of $27.1 million in connection with the employee layoffs.

On a non-GAAP basis, which excludes stock-based compensation, restructuring expenses, expenses in connection with the acquisition, and other items, Wix posted a net profit of $68.2 million, 50% lower than in the corresponding quarter.

Nevertheless, at $1.39, Wix’s profit beat the consensus earnings per share estimate of $1.21. Cash flow from regular operations in the second quarter was $55.6 million.

For the first half year, Wix’s revenue grew by 14.6% to $1.1 billion, and it posted a GAAP-based net loss of $134 million and a non GAAP-based net profit of $111 million.

At the end of the first half, Wix had cash and investments totaling $961 million versus debt of $1.63 billion, partly short term and partly long term. Following the downsizing, it employed 4,371 people, 906 fewer than at the end of the first quarter.

Base44 continues strong growth

As expected, after it was lowered two months ago, there is no change to the company’s guidance now. It continues to expect low to middle double-digit growth in revenue and low double-digit growth in bookings in comparison with last year.

According to the company, Bas44, which as mentioned was acquired last year, continues to grow strongly. It is expected to record a non-GAAP gross margin of approximately 60% in the second half of the year, which compares with a near-zero margin at the beginning of the year. “We plan to reinvest these AI cost savings into Base44 sales and marketing through the rest of the year as we raise our TROI threshold moderately in response to the structurally better margin profile of Base44. This increase reflects our expectation that demand for Base44 will remain elevated, enabling us to capture additional market share as the business continues to outperform, which remains our top priority,” Wix said.

“We are continuing to invest in Wix Harmony as well as Base44,” said Wix co-founder and CEO Avishai Abrahami. “We believe that in the long term, this strategy will position us to capture value in an evolving market. With the launch of Base 1, Base44’s proprietary LLM, and the release of Wix Harmony’s own model earlier this year, we’re also developing a portfolio of purpose-built models that give us greater control and faster iteration.”

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In response to the results, Brent Thill, Senior Software and Internet Research Analyst at Jefferies, says that Wix’s second quarter was stable despite the employee layoffs and the change in the industry and that there were no further signs of weakness in the results. He sees the combination of Base44 and Wix Harmony as the right development strategy in the current environment, and continues to rate the stock a “Buy”, with a price target of $80, which represents a 41% premium on the current price.

Published by Globes, Israel business news – en.globes.co.il – on August 4, 2026.

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