WS Investor
10 Nov 2026, 15:56
Wix Slips 0.7% as Base44 Growth Accelerates but Free Cash Flow Outlook Is Cut
Wix*com (NASDAQ: WIX) shares fell about 0.7% after the company reported solid third-quarter growth and strong momentum at Base44, but lowered its full-year free cash flow margin outlook as it accelerates investment.
Third-quarter revenue rose 13% year over year to $570.2 million, while bookings increased 11% to $573 million. Total ARR reached $2.02 billion, up 15%, with Base44 approaching $250 million of ARR.
Base44 remained the key growth driver. Its non-GAAP gross margin improved to 58% from near zero in the first quarter, and Wix still expects the business to exit 2026 above 60%. Management also said retention among early Base44 cohorts has exceeded expectations, while renewal rates continue to improve.
Profitability was mixed. Wix reported a GAAP net loss of $13.7 million, but non-GAAP net income was $69.3 million. Free cash flow totaled $74.5 million, or $99.6 million excluding restructuring costs.
The main negative was guidance. Wix maintained its full-year revenue and bookings growth outlook but cut expected free cash flow margin excluding acquisition-related and restructuring costs to about 16% from the previously anticipated high-teens range. The reduction reflects heavier sales and marketing investment behind Base44.
Wix also expects fourth-quarter bookings growth to continue lagging revenue growth due to softness in Partners, while a roughly $10 million working-capital headwind is expected from GPU prepayments.
The modest decline appears to reflect concern over lower near-term cash flow margins and continued investment intensity, partly offset by strong Base44 growth, improving AI economics and solid top-line momentum.
Wix*com (NASDAQ: WIX) shares fell about 0.7% after the company reported solid third-quarter growth and strong momentum at Base44, but lowered its full-year free cash flow margin outlook as it accelerates investment.
Third-quarter revenue rose 13% year over year to $570.2 million, while bookings increased 11% to $573 million. Total ARR reached $2.02 billion, up 15%, with Base44 approaching $250 million of ARR.
Base44 remained the key growth driver. Its non-GAAP gross margin improved to 58% from near zero in the first quarter, and Wix still expects the business to exit 2026 above 60%. Management also said retention among early Base44 cohorts has exceeded expectations, while renewal rates continue to improve.
Profitability was mixed. Wix reported a GAAP net loss of $13.7 million, but non-GAAP net income was $69.3 million. Free cash flow totaled $74.5 million, or $99.6 million excluding restructuring costs.
The main negative was guidance. Wix maintained its full-year revenue and bookings growth outlook but cut expected free cash flow margin excluding acquisition-related and restructuring costs to about 16% from the previously anticipated high-teens range. The reduction reflects heavier sales and marketing investment behind Base44.
Wix also expects fourth-quarter bookings growth to continue lagging revenue growth due to softness in Partners, while a roughly $10 million working-capital headwind is expected from GPU prepayments.
The modest decline appears to reflect concern over lower near-term cash flow margins and continued investment intensity, partly offset by strong Base44 growth, improving AI economics and solid top-line momentum.
