Wix Revenue Rises 13% to $570.2 Million as It Cuts Free Cash Flow Margin Outlook
Key Facts
Wix reported third-quarter results on November 10, with revenue of $570.2 million, up 13% year over year, and bookings of $573.0 million, up 11%, according to the company's filing with the U.S. Securities and Exchange Commission. The company posted a GAAP net loss of $13.7 million, while non-GAAP net income was $69.3 million, or $1.42 per diluted share. Reuters reported that earnings per share beat analysts' estimate by $0.02, while revenue exceeded the average forecast of $565.99 million. The results show annual growth in revenue and bookings, alongside a divergence between the GAAP net loss and non-GAAP profit. The company also lowered its annual free cash flow margin outlook, attributing the move mainly to accelerated sales and marketing spending for the Base44 platform.
Annual recurring revenue reached $2.021 billion at the end of the quarter, up 15% from the same period a year earlier, according to Wix's filing. Creative subscriptions made up the largest share of revenue, posting $406.7 million, up 14%. Business solutions generated $163.5 million, up 10% year over year. The revenue breakdown means both businesses grew during the quarter, with creative subscriptions advancing at a faster pace. Bookings totaled $573.0 million, representing annual growth of 11%.
The company said Base44's annual recurring revenue was approaching $250 million at the time results were announced. It said retention among the platform's oldest cohort of users at the 12-month mark exceeded initial expectations, and renewal rates improved in subsequent cohorts. Wix's non-GAAP gross margin was 69% in the quarter, while Base44's was 58%. Base44's margin was near zero in the first quarter, showing improvement over the year through the third quarter. These operating metrics are tied to the platform's growth, while accelerated investment in it remained a key factor in the lower free cash flow outlook.
Free cash flow was $74.471 million in the third quarter, compared with $127.282 million in the same period of 2025, according to Wix's statement via GlobeNewswire. Net cash provided by operating activities was $78.282 million, against net capital expenditures of $3.811 million. The company said free cash flow would have been $99.6 million, or 17% of revenue, excluding restructuring costs. For the year, Wix lowered its free cash flow margin outlook to about 16%, excluding acquisition and restructuring costs, from its previous forecast of the “high teens.” The company attributed the change mainly to accelerated sales and marketing spending for Base44.
Wix kept its 2026 revenue growth outlook at the low to mid-teens and bookings growth at the low teens. For the fourth quarter, the company expects low-teens revenue growth, with bookings growth slower than revenue growth. It said weaker partner activity is reflected in bookings faster than in revenue. It also expected working capital to be pressured by about $10 million in the fourth quarter, due to prepayment for graphics processing units needed to run its models over the next two years. Wix reiterated that it expects Base44's non-GAAP gross margin to exceed 60% in the fourth quarter and to be about 60% in the second half of the year.
In a leadership change announced alongside the results, Wix appointed co-founder and company president Nir Zohar co-CEO alongside Avishai Abrahami, effective immediately. Zohar will oversee strategy, expansion and operations, while Abrahami will focus on products, artificial intelligence and technology. The company launched Studio Two on November 2, describing it as bringing AI generation, visual design and React coding together in a single workflow. Before the results announcement, Wix shares closed at $69.75 in the November 9 session, compared with $76.09 in the November 6 session, according to EL7 data. The company's filing scheduled the results discussion call for 8:30 a.m. Eastern Time on November 10.