The Wix Q3 2026 results, reported on November 10, show revenue up 13% to $570.2 million, yet the company lowered its full-year free cash flow margin target to about 16% from the high teens. Wix is putting the difference into marketing Base44, its AI app builder, after its own AI model cut the cost of running it.
Key points
- Wix reported third-quarter 2026 revenue of $570.2 million, up 13% year over year, and bookings of $573.0 million, up 11%.
- Wix now expects a 2026 free cash flow margin, excluding acquisition-related and restructuring costs, of approximately 16%, down from the high teens it guided to before.
- Wix says Base44's non-GAAP gross margin reached 58% in the third quarter, up from near zero in the first, which it credits to its own AI model, Base 1.
- Wix says Base44 is close to $250 million of annual recurring revenue (ARR).
- Co-founder and President Nir Zohar became co-CEO alongside Avishai Abrahami, effective November 10, 2026.
What did Wix report for Q3 2026?
Wix grew revenue 13% and bookings 11% in the third quarter, but still lost money on a GAAP basis. The GAAP net loss was $13.7 million, or $0.32 per share, while non-GAAP net income was $69.3 million. Operating cash flow of $78.3 million less $3.8 million of capital expenditures left free cash flow of $74.5 million; Wix says it would have been $99.6 million, or 17% of revenue, without restructuring costs.
| Q3 2026 measure | Result | Change from Q3 2025 |
|---|---|---|
| Revenue | $570.2 million | up 13% |
| Bookings | $573.0 million | up 11% |
| Total ARR | $2.021 billion | up 15% |
| Creative Subscriptions revenue | $406.7 million | up 14% |
| Business Solutions revenue | $163.5 million | up 10% |
| Non-GAAP gross margin | 69% | flat |
Creative Subscriptions and Business Solutions together make up total revenue. Wix also reports Partners revenue, from agencies, freelancers and resellers such as LegalZoom and Vistaprint, as a separate view across both: $212.4 million, up 11%. Head count at the end of the quarter was 4,121.
Why did Wix lower its 2026 free cash flow target?
Wix lowered the target because it is putting more money into sales and marketing for Base44. It now expects a free cash flow margin of about 16% for 2026, excluding acquisition-related and restructuring costs, down from the high teens. Revenue and bookings guidance did not change: revenue growth in the low- to mid-teens and bookings growth in the low teens for the year.
The company says any further improvement in Base44's gross margin in the fourth quarter will also go to marketing rather than to profit. It also expects a working capital outflow of about $10 million in the fourth quarter, because it is paying in advance for the GPUs that will run its models over the next couple of years.
Wix's lower cash flow target comes five months after a cost reset. In a June 8, 2026 filing with the SEC, Wix set out the cut of about 20% of its workforce, roughly 1,000 people, that it had communicated on May 28; it expected about $150 million a year in savings and estimated $30 million to $35 million in restructuring charges. In its second-quarter results in August, Wix still guided to a high-teens free cash flow margin, with Base44 gross margin of about 60% in the second half.
How did Base44's gross margin go from near zero to 58%?
Wix credits Base 1, the AI model it built for Base44, with cutting what it pays to run AI requests. On Wix's figures, Base44's non-GAAP gross margin was near zero in the first quarter and 58% in the third. It expects the margin to exceed 60% in the fourth quarter and to come close to the core Wix business's margin next year; that core business, Creative Subscriptions, ran at an 83% non-GAAP gross margin in the quarter.
Wix also reports early renewal data for Base44. It says renewal rates for its first cohort of Base44 users, at the 12-month mark, came in above its expectations, and that annual plans made up more than 20% of subscriptions bought by the September 2026 cohort, against about 5% a year earlier.
We expect Base44 non-GAAP gross margin to exit the year above 60% and approach that of our core Wix business next year – an incredible achievement driven by meaningful reductions in AI inference costs delivered by our proprietary Base 1 model.
— Lior Shemesh, CFO, Wix
What does the release not say?
Wix's release gives no Base44 revenue, bookings or customer count, only the ARR estimate and margin percentages. It does not say how much Wix will spend on Base44 marketing in the fourth quarter, what the GPU prepayment buys, or how the renewal rates compare with Wix's own forecasts in numbers. Most Base44 subscriptions are billed monthly, Wix says, so the ARR figure is a run rate that has not yet turned into booked revenue.
Who will lead Wix now?
Wix now has two chief executives. Nir Zohar, co-founder, COO since 2008 and President since 2013, will run business strategy, go-to-market and operations; Avishai Abrahami keeps product, AI and technology.
Nir will lead our business strategy, go-to-market and operations, overseeing how we grow and scale the company. I will lead product, AI and technology, focusing on what we build and how we bring it to our users.
— Avishai Abrahami, Co-Founder and CEO, Wix
What do the Wix Q3 2026 results mean for finance leaders?
Our analysis: Wix is treating cheaper AI as money to reinvest, not margin to keep. Owning the model let it move Base44 from roughly break-even on gross margin to 58% in two quarters, and it is spending that gain, plus a few points of free cash flow margin, on customer acquisition while monthly billing delays the revenue. For a CFO weighing an AI product, the useful questions are the ones Wix answers only in part: what inference costs per customer, how fast marketing spend pays back, and when a run rate becomes booked revenue. Our guide to putting marketing spend on the same ledger as every other cost covers the payback math, and treating AI governance as capital allocation covers the investment case. When a target moves, as Wix's did in June and again this quarter, finance leaders share how to keep credibility in investor updates.
Frequently asked questions
What was Wix's revenue in Q3 2026?
Wix reported third-quarter 2026 revenue of $570.2 million, up 13% from a year earlier, and bookings of $573.0 million, up 11%.
What is Wix's 2026 free cash flow guidance?
Wix expects a 2026 free cash flow margin of about 16%, excluding acquisition-related and restructuring costs, down from the high teens it expected before. It kept its revenue and bookings guidance.
What is Base44?
Base44 is a no-code app-building platform Wix acquired in 2025. Wix says it is close to $250 million of annual recurring revenue.
Why did Base44's gross margin improve?
Wix says its own AI model, Base 1, reduced the cost of running AI requests, lifting Base44's non-GAAP gross margin from near zero in the first quarter to 58% in the third.
Who is Wix's co-CEO?
Nir Zohar, Wix's co-founder and President, was named co-CEO alongside Avishai Abrahami, effective November 10, 2026.
Sources
- Wix Reports Third Quarter 2026 Results: press release from Wix.com Ltd. via GlobeNewswire, November 10, 2026.
- Wix.com Ltd. Form 6-K, organizational realignment: filing with the U.S. Securities and Exchange Commission, June 8, 2026.
- Wix second quarter 2026 results: exhibit to Wix's Form 6-K, August 4, 2026.