Wix Beats Q2 2026 Forecasts Despite Layoffs and Annual Guidance Cut

Wix, the internet platform company, reported stronger-than-expected financial results for the second quarter of 2026. The company, which enables users to create and manage websites and acquired Base44 last year, posted revenue growth of 14.9% to $563 million, exceeding analyst estimates by about $10 million. Despite a GAAP net loss of $76.4 million influenced by $27.1 million in employee severance costs following layoffs of nearly 1,000 workers, Wix delivered a Non-GAAP net profit of $68.2 million, down roughly 50% from the prior year but above market expectations with earnings per share of $1.39 versus $1.21 forecasted.

Wix’s operating cash flow for the quarter was $55.6 million. For the first half of 2026, the company recorded 14.6% revenue growth to $1.1 billion, a GAAP net loss of $134 million, and a Non-GAAP net profit of $111 million. Wix ended the period with approximately $961 million in cash and investments, against $1.63 billion in debt. The workforce shrank to 4,371 employees, down 906 from the previous quarter.

Base44 continues to grow strongly as anticipated, with no change to its lowered forecast from two months ago. Wix expects low to mid-single-digit double-digit revenue growth and low double-digit order growth for Base44 compared to last year. Base44 is projected to achieve about 60% gross margin (Non-GAAP) in the second half of the year, up from near zero at the start of 2026, positively impacting Wix’s overall gross profitability.

Wix plans to increase marketing and sales investments for Base44 to expand market share, offset by lower AI-related costs and reduced marketing spend for Wix itself in the second half, following heavy Super Bowl advertising in the first half. For Q3, Wix forecasts low double-digit growth. CEO Avishai Abrahami emphasized ongoing investments in both Wix Harmony and Base44, highlighting the recent launch of Base1, a language model by Base44 that enhances control and scalable expansion without additional costs.

Analyst Brent Thill of Jefferies described Wix’s Q2 as stable despite layoffs and industry shifts, noting 17% growth in the Partners segment compared to the prior year. He also mentioned that Base44’s annual recurring revenue reached $150 million in May and that the company outperformed expectations. Thill supports Wix’s strategy combining Base44 and Wix Harmony and maintains a “buy” rating with a $80 price target, implying a 41% premium.