WIX

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the e-commerce software stocks, including Wix (NASDAQ:WIX) and its peers. While e-commerce has been around for over two decades and enjoyed meaningful growth, its overall penetration of retail still remains low. Only around $1 in every $5 spent on retail purchases comes from digital orders, leaving over 80% of the retail market still ripe for online disruption. It is these large swathes of the retail where e-commerce has not yet taken hold that drives the demand for various e-commerce software solutions. The 4 e-commerce software stocks we track reported a satisfactory Q2. As a group, revenues beat analysts' consensus estimates by 1.3% while next quarter's revenue guidance was 3% below. Thankfully, share prices of the companies have been resilient as they are up 8.3% on average since the latest earnings results. Powering over 263 million registered users worldwide with its AI-driven tools, Wix (NASDAQ:WIX) provides a cloud-based platform that helps individuals and businesses create and manage professional websites without requiring coding skills. Wix reported revenues of $563.1 million, up 14.9% year on year. This print exceeded analysts' expectations by 1.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts' adjusted operating income estimates and a narrow beat of analysts' billings estimates. "We are continuing to invest in Wix Harmony as well as Base44," said Avishai Abrahami, Co-Founder and CEO of Wix. Interestingly, the stock is up 23.8% since reporting and currently trades at $70.39. Is now the time to buy Wix? Access our full analysis of the earnings results here, it's free. Starting with just three people selling snowboards online in 2004, Shopify (NASDAQ:SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels. Shopify reported revenues of $3.58 billion, up 33.7% year on year, outperforming analysts' expectations by 3.7%. The business had a very strong quarter with a solid beat of analysts' billings estimates and an impressive beat of analysts' gross merchandise volume estimates. Shopify pulled off the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 20.5% since reporting. It currently trades at $148.52. Is now the time to buy Shopify? Access our full analysis of the earnings results here, it's free. As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ:CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems. Commerce reported revenues of $84.51 million, flat year on year, falling short of analysts' expectations by 0.7%. It was a slower quarter as it posted revenue guidance for next quarter missing analysts' expectations significantly and annual recurring revenue in line with analysts' estimates. Commerce delivered the weakest performance against analyst estimates, weakest guidance update, and slowest revenue growth of the whole group. As expected, the stock is down 6% since the results and currently trades at $3.21. Read our full analysis of Commerce's results here. Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE:GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools. GoDaddy reported revenues of $1.30 billion, up 6.6% year on year. This number was in line with analysts' expectations. More broadly, it was a slower quarter as it logged full-year revenue guidance meeting analysts' expectations and annual recurring revenue in line with analysts' estimates. GoDaddy achieved the highest guidance raise and highest full-year guidance raise in the group. The stock is down 5% since reporting and currently trades at $94.41. Read our full, actionable report on GoDaddy here, it's free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market's biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market's primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market's dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for CDW (CDW). Shares have added about 8.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is CDW due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for CDW Corporation before we dive into how investors and analysts have reacted as of late. CDW reported second-quarter 2026 non-GAAP earnings per share (EPS) of $2.91, beating the Zacks Consensus Estimate of $2.80. The bottom line increased approximately 12% year over year. CDW generated quarterly net sales of $6.57 billion, representing a 10% year-over-year increase. On a constant currency (cc) basis, revenue increased 9.9%, indicating that growth was primarily driven by stronger customer demand rather than favorable foreign exchange movements. Increased investments across several technology categories, including data storage solutions, enterprise servers, notebooks, mobile devices, software and networking and communications products, led to top-line expansion. These categories continue to benefit from enterprise digital transformation initiatives, hybrid work environments, cybersecurity upgrades and expanding AI infrastructure requirements. The consensus estimate was pinned at $6.26 billion. As organizations move beyond experimenting with AI and start implementing production-scale AI solutions, CDW seems well-positioned to benefit from this shift. CDW expects to outperform the overall U.S. IT market by 200-300 basis points at cc over the long term despite ongoing macroeconomic uncertainties. Management believes several structural trends like infrastructure modernization, cloud migration, AI adoption, increasing cybersecurity investments, growing technology complexity and digital workplace transformation will keep supporting demand. As enterprise environments grow more sophisticated, customers increasingly seek strategic partners capable of delivering comprehensive technology solutions rather than just individual products. The Commercial segment continued to be CDW's largest contributor, generating $3.97 billion in sales, an increase of 9.2%. Growth was broad-based across several industries under Commercial. Corporate customers increased spending by 10.7%, Healthcare customers grew 9.1% and Financial Services customers expanded purchases by 1.8%. Government sales reached $848 million, increasing 13.6% year over year, reflecting continued investments by public sector organizations in technology modernization. The Education segment remained relatively stable with 0.7% growth, generating $933 million in revenue. International operations performed exceptionally well. Net sales in Other (the U.K. and Canadian operations) generated $826 million in sales, growing 22.9%, making international markets one of the strongest contributors during the quarter. Gross profit increased 6.3% year over year to $1.32 billion. However, gross margin declined slightly from 20.8% to 20.1%. Management attributed the lower margin primarily to a higher sales mix toward lower-margin hardware and margin pressure in selected hardware categories. These factors were partially offset by higher contributions from netted-down revenue. Although gross margin contracted modestly, the company continued expanding earnings through disciplined cost management and operating efficiency. Non-GAAP operating income increased 7% year over year to $556 million. The non-GAAP operating margin fell to 8.5% from 8.7%. Selling and administrative expenses rose 8.6% to $891 million, primarily due to higher employee compensation, increased performance-based incentives and workplace optimization initiatives. As of June 30, 2026, CDW had $361.8 million of cash and cash equivalents compared with $578.6 million as of March 31. The company had a long-term debt of $5.82 billion compared with $5.64 billion as of March 31, 2026. For the six months that ended June 30, 2026, CDW generated $219.7 million of cash flow from operating activities compared with $443.1 million a year ago. Adjusted free cash flow totaled $278.4 million. It turns out, estimates revision have trended upward during the past month. Currently, CDW has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, CDW has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. CDW belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Wix.com (WIX), has gained 33.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Wix.com reported revenues of $563.06 million in the last reported quarter, representing a year-over-year change of +14.9%. EPS of $1.39 for the same period compares with $2.28 a year ago. For the current quarter, Wix.com is expected to post earnings of $1.40 per share, indicating a change of -16.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Wix.com. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CDW Corporation (CDW) : Free Stock Analysis Report Wix.com Ltd. (WIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Wix.com (WIX). Shares have added about 34.3% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Wix.com due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. WIX's Q2 Earnings Beat Estimates Wix reported second-quarter 2026 non-GAAP earnings of $1.39 per share, down 39% year over year but above the Zacks Consensus Estimate of $1.13. Revenues rose 15% year over year to $563.1 million and beat the consensus mark of $554 million. Growth reflected strong Base44 performance and continued core Wix expansion. Total ARR climbed 15% to $1.96 billion, while bookings increased 12% to $569.1 million. Creative Subscriptions revenues increased 15% year over year to $398.4 million. Bookings from the segment advanced 11% to $405.8 million. Continued Base44 strength supported both measures, while Wix Harmony began making an early contribution as the product continued to ramp. Self Creators' revenues rose 14% to $349.3 million, improving from 12% growth in the prior quarter. Partners' revenues increased 17% to $213.8 million and represented 38% of total revenues. Wix ended the quarter with nearly 317 million registered users. Business Solutions revenues grew 14% year over year to $164.7 million, while segment bookings rose 13% to $163.3 million. Adoption of Google Workspace and the Paid Ads offering boosted the performance. Transaction revenues advanced 12% to $71.5 million and accounted for 43% of Business Solutions revenues. Gross payment volume increased 3% to $3.6 billion, while the take rate improved to 1.96%. The wind-down of a commerce subsidiary slowed payment volume growth, and management expects that headwind to persist for four more quarters. The non-GAAP gross margin was 67%, down from 70% a year ago. Creative Subscriptions margin fell to 80% from 85%, reflecting a greater Base44 contribution, while Business Solutions margin remained stable at 33%. Non-GAAP research and development expenses rose 6% to $104.7 million, or 19% of revenues, as Wix expanded the Base44 team. Selling and marketing expenses jumped 67% to $173.1 million, or 31% of revenues, on heavier Base44 advertising and higher inference costs for free users. Non-GAAP operating income was $64.8 million, translating into a 12% margin. Base44 launched Base 1, its proprietary large language model built for software creation. Management expects greater control over inference technology to shorten product iteration cycles, reduce reliance on external vendors and improve long-term cost efficiency. Base44's non-GAAP gross margin is expected to reach roughly 60% in the second half of 2026 compared with near zero at the start of the year. Total AI costs are projected at 30-40% of Base44 bookings. The resulting savings are expected to lift consolidated non-GAAP gross margin by about two percentage points in the second half versus the first half. Base44 also introduced expanded AI Workflows and enterprise governance features, including single sign-on improvements, permissions, connector management and customer-managed databases. Wix Headless added connections to Claude Code, Codex and Base44, extending Wix's business infrastructure to AI-generated front ends. Operating cash flow totaled $55.6 million, while capital expenditures were $2.9 million. Free cash flow came in at $52.6 million. Excluding restructuring costs, free cash flow was $61.2 million, or 11% of revenues. Wix ended June with $960.9 million in cash and equivalents and $1.63 billion in short- and long-term debt. WIX maintained its 2026 outlook for low- to mid-teens revenue growth, low-teens bookings growth and a high-teens free cash flow margin excluding acquisition and restructuring costs. Third-quarter revenues are expected to grow at a low-double-digit rate. Management also expects the consolidated non-GAAP operating margin to improve in the second half as lower AI and core Wix marketing costs offset additional Base44 investment. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 124.72% due to these changes. Currently, Wix.com has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Wix.com has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Wix.com is part of the Zacks Computers - IT Services industry. Over the past month, Cognizant (CTSH), a stock from the same industry, has gained 13.7%. The company reported its results for the quarter ended June 2026 more than a month ago. Cognizant reported revenues of $5.48 billion in the last reported quarter, representing a year-over-year change of +4.5%. EPS of $1.37 for the same period compares with $1.31 a year ago. Cognizant is expected to post earnings of $1.44 per share for the current quarter, representing a year-over-year change of +3.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Cognizant. Also, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wix.com Ltd. (WIX) : Free Stock Analysis Report Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wix has had an impressive run over the past six months as its shares have beaten the S&P 500 by 6.7%. The stock now trades at $83.40, marking a 18.4% gain. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move. Is now the time to buy Wix, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free. We’re glad investors have benefited from the price increase, but we’re sitting this one out for now. Here are three reasons you should be careful with WIX, plus one stock we’d rather own. Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Wix’s billings came in at $569.1 million in Q2, and over the last four quarters, its year-on-year growth averaged 13.9%. This performance slightly lagged the sector and suggests that increasing competition is causing challenges in acquiring/retaining customers. Many software businesses adjust their profits for stock-based compensation (SBC), but we prioritize GAAP operating margin because SBC is a real expense used to attract and retain engineering and sales talent. This is one of the best measures of profitability because it shows how much money a company takes home after developing, marketing, and selling its products. Analyzing the trend in its profitability, Wix’s operating margin decreased by 17.5 percentage points over the last two years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Wix’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. Its operating margin for the trailing 12 months was negative 9.8%. Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Over the next year, analysts predict Wix’s cash conversion will fall. Their consensus estimates imply its free cash flow margin of 22.9% for the last 12 months will decrease to 19%. Wix isn’t a terrible business, but it isn’t one of our picks. With its shares beating the market recently, the stock trades at 1.6× forward price-to-sales (or $83.40 per share). This valuation multiple is fair, but we don’t have much faith in the company. We’re fairly confident there are better investments elsewhere. We’d recommend looking at a safe-and-steady industrials business benefiting from an upgrade cycle. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Wix.com stock has been under pressure for years, with the share price down about 71.0% over the past 5 years, yet the current valuation checks still flag it as looking cheap on several measures. The roughly 71.0% share price decline over 5 years means long-term holders have seen a significant loss in value that the recent rebound has only partially offset. Investor focus is now on whether Wix.com's AI driven products and recent partnership plans can support sustained revenue growth, while ongoing securities class actions over past AI claims remain a key risk to sentiment and valuation. On Simply Wall St's broader checks, Wix.com screens as undervalued in 5 of 6 areas, which suggests the stock may be priced more conservatively than richly. The issue now is whether recent business progress is enough to justify a re-rating after such a steep multi-year decline in Wix.com shares. Find out why Wix.com's -54.4% return over the last year is lagging behind its peers. P/S is often a useful lens for Wix.com because the company is still in a phase where revenue is a key yardstick and earnings are less steady. On this measure, Wix.com trades on a P/S ratio of about 1.2x, which sits below both the broader IT industry average of roughly 1.8x and a peer group average of about 6.0x. The tailored fair P/S multiple for Wix.com is estimated at about 3.4x. That is higher than where the stock currently trades, which suggests the market is assigning a relatively cautious value to each dollar of Wix.com revenue compared with what this model implies based on its size, margins and risk profile. Despite recent AI related news flow lifting interest in the stock, the market multiple still prices Wix.com at a discount to both this fair ratio and to peers. On the P/S multiple, Wix.com stock currently screens as undervalued relative to both its fair ratio and the wider industry. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Wix.com valuation puzzle above leaves off and set out the specific growth, margin and earnings paths that would need to play out for the stock to be worth materially more or less than today's price, based on expectations shared on the Community page. Where a single ratio or model gives one number, these narratives describe the future that number relies on so you can monitor whether it still fits what Wix.com is actually doing. The Wix.com community is split between a confident AI and Base44 driven recovery story and a much more cautious view that focuses on costs and competition. Bull case: 48% undervalued Read the full Bull Case to see why Wix.com could be undervalued Bear case: 35% overvalued Read the full Bear Case to see why Wix.com could be overvalued Do you think there's more to the story for Wix.com? Head over to our Community to see what others are saying! Wix.com still screens as undervalued on market multiples, with the current P/S ratio sitting below both peers and a tailored fair ratio. That discount reflects uncertainty about how far AI products, partnerships and cost discipline can carry growth and margins, as well as ongoing legal overhangs. For you as an investor, the key question is whether this gap is a genuine opportunity or a value trap. The central issue in the debate is whether Wix.com can convert its product roadmap and AI ambitions into resilient revenue and margin progress that eventually earns a higher multiple. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WIX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Wix.com Ltd.? Here are five stocks we like better. Wix delivered solid Q2 growth, with bookings up 12% year over year and revenue up 15%, driven by its core business and strong demand for Base44, its AI-powered app-creation platform. Base1, Base44’s internally developed AI model, is expected to materially improve margins. Management projects Base44’s non-GAAP gross margin to reach about 60% in the second half of 2026, adding roughly two percentage points to Wix’s consolidated gross margin. Wix maintained its full-year outlook for low-teens bookings growth, low-to-mid-teens revenue growth and a high-teens free-cash-flow margin. The company plans to reinvest Base44’s efficiency gains into sales and marketing while expecting operating margins to improve in the second half. MarketBeat Week in Review – 05/26 - 05/30 Wix.com (NASDAQ:WIX) reported second-quarter 2026 bookings growth of 12% year over year and revenue growth of 15%, driven by continued growth in its core business and strong demand for Base44, its AI-powered application creation platform. Chief Executive Officer and Co-Founder Avishai Abrahami said the company is pursuing two parallel AI product paths. Wix Harmony is focused on combining AI with the company’s visual drag-and-drop website-building tools for self-creators, while Base44 targets users creating apps and software through natural-language prompts. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 3 Reasons Wix Could Rally 50% Into the Summer “Running both in parallel means we capture demand wherever the market evolves,” Abrahami said. A key product development during the quarter was the June launch of Base1, Base44’s proprietary large language model. Abrahami said Wix chose to develop the model internally to gain greater control over product quality, speed up iteration and improve its longer-term cost structure. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Why Block's Key Components Make It a Solid Investment Choice According to Abrahami, the model learns from user interactions and is trained to distinguish stronger application-generation results from weaker ones. He said Base1 is already producing better results for Base44-specific tasks than models from frontier providers, though he noted that it is not intended to outperform those models across every use case. The in-house model is also expected to substantially improve Base44’s economics. CFO Lior Shemesh said Wix expects Base44’s non-GAAP gross margin to reach approximately 60% in the second half of 2026, up from near zero at the beginning of the year. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Shemesh said the Base44 improvement is expected to add roughly two percentage points to consolidated non-GAAP gross margin in the second half compared with the first half. Wix intends to reinvest those savings into sales and marketing for Base44 as it seeks to capture demand in the growing AI-powered app-creation market. “We already see it,” Shemesh said in response to a question about whether the margin improvement had begun to materialize. He said the improvement emerged gradually over recent weeks rather than immediately after launch. President and Co-Founder Nir Zohar said Self-Creators revenue growth accelerated sequentially to 14% year over year in the second quarter. He attributed the performance to improved conversion from free to paid users, stable retention and a robust top of funnel. Partners revenue rose 17% year over year, in line with the company’s expectations provided in early June. Zohar said Base44 made a larger contribution to the partner segment as professionals increasingly used AI and AI agents in their workflows and expanded into software creation. Gross payments volume grew 3% year over year. Zohar said the result was primarily affected by the wind-down of Inkfrog, a Wix subsidiary with moderate GPV contribution but low monetization, as part of a June organizational realignment. He said the decision improves Wix’s mix toward more highly monetized payment volume and a better take rate. Management said the partner business remains an investment priority despite changes to its outlook in June. Wix is testing new products with agency partners and expects those offerings to better align its platform with the evolution of agencies’ AI-related workflows. Abrahami said some partners have reduced activity on Wix while increasing activity on Base44, though he cautioned that it is too early to determine how broadly that migration will develop. Some partners are using both products for different use cases, management said. Abrahami added that partners may be able to charge more for software applications than for traditional website projects, but said the economics remain anecdotal and require more time to evaluate. Base44 demand remained elevated in the second quarter, with the newest user cohort outperforming the prior cohort, Zohar said. Renewal activity was also a contributor to overall growth, and the company is seeing more users choose annual plans as trust in the product increases. Wix did not provide Base44 annual recurring revenue or a detailed split between monthly and annual subscribers. Zohar said the company is nearing the first annual renewal cycle for Base44 customers but is not yet prepared to discuss renewal results. Monthly retention is not yet at the level of the established Wix business, he said, though behavior has been improving nearly every month. Abrahami said approximately 40% of Base44 users are building personal projects, while roughly 60% are building business-oriented applications. He said the platform has more large-business users than Wix’s traditional platform and described its customer base as varied across use cases. Management identified user satisfaction and word-of-mouth sharing as important demand drivers for Base44, alongside paid marketing. Abrahami said users who successfully build applications often share them with friends and colleagues. Wix plans to moderately extend its time-to-return-on-investment target for Base44 marketing. Zohar said the company does not expect to increase that target further in the near term, but could adjust it based on factors such as further gross-margin gains or greater adoption of annual plans. Total second-quarter non-GAAP gross margin was 67%, up slightly sequentially but down three percentage points from a year earlier. Shemesh attributed the year-over-year decline to elevated Base44 growth investments and AI compute costs, while noting that gross margins in the core Wix business were stable compared with the prior-year period. Non-GAAP operating income was 12% of revenue, reflecting higher sales and marketing spending. Wix increased marketing investment in Base44 to address demand and said costs related to free Base44 users’ AI inference and compute usage also rose sequentially. Wix ended the quarter with approximately $960 million of cash and cash equivalents and $1.63 billion of short- and long-term debt. The company maintained its full-year outlook, expecting bookings to grow at a low-teens percentage rate and trail revenue growth by several percentage points. Wix continues to expect full-year revenue growth in the low-to-mid-teens percentage range, third-quarter revenue growth at a low-double-digit rate, and a high-teens free-cash-flow margin excluding acquisition and restructuring costs. Shemesh said Wix expects non-GAAP operating margin to improve in the second half as lower AI costs and seasonally lower core Wix marketing costs help offset elevated Base44 sales and marketing spending. Research and development expenses are expected to remain stable versus the first half, as foreign-exchange pressure from a stronger Israeli shekel offsets savings from the company’s organizational realignment. Wix.com Ltd. operates a cloud-based platform that enables individuals and businesses to create, manage and develop professional web presences through an intuitive drag-and-drop interface. The company's software-as-a-service model provides hosting, customizable templates and a range of design tools, eliminating the need for coding expertise. Users can choose from a variety of premium plans to access custom domains, enhanced storage, and advanced performance features tailored to personal projects, small businesses and online storefronts. Beyond its core website builder, Wix offers a suite of complementary services designed to support digital growth and marketing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Wix.com Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Wix (NASDAQ:WIX) reported second quarter results that Jefferies viewed as largely in line with the company’s June guidance, while the analyst firm highlighted continued progress in the transition of its Base44 AI coding platform. Wix reported Q2 revenue growth of 15% year over year, while bookings increased 12%, according to Jefferies. Both figures were ahead of the firm’s expectations by 2% and 1%, respectively. The company also reiterated its full-year 2026 guidance following a workforce reduction of about 20% announced in May. Jefferies wrote that there were “few surprises” following Wix’s June 8 guidance update, with the core business continuing to hold up despite the restructuring and broader changes in the website-building industry. Annual recurring revenue increased 15% year over year to $1.96 billion, while partner revenue growth moderated slightly to 17% from 19% in the first quarter. The analyst firm highlighted Base44’s improving gross margin as a key development. Wix expects Base44’s gross margin to reach about 60% in the second half of the year, compared with roughly 0% at the start of 2026. Jefferies wrote that the recent launch of Base44’s proprietary AI model, Base1, is a key driver of the improvement, with the resulting margin gains expected to be reinvested in sales and marketing. Wix now has proprietary large language models supporting both Base44 and its Wix Harmony platform, which Jefferies wrote could provide advantages in cost, performance and suitability. One notable omission from the results was an updated Base44 annual recurring revenue figure. Wix last disclosed that Base44 had reached about $150 million in ARR as of May, up from approximately $100 million in early March. Jefferies noted that management indicated the platform had continued to grow faster than expected, including signs of adoption among partners, but did not provide a new ARR figure. Jefferies also pointed to changing user behavior as an area to monitor as AI agents and large language models increasingly influence how consumers create websites and find domain services. The firm wrote that Wix is likely seeing similar changes in how new website users enter its platform, although registered-user growth has not shown visible signs of deterioration. Wix added about 7 million registered users in the second quarter and roughly 6 million in the first quarter, bringing its total registered users to 317 million. The firm wrote that the combination of Base44’s “vibe coding” approach and Wix Harmony’s hybrid AI and human editing model positions the company to adapt to those changes. Jefferies revised its 2026 estimates to $2.254 billion in revenue and $235 million in non-GAAP operating income, compared with its previous estimates of $2.253 billion and $271 million, respectively. The firm’s revenue estimate implies 13.1% annual growth, while its operating margin estimate is 10.4%. Jefferies maintained an $80 price target, based on a 1.7-times enterprise-value-to-sales multiple applied to revenue expected in five to eight quarters. The firm wrote that Wix was trading at about 1.5 times forward enterprise value to sales, below its roughly 2-times trough valuation following the post-Covid normalization in mid-2022. Shares of Wix traded up 16% at about $66 on Tuesday afternoon.

Wix.com (WIX) came out with quarterly earnings of $1.39 per share, beating the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $2.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +23.01%. A quarter ago, it was expected that this cloud-based web development company would post earnings of $1.21 per share when it actually produced earnings of $0.68, delivering a surprise of -43.8%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Wix.com, which belongs to the Zacks Computers - IT Services industry, posted revenues of $563.06 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.56%. This compares to year-ago revenues of $489.93 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Wix.com shares have lost about 45.3% since the beginning of the year versus the S&P 500's gain of 11%. While Wix.com has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Wix.com was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.31 on $567.76 million in revenues for the coming quarter and $4.55 on $2.25 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Taboola.com Ltd. (TBLA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +30%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Taboola.com Ltd.'s revenues are expected to be $500.4 million, up 7.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wix.com Ltd. (WIX) : Free Stock Analysis Report Taboola.com Ltd. (TBLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue Growth: Revenue grew 15% year-over-year in Q2 2026. Bookings Growth: Bookings grew 12% year-over-year in Q2 2026. Self-Creators Revenue Growth: Year-over-year self-creators revenue growth accelerated sequentially to 14% in Q2. Partners Revenue Growth: Partners revenue grew 17% year-over-year. Gross Payment Volume (GPV): GPV grew 3% year-over-year, driven primarily by the wind-down of subsidiary InkFrog. Total Non-GAAP Gross Margin: 67% in Q2, a slight increase sequentially and down 3 points year-over-year. Base44 Gross Margin: Expected to be approximately 60% in the second half of 2026, a significant improvement from near-zero at the start of the year. Total Non-GAAP Operating Income: 12% of revenue in Q2. Cash and Cash Equivalents: Approximately $960 million at the end of Q2 2026. Debt: $1.63 billion in short and long-term debt. Full-Year 2026 Outlook: Revenue expected to grow at a low to mid-teens percentage year-over-year; bookings expected to grow at a low 10s percentage. Q3 2026 Revenue Outlook: Expected to grow at a low double-digit percentage year-over-year. Free Cash Flow Margin Outlook: Expected to be in the high 10s for full-year 2026, excluding acquisition and restructuring costs. Warning! GuruFocus has detected 2 Warning Signs with WIX. Is WIX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Wix.com Ltd (NASDAQ:WIX) launched Base 1, its proprietary LLM, which improves product quality, reduces costs, and creates a proprietary data asset that compounds over time. Base44 gross margin improved dramatically from near 0% at the start of 2026 to approximately 60% in the second half, driven by Base 1 and cost optimization. Self-creators revenue growth accelerated sequentially to 14% year-over-year, with strong Base44 performance and encouraging Wix Harmony results. Base44 demand remains elevated, with new cohorts outperforming previous ones and increasing adoption of annual plans, indicating growing user trust and durability. The company is strategically reinvesting gross margin savings into sales and marketing to capture market share in the AI-powered app creation space, reflecting confidence in long-term growth. Wix.com Ltd (NASDAQ:WIX) is leveraging its data science expertise to rapidly develop and deploy in-house AI models, reducing reliance on external vendors and improving cost structure. Total non-GAAP gross margin declined 3 points year-over-year due to elevated investments in Base44 and AI compute costs. Non-GAAP operating income margin was only 12% of revenue, pressured by elevated sales and marketing expenses and AI inference costs for free Base44 users. Bookings growth (12%) lagged revenue growth (15%), and the company expects this trend to continue, indicating potential future revenue deceleration. The wind-down of subsidiary InkFrog negatively impacted GPV growth, which grew only 3% year-over-year. The company is extending its TROI target, meaning it will take longer to recoup marketing investments, which could pressure near-term profitability. Partners business growth was in line with lowered expectations, and the company is still testing new solutions to align with the evolving ecosystem, indicating uncertainty in this segment. Q: Can you expand on the Base 1 proprietary LLM, how it's built, any quality trade-offs, and the potential for further AI cost improvements?A: Avishai Abrahami (CEO): Base 1 is a model we trained in-house. The core concept is continuous training based on what works best for our users. Since the model generates hundreds of thousands of lines of code per prompt, we use our proprietary data to identify the best results and feed that back into the model. We already see that Base 1's results are better than frontier providers for Base44-specific tasks, and it costs dramatically less. This is a long-term strategy to continuously improve a critical part of Base44. Q: How much of the expected Base44 gross margin improvement to ~60% in the back half has been realized, and what percentage of inference traffic is running through Base 1?A: Lior Shemesh (CFO): We are already seeing the range we provided for gross margin. It happened gradually over the last few weeks, but we have already started to see the increase within the guidance range. This gives us high confidence in the trajectory. Q: What are the biggest drivers of Base44 demand right now, and can you talk about user types or channels?A: Avishai Abrahami (CEO): The biggest driver is user satisfaction with the applications they build. When a user successfully builds an app, they share it, which is our biggest source of new users. We see about 40% of users building personal projects and 60% building business-oriented applications. Notably, we have more large enterprises on Base44 than we do on Wix, showing the product's versatility. Q: To what extent is partner activity migrating towards Base44, and how do you ensure this increases total lifetime value rather than shifting revenue between buckets?A: Avishai Abrahami (CEO): We see this as a beginning of a potentially big trend, but it's very early. We do see some partners reducing Wix activity while increasing Base44 activity, and we also see partners from competitors moving to Base44. It's too early to predict how it evolves. Lior Shemesh (CFO) added that Base44's profitability is now more or less the same as many other software companies, with more room for improvement. Q: Can you talk about the TROI framework? Is there a maximum point you're willing to extend it to, or could it flex higher based on market conditions?A: Nir Zohar (President): The TROI framework allows us to invest in marketing with high discipline. We don't expect to increase it necessarily anytime soon. However, improvements in gross margin or more annual subscriptions on Base44 could drive the TROI forward, allowing us to collect faster. It's always calculated through a clear formula based on how quickly we can get the investment back. Q: How should we think about the bookings trajectory in the second half? Is it a dip and reacceleration, and is the spread between revenue and bookings consistent in Q3 and Q4?A: Lior Shemesh (CFO): The bookings lag is mostly due to the partners business. The entire company is focused on generating more profitable growth through Base44 and new products like Harmony. I hope the bookings situation will change in 2027, but it's too early to say. For Q4, I don't see acceleration compared to Q3; revenue growth on a year-over-year basis will be more or less the same, with benefits coming mostly from Base44. Q: As partners use Base44 in place of Wix Studio, can you talk about the attach rate of Wix Business Solutions on a headless basis and early learnings from headless initiatives?A: Nir Zohar (President): It's too early to comment on whether partners are supplementing or replacing Studio usage. We see some using both for different use cases. For headless, we want people to benefit from the Wix business stack in an easy manner. We're seeing traffic from various agentic solutions, including OpenAI and our own stack, and it's an early cycle. We expect clarity in the coming quarters. Q: Is the Base44 ARR trajectory similar to previous updates, and are you still ahead of Lovable in the US? Can you also discuss the mix of monthly versus annual plans?A: Nir Zohar (President): ARR is trending in similar manners as before, and we're seeing more adoption of annual plans, though we won't break out exact numbers. Avishai Abrahami (CEO) added: We are not taking share from Lovable; we are inventing a new market together. We support each other by educating the market. In the US, our estimation is that we are ahead of them, but it's hard to measure precisely. Q: Can you talk about the improvements of Base 1? Should we think about a parallel path with open-source models, and how does that impact conversion and retention?A: Avishai Abrahami (CEO): Base 1 will improve in parallel with open-source models, but that's not the most significant part. For most applications, current models are already intelligent enough. Our focus is on making Base 1 better at solving specific problems for non-professional developers who don't prompt in a professional way. Improving Base 1 directly improves conversion and retention because users get better applications. Regarding the competitive moat, everyone uses the same algorithm, but we have proprietary data that compounds into a better product. Q: Can you talk about the difference in economics for partners shifting to Base44, in terms of revenue or margin contribution?A: Avishai Abrahami (CEO): There's no clear answer; it depends on what they're doing. Partners are happy because they can now build applications and charge $15,000 or $30,000 instead of $1,000 for a website. They might build fewer projects but more expensive ones, resulting in a bigger ARR contribution. However, this is yet to be proven, and we need a few more months to provide clear numbers. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Low-code and no-code website-builder Wix.com (NASDAQ: WIX) stock soared 11.5% through 12:20 p.m. ET Tuesday after beating analyst sales and earnings forecasts this morning. Heading into its Q2 report, analysts expected Wix to earn $1.16 per share on $556 million in revenue. Instead, Wix earned $1.59 per share on $563.1 million in revenue. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Wix grew its Q2 revenue 15% year over year, but bookings in the quarter grew only 12% -- which actually suggests business may be slowing down. Yet Wix insists that by leaning into artificial intelligence with its proprietary large language model "Base 1" (built on the Base44 platform), the Harmony LLM, and similar tools, it will be able to grow faster and expand profit margins. "We expect our AI costs to decrease significantly going forward," says CEO Avishai Abrahami, aiming to expand non-GAAP gross profit margins from close to 0%... to 60% in the second half of this year. Speaking of margins and profits, however, it's worth pointing out: The $1.59 per share that Wix earned was not GAAP net profit -- earnings calculated under generally accepted accounting principles (GAAP). It was only non-GAAP, pro forma profit. GAAP results actually showed a net loss of $1.78 per share. That's a rather disappointing number. That said, Wix's free cash flow was strong despite the GAAP loss, with Wix reporting positive free cash flow of $52.6 million for the quarter. This brings trailing-12-month FCF to $411 million, and on a $2.3 billion market capitalization, that's actually quite a cheap valuation for -- less than 6x FCF. While I'd prefer to see GAAP earnings turn positive as well, 6x FCF for a stock growing sales at even 12% sounds like a bargain to me. Before you buy stock in Wix.com, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Wix.com wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $395,463!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,268,290!* Now, it’s worth noting Stock Advisor’s total average return is 927% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 4, 2026. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Wix.com. The Motley Fool has a disclosure policy. Why Wix.com Stock Popped After Earnings was originally published by The Motley Fool