Wix Q3 Revenue Rises 13% to $570 Million as Base44 Nears $250 Million ARR; Nir Zohar Named Co-CEO

Wix.com Ltd. (Nasdaq: WIX) reported third-quarter revenue of $570.2 million on Tuesday, Nov. 10, 2026, up 13% from a year earlier, as its Base44 artificial intelligence app-building platform neared $250 million in annual recurring revenue. The website-building company also named co-founder and President Nir Zohar co-chief executive alongside Avishai Abrahami and lowered its full-year free cash flow margin outlook because of heavier marketing spending on Base44.

Quarterly results

According to the company's earnings release, total revenue for the quarter rose to $570.2 million from $505.2 million a year earlier. Bookings increased 11% to $573.0 million. Creative Subscriptions revenue, which includes Base44, grew 14% to $406.7 million, while Business Solutions revenue rose 10% to $163.5 million. Total annual recurring revenue reached $2.021 billion at the end of September, up 15% year over year.

Transaction revenue, which comes mainly from Wix Payments along with point-of-sale, shipping and other commerce tools, rose 12% to $73.1 million. Partners revenue, generated through agencies, freelancers and resellers, increased 11% to $212.4 million.

On a GAAP basis, Wix posted a net loss of $13.7 million, or $0.32 per share, compared with a loss of about $0.6 million, or $0.01 per share, a year earlier. Non-GAAP net income was $69.3 million, or $1.42 per diluted share, compared with $100.2 million, or $1.68 per diluted share, in the third quarter of 2025. The company reported an operating loss of $16.4 million as selling and marketing expenses climbed to $193.2 million from $137.4 million a year earlier.

Non-GAAP gross margin was 69%, unchanged from a year earlier and up two percentage points from the prior quarter. Net cash from operating activities was $78.3 million and free cash flow was $74.5 million. Excluding restructuring costs, free cash flow would have been $99.6 million, or 17% of revenue.

Base44 margins and retention

Wix said Base44's non-GAAP gross margin reached 58% in the third quarter, compared with near zero in the first quarter, which it attributed to its proprietary AI model, Base 1, lowering inference costs. The company said it still expects Base44's non-GAAP gross margin to average about 60% in the second half and to exceed 60% in the fourth quarter.

The company also reported that the quarter marked one year since its first cohort of Base44 users joined under Wix ownership. Renewal rates for that group at the 12-month mark were above initial expectations, and renewal rates improved in each later cohort, Chief Financial Officer Lior Shemesh said. Annual plans made up more than 20% of subscriptions bought by the September 2026 Base44 cohort, compared with about 5% for the September 2025 cohort.

"Base44, our biggest bet, continues to outperform expectations," Abrahami said in the release. He also highlighted the launch last week of Wix Studio Two, an AI-powered creation platform for professional designers and agencies.

Leadership change

Zohar, who has served as chief operating officer since 2008 and president since 2013, became co-CEO effective immediately. Under the new structure, Zohar will lead business strategy, go-to-market and operations, while Abrahami will focus on product, AI and technology. "Nir and I have built Wix together for nearly 20 years," Abrahami said.

Outlook

Wix maintained its full-year top-line guidance, continuing to expect 2026 revenue growth at a low- to mid-teens percentage and bookings growth at a low-teens percentage. For the fourth quarter, it expects revenue growth in the low double digits and said bookings growth will continue to lag revenue because of softness in its Partners business.

The company now expects its 2026 free cash flow margin, excluding acquisition-related and restructuring costs, to be about 16%, down from the high teens it had previously anticipated. It said the reduction is primarily due to accelerated sales and marketing investment in Base44. Wix also said it expects a working capital headwind of about $10 million in the fourth quarter tied to prepaying for GPUs needed to run its models over the next couple of years.

Israeli business outlet Calcalist's Ctech reported that Wix laid off about 1,000 employees over the summer as it restructured around AI. The company's headcount stood at 4,121 at the end of September, according to the release, compared with roughly 5,200 at the start of the year, Ctech said.

Balance sheet

Wix ended the quarter with $703.4 million in cash and cash equivalents and $332.0 million in short-term marketable securities. Its balance sheet showed $500.1 million in credit facility loans and $1.13 billion in convertible notes. During the first nine months of 2026, the company spent about $1.62 billion repurchasing shares through a tender offer and raised $260 million through a private placement of ordinary shares and warrants. Wix scheduled a conference call to discuss the results for 8:30 a.m. ET on Tuesday.