WIX.com: EPS Exceeded!

Here's the hot stuff from Wix.com
$WIX (+3,81 %) (NASDAQ: WIX) Q2 2026 Earnings Release, delivered fresh on August 4, 2026, before U.S. markets opened:

🚀 Top-Line Performance & Partner Boost

Website-building and AI specialist Wix outperformed Wall Street expectations in the second quarter of 2026, benefiting from strong momentum in its agency and developer divisions:

Total revenue: Climbed by +15% YoY to $563.1 million (significantly beating the analyst consensus of ~$553–556 million).

Total Bookings: Rise by +12% YoY to $569.1 million.

ARR (Annual Recurring Revenue): Reached $1.96 billion (+15% YoY).

Segment Performance:

Creative Subscriptions: $398.4 million (+15% YoY).

Business Solutions: $164.7 million (+14% YoY).

Partner Revenue (Agencies & Pros): Grew by a strong +17% YoY to $213.8 million .

🔮 AI Breakthrough (Base44) & Profitability

Wix solves the biggest margin challenge facing AI applications—the cost of computing power (compute & inference):

Non-GAAP Net Income: Climbed to $68.2 million (Non-GAAP EPS of $1.39 diluted vs. consensus of ~$1.13–1.19).

Gross Margins: Non-GAAP gross margin remains solid at 67% (Creative Subscriptions even at 80%).

The AI Efficiency "Geno-Strike" (Base44): With its own app platform Base44 and its proprietary LLM “Base 1,” Wix is drastically reducing AI inference costs. Base44’s non-GAAP gross margin is expected to reach ~60% in H2 2026 (up from nearly 0% at the start of the year)!

Free Cash Flow (FCF): Reached $52.6 million (and, adjusted for restructuring costs, even $61.2 million or 11% of revenue).

🤖 2026 Full-Year Outlook & Efficiency Leverage

Annual Forecast Reaffirmed: Following the June update, Wix confirms its full-year targets for 2026: revenue growth in the the low-to-mid-teens.

FCF margin target: Adjusted FCF margin for the full year remains in the range of the high teens (~17–19%) .

Margin Boost in H2: Thanks to declining AI infrastructure costs and the winding down of marketing investments from the first half of the year, management anticipates a noticeable jump in the operating margin in the second half of the year.

⚡ 💡 Jack’s take

A rock-solid earnings report marking a true technological turning point! Wix not only beats consensus estimates for revenue and profit but also delivers the solution to the core problem facing many software companies: With its proprietary LLM “Base 1,” Wix is driving down AI server costs significantly. Greater efficiency at Base44 directly translates to higher margins. Combined with its highly profitable agency business (Partners +17%), Wix remains a perfectly positioned cash cow in the web creation sector!