Wix.Com Ltd: 1Q26 Results: Planting Seeds, When Can We Expect Greenshoots?

Research evidence excerpt

Wix.Com Ltd: 1Q26 Results: Planting Seeds, When Can We Expect Greenshoots?

IdeaMcosts to support ramping Base44 demand more than offset stability in core Wix

gross margin. Additionally, operating margins of 5% came in meaningfully below

consensus (~14%), driven by accelerating Sales & Marketing expenses (~$25M of

which the company characterized as one-time given relation to Superbowl).

...and Limits Upside to the FY26 Top-line Guide, While FCF Margin Reset Lower

on Tender Mechanics. Management maintained FY26 guidance for mid-teens

revenue and bookings growth YoY, effectively absorbing a slower start to year in

Partners, balanced by stronger-than-expected Base44 momentum and encouraging

early Harmony signals. Stepping back, the core message out of the quarter is that

Wix continues to deliberately accelerate investment in hopes of driving further

share gains and reaccelerating growth, particularly in Base44. However, given

Harmony and Base44 product cycles remain early days, it is becoming increasingly

apparent meaningful impact likely builds over time, rather than immediately

transforming the consolidated growth profile of Wix, a dynamic that may further

test investor patience. More specifically, while Harmony has improved conversion

and monetization in new cohorts, because the product was only rolled out in

January and the majority of the company's bookings are comprised of existing

cohorts, material impact is more likely to show through beyond CY26 as new

cohorts compound. At $150 million in ARR versus a total base of ~$2 billion, Base44

is becoming increasingly significant, but remains in the early stages of improving

retention, annual subscription mix, cross-platform use cases, and Partner

applicability (where management highlighted meaningful usage overlap with