Overview
- Wix reported Q1 revenue of $541.2 million and adjusted EPS of $0.68, both below Wall Street estimates.
- The stock fell about 30% to a 52-week low near $55.88 after the earnings release.
- Non-GAAP gross margin slid to 66% and non-GAAP operating income fell to $27.8 million, pushing operating margin down to about 5%.
- Management kept its 2026 outlook for mid-teens growth in revenue and bookings and a high-teens free-cash-flow margin, highlighting annual recurring revenue of $1.9 billion and total bookings of $585 million with new-user cohort bookings up nearly 50% helped by Base44.
- Wix introduced an in-house large language model to power “Wix Harmony” and completed a $1.6 billion Dutch Auction buyback of 17.5 million shares, while citing Israel-related disruptions and lower productivity in its Partners channel.