Wix Q3 2026: Base44 Nears $250M ARR as Spending Rises and Leadership Shifts
As seen on the 24/7 Wall St. homepage on November 10, 2026.
Base44's annualized recurring revenue is closing in on $250 million, and Wix is spending hard to keep it going: full-year free cash flow margin guidance was cut to about 16% from high teens. Management also named co-founder Nir Zohar co-CEO, effective immediately.
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Wix reported third-quarter 2026 adjusted earnings of $1.42 per share on revenue of $570.2 million, beating expectations on both lines. Revenue grew 12.9% year over year, with Creative Subscriptions up 14% and Business Solutions up 10%.
Base44, Wix's AI app-building platform, is approaching $250 million in annualized recurring revenue. Retention metrics are strengthening: 12-month renewal rates are running above initial expectations, and annual plan adoption within the September 2026 Base44 cohort exceeded 20%, up from roughly 5% a year earlier. Base44's non-GAAP gross margin also climbed to 58% in Q3 from near zero in Q1, suggesting the unit economics of the business are maturing quickly.
That growth comes at a price. Selling and marketing expense jumped to $193.19 million from $137.43 million a year ago, compressing non-GAAP operating margin to 12% from 18%. As a result, Wix trimmed its full-year free cash flow margin target to roughly 16%, down from a prior high-teens expectation, citing the accelerated Base44 marketing investment it considers essential to sustaining momentum. Full-year revenue growth guidance of a low- to mid-teens percentage was held steady.
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The quarter also brought a significant leadership change. Co-founder Nir Zohar was named co-CEO effective immediately, taking responsibility for business strategy, go-to-market, and operations, while existing CEO Avishai Abrahami retains focus on product, AI, and technology. Abrahami described the split as deliberate: a structure designed to let each leader go deeper in their respective domains as the company scales.
Wix also launched Studio Two during the quarter, described by Abrahami as the best editor the company has ever built and its first truly open-platform product, designed to connect with third-party tools users already work with. Additionally, the company flagged a roughly $10 million working capital headwind expected in Q4 from GPU prepayments made to secure AI inference capacity. Total ARR across the business reached $2.021 billion, up 15% year over year.
Mentioned: WIX