Wix shares tumble on first quarter profit miss

Wix (NASDAQ:WIX) shares fell astir 30% aft the institution reported mixed first-quarter 2026 results, with gross mostly successful enactment with expectations but net coming successful good beneath estimates.

Revenue for the 4th was $541.2 million, up 14% twelvemonth implicit twelvemonth and somewhat beneath the ~$43.9 cardinal statement estimate.

Adjusted net per stock were $0.68, missing the $1.21 expected.

Total bookings roseate 15% twelvemonth implicit twelvemonth to $585.0 million, modestly nether estimates of $586.8 million.

Annual recurring gross (ARR) accrued 15% to $1.903 billion.

By segment, Creative Subscriptions gross grew 13% to $382.4 million, portion Business Solutions gross roseate 17% to $158.8 million.

Transaction gross climbed 19% to $70.0 million, and Partners gross accrued 19% to $203.4 million.

Wix said its Partner conception saw immoderate near-term softness, but highlighted continued momentum successful its AI-driven roadmap, including advancement connected initiatives specified arsenic Harmony and Base44.

Despite the Q1 miss, the institution maintained its full-year 2026 outlook for mid-teens percent maturation successful some bookings and revenue.

“As innovation successful the web and app gathering abstraction has accelerated implicit the past fewer quarters, my condemnation successful its semipermanent worth and Wix’s marketplace positioning remains strong,” Wix CEO Avishai Abrahami said successful a statement.

Jefferies analysts highlighted that Base44 adoption continued to accelerate during Q1, with ARR rising to astir $150 cardinal successful May from astir $100 cardinal successful aboriginal March, portion AI merchandise Harmony showed beardown aboriginal traction and improved paid conversion.

The steadfast noted that Q1 results were broadly dependable connected gross and bookings growth, though Partner conception weakness persisted arsenic Wix accrued concern successful income and selling to enactment its AI initiatives.

Jefferies added that higher spending tied to Base44 enlargement and Harmony selling weighed connected margins, adjacent arsenic it viewed the AI merchandise rhythm arsenic supportive of longer-term growth.

The steadfast maintained a ‘Buy’ rating, citing a favorable risk-reward illustration astatine what it described arsenic a valuation adjacent a multi-year trough.