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Management characterizes 2026 as a ‘new chapter’ where AI investments are transitioning from experimental bets to measurable financial impact.
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The acquisition of Base 44 has exponentially expanded the company’s Total Addressable Market (TAM) by moving beyond website building into the broader software application space.
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Wix Harmony is driving improved conversion and monetization by blending visual editing with Vibe coding through a unified AI layer.
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Base 44 reached approximately $100,000,000 in ARR just nine months post-acquisition, with new user acquisition reaching nearly two-thirds of the core Wix platform’s volume.
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Performance in the core business was supported by 105% net revenue retention, despite persistent macro-driven Gross Payment Volume (GPV) headwinds affecting SMBs.
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The company is seeing a strategic shift toward higher-tier subscriptions and business-oriented solutions, which increased as a share of the total mix in 2025.
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Management attributes the rapid, organic adoption of Base 44 by enterprise-sized organizations to the platform’s strength in building customized CRM, ERP, and workflow tools without a dedicated sales team.
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Full-year 2026 guidance assumes mid-teens percentage growth for both bookings and revenue, reflecting accelerated momentum from Wix Harmony and Base 44.
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Free cash flow margin is projected in the low to mid-20% range, with the wider-than-normal range accounting for the ‘dynamic hyper-growth’ and investment needs of Base 44.
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Management expects Base 44 gross margins to improve sequentially as they optimize AI inference costs through prompt caching, batching, and model routing.
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The company plans to aggressively execute a $2,000,000,000 share repurchase program in 2026, citing a belief that current stock performance undervalues the business.
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Guidance incorporates a material currency headwind on payroll expenses due to the U.S. dollar weakening against the Israeli shekel.
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AI compute costs are currently front-loaded, as new users consume higher inference bandwidth during the initial software ‘build phase’.
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Approximately one-third of Base 44’s AI inference costs are currently attributed to free users, though this is expected to decline as conversion rates improve.
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A $250,000,000 equity investment from Durable Capital Partners was announced to support the long-term strategic plan and capital allocation goals.
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Macroeconomic pressure on SMBs resulted in seasonally softer-than-anticipated GPV growth of 11% in the fourth quarter.
