Financial Outlook

We aRe maintaining our full year 2026 outlook following our June 2026 update and continue to expect revenue to grow at a low- to mid-teens percentage on a year-over-year basis. We also continue to expect bookings to grow at a low-teens percentage on a year-over-year basis, lagging revenue growth by a few points as a result of the more immediate impact of Partners softness on bookings. We expect Base44 to continue on its strong growth trajectory through the rest of the year, with significantly better non-GAAP gross margins.

For the third quarter of 2026, we expect revenue to grow at a low-double-digits percentage on a year-over-year basis.

For the full year 2026, we continue to expect FCF margin excluding acquisition and restructuring costs to be in the high-teens. This outlook assumes Base44 non-GAAP gross margin of approximately 60% in 2H, a significant improvement from the near-zero margin entering the year. This is expected to translate into approximately two points of total non-GAAP gross margin improvement in 2H vs. 1H for the consolidated business.

We plan to reinvest these AI cost savings into Base44 sales and marketing through the rest of the year as we raise our TROI threshold moderately in response to the structurally better margin profile of Base44. This increase reflects our expectation that demand for Base44 will remain elevated, enabling us to capture additional market share as the business continues to outperform, which remains our top priority.

We expect to offset this increased sales and marketing investment in Base44 with lower AI costs and decreased sales and marketing costs for core Wix in the second half of the year, in-line with seasonality and lapping the SuperBowl investments in the first half of the year. We expect R&D expenses to remain stable as the FX headwind from a strengthening Israeli Shekel offsets savings from our organizational realignment. As a result, we continue to expect non-GAAP operating margin for the consolidated basis to step up in the second half of the year when compared to the first half.