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Research Alert: Wix.com: Q1 2026 Results Below Expectations As Ai Investment Spending Increases

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Wix's Q1 2026 results showed revenue growth but margin pressure from AI spending, with revenue rising 14% to $541M while non-GAAP net income declined 55% to $43M and operating margin compressed to 5% from 21% in Q1 2025. Operating expenses surged 46% due to elevated sales and marketing spending and AI infrastructure investments tied to Base44 integration and Harmony development. We believe Wix remains positioned to benefit from growth in AI-powered website development, particularly as Base44 expands the addressable market into broader no-code workflows. Management maintained 2026 guidance for mid-teens revenue and bookings growth, reflecting confidence in stronger monetization and Base44 momentum offsetting Partners business softness. In our view, sustained earnings expansion will depend on management's ability to improve operating leverage as AI initiatives scale, as profitability remains constrained by elevated customer acquisition spending and higher AI infrastructure costs.

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