Wix (NASDAQ:WIX) heads into its first quarter earnings report with what Jefferies analysts described as a “cleaner setup,” driven by easing comparisons, improving partner demand trends, and growing traction for the company’s AI-related products, including Base44 and Harmony.
The brokerage maintained a ‘Buy’ rating on the web-building platform provider, arguing that recent weakness in the stock has created an attractive entry point despite ongoing investor concerns around AI competition and “vibe coding” disruption in the website creation market.
Wix shares have undergone a sharp de-rating over the past year and now trade near what Jefferies described as a 10-year trough valuation at roughly 1.9 times estimated 2027 enterprise value-to-sales.
Shares traded hands at about $76 on Tuesday afternoon, down about 57% over the last year.
According to Jefferies’ survey of 20 web-building partners, 70% reported improving demand trends during the first quarter, while 80% cited better conversion rates. Wix was identified as the top recommendation for new clients by 40% of respondents.
The survey also highlighted growing adoption of Wix Studio and Base44. Jefferies said Wix Studio now accounts for roughly 45% of partner-built projects, up from about 31% in the previous quarter, while more than 70% of surveyed partners are already using Base44.
Jefferies estimated that Base44 has surpassed $100 million in annual recurring revenue, which the firm said suggests Wix is gaining traction in AI-enabled website creation tools despite broader concerns over automation pressures in the industry.
Investors are expected to focus on several key metrics during the earnings report, including bookings growth, free cash flow margins, and any additional disclosures related to Base44 adoption and monetization.
Jefferies wrote that it expects Wix’s full-year 2026 revenue guidance to remain conservative, forecasting annual revenue growth of 14.3%, roughly in line with Wall Street expectations of 14.5%.
The firm also projects adjusted operating margins of about 14% for 2026, below consensus expectations near 16%, reflecting continued investment in AI platform development. Even with those investments, Jefferies expects Wix to maintain free cash flow margins above 22%.
The analysts also believe that stronger-than-expected monetization from Harmony and accelerating bookings growth could provide upside to current expectations as AI-related offerings mature.
Wix will report its Q1 earnings on Wednesday before US markets open.