Wix (NASDAQ:WIX) reported second quarter results that Jefferies viewed as largely in line with the company’s June guidance, while the analyst firm highlighted continued progress in the transition of its Base44 AI coding platform.
Wix reported Q2 revenue growth of 15% year over year, while bookings increased 12%, according to Jefferies. Both figures were ahead of the firm’s expectations by 2% and 1%, respectively. The company also reiterated its full-year 2026 guidance following a workforce reduction of about 20% announced in May.
Jefferies wrote that there were “few surprises” following Wix’s June 8 guidance update, with the core business continuing to hold up despite the restructuring and broader changes in the website-building industry. Annual recurring revenue increased 15% year over year to $1.96 billion, while partner revenue growth moderated slightly to 17% from 19% in the first quarter.
The analyst firm highlighted Base44’s improving gross margin as a key development. Wix expects Base44’s gross margin to reach about 60% in the second half of the year, compared with roughly 0% at the start of 2026. Jefferies wrote that the recent launch of Base44’s proprietary AI model, Base1, is a key driver of the improvement, with the resulting margin gains expected to be reinvested in sales and marketing.
Wix now has proprietary large language models supporting both Base44 and its Wix Harmony platform, which Jefferies wrote could provide advantages in cost, performance and suitability.
One notable omission from the results was an updated Base44 annual recurring revenue figure. Wix last disclosed that Base44 had reached about $150 million in ARR as of May, up from approximately $100 million in early March. Jefferies noted that management indicated the platform had continued to grow faster than expected, including signs of adoption among partners, but did not provide a new ARR figure.
Jefferies also pointed to changing user behavior as an area to monitor as AI agents and large language models increasingly influence how consumers create websites and find domain services. The firm wrote that Wix is likely seeing similar changes in how new website users enter its platform, although registered-user growth has not shown visible signs of deterioration. Wix added about 7 million registered users in the second quarter and roughly 6 million in the first quarter, bringing its total registered users to 317 million.
The firm wrote that the combination of Base44’s “vibe coding” approach and Wix Harmony’s hybrid AI and human editing model positions the company to adapt to those changes.
Jefferies revised its 2026 estimates to $2.254 billion in revenue and $235 million in non-GAAP operating income, compared with its previous estimates of $2.253 billion and $271 million, respectively. The firm’s revenue estimate implies 13.1% annual growth, while its operating margin estimate is 10.4%.
Jefferies maintained an $80 price target, based on a 1.7-times enterprise-value-to-sales multiple applied to revenue expected in five to eight quarters. The firm wrote that Wix was trading at about 1.5 times forward enterprise value to sales, below its roughly 2-times trough valuation following the post-Covid normalization in mid-2022.
Shares of Wix traded up 16% at about $66 on Tuesday afternoon.