Wix.com (NASDAQ:WIX) executives used the company’s fourth-quarter 2025 earnings call to outline how they believe AI-driven products—particularly Wix Harmony and the acquired “vibe coding” platform Base44—are expanding the company’s addressable market and supporting accelerating cohort trends heading into 2026.
Management frames 2026 as an AI-driven inflection year
CEO and co-founder Avishai Abrahami said 2026 is “shaping up to be a defining year,” arguing that AI is moving from promise to “real-world value and utility.” He described Wix’s evolution from a do-it-yourself website builder into a broader online creation platform serving self-creators, businesses, and professional designers and developers.
- Wix Harmony, which blends visual editing with “vibe coding” through what he called a unified AI layer across the Wix experience. After launching in English in January, Wix is expanding Harmony into other languages. Abrahami said early performance has been encouraging, particularly across conversion and monetization.
- Base44, a vibe coding platform Wix acquired that expands Wix into software and application creation. Abrahami said users can now build tailored software applications, mobile applications, visual content, and websites on Wix, and called the resulting market opportunity “exponentially larger” than in prior years.
Base44 growth and use cases highlighted
Management repeatedly emphasized Base44’s momentum. Abrahami said that, as of the call, new users joining Base44 were “nearly two-thirds” of the number of new users joining Wix. He also said Base44 recently reached approximately $100 million in ARR about a year after it was founded and nine months after Wix’s acquisition, describing it as one of the fastest-growing software platforms in history.
Executives said Base44 is being used for a wide range of projects—from personal applications to business and enterprise use cases. Abrahami cited examples including user-built CRM capabilities, product and project management tools, ERP systems, workflow automation frameworks, and financial reporting applications. He also stressed that adoption has been organic, noting Base44 has no sales team, and that enterprise-sized organizations have adopted the product via self-serve channels.
In Q&A, management said it does not view Base44 and Wix’s core platform as competing with one another. Abrahami told analysts that the two products have “mostly different usage,” and that both Harmony and Base44 are accelerating without “take from each other much.”
Q4 and full-year 2025 results: bookings, revenue, GPV, margins
CFO Lior Shemesh reported fourth-quarter results that he said built on strong performance in the prior-year period. Total bookings in Q4 were $535 million, up 15% year-over-year, while revenue was $524 million, up 14%. For the full year, bookings were $2.07 billion and revenue was $1.993 billion, both up 13% year-over-year. Total consolidated ARR ended 2025 at $1.836 billion, up 14%.
Shemesh said growth was driven by strong new cohort behavior and solid retention in the core Wix business, as well as “Base44 outperformance.” He added that Base44 finished 2025 with approximately $59 million of ARR above Wix’s expectations at the time of acquisition.
On payments, Shemesh said gross payment volume (GPV) rose 11% year-over-year to $3.7 billion in Q4 and 11% to $14.3 billion for the full year. However, he noted continued “GPV headwinds” as SMBs faced macro pressure, which contributed to seasonally softer-than-anticipated GPV on the platform. He said transaction revenue increased 18% in Q4 and 19% in 2025, helped by GPV growth and an increasing take rate.
Wix’s partners revenue grew 21% year-over-year to $203 million in Q4, driven by Studio performance and adoption of Google Workspace and marketing solutions, partly offset by GPV headwinds.
On profitability, Shemesh said total non-GAAP gross margin in Q4 was 68%, down slightly sequentially and year-over-year, as expected, and non-GAAP operating income was 15% of revenue. He attributed gross margin pressure largely to investments in Base44, including elevated AI compute costs as the platform scaled to meet stronger-than-expected demand.
Shemesh said AI inference costs are “front-loaded” because new users consume more inference during their initial build phase. He said Wix expects Base44’s non-GAAP gross margin to improve sequentially through 2026 as the company optimizes model usage via prompt caching, batching requests, model routing, and improved LLM pricing.
He also noted that approximately one-third of Base44’s AI inference cost is currently attributed to free users and was included in sales and marketing expense in Q4 to align with industry standards. Even if those costs were moved into cost of revenue, he said Base44’s non-GAAP gross margin is already positive. In Q&A, Shemesh added the share of costs related to free users had been higher earlier and has declined as conversion improves.
Wix generated $156 million in free cash flow in Q4 (about 30% of revenue). For 2025, the company generated $605 million of free cash flow excluding acquisition-related expenses, also 30% of revenue.
Cohort trends and 2026 outlook
President and co-founder Nir Zohar said new user cohorts exited 2025 with “strong momentum.” He said new cohort bookings in the core Wix business maintained double-digit growth in Q4, aided by a healthy top-of-funnel, higher free-to-paid conversion in key markets, and increased monetization per user. Including Base44, he said new cohort bookings growth accelerated “very meaningfully” quarter-over-quarter due to demand for vibe coding.
Zohar also cited resilient retention metrics. He said Wix’s net revenue retention was 105% in 2025, nearly matching 2024 despite GPV headwinds. He added that projected ten-year value of existing cohorts grew 14% year-over-year, and that Wix now projects over $20 billion in future bookings over the next decade from current Wix users, excluding Base44.
Looking ahead, Shemesh guided to mid-teens year-over-year growth in consolidated bookings and revenue for full-year 2026, and mid-teens revenue growth for Q1 2026. He said Wix is refining its guidance philosophy to reflect a broader range of potential outcomes given Base44’s hypergrowth and the variability that can come with it.
For 2026, Wix expects a low- to mid-20% free cash flow margin (assuming current capital structure and excluding acquisition expenses). Shemesh said that if Base44 growth outperforms more meaningfully, near-term free cash flow margins could face additional pressure as the company invests to “scale Base44 into the market leader.” For the core Wix business, he said the company expects solid performance with flat to expanding free cash flow margin.
Shemesh also noted that 2026 expectations incorporate a “material currency headwind” on payroll expenses as the U.S. dollar weakens against the Israeli shekel, and “negligible” AI inference costs tied to Wix Harmony due to infrastructure optimization completed last year.
Capital strategy: accelerated repurchases and new equity investment
Zohar said Wix believes its stock performance “greatly undervalues” the opportunity and the business’s strength. He announced the company expects to complete the “large majority” of its $2 billion repurchase program during 2026 and intends to do so “as quickly and aggressively” as possible.
He also said Durable Capital Partners led a $250 million equity investment via a private placement of ordinary shares and warrants, which management described as an endorsement of Wix’s long-term vision and execution.
In Q&A, Shemesh said the company does not assume significant pricing changes in its 2026 outlook. He also said acquisition-related costs were about $30 million in 2025 and indicated those costs would be higher in 2026 as the company pursues demand and market share for Base44.
About Wix.com (NASDAQ:WIX)
Wix.com Ltd. operates a cloud-based platform that enables individuals and businesses to create, manage and develop professional web presences through an intuitive drag-and-drop interface. The company’s software-as-a-service model provides hosting, customizable templates and a range of design tools, eliminating the need for coding expertise. Users can choose from a variety of premium plans to access custom domains, enhanced storage, and advanced performance features tailored to personal projects, small businesses and online storefronts.
Beyond its core website builder, Wix offers a suite of complementary services designed to support digital growth and marketing.
