Stock Markets May 13, 2026 02:09 AM

Wix Posts Q1 Revenue of $541.2M; Gross Margin Contracts as Bookings Slightly Miss Estimates

Company maintains mid-teens growth guidance for Q2 and full-year 2026; free cash flow margin target set in the high-teens

By Caleb Monroe WIX

Wix reported first-quarter revenue of $541.2 million, representing a 14% year-over-year increase. Adjusted gross margin narrowed to 66% from 69% a year earlier, below analyst expectations. Total bookings reached $585.0 million, a touch under the consensus. The company reaffirmed mid-teens growth guidance for revenue and bookings for both Q2 and full-year 2026, and expects free cash flow margin excluding acquisition costs in the high-teens for 2026.

Wix Posts Q1 Revenue of $541.2M; Gross Margin Contracts as Bookings Slightly Miss Estimates
WIX

Key Points

  • Revenue: Q1 revenue totaled $541.2 million, up 14% versus the prior year and roughly in line with the average analyst estimate of $543.9 million.
  • Margins and bookings: Adjusted gross margin declined to 66% from 69% a year earlier, missing the 67.8% analyst expectation; total bookings were $585.0 million versus a $586.8 million estimate.
  • Guidance maintained: Wix expects mid-teens year-over-year revenue and bookings growth for Q2 and full-year 2026, and projects full-year 2026 free cash flow margin excluding acquisition costs to be in the high-teens.

Wix reported first-quarter revenue of $541.2 million, a result that the company said was in line with analyst expectations centered around $543.9 million. The top-line figure represented a 14% increase compared with the same quarter a year earlier.

On profitability, Wix’s adjusted gross margin for the quarter came in at 66%, down from 69% in the prior-year period. Analysts had been modeling a gross margin of 67.8% for the quarter, leaving the company short of that consensus on margin performance.

Bookings for the quarter totaled $585.0 million, slightly under the consensus bookings estimate of $586.8 million. The bookings result and the margin compression were the most notable deviations from analyst expectations in the reported quarter.

Looking ahead, Wix provided guidance for the coming quarter and reiterated its outlook for the full year 2026. For the second quarter, the company expects revenue to grow at a mid-teens percentage on a year-over-year basis. Management also reiterated its previous full-year 2026 outlook, which anticipates both bookings and revenue growing at a mid-teens percentage year over year.

For the full year 2026, Wix expects free cash flow margin, excluding acquisition costs, to be in the high-teens. The company maintained these targets while reporting the quarter’s results.

Investors and market participants will likely weigh the combination of solid revenue growth against the compressed adjusted gross margin and the slight bookings shortfall. The firm’s reiterated guidance for mid-teens growth in both revenue and bookings, along with a high-teens free cash flow margin target, establishes the company’s financial objectives for the remainder of the year.

Details beyond the headline numbers were not provided in the material reviewed here; the company’s published figures above reflect the extent of the information available in the report.

Risks

  • Margin compression - Adjusted gross margin fell to 66% from 69% year over year, presenting a risk to unit economics and profitability assumptions across the company and the broader software/SaaS sector.
  • Bookings shortfall - Total bookings of $585.0 million were slightly below the $586.8 million estimate, introducing uncertainty around near-term demand and revenue conversion for digital services and e-commerce tools.
  • Execution against guidance - The company’s outlook depends on achieving mid-teens percentage growth for revenue and bookings; failure to meet those mid-teens targets would affect projections for free cash flow margin and investor expectations across tech and online services segments.

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