Wix Continues to Pay Dearly for Base44 Acquisition: Quarterly Loss Jumps to $76 Million
Wix reported a net loss of $76.4 million for the second quarter of 2026, driven by high operational and marketing costs associated with the integration of the Base44 startup.
Wix continues to pay dearly for the acquisition of Base44, with its quarterly loss jumping to $76.4 million. The acquisition remains a double-edged sword: while it enables growth for the veteran internet company, it is simultaneously pushing it into heavy losses.
In the second quarter, following the layoff of 1,000 out of approximately 5,000 employees, Wix recorded a loss of $76.4 million, compared to a profit of $57.7 million in the same period last year. The company closed the first quarter of 2026 with a net loss of $57.5 million, prompting a broad cost-cutting plan necessitated by the strengthening shekel and accelerated AI adoption.
Reports reveal that Wix paid an additional $41 million to Maor Shlomo after Base44 exceeded performance targets set in the original summer 2025 acquisition agreement. Including previous payments, the total deal value has surpassed $150 million. The loss is also attributed to a sharp rise in operating expenses; marketing costs surged by 67% in the second quarter, totaling $173 million.
Looking ahead, Wix is focusing on Base44, which is significantly altering its business model. The company announced the launch of Base 1, its first dedicated language model, which is expected to reduce Compute and Inference costs. Wix estimates that Base44’s gross profit margin will reach approximately 60% in the second half of 2026. However, the company plans to reinvest these savings into marketing to accelerate growth and increase market share.
Wix's cash flow has dropped to $61 million. Management acknowledges that a previous $1.6 billion share buyback, funded by cash reserves, was a strategic error. Since the buyback, Wix's stock has plummeted by nearly 50%, and the company's market value currently stands at approximately $2.4 billion.
Revenue for the quarter totaled $563.1 million, a 15% increase year-over-year. Wix maintains its revenue forecast of slightly over 10% annual growth and expects an improvement in adjusted operating margins in the second half of the year.
