10:35 AM EDT, 09/16/2025 (MT Newswires) -- Wix.com ( WIX ) will focus more on growth than profitability in 2026, RBC Capital Markets said in a Tuesday note, citing a virtual investor meeting it hosted with the company's chief operating officer and chief financial officer.

The company's free cash flow margins should stay roughly at its current level of around 30% as it focuses on its recent acquisition Base44, RBC analysts said. Wix typically expects a payback period of one year or less for its investment, and if growth momentum continues, the company plans to significantly increase spending on marketing in 2026, the analysts noted.

Base44's momentum is "clearly very strong" with vibe coding proving largely incremental, with a separate total addressable market and different customer base, the analysts said. Wix plans to run Base44 as a separate business entity even as the it benefits from the company's resources to add value beyond its existing product set.

Base44 will initially reduce the company's gross margins by around 100 basis points and dilute earnings before interest and taxes, as revenue comes in gradually over time with startup costs in vibe coding being highest at the start, according to the note. Strong bookings should allow free cash flow to be mostly unaffected, the note said.

RBC's rating on the company's stock is outperform with a price target of $210.

Price: 173.46, Change: +2.59, Percent Change: +1.52