Is Automattic profitable in 2026?

Automattic's core WordPress.com/WooCommerce business is profitable and subsidizes losses elsewhere; estimated 2024 revenue was about $710M, up roughly 11% YoY (per Latka, 2026-07-02). Tumblr, by contrast, is explicitly unprofitable, with CEO Matt Mullenweg calling it 'my biggest failure' in October 2025.

Who owns Automattic and is it public?

Automattic is privately held and controlled by founder-CEO Matt Mullenweg, with no public listing. It has raised roughly $955M-$998M across about 12 rounds; its last disclosed valuation was $7.5B in a February 2021 Series E, though secondary-market trackers put it near $1.7B as of July 2026 (TrueUp).

Could AI replace Automattic or WordPress?

Not easily for infrastructure, but AI is eating add-on features. Automattic shipped MCP write access on March 20, 2026, letting Claude, ChatGPT and Cursor create/edit/publish content directly on WordPress.com sites, positioning WordPress as the system AI writes to rather than a target for replacement, per PR Newswire.

Who is Automattic's biggest competitor right now?

Wix is the fastest-growing rival, with CMS market share up 32.6% year-over-year as of May 2026, while Shopify, Squarespace and Webflow all gained ground in the same window as WordPress's overall CMS share slipped from 43.6% to 41.9% over six straight months, per The Register (2026-06-03).

What is the status of the WP Engine lawsuit against Automattic?

The case (N.D. Cal., 3:24-cv-06917) remains active as of June 2026, in discovery. A February 2026 amended complaint alleges Mullenweg planned to target 10 hosting competitors with 8% royalty demands and pressured Stripe to cancel WP Engine's contract, per TechCrunch (2026-02-12).

Is WordPress losing market share?

Yes. WordPress's share of all websites fell from 43.6% in mid-2025 to 41.9% by May 2026, a sixth consecutive monthly decline, according to The Register (2026-06-03), even as it still powers over 40% of the web overall.

Enterprise and productivity software · United States

Automattic

automattic.com ↗

Automattic runs WordPress.com, Tumblr, and WooCommerce, powering roughly 42% of all websites.

Losing its protection

Assessed 20 July 2026 · Evidence as of 20 July 2026

The structural protection is eroding.

On the recordSince 20 July 2026 · Checkable from H2 2026 · Every call on the record Checkpoint: WP Engine lawsuit (N.D. Cal. 3:24-cv-06917) trial or settlement

The call

Automattic still sits on top of nearly half the web, but rivals are gaining share every month while the company cuts staff and fights its own hosting partner in court.

Automattic owns WordPress, the software that runs nearly half of all websites on the internet, and makes money from premium add-ons and hosting. The real problem: Wix, Shopify, and Squarespace are taking customers away with easier-to-use tools, and the company's founder has picked public fights with WordPress partners and cut support for the free open-source project that made WordPress valuable in the first place, which is eroding the trust of the community that keeps it strong. The outcome hinges on whether Automattic settles its lawsuit with WP Engine and rebuilds community goodwill, or whether it keeps losing website-creator market share and customer loyalty.

Why

AI pressure: AI site builders and coding agents (ChatGPT, Claude, Cursor, Wix ADI). AI agents can now scaffold and edit whole sites directly, cutting into the DIY WordPress base while Jetpack AI stays a commodity add-on. Could AI do the core job? Unlikely.

Bigger players: Wix, Shopify, Squarespace, Webflow. Wix grew 32.6% YoY while WordPress CMS share fell six straight months, from 43.6% to 41.9%. Could a giant copy it? Probably.

What protects it. 42% of the web already runs on WordPress, and GPL licensing plus WooCommerce distribution make ripping it out costly for site owners.

What would change this call

Ruling or settlement in the WP Engine lawsuit (N.D. Cal. 3:24-cv-06917). Shows whether governance conflict resolves or keeps damaging developer trust.
WordPress CMS market share reading in next few quarterly reports. Shows whether the six-month share decline continues, stabilizes, or reverses.
Announcement of further Automattic layoffs or a Tumblr sale/shutdown. Shows whether cost-cutting and unprofitable-unit pressure keep escalating.

Key numbers

WordPress CMS share fell from 43.6% to 41.9% in 6 months (2026-05)
Secondary-market value near $1.7B, down 77% from 2021's $7.5B (2026-07)
Headcount cut 16% in April 2025, to about 1,495 staff (2025-04)

Named risks

Adverse ruling or prolonged litigation in WP Engine case damaging governance and trust. Severity: high
Six consecutive months of WordPress CMS share decline eroding core revenue base. Severity: high
99% cut to paid WordPress core contribution hours undermining open-source community goodwill. Severity: high
Tumblr remains unprofitable with no resolved strategy, called 'biggest failure' by CEO. Severity: medium
Hiring freeze and repeated layoffs (2024, 2025) signal contracting employer stability. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Wix	gaining on	CMS share up 32.6% YoY as of May 2026 while WordPress share fell
Shopify	contesting	Competes directly with WooCommerce for e-commerce hosting share, ongoing through 2026
Squarespace	gaining on	Acquired by Permira for $7.2B, Oct 2024, gained CMS share into 2026
Webflow	gaining on	Gained CMS share alongside Wix and Shopify in mid-2025 to May 2026 window
WP Engine	contesting	Active federal litigation, Case 3:24-cv-06917, in discovery as of June 2026

Questions people ask

Is Automattic profitable in 2026?: Automattic's core WordPress.com/WooCommerce business is profitable and subsidizes losses elsewhere; estimated 2024 revenue was about $710M, up roughly 11% YoY (per Latka, 2026-07-02). Tumblr, by contrast, is explicitly unprofitable, with CEO Matt Mullenweg calling it 'my biggest failure' in October 2025.
Who owns Automattic and is it public?: Automattic is privately held and controlled by founder-CEO Matt Mullenweg, with no public listing. It has raised roughly $955M-$998M across about 12 rounds; its last disclosed valuation was $7.5B in a February 2021 Series E, though secondary-market trackers put it near $1.7B as of July 2026 (TrueUp).
Could AI replace Automattic or WordPress?: Not easily for infrastructure, but AI is eating add-on features. Automattic shipped MCP write access on March 20, 2026, letting Claude, ChatGPT and Cursor create/edit/publish content directly on WordPress.com sites, positioning WordPress as the system AI writes to rather than a target for replacement, per PR Newswire.
Who is Automattic's biggest competitor right now?: Wix is the fastest-growing rival, with CMS market share up 32.6% year-over-year as of May 2026, while Shopify, Squarespace and Webflow all gained ground in the same window as WordPress's overall CMS share slipped from 43.6% to 41.9% over six straight months, per The Register (2026-06-03).
What is the status of the WP Engine lawsuit against Automattic?: The case (N.D. Cal., 3:24-cv-06917) remains active as of June 2026, in discovery. A February 2026 amended complaint alleges Mullenweg planned to target 10 hosting competitors with 8% royalty demands and pressured Stripe to cancel WP Engine's contract, per TechCrunch (2026-02-12).
Is WordPress losing market share?: Yes. WordPress's share of all websites fell from 43.6% in mid-2025 to 41.9% by May 2026, a sixth consecutive monthly decline, according to The Register (2026-06-03), even as it still powers over 40% of the web overall.

Timeline

2026-06-03The Register reports WordPress CMS share down to 41.9%, six straight months of decline
2026-03-20WordPress.com ships MCP write access letting AI agents publish/edit content directly
2026-02-12Amended WP Engine complaint alleges Mullenweg plan to target 10 hosting rivals with royalties
2025-10-20Mullenweg publicly calls Tumblr 'my biggest failure so far'
2025-10WordPress.com launches read-only MCP server for AI agent visibility
2025-04Automattic lays off about 280 employees (16% of staff) across 90 countries
2025-04AI-powered website builder launches on WordPress.com
2025-01Automattic cuts paid WordPress core contribution hours from ~3,988/week to ~45/week
2024-10159 employees (8.4%) leave via voluntary buyout amid WP Engine dispute
2021-02Automattic raises ~$288M Series E at $7.5B valuation, last disclosed round

Revision history

20 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

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Sources

Latka (2026-07-02)
The Register (2026-06-03)
Coalition Technologies (2026-04-17)
TrueUp (2026-06-30)
Techi (2025-10-20)
CIO (2024-10-07)
HRKatha (2025-04-04)
Revelio Labs (2026-06-29)
TechCrunch (2025-10-20)
TechCrunch (2026-02-12)
PR Newswire (2026-03-20)
The Next Web (2026-05-07)