Digital Experience / Web Development Market: Webflow Launches Code-First Source at Pivotal Moment

At its 2026 customer conference, Webflow CEO Linda Tong unveiled Source, a code-first agentic workspace that inverts the company's original visual-abstraction architecture. The platform now heavily integrates foundational models from Anthropic and OpenAI, and enterprise adoption of Model Context Protocol (MCP) surged from ~2% to over 50% of customers this year. Tong argued that AI-generated website builds represent only about 5% of total cost of ownership, with the true value lying in post-launch experimentation, analytics, and governance. The company also navigated two rounds of layoffs since 2024, most recently in May 2026, as it pivots toward enterprise marketing teams. Agency partners like Edgar Allan and customers like OFF+BRAND view Source as a necessary evolution that bridges visual design and AI-native development, positioning Webflow against established DXPs such as Sitecore and Adobe Experience Manager.