Wix.com Ltd. reported fourth‑quarter 2025 results that included revenue of $524 million, a 14% year‑over‑year increase, and earnings per share of $1.81, beating the consensus estimate of $1.36 by $0.45 or roughly 33%. The company’s revenue, while slightly below the $528 million consensus, still reflected robust growth compared with the $460 million generated in Q4 2024.
The modest revenue miss was attributed to heightened competition and sector‑specific headwinds that dampened gross payment volume for small‑ and medium‑sized businesses. Despite these pressures, Wix’s core subscription business remained resilient, and the company’s overall top‑line growth continued to accelerate year‑over‑year.
Segment performance showed that Business Solutions revenue rose 18% year‑over‑year, while Creative Subscriptions remained stable. Bookings grew 15% to $535 million, and the recently acquired Base44 unit had reached $100 million in annual recurring revenue within nine months of its June 2025 acquisition, underscoring the strategic value of the add‑on.
Wix’s non‑GAAP gross margin contracted to 68% from 70% in the prior year, a shift driven by investments in AI compute and the scaling of Base44. Nevertheless, the company’s cost‑control discipline and a higher mix of higher‑margin Business Solutions helped lift earnings, resulting in the EPS beat. The company’s free‑cash‑flow margin guidance of low‑to‑mid 20% reflects confidence that these investments will translate into sustainable cash generation.
Management reiterated a 2026 outlook that includes mid‑teens top‑line growth and a low‑to‑mid 20% free‑cash‑flow margin. The board has authorized a $2 billion share‑repurchase program, with the majority expected to be completed in 2026, signaling strong confidence in future cash flow. "2026 marks a defining new chapter for Wix as we enter an era of the internet that is evolving exponentially faster through AI advancements, with Wix Harmony and Base44 leading our roadmap," said co‑founder and CEO Avishai Abrahami. "Early Wix Harmony performance is better‑than‑expected, with improved conversion and monetization. In tandem, Base44 recently reached $100 million in ARR, just one year after its founding and 9 months after our acquisition," he added. CFO Lior Shemesh noted, "We exited 2025 with healthy momentum, setting us up for continued growth in 2026," and highlighted the share‑repurchase program as evidence of board confidence.
The results reinforce Wix’s strategic pivot toward AI‑driven products and a broader software portfolio. The rapid scaling of Base44 expands the company’s addressable market beyond website creation into application development, while the continued investment in Wix Harmony positions the firm to capture higher‑margin enterprise customers. The EPS beat, driven by disciplined cost management and a favorable product mix, offsets the slight revenue miss and supports the company’s optimistic outlook for 2026.
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