Wix.com (WIX) Stock: Q4 2025 Results Show Earnings Strength Despite Revenue Shortfall

Key Takeaways

• Q4 2025 revenue totaled $524.3M with 14% year-over-year growth, falling short of the $528.13M analyst projection.
• The company delivered non-GAAP EPS of $1.81, surpassing Wall Street’s $1.42 expectation by $0.39.
• Base44 acquisition achieves $100M annual recurring revenue milestone just nine months post-acquisition.
• $250M private placement financing led by Durable Capital Partners scheduled to close March 5, 2026.
• Management aims to execute most of its $2 billion stock buyback initiative before 2026 year-end.

Wix delivered fourth-quarter 2025 financial results that presented a split narrative — surpassing earnings projections while falling short on topline expectations — though the web platform provider demonstrated robust performance in its AI-powered offerings and closed a substantial $250 million financing round from institutional backers.

The company’s Q4 revenue reached $524.3 million, representing 14% growth compared to the prior-year period, though this trailed the analyst consensus of $528.13 million. The earnings performance proved far more compelling: non-GAAP diluted EPS of $1.81 compared favorably against the anticipated $1.42 figure — exceeding expectations by $0.39.

Wix.com Ltd., WIX

Across the complete 2025 fiscal year, total revenue hit $1.99 billion, marking 13% year-over-year expansion. Annual non-GAAP net income totaled $441.6 million, translating to $7.32 per diluted share.

The company generated $573 million in free cash flow for the full year, or $605.1 million when acquisition-related expenses are excluded — delivering 30% of revenue. This metric merits close attention from investors.

Fourth-quarter bookings reached $534.5 million, climbing 15% year-over-year. The Business Solutions segment delivered the strongest performance with 18% year-over-year growth, generating $153.8 million during the quarter. The Partners segment emerged as the clear leader, surging 21% year-over-year to $203.2 million in Q4.

Total ARR positioned at $1.836 billion at Q4’s conclusion, likewise advancing 14% year-over-year. The platform concluded 2025 with 304 million registered users and 6.11 million total premium subscriptions, incorporating Base44.

Base44 Reaches $100M ARR Milestone

Base44, the no-code software development platform Wix acquired nine months earlier, has surpassed $100 million in ARR. This represents impressive momentum for an acquisition completed less than twelve months ago.

Wix Harmony, the platform’s AI-powered website creation tool, is demonstrating promising early results. Management reports that Harmony is exceeding initial expectations for conversion and monetization metrics, with new cohort bookings growth gaining momentum in early 2026.

Looking toward 2026, management guidance calls for mid-teens topline expansion and free cash flow margins in the low-to-mid 20% range. The company acknowledged that elevated investment spending will pressure FCF margins as it continues developing Harmony and Base44.

$250M Capital Raise Completed

The company disclosed a $250 million private placement financing spearheaded by Durable Capital Partners, with Durable contributing up to $150 million directly. The offering prices units at a 5% discount to the March 4 closing price, with attached warrants carrying a 25% premium. These warrants carry a three-year expiration.

J.P. Morgan served as exclusive placement agent. The transaction closure is anticipated for March 5, 2026.

During Q4, the company repurchased approximately 750,000 ordinary shares for $100 million at a weighted average price of $133.56. Across all of 2025, Wix completed $575 million in share repurchases and intends to complete the majority of its $2 billion repurchase authorization prior to 2026’s conclusion.

WIX stock finished at $74.36 on the reporting date, declining 25.80% over the previous three-month period and 62.36% year-over-year.

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