Wix.com (WIX) Stock Gains Despite $1.72B Buyback Triggering UBS Downgrade

Key Takeaways

• WIX shares climbed approximately 2% on Thursday while the S&P 500 dropped 1.4%
• The company repurchased roughly 18.7M shares through a modified Dutch auction at $92 each
• The buyback program totaled around $1.722 billion
• Repurchased shares account for approximately 31.6% of total outstanding shares as of April 1, 2026
• UBS shifted its rating from Buy to Neutral, expressing concerns about business momentum

On Thursday morning, Wix announced preliminary outcomes from its modified Dutch auction tender offer. The tender window closed at 12:00:01 AM New York time on April 2, 2026.

Wix.com Ltd., WIX

According to preliminary calculations by Equiniti Trust Company, serving as the offer’s depositary, shareholders tendered 18,718,009 shares at or below the $92.00 purchase price. All properly submitted shares were not withdrawn before the deadline.

The company plans to purchase all 18,718,009 tendered shares at the $92.00 per share price point.

The total repurchase value reaches approximately $1.722 billion, not including associated fees and related expenses.

This share count equals roughly 31.6% of Wix’s total outstanding shares as recorded on April 1, 2026.

These figures remain preliminary and may be adjusted. Current calculations assume shares tendered via guaranteed delivery notice will arrive within the standard one-day trading settlement window.

J.P. Morgan (JPM) served as the dealer manager for this tender offer transaction.

Wix disclosed in the previous month that it anticipated deploying approximately $1.75 billion through the auction, establishing a price band between $80 and $92 per share.

Final share count and purchase price confirmation will occur after the guaranteed delivery window closes. Shareholder payments are scheduled to process shortly thereafter.

UBS Shifts Rating to Neutral

Concurrently on Thursday, UBS revised its stance on Wix, moving from Buy to Neutral.

Christopher Zhang, analyst at UBS, expressed apprehension regarding the company’s growth trajectory in his client communication Thursday.

UBS additionally highlighted questions surrounding Base44, the no-code application platform Wix purchased last year, which recently surpassed $100 million in annual recurring revenue.

The Rule of 40 serves as a performance metric for software companies, calculated by adding revenue growth percentage to profit margin percentage.

Wix reported Q4 2025 results earlier this year featuring revenue of $524.3 million, representing 14% year-over-year growth, though slightly trailing analyst consensus of $528.13 million.

Management provided 2026 guidance projecting mid-teens percentage revenue growth alongside free cash flow margins in the low-to-mid 20% range.

Wix’s board initially approved the $2 billion share buyback authorization in early 2026, encompassing both ordinary equity shares and convertible debt instruments.

Official tender offer results, including verified share quantities and final pricing, will be disclosed once the depositary completes its confirmation procedures.

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