WIX's Q2 Earnings & Revenues Beat Estimates, Up Y/Y, Stock Gains

Wix.com Ltd WIX reported non-GAAP earnings per share (EPS) of $2.28 for the second quarter of 2025, which beat the Zacks Consensus Estimate of $1.75. The company had reported EPS of $1.67 in the year-ago quarter.

Quarterly revenues increased 12% year over year to $489.9 million, beating the Zacks Consensus Estimate of $487.5 million. The top line exceeded management’s guidance ($485-$489 million).

The company’s robust performance in the first half of 2025 strengthens its confidence in sustaining accelerated growth through the rest of the year, underpinned by a stable and favorable macroeconomic backdrop. Continued momentum in its core Wix business, fueled by strong performance from newer user cohorts, is further enhanced by its expansion into a fast-growing total addressable market (TAM) following the recent acquisition of Base44.

The acquisition of Base44 marks a significant step forward in the company’s expansion, providing immediate entry into the application development market and unlocking access to new audiences eager to build and scale apps. The company is already witnessing exceptional early traction, with Base44 on track to grow its ARR from just a few million in June to $40–$50 million by the end of 2025, as it progresses toward the $100 million ARR milestone. This move lays the groundwork for a new era of creation, combining visual-first editing for ease and speed with AI-powered coding for enhanced flexibility and depth, enabling users to build and innovate in ways that were previously out of reach.

Following the announcement, the company's shares soared approximately 10% in the pre-market trading session on Aug. 6, 2025. WIX's shares have gained 18.1% against the Zacks Computer-IT Services’ decline of 3.1% in the past year.

Quarter in Detail

Creative Subscriptions’ revenues (70.5% of total revenues) increased 11% year over year to $345.5 million. Business Solutions’ revenues (29.5% of total revenues) rose 17% to $144.5 million.

For the second quarter, Creative Subscriptions' annualized recurring revenues were $1.41 billion, up 10% year over year.

Bookings jumped 11% to $509.9 million year over year. Creative Subscriptions’ bookings increased 11% to $364.9 million and Business Solutions’ bookings rose 12% to $145.1 million.

Partners’ revenues in the second quarter were $183.3 million, up 24% year over year.

Wix.com Ltd. Price, Consensus and EPS Surprise

Wix.com Ltd. price-consensus-eps-surprise-chart | Wix.com Ltd. Quote

Region-wise, North America, Europe, Asia and others, and Latin America contributed 61%, 24%, 11% and 4% to second-quarter 2025 revenues, up 12%,12%,10% and 12% year over year, respectively.

Operating Details

Non-GAAP gross margin was 70% compared with 68% in the prior-year quarter. Creative Subscriptions segment achieved a non-GAAP gross margin of 85% and the Business Solutions segment 33%.

Wix reported a non-GAAP operating income of $110.2 million compared with $90.2 million in the year-ago quarter.

Balance Sheet & Cash Flow

As of June 30, 2025, Wix had cash and cash equivalents of $693 million compared with $653.3 million as of March 31, 2025.

Cash flow from operations amounted to $150.3 million compared with $120 million in the previous year.

Capital expenditures totaled $2.7 million. Free cash flow was $147.7 million.

Wix repurchased $100 million worth of shares in the second quarter, acquiring 6,46,000 shares at an average price of $154.69.

Q3 & 2025 Financial Outlook

Backed by a stable and positive macroeconomic environment, Wix raised its 2025 guidance. The company continues to expect revenues to grow 12-14% in the range of $1.975-$2 billion compared with $1.97-$2 billion projected earlier. Management reiterated non-GAAP total gross margin at 69% and non-GAAP operating expenses to be 49% of 2025 net sales.

Wix raised bookings outlook to $2,040–2,075 million (up 11–13% year over year) from $2,025–2,060 million projected earlier. This raised outlook is based on the continued improvement in new cohort performance, contributions from Base44 and prevailing foreign exchange rates.

The company estimates free cash flow for 2025 in the range of $595-$610 million, implying 30-31% of revenues.

Wix anticipates total revenues for the third quarter of 2025 to be between $498 million and $504 million, implying a year-over-year increase of 12–13%.

WIX’s Zacks Rank

Currently, Wix carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Firms in the Computer IT Services Space

Leidos Holdings, Inc.’s LDOS second-quarter 2025 adjusted earnings of $3.21 per share beat the Zacks Consensus Estimate of $2.63 by 22.1%. The bottom line also improved 22.1% from $2.63 registered in the prior-year quarter.

Total revenues of $4.25 billion beat the Zacks Consensus Estimate of $4.23 billion by 0.5%. The top line also improved 2.9% year over year, driven by increased demand across all customer segments, especially Defense Systems, thanks to strong demand for innovative military products.

In the past year, shares of LDOS have increased 20.8%.

Accenture plc ACN delivered robust results in the third quarter of fiscal 2025, driven by improved segmental performances.  ACN posted adjusted earnings per share of $3.49, beating the Zacks Consensus Estimate by 5.8%. This represents 11.5% year-over-year growth in the bottom line. Total revenues registered a rise of 7.7% from the preceding year to $17.7 billion. The top line surpassed the consensus estimate by 2.6%.

In the past, shares of ACN have declined 22.3%

Infosys INFY reported first-quarter fiscal 2026 results, wherein earnings matched the Zacks Consensus Estimate and revenues surpassed the same. For the fiscal first quarter, the company reported earnings of 19 cents per share, in line with the consensus estimate. The bottom line increased 5.6% year over year.

Infosys’ fiscal first-quarter revenues increased 4.8% year over year to $4.94 billion from the year-ago quarter’s revenues of $4.71 billion. Key strategic initiatives, market positioning, remarkable growth across segments and unique digital offerings were the company's main drivers of the top line. The top line beat the Zacks Consensus Estimate of $4.84 billion by 2.1%.

Shares of INFY have declined 22.7% in the past year.

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