SaaS website builder platform Wix.com Ltd. (NASDAQ:WIX) stock gained after it reported its fiscal fourth-quarter 2025 results on Wednesday.
The stock has given up its prior gains and is now trading lower.
Quarterly revenue rose 14% year over year (Y/Y) to $524.27 million, narrowly missing the analyst consensus estimate of $527.82 million.
Adjusted EPS of $1.81 beat the analyst consensus estimate of $1.43.
Segments
Creative subscriptions revenue increased 12% Y/Y to $370.4 million; bookings climbed 16% Y/Y to $375.8 million, and Annualized Recurring Revenue (ARR) was $1.52 billion, up 13.5% Y/Y.
Partners’ revenue in the quarter was $203.2 million, up 21% Y/Y.
Business Solutions’ revenue rose 18% Y/Y to $153.8 million, and bookings jumped 14% Y/Y to $158.7 million.
The consolidated adjusted gross margin declined by 200 bps to 68%.
During the quarter, Wix.com generated $158.33 million in operating cash flow.
As of December 31, 2025, the company held $311.36 million in cash and cash equivalents.
Deal
The company entered into a definitive agreement to sell securities in a private placement to institutional investors led by Durable Capital Partners.
The deal could generate up to $250 million in gross proceeds before fees and expenses, including up to $162.5 million from Durable Capital Partners.
Under the agreement, the company will issue units at a 5% discount to Wednesday’s closing price of its ordinary shares on the Nasdaq Global Select Market, with a total of 6,150,633 units, unless the company waives the limit.
Each unit includes one ordinary share and a warrant to purchase 0.25 of a share at a 25% premium to the closing price, with the warrants expiring three years after closing.
The company plans to use the proceeds for general corporate purposes.
The transaction is expected to close on March 5, 2026, subject to customary conditions.
Wix co-founder and CEO Avishai Abrahami said 2026 marks a new phase for the company as rapid AI advances reshape the internet.
He said Wix Harmony is delivering stronger-than-expected early performance with improved conversion and monetization, while Base44 reached $100 million in annual recurring revenue one year after its launch and nine months after Wix acquired it.
Abrahami added that the two platforms expand Wix’s total addressable market by enabling software applications and advancing the company’s long-standing goal of making complex technology accessible.
President and co-founder Nir Zohar said Wix plans to move aggressively on its $2 billion share repurchase program and intends to complete most of it before the end of 2026.
Outlook
The company said 2026 will be a foundational year, as it advances major product roadmaps including Wix Harmony and Base44, aiming to strengthen its AI-driven platform, reinforce long-term leadership, and expand its role across the broader online ecosystem.
The company expects consolidated bookings and revenue to grow at a mid-teens percentage Y/Y in 2026.
For the first quarter of 2026, it also projects revenue growth in the mid-teens range.
It forecasts full-year 2026 free cash flow margin in the low- to mid-20% range, assuming the current capital structure and excluding acquisition costs.
The wider range reflects rapid growth at Base44 and the company’s plan to invest to strengthen its leadership in the emerging market.
The company added that its core Wix business remains profitable and expects solid bookings and revenue growth in 2026, with free cash flow margins flat to expanding.
WIX Price Action: Wix.com shares were down 2.50% at $72.50 during premarket trading on Wednesday, according to Benzinga Pro data.
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