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Wix.com Ltd WIX reported non-GAAP earnings per share (EPS) of $1.81 for fourth-quarter 2025, which exceeded the Zacks Consensus Estimate of $1.36. The company had reported EPS of $1.93 in the year-ago quarter.
Quarterly revenues increased 14% year over year to $524.3 million but missed the Zacks Consensus Estimate of $528 million. For 2025, revenues expanded 13% to $1.99 billion. The company’s revenue growth was driven by both its Creative Subscriptions segment and its Business Solutions segment, demonstrating Wix’s ability to monetize both website creation and business services.
Strategic AI investments through Wix Harmony and Base44 are a plus. The Base44 platform has grown rapidly, achieving $100 million in ARR within one year of its founding and reaching that milestone just nine months after Wix acquired it. Base44 significantly expands Wix’s Total Addressable Market by enabling users to create full software applications—not just websites. This could position Wix as a broader AI-driven development platform, competing with low-code and no-code development tools.
The company also announced a $250 million private placement led by Durable Capital Partners, further reinforcing market confidence in Wix’s long-term growth strategy. The investment will be structured as units consisting of one ordinary share and a warrant to purchase 0.25 additional shares. The warrants will have a 25% premium to the share price and expire after three years. The capital will primarily be used for general corporate purposes, including continued investments in AI innovation.
Creative Subscriptions’ revenues (70.6% of total revenues) increased 12% year over year to $370.4 million. Business Solutions’ revenues (29.4% of total revenues) rose 18% to $153.8 million.
For the fourth quarter, total annualized recurring revenues (ARR) were $1.84 billion, up 14% year over year.
Bookings of $534.5 million improved 15% year over year. Creative Subscriptions’ bookings increased 16% year over year to $375.8 million. Business Solutions’ bookings rose 14% to $158.7 million.
Wix.com Ltd. price-consensus-eps-surprise-chart | Wix.com Ltd. Quote
Partners revenues in the fourth quarter were $203.2 million, up 21% year over year.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11%, and 4% to fourth-quarter 2025 revenues, up 13%, 10%, 18%, and 11% year over year, respectively.
As of Dec. 31, 2025, registered users totaled 304 million.
Non-GAAP gross margin was 68% compared with 70% a year ago. Creative Subscriptions segment achieved a non-GAAP gross margin of 83%, and the Business Solutions segment recorded 34%.
Wix reported a non-GAAP operating income of $81.2 million compared with $100.5 million in the year-ago quarter.
As of Dec. 31, 2025, Wix had cash and cash equivalents of $311.4 million compared with $889.6 million as of Sept. 30, 2025.
Cash flow from operations amounted to $158.3 million in the fourth quarter compared with $133.7 million in the year-ago quarter.
Capital expenditures totaled $2.8 million. Free cash flow was $155.6 million.
Wix continued returning value to shareholders through stock repurchases. During the quarter, it repurchased approximately 750,000 shares, spending $100 million. The company plans to execute its $2 billion share buyback program aggressively, with the majority expected to be completed before the end of 2026.
For 2026, Wix expects mid-teens revenue growth and mid-teens bookings growth.
The company expects similar growth in first-quarter 2026, indicating strong demand momentum.
For 2026, Wix projects free cash flow margins in the low-to-mid-20% range. However, margins may fluctuate depending on how aggressively the company invests in Base44. Management noted that stronger-than-expected Base44 growth could temporarily pressure FCF margins, but would ultimately strengthen Wix’s long-term market position.
Currently, Wix carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CDW Corporation CDW reported fourth-quarter 2025 non-GAAP EPS of $2.57, beating the Zacks Consensus Estimate of $2.44. Also, the bottom line increased 3.8% year over year. CDW reported fourth-quarter net sales of $5.51 billion, a 6.3% year-over-year increase. The improvement reflects gradually strengthening customer spending, particularly in software, notebooks and mobile devices, and services, despite broader macroeconomic and geopolitical unrest. Quarterly revenues surpassed the consensus mark of $5.3 billion.
SoundHound AI, Inc. SOUN reported fourth-quarter 2025 results, wherein earnings came in line with the Zacks Consensus Estimate, but revenues surpassed the same. SoundHound posted fourth-quarter revenues of $55.1 million, up 59% year over year, outpacing the Zacks Consensus Estimate of $54 million. Growth was broad-based across Enterprise AI, Automotive, Restaurants and Financial Services.
Cognizant Technology Solutions CTSH reported non-GAAP earnings of $1.35 per share in the fourth quarter of 2025, which beat the Zacks Consensus Estimate by 1.96% and increased 11.6% year over year. Revenues of $5.33 billion beat the consensus mark by 0.50%. The top line increased 4.9% year over year and 3.8% at constant currency (cc). This growth was driven by strong performance in North America and organic growth across all segments. Acquisitions also contributed approximately 260 basis points to year-over-year revenue growth.
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This article originally published on Zacks Investment Research (zacks.com).
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