Wix.com Ltd (WIX)
NASDAQ:WIX
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Wix
(NASDAQ:WIX)
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Rating:53Neutral
Price Target:
$54.00
▼(-20.87% Downside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by balance-sheet risk (negative equity with meaningful debt) and a very weak technical setup (sharp downtrend with bearish momentum). These are partly offset by strong cash flow generation and a constructive earnings outlook with reiterated mid-teens growth guidance and continued free-cash-flow targets, though near-term margin pressure remains a key watch item.
Positive Factors
Strong free cash flow
Consistent, high free cash flow provides a durable funding source for product investment, share repurchases and AI initiatives without immediate reliance on equity markets. This cash conversion cushions the business against temporary margin swings and supports multi‑quarter strategic spending.
Negative Factors
Weak balance sheet (negative equity)
Persistent negative shareholders' equity and sizable debt reduce financial buffer and amplify downside risk if revenue or cash conversion weaken. This structural leverage limits flexibility for opportunistic spending or M&A and raises refinancing and covenant sensitivity over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent, high free cash flow provides a durable funding source for product investment, share repurchases and AI initiatives without immediate reliance on equity markets. This cash conversion cushions the business against temporary margin swings and supports multi‑quarter strategic spending.
Read all positive factors
Wix Key Performance Indicators (KPIs)
Any
Creative Subscription ARR
Tracks annual recurring revenue from creative subscriptions, indicating the stability and growth potential of the company's subscription-based business model.
Tracks annual recurring revenue from creative subscriptions, indicating the stability and growth potential of the company's subscription-based business model.
Data provided by:
The Fly
The FlyWix (WIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.09B
Dividend YieldN/A
Average Volume (3M)2.15M
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth13.56%
EPS Growth-127.38%
CountryUS
Employees4,399
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.73
Shares Outstanding55,047,455
10 Day Avg. Volume2,473,952
30 Day Avg. Volume2,146,317
Financial Highlights & Ratios
PEG Ratio-1.80
Price to Book (P/B)-15.77
Price to Sales (P/S)2.90
P/FCF Ratio10.05
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue1.62
Enterprise Value/Gross Profit2.40
Enterprise Value/Ebitda-45.34
Forecast
1Y Price Target
$90.65Price Target Upside32.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)4.78
Revenue Forecast (FY)$2.28B
Wix Business Overview & Revenue Model
Company Description
Wix.com Ltd., together with its subsidiaries, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and internationally. The company offers Wix Editor,...
How the Company Makes Money
Wix primarily makes money through subscriptions and fees tied to business services delivered through its platform. The core revenue stream is recurring subscription revenue from premium plans that unlock capabilities beyond the free tier, such as ...
Wix Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented a largely positive growth and product narrative: solid bookings and revenue growth, rapid traction at BASE44 (now $150M ARR), healthy new cohort monetization (+46% vs prior-year cohort), the launch of a proprietary LLM and strong free cash flow generation. However, near-term margin pressure from deliberate, elevated investments in BASE44 and marketing (including one-time Super Bowl costs), elevated front‑loaded AI compute costs, a partners channel slowdown, FX headwinds, and a temporary net debt position introduce meaningful short-term challenges. Management maintained full‑year guidance and emphasized that many costs are intentional investments to capture AI-driven market opportunity, suggesting confidence in medium‑to‑long‑term outcomes despite near-term profitability and operational headwinds.Positive Updates
Strong Top-Line Growth
Total bookings of $585M, up 15% year-over-year, and total revenue of $541M, up 14% year-over-year in Q1 2026.
Negative Updates
Gross Margin Decline
Total non-GAAP gross margin was 66%, down sequentially and year-over-year; decline driven by elevated investments in BASE44 and higher AI compute costs, while core Wix gross margins were stable.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total bookings of $585M, up 15% year-over-year, and total revenue of $541M, up 14% year-over-year in Q1 2026.
Read all positive updates
Company Guidance
Wix reiterated full‑year 2026 guidance calling for bookings and revenue to grow in the mid‑teens percentage year‑over‑year (Q2 revenue also expected to grow mid‑teens YoY), while targeting full‑year free cash flow margin (ex‑acquisition items) in the high‑teens (or low‑ to mid‑20s on a pre‑tender capital structure assumption); this outlook factors in a $64 million FX headwind to the expense base and the company’s recent $1.6 billion tender (18 million shares, ~30% of equity) financed in part by a $500 million credit facility (leaving ~ $900 million pro‑forma cash), after a Q1 that delivered $585 million of bookings (+15% YoY), $541 million of revenue (+14% YoY), GDV of $3.8 billion (+12% YoY), total non‑GAAP gross margin of 66%, Q1 free cash flow of $112 million (21% of revenue), and ramped acquisition marketing spend of ~ $90 million in Q1 with a blended TROI of 7–9 months (BASE44 TROI <12 months) while BASE44 itself reached $150 million ARR in mid‑May.Wix Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
28
Negative
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.06B | 1.99B | 1.76B | 1.56B | 1.39B | 1.27B |
| Gross Profit | 1.39B | 1.36B | 1.20B | 1.05B | 861.44M | 781.08M |
| EBITDA | -73.48M | 33.20M | 186.21M | 68.48M | -439.77M | -28.83M |
| Net Income | -40.59M | 50.65M | 138.32M | 33.14M | -424.86M | -117.21M |
Balance Sheet | ||||||
| Total Assets | 2.98B | 2.61B | 1.91B | 1.80B | 1.76B | 2.06B |
| Cash, Cash Equivalents and Short-Term Investments | 2.02B | 1.18B | 1.11B | 962.89M | 1.06B | 1.32B |
| Total Debt | 1.59B | 1.59B | 969.95M | 996.32M | 1.13B | 1.03B |
| Total Liabilities | 3.08B | 2.98B | 1.99B | 1.86B | 2.02B | 1.91B |
| Stockholders Equity | -102.43M | -366.00M | -78.79M | -54.48M | -263.24M | 145.72M |
Cash Flow | ||||||
| Free Cash Flow | 539.68M | 574.30M | 479.60M | 182.20M | -33.51M | 27.98M |
| Operating Cash Flow | 549.80M | 582.86M | 497.42M | 248.25M | 37.15M | 65.69M |
| Investing Cash Flow | -320.01M | -902.15M | -35.47M | 566.71M | -54.66M | 376.87M |
| Financing Cash Flow | 418.95M | -43.00M | -406.73M | -450.02M | -189.16M | -160.06M |
Wix Technical Analysis
Negative
68.24
Price Trends
72.84
Negative
77.41
Negative
104.62
Negative
Market Momentum
-6.03
Positive
38.95
Neutral
30.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIX, the sentiment is Negative. The current price of 68.24 is above the 20-day moving average (MA) of 64.02, below the 50-day MA of 72.84, and below the 200-day MA of 104.62, indicating a bearish trend. The MACD of -6.03 indicates Positive momentum. The RSI at 38.95 is Neutral, neither overbought nor oversold. The STOCH value of 30.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WIX.
Wix Risk Analysis
Wix disclosed 59 risk factors in its most recent earnings report. Wix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The development and integration of artificial intelligence into our offerings may present regulatory, legal, business, and financial risks, and result in reputational harm, liability, or other adverse consequences to our operations. Q4, 2023
2.
Changes in our provision for income taxes or adverse outcomes resulting from examination of our income tax returns could adversely affect our results. Q4, 2023
3.
The application of indirect taxes, other tax laws or regulations could adversely affect our business and results of operations Q4, 2023
Wix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.73B | 33.85 | 150.65% | ― | 9.55% | -50.29% | |
73 Outperform | $6.05B | 13.38 | -28.45% | ― | -0.62% | 20.48% | |
68 Neutral | $16.28B | 61.30 | 154.32% | ― | 17.61% | 119.62% | |
63 Neutral | $5.65B | -17.50 | -21.49% | ― | 21.38% | 27.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $3.09B | -77.85 | 18.77% | ― | 13.56% | -127.38% |
* Technology Sector Average
WIX
Wix
56.06
-92.90
-62.37%
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16.55
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-3.95%
Wix Corporate Events
Wix Posts Double-Digit Q1 2026 Growth, Unveils Proprietary AI Model and Major Share Buyback
May 13, 2026
Wix.com Ltd. reported first-quarter 2026 results on May 13, 2026, posting revenue of $541.2 million, up 14% year over year, and bookings of $585 million, up 15% year over year, with total ARR reaching $1.903 billion. Creative Subscriptions and Bus...
Wix Posts Strong 2025 Results, Raises $250 Million to Accelerate AI-Led Growth
Mar 4, 2026
On March 4, 2026, Wix reported fourth-quarter 2025 revenue of $524.3 million, up 14% year-on-year, with bookings of $534.5 million and annual recurring revenue of $1.836 billion, underscoring strong growth across creative subscriptions, business s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.